Sustainable Meat Companies Struggle to Attract Investors Amid Economic Uncertainty
October 10, 2024 – In a tough economic climate, sustainable meat companies are finding it increasingly difficult to secure funding, with investors hesitant to take risks.
At the recent Fortune Impact Initiative, business leaders discussed the challenges of running eco-friendly butchery and meat alternative companies, with many pointing to shrinking investor confidence as a major hurdle.
Brent Young, founder of The Meat Hook, a whole-animal butcher shop in Brooklyn, highlighted the struggles he’s faced in attracting investment. “Everybody loves the idea,” he shared, “but banks aren’t willing to take big risks. The only people showing up are venture capitalists.”
The problem isn’t limited to butchers like Young. The alternative protein market has also seen a sharp decline in funding. Investment in plant-based startups dropped from $2.11 billion in 2019 to just $250 million in 2023.
Consumers have been pulling back too, with sales of plant-based products slipping from $8.2 billion in 2022 to $8.1 billion in 2023. Affordability and quality are the main concerns.
For Brice Klein, co-founder of Choppy, a ready-to-go meal company focused on meat alternatives, securing financing has been the toughest part of running the business.
Despite interest from venture capitalists, he noted that many are unimpressed with the current market’s offerings. “It’s hard to bring customers back when they’ve had a less-than-stellar experience,” Klein said.
Pinky Cole, founder and CEO of Slutty Vegan, echoed these sentiments, noting that the landscape has changed dramatically since 2020.
“People are clutching their money more than they did before,” she said, reflecting on how easily investors used to back plant-based ventures. Now, however, many sustainable businesses are facing closure.
The financial squeeze has been exacerbated by investor skepticism about the future of plant-based products. As Cole pointed out, “People—especially private equity firms and investors—aren’t as confident in the plant-based movement as they were just a few years ago.”
As businesses struggle to secure resources, the future of sustainable meat alternatives remains uncertain, with many wondering if the industry can survive without a boost in investor confidence.
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