A report published by Blue Horizon and BCG forecasts that by 2023, plant-based meats should be level with the cost of conventional animal-based products. Mid-way through the year, it is predicted that plant-based will then become cheaper than animal-based. So what does this mean for consumers? Well, it means plant-based meat products should be cheaper than conventional animal-based products as soon as next year, and by the end of the decade, considerably cheaper. Further decline is forecast for the foreseeable future.
What is driving lower costs?
The driving forces for lower cost animal-based meat products is down to a variety of factors:
• Continuing reduction in plant-based meat production costs.
• Increase in input costs. Input costs are the set of costs incurred to create a product or service. Examples of these costs are direct materials, direct labor, and factory overhead.
• Labour issues at meat-packer plants.
• Higher worker wage rates.
• Supply chain interruptions.
• Price instability in the conventional meat supply chain - In 2021, beef, chicken and pork saw double digit price increases compared to the same week in 2020. Plant based meat prices remained stable.
• Several companies such as Trader Joe’s, Lidl, Impossible Foods and Beyond Meat all made announcements regarding the price of their plant-based products.
If you’re a plant based product lover, this is great news. If not, perhaps affordable plant-based products can open up an exciting new avenue to dip your toes into. Either way, it looks like plant-based products are here to stay. Plus, a decrease is great for both consumers and the planet.