SWOT Analysis: Beyond Meat

Audience: customers

Strengths: Weaknesses:
- Sufficient nutrition without GMO: - Health concern:
Beyond Meat products are built with proteins, fat, minerals, Beyond Meat uses coconut oil,
carbohydrates and water, the five components of meat, which which is a saturated fat
provide greater or equal levels of nutrition than real meat. While associated with cardiovascular
Beyond Meat’s competitors use soy as proteins, the company is disease.
using peas and beans, which are GMO-free and reduce - Limited choices to meet
consumers’ hesitancy. customers’ need:
- Replication of meat: Beyond Meat develops only a
Beyond Meat’s R&D team replicates their animal-based few varieties of products, which
counterparts from all aspects to transfer customers from meat- can hardly satisfy customers’
eaters. The meat alternative imitates the appearance, flavor, need to a larger extent. For
texture and juiciness of meat. example, the company has not
- Partnership with retails and restaurants: rolled out substitutes for lamp or
Beyond Meat teams up with well-established brands like KFC and seafood yet.
Kroger which have a huge customer base. The partnership helps
Beyond Meat reach a broad range of customers and establish
brand recognition.

Opportunities: Threats:
- Growing vegan trends: - Stereotypes against vegan life:
An article published by the Food Revolution Organization Stereotypes like “only meat
reported a 600% increase in the population of vegans in United makes people stronger” are still
States over the last three years (Oberst 2018). According to the popular in some areas especially
Good Food Institution, nearly 33.3% of the Americans consider China.
themselves flexitarians, who are craving for more plant-based - Competitive alternative meat
meals and the number of this population is still climbing market:
(Cameron & O’Neill 2019). Food tech companies like
- Focusing on obesity and health risks globally: Impossible Foods and even
With obesity and other health issues attracting more attention, traditional food brands like
people are switching to healthier diets, showing more preference Tyson Foods are developing
on organic and plant-based foods. vegan offerings.
- Growing concerns of environment and animal welfare: - Economic crisis triggered by
The meat-free products not only save animals but also COVID-19:
significantly reduce Greenhouse Gas Emissions (GHGE) and the Retails and restaurants are
use of natural resources. According to an analysis published by forced to shut down after
the University of Michigan, a Beyond Burger uses 99% less water, COVID-19 outbreak. March
93% less land, 90% fewer GHGE and 46% less energy than a ¼ lb witnessed a trend of corporate
U.S. beef burger (Keoleian 2018). credit rating downgrades
- Bans on wildlife trade and consumption due to COVID: followed by increasing
Countries like China and Vietnam officially banned trading or unemployment, which is hurting
eating wild since COVID-19 pandemic. Fear of diseases from consumption.
animals, more and more people are considering vegan diets.
Audience: investors
Strengths:
- Corporate social responsibility
The mission of the brand is to provide solutions
for constraints on human healthy, animal
welfare, natural resources and climate change,
winning positive corporate reputation and more
customers.
- More investment after Beyond Meat’s IPO:
The company went public in 2019, making it
easier to gather investment for company
advancement from product development to
marketing.
- Global expansion
Beyond Meat is expanding to Europe and Asia,
especially in China. Beyond Meat’s CEO made a
commitment that the company will start
produce in Asia by 2020 despite pandemics.
Opportunities:
- Predicted hyper-growth of the plant-based
meat market:
The global meat alternative market is expected
to worth $27.9 billion by 2025 based on a report
published by MarketsandMarkets in 2019. More
investment will be attracted into this market.
- Vegan food production is economical
Raw materials of vegan foods are much less
expensive than real meat. The improvement of
supply chain and production process will
increase the efficiency and reduce costs for
Beyond Meat, resulting larger profit margins.
- Rise in demand for meat alternatives:
The market of meat substitute market is
emerging rapidly with total plant-based retail
hitting $5 billion in 2019. Over the past two
years, dollar sales of plant-based foods climbed
29% according to an article published by the
Good Food Institute (Gaan 2020).
Weaknesses:
- Supply chain and infrastructure:
It takes time for ingredient manufacturers
to adapt their production line and supply
chain to the requirement of plant-based
meat. Costs on the expansion of supply
chains will increase before the company
makes profit, causing low net income in
the short term.
- Earnings below expectation:
Beyond Meat’s stock price dropped after it
published its fourth-quarter earnings
which missed expectations.
- Lack of presence in global market
especially in China:
Beyond Meat has not jumped into Chinese
market yet which is reported to be about
$910 million in 2018 while the US market
size was $684 million according a report
published by the Good Food Institute
(Allen 2019).
Threats:
- Exit of investment:
Tyson Foods withdrew its investment on
Beyond Meat in 2019 before Beyond
Meat’s initial public offering and
announced its new vegan-friendly brand
Raised & Rooted, joining the stiff
competition of meat alternative markets.
- Global impacts of COVID-19 on
production:
Several plant constructions have been
suspended. Cross-broader shipment is also
affected, causing delay of expansion plans
and longer production cycle.
- Unstable stock market:
March saw global stock market plunge due
to COVID-19, affecting nearly all publicly
traded stocks.
References:

“14 Vegan Bodybuilders Who Smash Vegan Stereotypes.” PETA, 24 May 2017,

www.peta.org/living/food/vegan-bodybuilders/.

