The fake-meat industry is in trouble
The Economist
February 26, 2026
AI-Generated Deep Dive Summary
The fake-meat industry, once booming with high investor interest and rapid growth, is now facing challenges as business slows down. Beyond Meat, a leading plant-based meat producer, saw its market value reach nearly $4 billion during its 2019 IPO, but the sector’s momentum has since waned. While sales in America surged by 45% between 2019 and 2020, reaching $1.4 billion, growth has plateaued, making it harder for new players to break into the market.
The industry initially attracted a wave of startups and even traditional meat companies exploring plant-based options. However, the shift in consumer interest and increased competition have created challenges. Many consumers who were early adopters of plant-based products are now seeking alternatives or returning to conventional meats, while newer brands struggle to establish themselves due to limited distribution channels and high costs.
Despite these hurdles, the long-term potential of plant-based meat remains significant. As demand for sustainable food options grows, companies that can innovate and adapt will likely thrive. The industry’s future depends on its ability to address current challenges, such as scaling production, improving product quality, and addressing consumer preferences more effectively. For businesses and investors, understanding these dynamics is crucial in navigating the evolving landscape of alternative proteins.
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Originally published on The Economist on 2/26/2026