Meat and the evolution of its plant-based alternatives
Worldwide meat production has reached 350 million tons in 2023, compared to 70 million tons back in 1961: a 400% increase as the amount eaten by people has doubled. In fact, meat consumption could increase by as much as another 160 percent by 2050. The growth of meat has been so important as the population keeps increasing. The demand for cheap meat has also been on the rise, as many people can’t afford organic, free-range proteins. To respond to this demand, livestock production has grown increasingly more industrialized.
In 1961, Europe was in the lead for the biggest meat producer, processing 30 million tons a year, followed by North America manufacturing 20 million tons, and then Asia ranked 3 place meat producer, with 9 million tons a year. However, an important shift has occurred as Asia now holds the position of largest meat producer.
But how is this increase harming our planet and our health? Livestock products account for 57% of the greenhouse gas emissions of the entire food production industry, or, according to the FAO 14.5% of global emissions. They are caused by feed production, enteric fermentation, animal waste and land use change. Cattle are responsible for two-thirds of the total emissions, mainly due to the methane emissions resulting from rumen fermentation (the process in the stomach of certain animals where microorganisms break down tough plant materials into nutrients that the animal can use for energy). Because methane is a short-lived climate pollutant, reducing its emissions can positively impact climate change.
Deforestation is also a consequence of mass meat production as large land parcels are being cleared to respond to the animals’ needs. For example, 80% of deforestation in the Amazon rainforest is due to the destruction of land for cattle ranching. Moreover, in the Sentient Media Rachel Graham states that “ The deforestation caused by the animal agricultural industry results in 340 million tons of carbon being released into the atmosphere each year.” This destruction also results in a loss of biodiversity as the previous living plants and animals are removed from that area. Duncan Williamson, WWF food policy manager states in The Guardian “The world is consuming more animal protein than it needs and this is having a devastating effect on wildlife. A staggering 60% of global biodiversity loss is down to the food we eat.” This loss makes it hard for the ecosystem to be able to strive during the climate change we are putting forth.
The water footprint of meat is extremely high as the animal agriculture industry uses huge amounts of water to raise and slaughter its animals. According to the FAO, producing food to raise livestock requires nearly 20% of the world’s fresh water. Moreover, the production of 1 single kilogram of beef requires 15,500 liters of water. The slaughterhouses also require massive amounts of water: for example, in a Californian slaughterhouse, 4 to 5 million gallons of water are used each day to slaughter their chickens.
Finally, overconsumption of meat can strongly damage one’s health and well-being. Stephen Mu, a cardiologist at Scripps Clinic Carmel Valley states: “Red meat is high in cholesterol, saturated fats and sodium. It should be eaten in a limited fashion” and adds that limiting the amount of meat in one’s diet can reduce the risk of heart disease.
What if I told you some companies have been working on solving this problem, without compromising the delicious taste of meat? Beyond Meat, as I’m sure you heard of it, is one of the few companies that are creating foods that can offer the same taste and texture as meat, but without the negative impacts. They state “By shifting from animal to plant-based meat, we can address four growing global issues: human health, climate change, constraints on natural resources, and animal welfare.” Beyond Meat was created in 2009 by Ethan Brown with the mission of combating climate change. In 2014, they developed their first plant-based beef products, and by 2018, Beyond Meat had already raised $72 million in venture financing. At this point, celebrities and athletes such as Leonardo DiCaprio, Snoop Dogg and Chris Paul wished to invest in it. In May 2019, the company went public, before any of the other plant-based meat analog companies, meaning it conducted an initial public offering (IPO) and its share became available for trading in the U.S. Nasdaq exchange (one of the major stock exchanges in the country). Going public allowed the general public to both buy and sell shares of the company, therefore providing an opportunity for investors to participate in its ownership. In 2020, Beyond Meat announced their products would be available at select grocery stores across the country and opened an e-commerce site to sell products directly to consumers. As of June 2021, the total market capitalization of the company was $9.44 billion.
In the clinical study conducted by Stanford University and published in the American Journal of Clinical Nutrition, researchers found improvement in key health metrics for people who replaced animal-based meat with plant-based meat for 8 weeks.
However, Beyond Meat has suffered a 46% decline in 2023 compared to 2022, as BYND stock went from $12 to $7. Forbes suggests the company’s stock declined as a result of inflation, shifts in demand,reduced buying power due to the pandemic, and rising competition. As FoodBusinessNews states, “the plant-based manufacturer recorded a loss of $70.4 million for the quarter ended September 30th, which compared with a loss of $101.7 million during the same period of the previous year.” The quarterly sales of 2022 at $82.5 million dropped to $75.3 million in 2023. Beyond Meat’s gross margin turned negative in 2022 compared to its positive gross margins of 25% in 2021 and 30% in 2020.
Sales, though, strongly differed from the retail zone. For example, quarterly retail sales in the U.S. have undergone a big decrease: $30.5 million was down 34% compared to the same period of the previous year. However, international sales rose from $20.3 million in 2022, to $32.3 million in 2023: a 59% increase.
Mr. Brown still finds place for improvement and therefore outlines five steps to better Beyond Meat’s performance: reducing its global workforce by 8%, reviewing and modifying its pricing strategy, reducing working capital by using inventory management, focusing and further working on the global areas that exhibit revenue growth, and finally, using marketing to change and prevent the spread of misinformation about its products, especially in the U.S. as many people seem to have misconceptions about what their company and product can offer.
But does Beyond Meat’s future hold? Some predictions can be made about the evolution of this company with time. First, as their net revenue strongly declined this year, nothing can prove the situation will get better with time. Moreover, it is important to keep in mind inflation and rising interest rates are important, and reduce people’s buying power. It forces families to stop buying expensive and “luxury foods”, such as Beyond Meat due to its costly products. Then, as we examine the potential buyers, depending on the sources, approximately 5% of Americans are vegetarians, and only 3% as vegans. This largely reduces the number of people interested in these products as carnivores, or “meat eaters” are less likely to buy plant-based products. Finally, on its website, Beyond Meat promises its clients: “Beyond Meat products are made from simple ingredients that offer a good source of protein with all the flavor you want, and none of the cholesterol, hormones, or GMOs you don’t. It’s meat, upgraded.” However, despite this optimistic assurance, some question the health benefits of a plant-based meat patty compared to a real meat patty. Toronto-based dietitian and nutritionist Rosie Schwartz said “Where is their research saying that — that this is better than eating a small, portion-controlled, lean piece of meat?” The Beyond Burger contains close to 20 ingredients, such as refined coconut oil, pea protein isolate and flavoring. Schwartz says that qualifies it as a highly processed food that is advised to limit in one’s diet. After comparing a Beyond Burger with beef, food scientist Ben Bohrer says the nutritional composition is fairly similar: the plant-based patty contains 270 calories, five grams of saturated fat compared to the 30 fewer calories and two more grams of saturated fat of the Walmat’s great value beef burger. To conclude, everyone has different opinions on whether it is worth it or not, and both sides have arguments worth studying. And you, what do you think about plant-based meats?
