Over the course of the past few years, plant-based meats have become quite popular. Products from companies like Impossible Foods and Beyond Meat Inc (NASDAQ:BYND) have also become popular. However, the coronavirus pandemics may have come as a bit of a blow to the sector, considering the fact that people might not want to spend too much at a time when budgets are tight.
Key Things to Watch
One thing that may work in favor of the industry is the fact that the traditional meat industry is now in turmoil, and that could well prove to be an opportunity for plant-based meat companies.
As many as 15 meatpacking facilities in the United States have been closed as of Tuesday, April 28, since workers had tested positive for the novel coronavirus. According to reports, it is going to have an impact on 25% of the meat supply.
As a matter of fact, the Tyson Foods chairman claimed that ‘millions of pounds of meat’ would not be available to consumers since it would not reach the markets. The reason behind this state of affairs is the disruption to the supply chain brought about by the coronavirus pandemic.
Hence, it is pertinent to wonder whether the shortage of traditional meat supplies is going to see consumers switching to plant-based meats. The supply of such meats is not affected by the current supply chain issues, and in the week that ended on April 18, the weekly sales of plant-based alternatives soared by as much as 200%.
The state of affairs has also resulted in heightened activity in the Beyond Meat stock, and since declining considerably back in February, the stock has managed to deliver gains yet again in April. It is believed that the rise in the stock price is a direct consequence of the meat shortage. It could be worthwhile for investors to keep an eye on BYND stock in the coming days.