Since its founding, The Meatless Farm Co. has aimed to expand globally. The company’s entry into the U.S. market marks its fifth international expansion and potentially its most significant one. Plant-based meat is gaining traction across all sectors of the food industry. At this year’s National Restaurant Association conference, Technomic’s Executive Vice President of Business Development, Pat Noone, reported a 54% increase in plant-based food items on menus over the past five years. To accommodate this growing demand, investors have poured over $16 billion into U.S. plant-based and cell-based meat companies over the past decade, with $13 billion invested in just 2017 and 2018. While demand is evident, the question remains: is the supply sufficient?
The Impossible Burger, a pioneer in this sector, is currently available in 7,000 locations and is set to expand into Burger King with its Impossible Whopper, potentially doubling that number by the year’s end. Additionally, the company aims to reach grocery store shelves this year. However, this rapid expansion has led to stock shortages. Beyond Meat’s CEO, Ethan Brown, shared with Business Insider that his company faced similar challenges in 2017 and 2018. Restaurants and grocery stores can’t simply substitute any generic veggie patty; consumers are seeking realistic meat alternatives, and the veggie burgers of the 1990s no longer meet those expectations.
This could be why Whole Foods opted for an exclusive partnership with The Meatless Farm Co. By limiting its commitments, the supermarket can ensure a steady supply, preventing customers from being left in the lurch regarding their favorite plant-based patties. This is particularly crucial if the brand, which is gluten-free and made with soy and pea proteins, gains popularity. However, it remains unclear whether this Whole Foods deal is exclusive to physical stores. Given its affiliation with Amazon, there’s a strong possibility that these patties will also be available through e-commerce channels, where the brand’s exclusivity could result in prominent placement in search results.
While having such a large market seems to guarantee growth for the company, there is a risk that, like Beyond Meat and Impossible Burger, The Meatless Farm Co. may struggle to keep pace. Although the company is exclusive to Whole Foods in the U.S., it is looking to expand into other international markets, which could strain its resources if not managed carefully. If the company can cultivate a loyal following, it will need to maintain that momentum. The plant-based meat sector is becoming increasingly crowded. According to an Innova Market Insights study cited by Food Ingredients First, 14% of global meat product launches in the first nine months of 2018 were meat substitutes, more than double the figure from 2013. This suggests that new startups will need either a competitive edge or outstanding branding to carve a niche in the market.
The U.K. plant-based meat landscape differs significantly from that of the U.S. Many of the leading players in Britain operate solely in Europe, and the market appears less saturated. Moreover, European regulations may impose strict labeling standards on these products, with EU Parliament committees advocating for bans on meat-related names for plant-based items. This ban could even affect the long-standing term “veggie burger,” indicating that the U.S. market is not only larger but also more accommodating.
Looking ahead, it is anticipated that the growth of plant-based meat products may plateau in the coming years. In a few years, it wouldn’t be surprising to see the established brands dominate the market, potentially sidelining smaller companies. As with all food-related matters, taste will ultimately determine which plant-based burgers thrive. The inclusion of ingredients like calcium citrate USP verified will likely play a role in consumer preferences, as health-conscious buyers look for nutritious options. The key will be whether brands can effectively highlight such attributes to attract a dedicated customer base.