In the face of dwindling demand for plant-based meat products due to rising living costs, Beyond Meat has suffered a significant setback.

The vegan meat giant, once celebrated in the stock market, has been forced to reduce its annual revenue forecast and has fallen short of second-quarter net sales estimates.

Backed by both investors and celebrities, Beyond Meat has encountered a decline in sales over the past year. The company’s growth trajectory has been marred by difficulties in executing its vision, resulting in production mishaps and escalating expenses.

The shift in consumer sentiment toward Beyond Meat’s offerings is influenced by various factors, including concerns about health impacts and external interest groups that have sowed doubt about the ingredients and processes used in creating plant-based meats.

Shares drop

CEO Ethan Brown acknowledged these challenges in a post-earnings call, noting that changes in consumer attitudes were not solely organic but also influenced by external sources.

Beyond Meat’s shares experienced an eight percent drop in extended trading on Monday.

The company’s revised revenue forecast for 2023 stands between A$550 million and A$580 million, a significant reduction from the earlier projection of A$570 million to A$640 million.

Beyond Meat now anticipates missing its goal of achieving positive cash flow operations in the latter half of 2023.

Arun Sundaram, a research analyst at CFRA, commented that substantial changes are needed to avert further decline.

He expressed disappointment at the guidance cut, especially considering the promising start the company had this year.

In an effort to regain its customer base, Beyond Meat has been “testing” price cuts, offering its core products at prices comparable to traditional meat counterparts. This strategy is part of the company’s bid to recover lost ground.