Where’s The Beef?
By Christian Hald-Mortensen
With delicious animals increasingly under fire for their part in climate change, the market for meat substitutes is growing fast. Old and new brands alike are racing to provide environmentally conscious consumers plant-based or lab-grown alternatives. So how can the discerning buyer separate the meat from the chaff?
Christian Hald-Mortensen provides top notch analysis on some of the market leaders as part of his executive MBA study at the Technical University of Denmark. The key takeaways:
- A University of Michigan study finds that the Beyond Meat burger uses 99% less water, 93% less land, and results in 90% less greenhouse gas emissions compared to traditional U.S. meat.
- Livestock account for almost 15 per cent of all human-induced greenhouse gas emissions.
- The meat substitute industry is expected to grow to a $140 billion industry in the next decade, driven by shift in consumer attitudes.
- Beyond Meat (NASDAQ: BYND) is now significantly overvalued with forward price-earnings at 196.
- An aggressive pursuit of partnerships as well as international expansion will fuel revenue growth for Beyond Meat.
- Competitors are entering its market space – Nestlé and Impossible Foods.
- Lab grown meat will significantly challenge Beyond Meat’s business model.
If you’re looking to invest in the market for meat substitutes, you’d be wise to read Christian’s post in full at LinkedIn.