The plant-based industry is experiencing a shift away from mimic meats towards natural options.
- Mimic meat brands face declining demand due to inflated early projections.
- Natural plant-based products show strong growth contrary to mimic meats.
- Deliciously Ella remains unaffected by the decline in mimic meats.
- Industry turbulence highlights varying success within plant-based brands.
The plant-based sector is witnessing a notable shift as mimic meat products, once anticipated to dominate the market, are now experiencing a downturn in demand. According to Matthew Mills, CEO of Deliciously Ella, the industry has experienced a ‘bifurcation’. This trend has disadvantaged mimic meat brands, which initially perceived a much larger potential market than what materialised. Investors had overestimated consumer demand for these products, resulting in substantial decline.
Mills highlights that while mimic meats still have a market, it is considerably smaller than earlier predictions suggested. “We think meat mimics will continue to serve a purpose and there will continue to be a market for those, but I think it’s much smaller than a lot had predicted it to be.” In contrast, there has been strong growth reported in the natural segment of the plant-based industry, suggesting a consumer preference shift towards more authentic plant-based options.
Deliciously Ella prides itself on having stayed clear of the mimic trend, largely insulating the brand from the decline affecting meat alternatives. Mills asserts that the brand’s strict adherence to using natural ingredients precludes creating mimic meats, thereby positioning them advantageously amidst this shift. “We’ve never played in mimics, so we haven’t been exposed to that.“
The broader industry context underscores the challenges faced by brands heavily invested in mimic meats. Companies like Marlow Foods and Meatless Farm have reported financial setbacks, with Marlow Foods’ parent company posting a substantial financial loss recently. This serves as a testament to the turbulent environment within the plant-based industry, further complicated by evolving consumer preferences.
Industry observers are taking note of these developments as significant markers of change within the plant-based sector. As mimic meats struggle, the potential for growth within natural plant-based offerings remains robust, signalling a critical juncture for businesses to adapt to shifting consumer demands.
The plant-based industry’s trajectory suggests substantial opportunity for natural products as mimic meat segments falter.
