The decline in buyer interest after the first increase in 2019 caused the loss of 96% of the market value of non-dairy milk and meat substitute producers Oatly and Beyond Meat, the online publication AgrarHeute reported on April 13.
After going public in 2019, Beyond Meat shares initially rose sharply. At its peak, the share price briefly exceeded 220 dollars (20.5 thousand rubles). In April 2024, Beyond Meat shares will sell for $8.50 (795 rubles). The reason for the decline in the stock price is the decline in the company’s revenue and sales. Consumer demand has fallen significantly, especially in the United States.
Nutritionists began to express doubts about the benefits of plant-based meat substitutes when it turned out that the product was highly processed. As a result, revenue fell 18% in 2023, Motley Fool analysts say. Without growth in individual markets, the slowdown could have been much worse.
Recently, Beyond Meat had to significantly reduce prices to maintain sales. The Motley Fool experts don’t see any way to make a profit.
Beyond Meat products have gone from novel to everyday. As a result, market buyers have generally returned to real meat.)
It is very likely that the scenario will be repeated in Africa and Asia.
Oatly in 2021 valued its shares at 17 dollars (1.6 thousand rubles) per share. The first day of trading started at a price of 22.10 dollars (2.05 thousand rubles). In a few weeks the shares rose to 28.73 dollars (2.7 thousand rubles). A strong downward trend followed, as the Motley Fool experts describe the development of events. Oatly is currently trading at $1.18 (110 rubles).
The market capitalization of the Swedish company decreased from 17 billion dollars (1.6 trillion rubles) to 356 million dollars (33.5 billion rubles).
Losses in 2023 amounted to $298.8 million (28 billion rubles), including extraordinary expenses of about $200 million (18.5 billion rubles).
Source: Rossa Primavera
I am Michael Melvin, an experienced news writer with a passion for uncovering stories and bringing them to the public. I have been working in the news industry for over five years now, and my work has been published on multiple websites. As an author at 24 News Reporters, I cover world section of current events stories that are both informative and captivating to read.