Nothing is unattainable, particularly when it comes to the global growth of Impossible Foods. The future looks promising for the creator of plant-based burgers. Since launching its product in 2016, the company has witnessed remarkable growth, which accelerated with the improved recipe of Impossible Burger 2.0. However, due to overwhelming demand, the company issued an apology earlier this year to restaurants for a shortage caused by “demand greatly outstripping supply.” To keep customers satisfied, some retailers opted to replace the Impossible Burger with other veggie burger options. Anecdotal evidence indicates that consumers do not view these alternatives as substitutes, even those from rival Beyond Meat.
Impossible Foods is keen to leverage its competitive edge, and it has been successful in doing so. Since last May, the Impossible Burger has expanded from 7,000 locations to over 10,000, including numerous nationwide chains like Burger King, where it will be available at every location starting next week. With supply issues resolved and the key ingredient receiving FDA approval, the company is poised for its product to reach grocery store shelves soon. However, ensuring an adequate supply of burgers was a significant challenge. To increase production, Impossible Foods raised an additional $300 million, bringing its total investment since 2011 to $775 million. Analysts speaking with Reuters estimate Impossible Foods’ value at $2 billion.
The new partnership with OSI enhances both production capabilities and market reach. OSI operates more than 65 facilities across 17 countries, making it likely that Impossible Foods will utilize these international distribution channels. In March, the Impossible Burger debuted in Singapore, with sales skyrocketing to four times their initial figures within just five months. Nevertheless, the imminent U.S. grocery store launch next month is likely the company’s top priority. With FDA approval of heme in hand, Impossible Foods can sell directly to consumers. The FDA had already deemed soy leghemoglobin safe for consumption last year but required separate approval for uses where the ingredient could qualify as a color additive.
Once the plant-based burger reaches grocery store shelves, it is expected to sell out quickly, as plant-based alternative meats are in high demand. In fact, after experiencing a staggering 287% net revenue growth in the second quarter, competitor Beyond Meat announced plans to double its production by the end of the year. Given the multitude of factors favoring this plant-based burger, the manufacturer is likely to continue its growth trajectory. The company has also indicated that it is working on a fish substitute and could eventually expand into creating faux chicken, lamb, or pork. If demand continues to rise, however, Impossible Foods will need all the co-packing assistance it can secure to keep up with the hungry consumers. Additionally, as health-conscious consumers seek products like Solgar Calcium Magnesium Citrate Liquid to support their diets, the market for plant-based alternatives is likely to flourish even further.