After selling its stake in Beyond Meat (BYND), Tyson Foods confirmed that it will now produce its own plant-based meat substitutes in the coming summer. This announcement sent Beyond Meat’s stock down 6% at the market opening, before rebounding as high as 7% against steeper losses in the broader market.
Even though Beyond’s IPO debut remains that strongest this year, Tyson’s market value at $22.66 billion surpasses Beyond by almost $19 billion.
Yet, Beyond and other such plant-based meat substitute manufacturers like Impossible Foods continue to threaten Tyson, which is struggling to capture the market through its products that more closely mimic the taste and texture of actual meat.
Although the number of vegan and vegetarian customers has remained stable over the past decade, there is a rise of ‘flexitarian’ diets, where consumers are embracing plant-based substitutes in their diet. The U.S. meat substitute market is currently valued at about $1.44 billion but is expected to grow 74% to $2.5 billion by 2023.
However, this market is not easy to grasp, especially for upstarts and even Beyond and Impossible Foods continue to struggle to stabilize sales.