U.S. plant-based food market value reaches a high of $7.4 billion, but industry faces rough path to further growth

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Retail sales of plant-based food in the U.S. grew 6.2% in 2021, data showed. But major players and upstarts alike are facing hurdles ahead.

The U.S. market value for plant-based food has reached an all-time high of $7.4 billion, but major players and upstarts alike are facing a rough path on the way to further growth.

See: Beyond Meat and PepsiCo launch first product from Planet Partnership joint venture, Beyond Meat Jerky Oatly Group AB OTLY, -2.26% reported quarterly revenue that beat expectations earlier this month, but the company is still developing its manufacturing capabilities to meet demand. “[W]e acknowledge Oatly shares likely won’t move until the company demonstrates it can progress against scaled global production, which may not be evident before 2H22,” wrote Cowen in a report published this week called “The Consumer After Covid: Transience vs. Permanence.”Cowen analysts say plant-based food consumption has benefited from animal-product shortages and supply chain disruptions during Covid.

 

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