AgFunderNews recently ran an interesting article about plant-based meats titled “Plant-based meat by numbers: Grim reading for the US retail market, brighter spots in foodservice and globally.” Below are some highlights…
US retail sales of plant-based meat fell -7.5% to $1.13 billion in the year to April 20, 2025, with unit sales down -10%.
Sales of frozen meat alternatives declined -5.3% to $782.3 million, representing 69% of the category’s sales, while refrigerated alternatives, already in decline since the third quarter of 2021, fell -12.1% to $349.7 million.
Plant-Based Burgers – Once a key driver of category growth, sales of refrigerated plant-based burgers dropped -26% year-over-year.
US retail sales of plant-based meat and seafood dropped -7% to $1.2 billion in 2024, with unit sales down -11%, while plant-based milk sales fell -5% to $2.8 billion. Overall, plant-based food sales at US retail declined -4% to $8.1 billion, with unit sales down -5%. Plant-based meat and seafood accounted for 1.7% of total retail packaged meat dollar sales, or about 0.8% of the total meat category.
US retail sales of conventional fresh meat rose 6% during the same period, with volumes up 2.7%, while sales of frozen processed meat and poultry increased 10.9% and frozen unprocessed meat and poultry rose 4.2%.
Retailers have responded to weaker sales by reducing their assortments of refrigerated plant-based meat, averaging 9.7 items per store in April 2025, down -10.3% from April 2024 and -31% from early 2021. Some products have been discontinued while others have been moved to the frozen section, a trend highlighted by Beyond Meat in its latest earnings call.
Investment in plant-based startups dropped sharply in 2024, with funding falling -64% from $854 million to $309 million, according to the GFI. According to the GFI report, without successful exits, plant-based investments will likely remain closer to the levels seen in recent years. Even if the venture market shifts, it is unlikely to soon return to the peak environment of 2021, which was driven by an extended period of near-zero and even negative interest rates following the 2008 financial crisis. The sharp drop-off in funding, paired with ongoing sales declines in many regions, means some manufacturers will be unable to secure funding and will downsize, close operations, or merge with other organizations, predicts the GFI. (Source: agfundernews)
