Beyond Meat, Oatly, Tattooed Chef and Else Nutrition and other vegan brands have seen their shares sharply plummet in 2021, despite Veganuary looming around the corner.
Even though the global plant-based market is predicted to grow by 18.9% a year, which would reach £13 billion in four years’ time, 2021 has seen valuations fall.
Beyond Meat has seen its share price fall by 48% over the past year following its disappointing rollout of its alternative chicken tender range making shareholders sceptical over the companies over promising and under delivering.
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Although restaurants reopened earlier this year, Beyond Meat has struggle to distribute its products to restaurants and grocers as its new range has been slow.
Oatly, has seen its $13.3 billion valuation with shares slide by 62% due to supply chain issues, driver shortages and pandemic closures abroad.
Additionally, Tattoo Chef which launched onto the stock market in November 2020 has seen shares fall by a third due to supply chain disruptions and Else Nutrition’s share price also has fallen by 70% year to date.
“Although there is likely to be a temporary surge in sales of meat and dairy free ranges [in January], it won’t necessarily be the immediate saving grace for vegan food firms which have seen valuations plummet over recent months.” Hargreaves Lansdown senior investment and markets analyst Susannah Streeter said.
Multi-national companies such as Unilever, Nestlé, and Coca-Cola have seen more success in their vegan ranges due to their diverse product range.
Unilever has planned a five-fold increase of vegan products over the next seven years and Nestlé and Coca-Cola have seen their share prices rise by 22% and 9%, respectively.
However, vegan initiatives have moved beyond the food industry as Microsoft, Apple, Mastercard and Visa are all held by the Vegan Climate ETF and are considered climate friendly.
As a result, multi-national food companies and technology firms have tapped into the vegan market, providing competition for smaller vegan businesses that have suffered in falling share prices.
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