Against the backdrop of the rise of US stocks this year, the share price of the "first artificial meat stock" in the US has dropped by 10% so far this year. In fact, the overall sales of the artificial meat industry have been poor since last year. Why did the once popular concept of artificial meat go downhill in just a few years?
Artificial meat, which generally refers to plant meat, is a kind of "meat" made from plant proteins such as soybeans and peas. It can not only imitate the taste of animal meat, but also reduce the carbon emissions of animal husbandry. Therefore, this industry was once sought after by capital in the early days. But in recent years, the artificial meat industry has gradually begun to decline.
Take the representative enterprise in the "artificial meat" industry in the United States as an example. In 2019, it became the first artificial meat company to be listed in the US stock market. Its share price soared from $25 per share to more than $200 that year, and its market value once exceeded $12 billion. Its share price has fallen all the way in the past two years, and now it has fallen to about $7, less than one-third of the issue price.
The latest performance of different meat customers also disappointed the market. The company's revenue in the first quarter of this year fell by 18% year on year, which is the eighth consecutive quarter of year-on-year decline. It is not only the decline in sales, but also the fact that other meat customers have never made profits. Its net loss in the first quarter was $54.4 million, with a loss of 72 cents per share, which was lower than the market expectation.
The overall sales of artificial meat industry also declined. Taking the US market as an example, according to the data of GFI, a non-profit think-tank specializing in plant food, the sales of plant meat and seafood products in the US have weakened in the past two years, with a year-on-year decline of 12% in 2023.
Why is artificial meat no longer fragrant? The data shows that consumers' attitude towards artificial meat products has become more rational, from the novelty purchase at the beginning to more consideration. The number one reason that hinders consumers is price. Artificial meat has a higher premium than animal meat. The premium of artificial beef made from plants is 20%, that of chicken is 156%, and that of pork is even 177%.
The second is health concerns. Some critics pointed out that in order to simulate the taste of animal meat, artificial meat is highly processed and may use too many seasonings and additives. In an interview with the Financial Times, the CEO of Different Meat Customers also pointed out that between 2020 and 2022, the proportion of American consumers who think artificial meat is healthy has dropped from 50% to 38%. Therefore, different meat customers have adopted a new strategy. This year, the company launched a healthy artificial meat burger, claiming that the sodium content and saturated fat content are lower than before, but whether this can attract consumers again and boost sales remains to be tested.
