Plant-based meats have been growing in popularity among consumers during the past few years. The main challenge facing this new market segment is the high costs associated with their products. Market leaders such as Impossible Foods have found creative ways to lower their prices by approximately 15% in the U.S in 2021. These recent price cuts mark the lowest ever price point for their burgers, at $6.80 per pound, still well above the $1.86 per pound of ground beef.
The main question facing marketers of plant-based alternative food products has been whether they can achieve economies of scale for long-term survival. Their goal is to eventually undercut the price of animal products in grocery stores and restaurants. Despite their short-term struggles to achieve this, it is evident that there is a growing consumer demand for plant-based proteins that deliver both taste and nutrition which presents an opportunity for these market leaders.