Once-hot fake meat sees sales slide on price and being too ‘woke’

Just a few years ago, with a blockbuster initial public offering from Beyond Meat and the unveiling of an Impossible Whopper at Burger King locations nationwide, plant-based meats were ascendant.

Now, after once enjoying double-digit growth, sales are not just flat but declining, due to possible saturation of the U.S. market, according to Deloitte Consulting.

Sales of refrigerated meat alternatives at retailers are down 10.5% by volume for the 52-weeks ending Sept. 4, according to data from Information Resources Inc., or IRI. While higher prices are the top reason for the slide, it's not the only one, according to Jonna Parker, a fresh food specialist at the market research company.

"Proteins that were cheaper on a price-per-pound basis did fare better," Parker said, noting that semi-vegetarian shoppers that may have opted for an alt-product will now just go for the less-expensive real thing. With inflation, consumers have become less willing to pay a premium for faux meat. Taste and health concerns are also playing a role, she said.

Deloitte believes the industry is suffering from a perception problem. In July, it surveyed 2,000 consumers and found a decline in the belief that plant-based meat is healthier and more environmentally sustainable than meat from animals. (While the environmental credentials of plant-based products compared to their meatier counterparts are well established, the health claims are not.)

Deloitte also suspects that the addressable market may be more limited than previously thought with a growing cultural resistance to its "woke" status - even among those seeking to reduce red meat consumption. Case in point: When Cracker Barrel announced plans to add Impossible Foods' sausage to its menu over the summer, it faced an onslaught of criticism on social media.