Bitter, Alexander, and Michael O'Connor. “Science Plays Catch-up to Plant-Based Meat Demand,

Investments.” Science Plays Catch-up to Plant-Based Meat Demand, Investments | S&P Global

Market Intelligence, S&P Global Market Intelligence, 13 Feb. 2020,

www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/science-plays-

catch-up-to-plant-based-meat-demand-investments-56966165.

Cameron, Brianna, and Shannon O’Neill. “State of the Industry Report: Plant-Based Meat, Eggs, and

Dairy.” Https://Www.gfi.org/, The Good Food Institute, May 2019, www.gfi.org/non-cms-

pages/splash-sites/soi-reports/files/SOI-Report-Plant-Based.pdf.

Duprey, Rich. “Beyond Meat Stock's 37% Drop Is Only the Beginning.” The Motley Fool, The Motley Fool,

9 Sept. 2019, www.fool.com/investing/2019/09/09/beyond-meat-stocks-37-drop-is-only-the-

beginning.aspx.

“GFI Research Grants Update: Introduction to Cell-Based Meat Research Projects.” The Good Food

Institute, 28 May 2019, www.gfi.org/gfi-research-grants-update-introduction-to.

Hirtenstein, Anna, and Chong Koh Ping. “Stocks Decline as Investors Digest Collapse in Jobs Market.” The

Wall Street Journal, Dow Jones & Company, 4 Apr. 2020, www.wsj.com/articles/global-stock-

markets-dow-update-4-3-2020-11585887307.

Hunt, Rhian. “Beyond Meat CEO Promises Fast Chinese Expansion, but Is It Realistic?” The Motley Fool,

The Motley Fool, 19 Mar. 2020, www.fool.com/investing/2020/03/19/beyond-meat-ceo-promises-

fast-chinese-expansion.aspx.

Keoleian, Martin C. HellerGregory A. “Beyond Meat's Beyond Burger Life Cycle Assessment: A Detailed

Comparison between a Plant-Based and an Animal-Based Protein Source.” Beyond Meat's Beyond
 Burger Life Cycle Assessment: A Detailed Comparison between a Plant-Based and an Animal-Based

Protein Source | Center for Sustainable Systems, 14 Sept. 2018, css.umich.edu/publication/beyond-

meats-beyond-burger-life-cycle-assessment-detailed-comparison-between-plant-based.

“Market Research.” Market Research, May 2019, www.reportlinker.com/p05779291/Plant-based-Meat-

Market-by-Source-Product-Type-Process-And-Region-Global-Forecast-to.html?utm_source=GNW.

Oberst, Lindsay. “Why the Global Rise in Vegan and Plant-Based Eating Isn't A Fad (600% Increase in U.S.

Vegans Other Astounding Stats).” Food Revolution Network, 18 Jan. 2018,

foodrevolution.org/blog/vegan-statistics-global/.

“Our Ingredients.” Beyond Meat - Go Beyond®, www.beyondmeat.com/about/our-ingredients/.

Peters, Bill. “Beyond Meat Earnings Miss, Stock Falls Despite Upbeat Sales Forecast.” Investor's Business

Daily, 27 Feb. 2020, www.investors.com/news/beyond-meat-earnings-q4-2019-beyond-meat-

stock/.

“Plant-Based Food Retail Sales Hit $5 Billion.” The Good Food Institute, 3 Mar. 2020, www.gfi.org/blog-

spins-data-release-2020.

Trend, The Value. “Beyond Meat: Beyond The Bubble.” Seeking Alpha, Seeking Alpha, 2 Apr. 2020,

seekingalpha.com/article/4335694-beyond-meat-beyond-bubble.

Valladares, Mayra Rodriguez. “COVID-19 Economic Crisis Will Bring A Tidal Wave Of Company Defaults In

2020 And 2021.” Forbes, Forbes Magazine, 4 Apr. 2020,

www.forbes.com/sites/mayrarodriguezvalladares/2020/04/04/covid-19-economic-crisis-will-bring-

a-tidal-wave-of-company-defaults-in-2020-and-2021/#329a224461ef.