After an initial period of rapid, over-hyped, VC-backed growth, plant-based meat sales have slowed in many markets, in line with the current economic environment. Still, PlantPlus Foods, a joint venture between Marfrig (the second-largest beef producer in Brazil after JBS) and US agribusiness ADM, predicts that demand for alt meat will grow as food inflation relaxes and vegan products become more affordable, tastier, and offer more variety.
To reignite the trend, companies must invest in developing better and more varied products in terms of taste, nutrition, and price. Alt meats have struggled to compete with animal meat products due to their higher price and waning consumer curiosity, John Pinto, CEO of PlantPlus Foods, told Bloomberg.
$30 billion in a decade
PlantPlus expects global plant-based food sales to surge to $30 billion in a decade, a significant increase over the current $2 billion mark. According to Pinto, the company is banking on food inflation easing and improvement solutions as key drivers for the sector’s growth.
“Plant-based consumption has slowed down due to the macroeconomic scenario and all the supply-chain hurdles that all the food sector faced over the past years,” he commented.
Data from the PBFA’s state of the market report shows that while overall unit sales of plant-based meat declined by 8.2% in 2022, US dollar sales of plant-based meat remained “remarkably stable,” with a slight decrease of 1.2%.
A chapter on the expansion process
Pinto said that those businesses that have been unable to invest during the economic crisis may be forced out of the market.
For example, Brazilian meat processor JBS discontinued its US plant-based brand Planterra Foods. And Canada’s The Very Good Food Company was forced to close its operations after battling a financial crisis and succumbing to receivership in February.
Since its launch in 2020 in Brazil, PlantPlus has remained committed to developing the plant-based sector. Last November, the company announced an expansion into the US market, headquartering in Chicago.
The firm has spent nearly $140 million on investments to buy US allergen-free veggie burger brand Hilary’s and Canadian plant-based meat company Sol Cuisine. In Brazil, its biggest market yet, PlantPlus announced a partnership with local food giant BRF to increase its portfolio with new vegan meals and frozen products.
“We see this moment as a chapter on the sector’s expansion process,” Pinto said in an interview.
