Beyond Meat, Inc. (NASDAQ: BYND) shares continued to surge throughout Monday leading into Tuesday’s opening bell. Beyond Meat’s share reached an all-time high of USD 193 per share at the open.
Since Beyond Meat’s initial public offering in early May, shares have surged by 672% from its IPO value of USD 25 per share.
Last week, Beyond Meat unveiled its Meatier Beyond Burger, its latest version of its popular Beyond Burger. The Company said the burger is a blend of peas, mung beans and rice proteins that offer a complete source of protein. Additionally, the blend of proteins provides a meatier taste and texture that mimics the chew and juiciness of a burger.
The plant-based meat alternative market space is heating up primarily due to consumer shifts within the food industry. Instead of a typical fast-food or ready-to-eat meals, consumers are becoming much more health conscious and opting towards healthier options.
Similar to Beyond Meat, other major international chain food companies have dived into the alternative meat market and began to launch their own products.
Shortly after Beyond Meat announced its new burger, Tyson (NYSE: TSN) announced its new plant-based nuggets and special blended burgers. Tyson said the nuggets will be plant-based, but the special blend burgers will be a mix of plants and meats. The Company said it expects to launch the products this year.
While Tyson is a major food processing company, Beyond Meat’s biggest competition may likely be Impossible Foods. Impossible Foods has been in the alternative meat industry for over years now and has been backed by Bill Gates, Serena Williams, Google Ventures, and UBS. However, Impossible Foods does not view Beyond Meat as a competitor within the marketspace.
“Our competition 100% is the cow,” said Rachel Konrad, Chief Communications Officer at Impossible Foods. “Impossible Foods has the mission of eliminating the need for animal products.”
Beyond Meat is also backed by major influential figures such as Leonardo DeCapiro, Kyrie Irving, Shaquille O’Neal, Snoop Dogg, and Bill Gates.
Impossible Foods has appeared in chain fast-food joints such as White Castle, Red Robin (NASDAQ: RRGB), Qdobe, and Little Caesars. Additionally, consumers can find the Impossible Sausage in Washington, New Mexico and Florida. Despite the small-scale commercialization, Impossible Foods is on over 9,000 menus in the U.S., Hong Kong, Singapore, and Macau.
Unlike Beyond Meat, Impossible Foods said it does not have any intentions to go public anytime soon.
Now, Restaurant Brands’ (NYSE: QSR) Burger King decided to add the Impossible Whopper to its menu. Due to the changing consumer marketspace, even fast-food joints have become interested in developing their own meat alternative burgers.
Data from Earnest Research showed a 36% spike in sales in Burger King’s St. Louis locations in April compared to March since the addition of the Impossible Whopper. A portion of the growth can be explained in part by a 7% rise in average ticket price, reflective of the Impossible Whopper costing a USD 1 more than the conventional burger.
Earnest highlighted that the sales increase was largely due to unique customers. St. Louis locations witnessed 24% more customers eating at Burger King in April than March. Among the consumers who purchased a Whopper, 20% of the group was new customers, meaning they haven’t purchased from the chain in the past year.
The meat industry is already valued at USD 1 Trillion and there’s plenty of room for growth, according to MarketWatch. With the addition of animal alternatives, it would further propel the industry and bring in new competition. Other plant-based meat companies rising in the marketplace are Before the Butcher, Rebellyous Foods,and Good Catch.