Unilever is struggling to find buyers for its plant-based meat business as it aims to reduce its exposure to its poor-performing division.
Unilever went into the plant-based meat business after seeing initial success of pioneers like Impossible Foods and Beyond Meat in the US$17 billion meat alternative segment. In 2018, Unilever bought the Vegetarian Butcher brand to appeal to consumers seeking a healthier alternative to meat and more environmentally friendly products. However, recent trends saw consumers switching to fresh rather than processed produce. The US government has also been critical of this industry with the Health Secretary describing it as ‘ultra processed’.
This has led to Unilever making a decision to sell Vegetarian Butcher which recorded meagre sale of just US$50 milion annually.
Meanwhile, sales of meat and seafood substitutes in the biggest market, US declined from US$1.7 billion in 2022 to US$1.6 billion in 2023, according to Euromonitor, and it is expected to decline further in 2024 and 2025. Plant-based meat producers have to struggle with poor sales, in addition to their unattractive pricing as compared to real meat products. As consumers become more cost-conscious, this industry survival will remain a big challenge in the future.
