Meat companies are among the last industries you will visualize trying to test the waters of the plant-based meat consumption sector. However, Tyson Foods, which is one of the United States’ largest meat producers, is currently coming up with a way to include plant-based substitutes in its alternative meat section.
Tyson Foods plans to launch plant-based nuggets in its debut for their brand, Raised & Rooted. The new brand will focus on selling blended meat and plant alternative products. Since February, Tyson Foods’ top executives are promoting their move to meat substitutes to compete with meat substitute companies like Beyond Meat and Impossible Foods.
After the announcement of their decision to include plant-based food alternatives in their products, Tyson Foods witnessed a rise of 3% in stocks, while Beyond Meat’s shares went down by 4%. Beyond Meat’s market value, which is among the highest in the plant-based meat consumption industry, is at $8.5 billion. However, Beyond Meat’s total is only about a third of what Tyson Food’s market value is making.
Tyson Foods CEO Noel White shares that his company remains committed to the meat business but also expects to make waves in the alternative protein section. White also adds that the new venture may turn out to be a successful billion-dollar move after making double-digit growth before their announcement.
Euromonitor estimates that the alternative meat market will take $22.9 billion by 2023 since the flexitarian diet is already driving up demand. According to global market research firm Mintel, over 50% of the US is taking an interest in eating less meat.
Beyond Meat experimented on plant-based chicken strips, but proceeded to pull the products from the market this year. Tyson Foods’ nuggets contain pea protein instead of the traditional chicken. In the future, the meat company plans to launch a burger that contains both pea protein and Angus beef.
Tyson Foods’ decision to move to alternative products is among its plans to expand the company’s reach from meat products to food service. Aidells, which is among Tyson Foods’ variety of brands, is selling meatballs and sausage that have chicken and plant ingredients.
Perdue Foods, a rival meat producer, is also trying to expand its reach by introducing chicken nuggets, patties, and tenders that have vegetables blended in them. Tyson Foods is also starting to invest in businesses that are focusing on alternatives. Among the investments made were Memphis Meats, MycoTechnology, and Future Meat Technologies.