Major food companies are scaling down their plant-based meat investments as sales struggle to meet expectations. Unilever is looking to sell The Vegetarian Butcher, Nestlé has cut back its meat-free offerings, and Monde Nissin’s Quorn continues to post losses.
Monde Nissin reported further sales declines for Quorn, with mid-teen percentage losses in Q4 2024 compared to the previous year. The company is expected to take an impairment charge of £80-100 million, continuing a trend of write-downs since 2022. Despite this, Monde Nissin projects positive EBITDA for Quorn in Q4.
Nestlé has also retreated from plant-based meat, focusing its Sweet Earth brand on alternative protein bowls while discontinuing plant-based chicken and bacon products. CEO Laurent Freixe stated that the company had overestimated market demand for meat alternatives.
Meanwhile, Unilever is struggling to offload The Vegetarian Butcher, which it acquired in 2018. The brand, which supplies plant-based meat to Burger King and Subway, generates approximately €50 million in annual sales but remains unprofitable. Analysts suggest it may attract buyers from the traditional meat industry looking to expand into plant-based options.
The broader plant-based sector faces challenges from shifting consumer preferences, with demand moving towards fresh, minimally processed foods. The rise of the ultra-processed food debate, amplified by regulatory scrutiny and lobbying efforts, has further pressured the industry.
While European retail sales of meat alternatives grew 3% between 2022 and 2023, US sales have declined. For large food corporations, the sector’s financial struggles challenge long-term growth strategies, raising questions about the future of plant-based meat in mainstream markets.