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Recently, the US Health and Human Services Dept. has unveiled the 2025-2030 version of the food pyramid. This introduces an upside down pyramid which emphasises protein, dairy and fats at the top. There is a notice towards reducing consumption of highly processed foods and carbohydrates. The ultimate goal is to reduce chronic diseases through a shift towards whole foods. 

One company poised to benefit from this is Beyond Meat as consumers opt towards more protein dense diets from non-animal sources. 

Background

Beyond Meat entered supermarkets in 2019, offering plant-based burgers and sausages. This created strong initial hype, positioning the company as a strong force in the dietary revolution. Coupled with partnerships with large fast food giants such as MacDonalds, IPO of the company saw prices skyrocket from $25 to $239.

However, growth stalled soon after as consumers pondered about high prices and unfamiliar tastes. Coupled with inflationary pressures from the global pandemic, consumers resorted to the lower cost red meat counterparts. Subsequently, shares shed 99% of its initial value and is currently trading at the $1 level (at the time of writing). 

Growth prospects

Alongside the inception of the new dietary guidelands, coupled with increasingly health conscious consumers, Beyond Meat might witness a revival in investor interest. However, the historic hype and bust cycle of the company should raise some concerns about potential returns.