Plant-based meat sales declining, industry possibly suffering 'perception problem'

Plant-based meats are no longer all the rage they were just a few years ago, according to Deloitte Consulting LLP.

After once enjoying double-digit growth, sales are declining, possibly due to saturation of the U.S. market, Bloomberg reports.

"Sales of refrigerated meat alternatives at retailers are down 10.5% by volume for the 52-weeks ending Sept. 4, 2022, 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," the report reads.

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Deloitte believes the industry is suffering from a perception problem, according to the report. The company surveyed 2,000 consumers in July and found a decline in the belief that plant-based meat is healthier and more environmentally sustainable than meat from animals. 

Deloitte has even gone as far as to suspect the addressable market may be more limited than previously though, with growing cultural resistance to its "woke" status. Cracker Barrel reportedly faced blowback after adding Impossible sausage to its menu over the summer, facing hundreds of comments on social media on ideological, generational and political lines.

Just last week, Beyond Meat announced it suspended Chief Operating Officer Doug Ramsey following his arrest for allegedly biting a man's nose during an altercation.

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In early August, Beyond Meat reported net revenues of $147 million for the second quarter of 2022, down 1.6% compared to the $149.4 million in net revenues reported for the same period last year. Its net loss widened to $97.1 million for the second quarter of 2022 from $19.7 million for the same quarter in 2021, the company reported.

Fox Business' Aislinn Murphy and The Associated Press contributed to this report.