Piper Sandler's latest "Taking Stock With Teens" survey reveals a declining interest in plant-based meat among teenagers, marking a potential challenge for the sector's growth.
The survey, which garnered responses from around 6,000 teens, showed that only 32% of participants either consume or are open to trying plant-based meat. This figure has seen a steady decline, down from 35% in the fall of 2023 and further down from 42% in the spring of 2023.
Moreover, among those teens who do consume plant-based meat, 26% intend to reduce their consumption, a slight increase from previous surveys.
When it comes to brand preference, 34% of the teens reported no specific allegiance. However, for those who do have a preference, Impossible Foods leads with 30% favorability, followed by Beyond Meat (NASDAQ:BYND) at 19%, and Morningstar Farms (now under Kellanova) at 11%.
The waning momentum in the plant-based meat category among younger consumers is a concerning trend for brands like Beyond Meat, which already faces immediate challenges and trades at a premium compared to competitors like Oatly (NASDAQ:OTLY) despite having inferior operating metrics.