A package of Tyson Foods Inc. Jimmy Dean brand turkey sausage is arranged for a photograph in Tiskilwa, Illinois.
Daniel Acker Bloomberg | Getty Images
After leaving Beyond Meat, Tyson Foods said it would roll out its own plant-based meat substitutes that begin this summer.
Jimmy Dean owner sold his stake in Beyond before the company was announced, citing his desire to produce vegetarian meat substitutes in his own brand umbrella. CEO Noel White told analysts at the quarterly interview on Monday that the plant-based product will start in the summer in a limited way, with a wider roll-out in October and November.
After Tyson's announcement, Beyond Meats opened 6% before recovery as high as 7% against steep losses in the wider market.
Beyond that, the strongest market debut so far this year on Thursday, increasing 1
Despite the difference in market value, Beyond and other decision makers of plant-based meat options – such as Impossible Foods – pose a threat to Tyson. Beyond Meats CEO Ethan Brown told CNBC that the company is trying to catch the meat industry's customers. Its gluten and soy-free products are meant to resemble and taste like meat than previous iterations of veggie burgers.
Although the number of vegans and vegetarians in the United States has remained relatively stable over the past decade, more Americans are trying to cut down on meat consumption and embrace the "flexible" lifestyle, usually by health or environmental reasons. The US meat substitute market is worth about $ 1.44 billion, according to Euromonitor International data. By 2023, the market is expected to grow 74% to $ 2.5 billion.
But it can be difficult for start-up to keep up with the demand. Impossible food apologized last week for deficiency, while Beyond had similar battles in 2017 and 2018. Beyond that, it has said it will use some of its revenues from its IPO to invest in its manufacturing facilities.