Max Elder, the co-founder of Nowadays, revealed the company’s fate on LinkedIn, revealing that production of their signature plant-based startup fried chicken had already ceased in August.
In a double blow to the plant-based startup’s meat sector, two prominent San Francisco startups, Hooray Foods and Nowadays, have announced their closure within a week of each other in late 2023
Elder explained that Nowadays struggled to secure ample venture capital amidst the downturn in the plant-based startup meat market. Despite efforts to explore alternative avenues for their patented product, as of September 13, the brand has officially ceased operations.
Hooray Foods faced a parallel fate, disclosing their shutdown on September 7. Known for its plant-based startup bacon, the company initiated a WeFunder crowdfunding campaign in January to attain profitability, price parity with traditional bacon, and nationwide distribution. Regrettably, the campaign’s funding fell short in covering production, distribution, and sluggish sales growth. In a social media statement, Hooray Foods expressed gratitude to their supporters and attributed the closure to a misalignment between operational costs and revenue.
This development adds to the concerning downturn observed in the plant-based startup meat industry in 2023
Tattooed Chef, a notable plant-based startup meal brand, filed for bankruptcy in July due to insufficient sales revenue. Even industry giant Beyond Meat experienced a 30% drop in sales, reporting a net loss of $53.5 million in the second quarter, with a significant reduction in projected 2023 revenue. Overall, retail sales of plant-based startup meat in the U.S. have sustained a steep decline throughout the year.
The primary factor driving this industry setback appears to be food price inflation. Recent data from Circana indicates a continued rise in food prices in 2023, leading consumers to opt for more cost-effective product brands. Despite efforts by companies like Beyond Meat to achieve price parity with conventional meat, alternative proteins remain comparatively pricier. With escalating food costs and plant-based startups shuttering before achieving price competitiveness, the outlook for consumer demand in this sector appears bleak for the foreseeable future.
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