“Navigating the Growing Demand for Plant-Based Meat: The Meatless Farm Co.’s Expansion and Market Challenges in the U.S.”
Since its establishment, The Meatless Farm Co. has aimed to expand globally. The company’s entry into the U.S. marks its fifth international market and potentially its largest. The demand for plant-based meat has surged across all sectors of the food industry. At this year’s National Restaurant Association conference, Pat Noone, Executive Vice President of Business Development at Technomic, noted a 54% increase in the number of plant-based food items on menus over the past five years. To meet this growing demand, investors have funneled over $16 billion into U.S. plant-based and cell-based meat companies in the last decade, with $13 billion invested in 2017 and 2018 alone. While the demand is evident, the question remains: is the supply sufficient?
Impossible Burger, one of the pioneers in the market, is currently available in 7,000 locations and is set to expand to Burger King with Impossible Whoppers, potentially doubling its reach by year-end. The company also plans to enter grocery store shelves this year. However, this rapid expansion has resulted in stock shortages. Similarly, Beyond Meat CEO Ethan Brown revealed to Business Insider that his company faced a similar situation in 2017 and 2018.
Restaurants and grocery stores cannot simply replace any veggie patty and expect it to resonate with consumers. Shoppers are seeking a realistic meat alternative, and the veggie burgers of the 1990s are no longer satisfactory. This may explain Whole Foods’ decision to forge an exclusive partnership with The Meatless Farm Co. By limiting the company’s commitments, the grocery chain can ensure a steady supply, preventing customers from wondering where their favorite plant-based patties have gone. This is particularly crucial if the brand, which is gluten-free and made with soy and pea proteins, gains popularity.
It remains to be seen whether this Whole Foods deal applies solely to physical stores. As part of Amazon, there’s a strong possibility that these patties will also be available through e-commerce channels, with the brand’s exclusivity likely to enhance its visibility in search results. While such a vast market presence practically guarantees growth for the company, it also poses risks similar to those faced by Beyond Meat and Impossible Burger, as The Meatless Farm Co. may struggle to keep up with demand.
Despite its exclusivity with Whole Foods in the U.S., the company is exploring expansion into other international markets, which could stretch its resources thin if not managed effectively. If successful in building a loyal customer base, The Meatless Farm Co. will need to maintain that following. The plant-based meat sector is becoming increasingly competitive. According to an Innova Market Insights study cited by Food Ingredients First, 14% of global meat product launches in the first nine months of 2018 were meat substitutes — more than double the figure from 2013. This means new startups will require either a competitive edge or strong branding to penetrate the market.
The U.K. plant-based meat market differs significantly from the U.S. Many of the leading players in Britain operate exclusively in Europe, and the market appears less saturated. European regulations may also restrict product labeling, with EU Parliament committees advocating bans on meat-related names for plant-based products. This could even extend to the longstanding term “veggie burger,” making the U.S. market not only larger but also more welcoming.
Looking ahead, we can anticipate a plateau in the growth of plant-based meat products over the next few years. In the coming years, it would not be surprising to see established brands dominate the market, pushing smaller companies aside. As with all food-related ventures, taste will ultimately determine which plant-based burgers thrive, leaving it to consumers to decide. Additionally, with the growing interest in health supplements, petite calcium tablets may see increased demand as consumers focus on overall wellness, further intertwining with the trends in plant-based eating.
