In an almost Bitcoin like frenzy, the hype around the IPO for Californian start-up Beyond Meat raises questions about the gold-rush style interest in the meat-free burger sector. Head of process at Integrated Food Projects, Ed Keenan, has been keenly watching things develop.
Although nobody can argue that there is huge potential within the market, I can’t help but question the financial value of this potential, can Beyond Meat possibly deliver against this $3.8 billion valuation?
The market for meat substitutes is certainly growing and is expected to be $6.4 billion worldwide by 2023 according to Nielsen data. In terms of growth rates, last year, the $30bn processed meat market grew by only 2%, while the $1.4bn meat alternatives market grew by 22%.
One of the most interesting aspects of this is the fact that these meat-free products are on sale and displayed in supermarket meat sections. This fundamental change is huge in terms of psychological perception, effectively normalising the meat-free concept to an otherwise untapped consumer audience.
I myself no longer eat meat burgers at home, a decision made more by my wife Caroline after she had an unpleasant gristle experience. Given how they are packaged, buying for one person results in eating 2 or 4 burgers. so I opted to change with the times and go meat-free.
So, gristle issues aside, why are people turning to meat-free? There are several driving factors:
- They do not like the taste of meat
- Moral issues with the killing of animals
- Environmental impact
- Health benefits
- Meat-free is on trend and fashionable
- Family member driven
We already have an established list of meat-free burger products in the UK from the like of, Quorn, Cauldron, Fry’s and Linda McCartney.
So who are some of the ‘new’ contenders:
- Beyond Meat – $3.8 billion valuation, not bad when you consider its losses have been in the order of $30 million per year. Investors include Bill Gates, former McDonalds CEO Don Thompson and Leonardo DiCaprio
- Impossible Foods through Garden Gourmet (Nestle) – just partnered with Burger King, also invested in by Bill Gates
- Naturli – has been making meat free products since 1988 in Denmark
- Vivera – a Dutch company that has just launched the world’s first plant based steak
- Moving Mountains – launched the UK’s first bleeding meat-free burger and is just about to launch a hot-dog product
There is no doubt that this move away from meat will only increase over time, so perhaps this is the perfect time to enter the meat-free market.
However there are certain hurdles that have not been raised which will need to be overcome as part of this progression:
Will the proposed ban on terms like burger and sausage to describe meat-free products have any effect?
Will the soil-depleting mono-crop nature of soya become an issue?
Will the high salt and fat levels in these meat free alternatives hinder growth?
The meatless burger isn’t a new concept, the hype surrounding it is. I believe that in 30 years’ time it will be rare to eat animal meat, perhaps this hype will be the catalyst to bring about the change that gets us there.
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