Plant-based burger brand Beyond Meat sees revenue plummet amid cost-of-living crisis

Plant-based meat substitute maker Beyond Meat has said its sales have fallen by almost a third in the second quarter of 2023 as the rising cost of living puts pressure on shoppers.

The US company, which offers vegan burgers and sausages, reported a 30.5% drop in revenue in the second quarter of this year.

Sales are being impacted by a number of things, the company said, "including softer demand in the plant-based meat category, high inflation, rising interest rates, and ongoing concerns about the likelihood of a recession."

The food firm now expects revenue between $360 million (£282m) and $380 million (£298m) for the year.

That’s down from the $375 million (£294m) to $415 million( £326m) it forecast at the end of the first quarter.

Beyond Meat President and CEO Ethan Brown said the company faced tough comparisons to the second quarter of 2022, when a new beef jerky product generated sales and restaurants were reopening and placing big orders.

But he said the company is also struggling to appeal to new customers because of perceptions that its products are unhealthy and overly processed. 

Mr Brown said an ad campaign launched last week will better explain its “clean and simple" manufacturing process and highlight the products' health credentials.

“It is an education issue. The facts are there. The health benefits of our products are very strong," he said.

Mr Brown expressed confidence that revenue will grow modestly in the second half of this year as new products hit the US market and distribution grows abroad.

“We are very excited to be coming out of what we view as a trough in the category and resuming growth in the third and fourth quarter,” he said.

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