Top vegan meat-free brands in the UK are facing significant challenges due to the ongoing cost-of-living crisis and changing consumer behaviour. Meatless Farm, once thriving, faced near collapse but was rescued by a competitor. VFC has expanded but shows interest in scaling amidst financial pressures. Beyond Meat reported a significant drop in sales due to market and consumer perception issues. LoveSeitan has ceased trading as they struggled to convince consumers of their product’s benefits.
The vegan meat-free sector in the UK is navigating turbulent waters as the cost-of-living crisis continues to affect consumer spending habits. With 73% of vegan shoppers aiming to cut grocery expenses, the industry has seen a stark decline in sales and profitability.
Meatless Farm, a prominent player, found itself in dire financial straits earlier this year. Despite operational strength, the company’s cash flow issues led to significant redundancies and administrative proceedings, registering nearly £50 million in operational losses over three years. However, a timely acquisition by VFC allowed Meatless Farm to return its products to supermarket shelves.
VFC, known for its alternative chicken products, has continued its upward trajectory since its inception in 2020, achieving listings with major UK retailers. With a significant seed round secured and strategic focus on broadening its product range, VFC aims to capitalise on evolving market opportunities. Recent developments include the launch of new products, such as plant-based chicken wings, even as it absorbed the financially struggling Meatless Farm.
Conversely, Beyond Meat has been grappling with a decrease in demand. It highlighted challenges such as high inflation and consumer scrutiny over the health implications of processed plant-based products. The company plans to counteract these setbacks through aggressive marketing and continued advocacy for plant-based diets as a response to climate change.
Meanwhile, LoveSeitan, a brand specialising in wheat gluten products, has halted operations due to weak sales. Despite efforts to market its unique protein substitute through various supermarket offerings, insufficient consumer interest ultimately led to its closure.
Another plant-based company, This, has demonstrated resilience through robust funding rounds and strategic product diversification. With significant revenue growth, it plans to expand further by recruiting traditional meat consumers into the plant-based category, thereby reinforcing its market position.
The vegan meat-free sector in the UK faces numerous challenges, yet strategic manoeuvres and innovations offer pathways for recovery and growth.
