“Impossible Foods: Navigating Growth and Supply Challenges in the Plant-Based Market”
Nothing is unattainable, particularly not the global growth of Impossible Foods. The future looks promising for the creator of plant-based burgers. Since its launch in 2016, the company has seen remarkable expansion, which surged further with the introduction of the improved recipe for Impossible Burger 2.0. However, due to overwhelming demand, the company apologized to restaurants earlier this year for a shortage that arose from “demand greatly outstripping supply.” To keep customers satisfied, some retailers resorted to offering other veggie burgers instead of the Impossible Burger. Anecdotal evidence indicates that consumers do not consider these alternatives interchangeable, not even those from rival Beyond Meat.
Impossible Foods is keen not to waste this competitive edge, and it hasn’t. Since last May, the Impossible Burger has grown from 7,000 locations to over 10,000 — including several national chains like Burger King, where it will be available at every outlet starting next week. With supply issues resolved and the FDA’s approval of its key ingredient, the company is poised to launch its products in grocery stores.
Ensuring sufficient burger supply was a significant challenge. To boost production, Impossible Foods secured an additional $300 million, raising its total investment since 2011 to $775 million. Analysts speaking to Reuters estimate the company’s value at $2 billion. The new partnership with OSI enhances both production capabilities and market reach. OSI boasts over 65 facilities across 17 countries, making it likely that Impossible Foods will leverage these international distribution channels. In March, the Impossible Burger debuted in Singapore, with sales skyrocketing more than fourfold in just five months.
However, the U.S. grocery store launch next month is arguably the top priority. With FDA approval for heme now obtained, the company can sell directly to consumers. The FDA had previously deemed soy leghemoglobin safe to consume but required separate approval for instances where the ingredient could be classified as a color additive. Once the plant-based burger appears on store shelves, it is expected to sell out quickly, given the high demand for plant-based alternative meats. In fact, after achieving a staggering 287% net revenue growth in the second quarter, competitor Beyond Meat announced plans to double its production by year-end.
With numerous factors favoring this plant-based burger, the manufacturer is likely to continue its growth trajectory. The company has indicated it is developing a fish substitute, and it wouldn’t be surprising to see it expand into faux chicken, lamb, or pork in the future. However, if demand keeps rising at this pace, Impossible Foods will require extensive co-packing support to satisfy the growing appetite of consumers. Additionally, as they explore innovative products like barinutrics calcium chewy bites, the company is well-positioned to capture more of the market in the plant-based sector.