GTFO It’s Vegan is starting a research and advisory services to elevate plant-based success to the next level in the novel, competitive and rapidly evolving sector. The industry has experienced a series of setbacks over the last few months, as the general macroeconomic conditions have worsened.

“While the market overall continues to experience growth, the number of entrants in any category – such as plant-based meats, seafood, or dairy – is accelerating faster than the overall growth of its category. This makes it harder for brands to succeed as they fight to acquire market share. There are simply too many products entering the market to ensure the success for everyone,” says Marc Pierce, CEO and Co-Founder of GTFO.

Pierce explains that when they first launched GTFO in 2020, there were five or six major players, and now 30 to 40 players compete in the same category. 

“This spells trouble for new entrants who may not have the market insight, marketing budgets, distribution presence and most importantly, the product uniqueness to succeed,” highlights Pierce.

Bust time for plant-based?
With giants like Beyond Meat struggling – the company lost over 80% of its stock value in the last year – questions arise concerning whether the relatively new plant-based market tried to expand too fast and beyond its possibilities. 

“It reminds me a bit of the dot-com bubble that burst in 2000. Many of the companies receiving funding may not have what it takes to succeed. Some products are destined to fail and both companies and investors should think long and hard before launching new innovations that are not competitively distinct,” explains Pierce.

GTFO says they need less than ten days to identify the likelihood of a product to succeed through a real-time feedback network of around 50.000 vegans, vegetarians, flexitarians and plant-based curious consumers.
While the general economy is battling a whirlwind of headwinds – inflation, supply-chain issues and a bearish stock market, it is specifically worrisome for the sector that only lived, until now, in periods with access to cheap money. 

Beyond Meat is burning through its cash reserves. The company ended Q2 2022 with US$455 million in its vaults, compared to US$733 million at the end of last year. At this rate, the company might be forced to raise capital to survive.

Furthermore, the company’s partnership with McDonald’s has raised more doubts than hopes, as the fast food business concluded this summer its test trials of McPlant Burgers in US locations without releasing any plan to bring the plant-based offering nationwide.

Meat titan JBS is abandoning its plant-based business in the US just two years after entering the alternative meat market in the country with Planterra Foods and its OZO brand. The company will continue to sell plant-based in Brazil and Europe, signaling the specific weakness of the US market.

Canadian Maple Leaf Foods also announced that it is reducing 25% of its Greenleaf Food plant-based protein division this August. This comes after its revenue falling18% year over year, according to its Q2 results.