Plant-based meat manufacturer Beyond Meat Inc (NASDAQ:BYND) has seen its stock record significant gains in recent times. Due to the disruption caused to the supply chains of the meat industry, there was a widespread belief that alternative meats will be in demand, and that resulted in the rally in Beyond Meat stock.
Why the Sudden Jump?
The situation with the food supply chain has been quite widespread, and it is expected to take some time before things can get back to normal. Hence, it is interesting to have a closer look at Beyond Meat and try to figure out whether the company can thrive in the long term.
In addition to that issues related to the supply chains, most advocates of plant-based meats also argue that the traditional meat industry is not environmentally friendly and also cruel on animals. However, there is an argument to be made that when things get back to normal, people are also going to go back to eating meat and ditch the plant-based substitute. Moreover, health experts have also cautioned about plant-based meat. Joan Salge Blake, who is a professor of nutrition, has stated that people should not assume that the ‘new options’ are necessarily healthier.
In addition to that, it is also hard to ignore that plans based meats also use a lot of chemicals in order to create these faux meats, and hence, it is hard to see how it is going to be welcomed by conscious health consumers. New generation’s consumers care a lot about health and the usage of chemicals in a product. Hence, bottled water now sells more than regular soda.
In such a situation, it is hard to envisage how Beyond Meat is going to bring about any fundamental change in the food habits of people. Moreover, without the coronavirus pandemic, Beyond Meat might not even have been part of the conversation either. Hence, many believe that the rally in the Beyond Meat stock might just be a new fad.