Over the last few years, plant-based meat offerings skyrocketed, but now, some of the biggest names in the industry are struggling to stay profitable. Consumers are voting with their wallets, and it is not looking good for companies like Beyond Meat.

The nascent industry got off to a profitable start, as animal protein comes with a host of logistical complications, like refrigeration and short shelf life, not to even consider the conscientious objections some have with meat.

Plant-based meat, however, provided a workaround to these challenges and sought to offer its corporate producers healthy profits, even if they might deliver less-than-healthy products. While it is often touted by some as good for the environment and a healthy alternative to meat, not everyone agrees.

“Some of those products, even though they contain high amounts of plant-based protein, may also contain unhealthy ingredients, such as high amounts of sodium or unhealthy fats,” said Frank Hu, Fredrick J. Stare Professor of Nutrition and Epidemiology and chair of the Department of Nutrition at Harvard T.H. Chan School of Public Health.

Nor does everyone agree that plant-based is better for the environment. Fake meat requires alternative proteins that need large fields to grow, creating concentrations of single plant types.

“Monocultures will have impacts on soil erosion, they depend heavily on fossil fuels because of the fertilizers, and they’re a nightmare for biodiversity,” according to Frédéric Leroy, a professor at Vrije Universiteit Brussel in Brussels.

Not only that, the proliferation of plant-based foods can displace sustainable cattle farming. In Canada, for example, beef ranchers are the custodian of 35 million acres of native temperate grasslands, considered among the most engaged grounds in the world.

In May 2019, Beyond Meat joined public equity markets valued at $25 per share. Just over two months later, the stock peaked at $234.90, over nine times the IPO price.

However, as of November 22, 2022, the stock was trading at under $13. This year alone, Beyond Meat has seen over 80% of its value evaporate, resulting in layoffs impacting nearly 1 in 5 employees.

The trend has prompted industry experts to try and answer an important question: Is Beyond Meat’s drop in popularity a vote by consumers on the brand, or on plant-based meat broadly?

Just a few years ago, meat alternatives were predicted to surge, but volumes have fallen for nearly two consecutive years.

Inflation may be partly to blame. While plant-based food can net producers higher margins, in absolute terms, it can be an expensive product for consumers. Others suspect the market for plant-based meat has simply peaked.

“The category had been growing at double-digit for a long time and was expected to continue, but what we saw this year is that the number of consumers who were buying it did not increase,” said Justin Cook, the U.S. consumer products research leader at Deloitte.

The management consulting firm also pointed to the perception of the products as “woke.” Some consumers do not want to support a brand they consider overly political.

Cracker Barrel understands the phenomenon well. When they advertised their meatless “Impossible Sausage” on their Facebook page, they were inundated with harsh comments, like the oft-used, “Go woke, go broke,” slogan.

It is not all bad news for fake meat, however. While numerous companies report lagging sales, some, like Impossible Foods, say demand for their products is growing.

“We’re not experiencing anything like what Beyond Meat has reported … Quite the opposite: We’re seeing hypergrowth, with over 60 percent year-over-year dollar sales growth in retail alone,” said Keely Sulprizio, a spokeswoman for Impossible Foods.