Tesco has expressed uncertainty regarding its ambition to achieve a 300% growth target for plant-based meat as sales in this category “slow”.
The UK’s largest supermarket chain, part of the ‘Big Four’ grocery groups, initially set this growth target for December of this year, as detailed in a 2020 commitment. This initiative aimed to reduce the environmental impact associated with the average UK shopping basket.
Tesco’s growth objective was based on 2018 sales figures. However, consumer demand for plant-based meat has shifted significantly since then.
While there remains a demand for plant-based options, sales have not met previous expectations. Challenges include concerns over quality, accusations of excessive processing, and, more recently, financial pressure due to the rising cost of living.
In its latest sustainability report, Tesco noted, “Amid year-on-year declines in the plant-based market, we’ve seen plant-based meat-alternative sales slow… This means we are highly unlikely to hit our target of a 300% sales increase in these ranges by December 2025.”
Originally, plant-based meat sales aligned closely with Tesco’s objectives. By the end of 2021, these sales had increased by 130% compared to the 2018 baseline. However, by 2024, growth had slowed to just 94%.
Interestingly, other plant-based products have experienced a boost in sales. Tesco stated, “We’ve been seeing a growing demand for ‘protein diversity’, including plant-based whole foods such as lentils, chickpeas, beans, nuts, seeds, and tofu. Many of our customers who are interested in plant-based foods are turning to veg-led dishes, where vegetables are the star, rather than relying on meat alternatives.”
According to industry figures, these veg-led dishes now represent 40% of all plant-based sales.
Quorn, a leading brand in the UK’s meat-free market, has encountered challenges in light of the overall category slowdown. Similarly, Beyond Meat in the US is facing difficulties.
Quorn, owned by the Philippine-based Monde Nissin, expects to recognize another impairment charge on its meat-alternative business, following similar financial adjustments in 2023 and 2022.
The company has also underwent restructuring and workforce reductions to adapt to declining demand.
Just last week, Beyond Meat lowered its sales projections due to ongoing losses and additional sales declines in the U.S., announcing it had raised $100 million from an external investor to stabilize its cash flow.
