Piper Sandler just released her latest teen poll, and it’s got a double dose of bad news for
Stock. Not only are teens losing interest in plant-based meat substitutes, but they don’t have much of a preference for brands either.
Piper analyst Michael Lavery and his team analyzed the results of the company’s survey work with more than 7,000 teens and found that 43% eat plant-based meat or are willing to, compared to 47 % last fall and 49% in spring 2021. Of teens who don’t eat fake meat, 34% said they were willing to try it, up from 38% in the fall when Piper Sandler polled consumers for the last time.
This is not what Lavery expected, and it has big implications for Beyond Meat and its competitors. If younger consumers are less likely to spend on plant-based meats, that could mean the category’s growth trends could be slower than expected. “The results of this survey may still be a little anarchic, but they remind us not to take young consumers for granted,” Lavery writes.
As for Beyond Meat (BYND), it is still the No. 2 preferred brand, just behind the private company Impossible Foods, and ahead of
(K) Morningstar Farms. That said, more than a third (35%) of plant-based meat consumers had no brand preference, “suggesting that companies still have room to build consumer brand loyalty,” notes Lavery.
That’s probably not what Beyond Meat investors want to hear. While the fake meat market as a whole is growing rapidly, even a slightly slower pace of growth isn’t good news for a company that’s still struggling with weaker-than-expected retail sales. Additionally, while Beyond Meat’s scale is positive, given that it has the resources to develop new products and partner with top-tier partners, a lack of loyalty means it cannot benefit. – not be a first-mover advantage.
Beyond Meat did not return a request for comment.
That can’t be good news for Beyond Meat stocks, which have struggled before. Its shares fell 8.1% on Wednesday and 67% over the past 12 months.
Write to Teresa Rivas at [email protected]