The Strategist

Is it worth to bet on meat alternatives?

06/18/2019 - 16:08

Tyson Foods, the largest producer of meat products in the USA, is entering the market of vegetable protein that imitates meat. Currently, the products will be of mixed type: the hamburgers will be made from a mixture of Angus beef and pea protein.

The products will be marketed under the brand Raised & Rooted. It is expected that this fall the products will appear on the shelves of two large retailers, but the names of the stores are not disclosed.

Currently, there are two leaders on the American market of plant-based products - Beyond Meat and Impossible Foods. The companies offer their products to chain restaurants for hamburgers, pizza, lasagna, etc.

The market for alternative proteins has become one of the fastest growing and is attracting investor interest. For example, after the IPO, Beyond Meat shares rose from $ 25 to $ 168.1 – this has been the maximum for now.

In the case of Tyson, the burgers will not be completely vegetarian. On the contrary, the company positions them as products with less fat, cholesterol and lower calorie content than these of competitors.

"Today, consumers are looking for more options for obtaining protein, so we are creating new products for a growing number of people who are open to various diets and are using both meat and vegetable protein," said Noel White, president and CEO of Tyson Foods.

“We remain firmly committed to our growing traditional meat business and look forward to becoming the market leader in alternative proteins, which is showing double-digit growth and may someday become a billion-dollar business for our company,” added White.

Growing people's preference for a vegan diet is having an impact on the food industry. Cafes and restaurants include burgers, hot dogs and vegetable protein-based pizza on their menu. The demand for these products is expected to grow in Central and South America, Asia-Pacific and Europe.