The plant-based industry is experiencing both challenges and opportunities.
- Mimic meat products are facing a significant decline in consumer demand.
- Natural plant-based products continue to show strong growth potential.
- The market for mimic meats was initially overestimated, leading to current struggles.
- Deliciously Ella remains unaffected due to its focus on natural ingredients.
The current landscape of the plant-based industry reveals a dual nature of challenges and opportunities. According to Matthew Mills, chief executive of Deliciously Ella, products that mimic meat are witnessing a substantial decline. This decline is attributed to the overestimation of consumer demand by investors, which has not materialised as expected.
Despite the downturn in mimic meat products, the natural plant-based sector remains robust. Mills points out that while mimic meat products still serve a purpose, their market size has not reached the anticipated levels. In contrast, the natural plant-based category continues to experience strong growth, demonstrating the enduring appeal of health-focused products.
The market’s initial optimism about mimic meats created unrealistic expectations. Mills recalls how investor discussions five years ago predicted a vast market size for these products. However, such expectations have proven to be overly ambitious, leaving many brands struggling to adapt to the current reality.
Deliciously Ella, which has not entered the mimic meat market, remains insulated from these challenges. Mills explains that their focus on natural ingredients prevents them from being affected by the decline in mimic meat sales. This strategic positioning allows the brand to continue growing within the thriving natural plant-based segment.
The financial impact on brands focused on mimic meats is substantial. Marlow Foods, the parent company of Quorn, reported a significant loss, highlighting the struggles within this segment. Other brands like Meatless Farm and VBites have faced severe financial difficulties, while Beyond Meat is striving to recover from a slump in sales.
The plant-based industry continues to evolve, with natural products leading the way amid challenges faced by mimic meats.
