The pandemic was a bonanza for the plant-based "meat" industry. U.S. sales of plant-based meat soared 45% to $1.4 billion, and refrigerated plant-based meat sales expanded 75%. Beyond Meat (NASDAQ: BYND) certainly benefited, with retail sales of its products more than doubling in 2020.
That red-hot demand hasn't lasted. Sales of plant-based meat were essentially flat in 2021, and 2022 isn't looking any better. Beyond Meat is being hit particularly hard. The company's refrigerated pea-based products have fallen out of favor, and the expensive launch of Beyond Meat Jerky hasn't gone according to plan.
Beyond Meat's products are more expensive per pound than real meat, so the pressure that elevated inflation is putting on consumers right now is not helpful. Beyond Meat's total revenue dipped 1.6% year over year in the second quarter, but that includes the impact of the Beyond Meat Jerky launch and the company's efforts to reduce inventories by dumping product into liquidation channels.
Source Fool.com