The Many Problems with "Plant-Based"

The burgeoning plant-based food industry is emblematic of the current dichotomy in consumer preferences: a polarizing divide between plant-based and animal-based diets. This debate, framed as a binary choice, overlooks the potential for a balanced middle ground. This article delves into the complexities of the plant-based food market, spotlighting the challenges faced by industry giants like Beyond Meat and Impossible Foods, and explores why the solution to sustainable and ethical eating lies in transcending this dichotomy to find a harmonious balance.

Virtue Signaling and Tradition Anchoring

In modern society, food choices have evolved beyond mere sustenance; they now serve as expressions of personal values and identities. The rise of plant-based diets is partially driven by virtue signaling—consumers' desire to project ethical and environmentally conscious values. According to a 2021 study by the International Food Information Council, 65% of consumers indicated that their food choices reflected their values. Conversely, tradition anchoring sees consumers holding steadfast to conventional animal-based diets rooted in cultural and historical significance. This cultural tug-of-war has polarized the marketplace, with each side championing its virtues while dismissing the other.

The Rise and Fall of Plant-Based Burger Giants

Beyond Meat and Impossible Foods experienced meteoric rises in popularity, hailed as revolutionary alternatives to traditional meat. Beyond Meat's initial public offering (IPO) in May 2019 was a historic success, with stock prices skyrocketing from the $25 IPO price to an all-time high of $234.90 in July 2019. However, as of today (June 4th), Beyond Meat's stock price has plummeted to around $7.76, reflecting a catastrophic freefall. Similarly, Impossible Foods, once lauded for its innovative approach to plant-based meat, has faced declining sales and market skepticism despite initial successes, albeit based on a very limited offering of sub-standard products.

Several factors contribute to these struggles, making it hard to for a regular consumer to justify the switch to what are consistently weaker products by all but a couple of sustainability metrics, which we know are an aspirational metric, but at the time of consumption, a distant last.

1. Price: Plant-based burgers are often more expensive than meat. A 2022 study by the Dutch government found that plant-based meat alternatives are, on average, 63% more expensive than their animal-based counterparts. This price disparity makes plant-based options less accessible to the average consumer. For instance, a Beyond Burger typically costs around $5.99 for two patties, whereas a comparable beef burger costs significantly less, making plant-based options less attractive to price-sensitive consumers.
2. Taste: Despite significant advancements, many consumers find the taste of plant-based burgers inferior to traditional meat. A survey by the Hartman Group in 2022 found that 53% of consumers still preferred the taste of animal-based meat over plant-based alternatives.
3. Ingredient Complexity: Long ingredient lists with unfamiliar additives can deter health-conscious consumers. For example, the Beyond Burger contains over 20 ingredients, including pea protein isolate and canola oil, which can be off-putting to those seeking natural and simple food options.
4. Nutritional Comparison: Plant-based burgers lack nutritional value compared to animal meat, lack essential nutrients or contain higher levels of sodium and processed ingredients. Plant-based burgers consistently contain lower protein and sodium levels than beef burgers.

Weak Marketing and the "Clean" Narrative

The marketing strategies of plant-based brands have leaned heavily on the "clean" and "humane" narratives, positioning their products as morally superior alternatives. However, this messaging has often overshadowed the need for robust product development. Instead of creating genuinely exceptional products, the emphasis has been on virtue signaling through marketing. This approach has alienated mainstream consumers who prioritize taste and value over ethical considerations.

For instance, Beyond Meat's marketing campaign in 2020 focused on the environmental benefits of their products, claiming that their burgers used 99% less water and 93% less land than traditional beef burgers. While compelling, these claims did not address the primary consumer concerns of taste and cost, leading to a disconnect between the brand's messaging and consumer expectations.

Early Adopters vs. Mainstream Acceptance

Initial success was primarily driven by early adopters—consumers willing to compromise on taste and cost to align with their ethical values. According to a report by NPD Group, early adopters of plant-based meats were predominantly affluent, urban, and environmentally conscious individuals. However, as plant-based brands attempt to penetrate the mainstream market, they encounter resistance. Mainstream consumers are less willing to pay a premium for products they perceive as inferior in taste and nutrition. This highlights a fundamental flaw in the plant-based market strategy: the assumption that consumers' intentions to eat sustainably and reduce meat consumption will translate directly into purchasing behavior.

The Instagram Generation's Reality Check

We live in an "Instagram Generation" where aspirational values often diverge from actual behavior. While consumers may desire to eat less meat and make sustainable choices, their actions tell a different story. A survey by Mintel found that 57% of consumers expressed interest in reducing meat consumption, but only 23% had reduced their meat intake. Cravings for delicious food often override ethical considerations at consumption, leading to post-consumption remorse rather than proactive decision-making.

The Path Forward: Wave II of Plant-Based Meat

We have been working on "Wave II" of the plant-based meat analog movement at Chew. Our approach involves blind taste tests without packaging or messaging, focusing solely on consumer preference. After five years of development, our products are often preferred over traditional meat, achieving this by leveraging natural advantages and improving upon them. For example, our latest plant-based burger was selected by 62% of participants in blind taste tests conducted in early 2024, surpassing traditional beef burgers in both taste and texture.

Conclusion

The plant-based vs. animal-based debate is not a zero-sum game. This is not a sensational story about a dystopian world of all food being made in a clandestine lab, nor is it a world where the only meat we eat, when it comes to animal-based protein, comes from animals we raise and slaughter. This is a non-media-friendly story of balance and moderation, where these new products and technologies add to the variety of what we eat rather than replace. Let’s try to avoid buying into the headlines and clickbait, as these are designed to create outrage and drive revenue rather than reflect what is a moderate and scalable path to the sustainability of our food system. The solution lies in creating products that bridge the gap, offering the taste, nutritional value, and affordability that consumers demand. By moving beyond virtue signaling and focusing on product excellence, the industry can appeal to a broader audience and achieve the sustainability goals that initially drove its inception. The future of food is not in choosing sides but finding common ground where ethical, sustainable, and delicious food coexist.