From Boom to Bust: US Stock Plant-Based Milk and Meat Concept Stocks Suffer Collective "Ankle Cuts," Demand Worries After the Hype Fades
The U.S. plant-based milk and meat alternative market is experiencing a significant decline, with consumers gradually returning to traditional meat. According to data from Nielsen IQ, sales in the alternative dairy beverage industry fell by 4.4% last year, marking the first decline in four years. The stock prices of companies like Oatly and Beyond Meat have plummeted, as market trends shift towards high-protein and gut health sectors, facilitating related mergers and acquisitions
According to the Zhitong Finance APP, the plant-based milk beverage market once experienced rapid growth, becoming one of the strongest consumer categories in recent years, but its popularity has waned. Part of the reason for this is increased competition and heightened consumer sensitivity to prices. However, against the backdrop of slowing consumption of plant-based foods, other consumers have begun to favor dairy products again.
Oatly's CEO Jean-Christophe Flatin stated, "In the past, when people talked about climate change or sustainability, the discussions were always tinged with pessimistic despair, carrying a punitive connotation, and were filled with extremely negative emotions... People have had enough of this; green marketing has gone too far."
According to data from Nielsen IQ, sales in the U.S. alternative dairy beverage industry fell by 4.4% last year, dropping to $2.9 billion. This marks the first decline in the industry in four years, and the situation does not seem likely to improve by 2025. The market value growth rate of milk is far outpacing that of plant-based milk products, with various types of milk (including lactose-free and whole milk) growing faster than the once-popular oat, almond, coconut, and soy alternatives.
Looking ahead: Companies like Oatly (OTLY.US) have seen their stock prices plummet significantly since their IPO in 2021, with shares now trading in the teens, down from a high of $580. A similar situation has occurred with Beyond Meat (BYND.US), whose stock price once reached nearly $240 but is now below $1. As consumer interest in these products gradually fades, market trends are shifting towards high-protein and gut health areas, driving merger and acquisition deals such as PepsiCo's (PEP.US) recent acquisition of Poppi and Danone's attempt to acquire Lifeway Foods (LWAY.US) (though the latter deal ultimately fell through)
