Leaders in the plant-based market, such as Beyond Meat and Impossible Foods, have adopted a strategy focused on creating products that closely resemble traditional meat. However, recent sales figures suggest that this approach may be losing appeal among consumers. For instance, Beyond Meat experienced a nearly 30% drop in revenue last quarter, with the company acknowledging a “significant gap between the strong health credentials of our products and a broader narrative that is now emerging, and this gap seems to be widening.”
In Beyond Meat’s popular Beyond Beef patty, the second ingredient listed is expeller-pressed canola oil, which contains trans fats associated with health issues. Additionally, the product includes pea protein, rice protein, natural flavors, potato starch, and sunflower lecithin. Meanwhile, the Impossible Burger starts with soy protein concentrate and contains other ingredients such as inflammatory sunflower oil and modified food starch.
A report from Whole Foods indicates that more shoppers are prioritizing recognizable ingredients in their purchases. Brands like Actual Veggies and Meati are aligning with this trend. Actual Veggies’ Green Burger features ingredients like broccoli, kale, yellow onion, white bean, and oats, boasting a relatively high protein content. Meati’s Carne Asada Steaks utilize ingredients such as mushroom root, salt, and fruit juice for coloring.
Even some plant-based milk brands are shifting away from replicating the creamy texture of dairy milk to prioritize clean ingredients. The Whole Foods report highlighted Three Seeds almond milk, which consists of just two ingredients: almonds and water. Larger companies like Oatly, which uses an “oat base” of oats and water supplemented with ingredients like rapeseed oil, are also facing challenges, reporting net losses of $75.6 million last quarter due to supply chain issues.
In recent years, numerous smaller brands in the plant-based sector have emerged, many of which pride themselves on using only healthy, clean ingredients. The report mentioned companies like Abbot, Atlantic Sea Farm, and Smallhold as examples of businesses offering products that cater to this growing consumer interest. Additionally, there is a rising awareness of nutritional supplements like Kirkland calcium citrate magnesium and zinc, with consumers seeking products that offer health benefits at competitive prices. This trend underscores a broader movement towards transparency and quality in the plant-based market.