It is advertised as the “meat” with the appearance, taste, and texture of real meat. The meat plant based It is shown as the alternative for all meat lovers who want to reduce or eliminate their consumption for various reasons. On many occasions in search of a presumed healthier diet without giving up the pleasure of tasting good presumed meat.
Crisis in the plant-based sector
After appearing countless proposals, with more or less success, consumption seems to take its toll on all these companies in the planted-based sector. All after investing large amounts of money in search of a great return and the magic formula that would captivate everyone.
Now the first symptoms of stagnation and crisis in the sector are beginning to appear. All of this has led to the leading American company in the sector Beyond Meat has announced the first layoffs. Specifically, he plans to lay off 19% of his staff, some 200 employees. For this reason, the company's share price has been falling by 10% in recent days, which must be added to the almost 70% drop in recent months. Currently the value of the company is already less than 900 million dollars.
Causes and future of the sector
Industry experts attribute the causes of this crisis to various factors that have coincided over time. In the first place, strategic marketing errors where many companies have appeared producing the same product without a differentiation strategy. Secondly, to the rise in all the raw materials that are involved in the product, from energy to soybeans or peas that form part of the base of the production. The third cause is the drop in consumption produced by the price increase and the difficulty of access for economic reasons to the majority target that is addressed.
In conclusion, it is true that the product has managed to gain an important foothold in the market. Everything in a segment that once the crisis has been overcome will consolidate and grow. Also over time they will be able to expand the channels as is the case with restoration. For all this, it needs more time to consolidate in the market, adjust production costs and consequently sale prices. And of course seek a greater differentiation of the brands to reach the largest possible audience.
