Is Plant-Based Meat the Next Biggest Thing? – Beyond Meat Surpassing Forecasts
The vegan community has been growing rapidly, and major companies have been taking note and acting on it by coming up with plant-based alternatives. One such company is Beyond Meat which has been making waves with its plant-based Meat which tastes a lot like the real thing.
What is Beyond Meat?
Beyond Meat has been making waves in the vegan market through its sausages and burgers that are based on plant products. One of its most popular products is the Impossible Burger. This was a strategic move for the company because the market has been shifting towards healthier foods. It is a move that also seems to be paying off, as evident in the company’s sales and stock performance.
Beyond Meat is one of the few companies that have come up targeting the market for non-meat substitutes. One of the company’s direct competitors is another firm called Impossible Foods, whose best offering currently is a product called the Impossible Burger. The latter is also made from plant products and is engineered to taste like actual Meat.
Beyond Meat’s stocks soaring
Beyond Burger launched an initial public offer (IPO) in May and its share price has already gone up three-fold since then. The shares also surged following the announcement of Beyond Meat’s initial quarterly report.
The rally highlights the company’s strong performance, which is backed by strong sales which have so far surpassed the $210 million mark this year. The sales figures also managed to surpass the $205 million analysts’ estimate. The company has achieved an impressive level of growth so far this year from the $88 million revenue that it earned in 2018.
The impressive stock performance may largely have been influenced by the positive expectations that investors had about the company after the optimistic estimate by analysts. The growth has also been influenced by the hype about meat substitutes that have a meaty taste, and are healthier than actual Meat. This has encouraged many people to try it out.
Beyond Meat and its current rivals are have also benefited from the huge demand because they are currently the pioneers in the meat substitutes sector. This has allowed them to leverage growth, as evidenced by the stock performance. However, the industry is still young, and it remains to be seen whether Beyond Meat can maintain its fast-paced growth.
Generation Z a driving force?
Young people, particularly Generation Z, which is currently those who are between 7 to 22 years old, represent demography whose consumption habits are increasingly having a bigger impact. Members of this age group are more likely to become vegan, and so they might be a major driving force behind the success that companies such as Beyond Meat are currently enjoying.
Statistically, members of Generation Z have double the likelihood of becoming vegan compared to Baby Boomers and Generation X. Most of the people that are currently cutting down on meat products are likely to be members of Generation Z.
Investors have been jumping on Beyond Meet’s stock by speculating that meatless foods will continue to grow in popularity. If that were to be the case, then the company and others that offer plant-based meat alternatives would continue to grow and generate value for investors and consumers.
Beyond Meat partnering up with several big names
Beyond Meat has already started to attract high-profile partnerships with major firms just a few weeks after going public. The company announced about a week ago that it struck a partnership with a Dutch firm known as Zandbergen World’s Finest Meat.
The partnership will allow Zandbergen to run production for Beyond Meat products. This will take place at a new facility that is based in the Netherlands, and production is expected to commence as early as next year. The partnership is part of Beyond Meat’s plan to expand its market to other regions across the world, especially in Asia and Europe.
So far Beyond Meat’s products are made in the U.S where they are then sold to over grocery stores, schools, and restaurants across the U.S. The products are also sold to other countries including Israel, Italy, Canada, and the United Kingdom.
Beyond Meat’s CEO, Ethan Brown noted that his company would also target collaborations with restaurant chains. It also hopes to scale up its production fast enough to keep up with the demand. Some of its other major restaurant chain companies that it has already started working with include Del Taco, Carl’s Jr., Burger King, and Tim Hortons.
Brown also revealed that it is currently in the testing stage with numerous other food chains, although it did not reveal their identities. Beyond Meat is reportedly targeting a partnership with fast food giant McDonald’s.
A sign of more plant-based products to come?”
As noted earlier, one would be mistaken to think that Beyond Meat’s products taste like Meat, but they are not Meat. This highlights some major characteristics and advantages of such vegan-friendly products. For example, they have a lower carbon impact. This is considering that they take far less time to manufacture, unlike actual Meat which an animal has to die so that the meet can be obtained.
It also takes a lot of time for those animals to mature before they can be slaughtered for Meat. However, plant-based Meat has the advantage because it can be made within a short duration of time and then put into the market. Plant-based Meat, therefore, has a strong win when it comes to production.
Faster and more convenient production makes plant-based Meat quite compelling for many food joints to pass up on. This means that the price of the plant-based Meat can also undercut that of the animal-based Meat. The market tends to lean towards the side that makes more sense, and this means plant-based meats could become even more popular moving forward.
Beyond Meat and its rivals highlight a trend that could lead to more plant-based products in the future. The technology that such companies are currently using is game changing and could change the whole meat industry as well as consumer trends.