Please ensure Javascript is enabled for purposes of website accessibility

Beyond Meat Gets Challenged as Impossible Foods Starts Selling Directly to Customers

By Rhian Hunt – Jun 4, 2020 at 2:46PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Competition heats up as the demand for plant-based meats continues to grow.

While Beyond Meat (BYND 2.68%) has been making big gains lately, including a 29% stock market rise in May and a June rollout of its plant-based burgers in China, rival Impossible Foods is taking steps to catch up. Among these is its recent introduction of direct-to-customer sales of its various plant-based "Impossible meats."

With textured pea and potato proteins offering closer (and tastier) analogs to actual meat than the soy patties of yore, and healthier eating all the rage nowadays, the race is on among companies to secure a place in the growing plant-based meat market. Research by Global Market Insights, Inc. predicts the market will explode to $4.15 billion in sales annually by 2026, with some areas of the U.S. potentially witnessing a 26% CAGR (compound annual growth rate) in demand over the same period.

An array of Impossible burgers and fries

Image source: Impossible Foods.

Impossible Foods just started selling its Impossible products on its website for shipment to consumers' homes. Delivery is free and uses two-day shipping to ensure freshness of the products on arrival. The food is double-boxed, with the inner box cooled by a bag of dry ice. The packaging is also mostly recyclable or biodegradable, with the exception of the dry ice bag.

In order to make the sales cost effective, Impossible Foods is offering these website sales in what might be called bulk quantities. The smallest item is a "convenience pack" featuring four 12-ounce packages of Impossible Burger at $50, while the highest end is a $70 "grilling pack" of 20 quarter-pound patties. Thus far, only Impossible Beef products are available; Impossible Pork is not yet sold direct-to-customer.

Impossible's products will also be sold in approximately 7,500 supermarkets by 2020's end.

Rhian Hunt has no position in any of the stocks mentioned. The Motley Fool recommends Beyond Meat, Inc. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Beyond Meat Stock Quote
Beyond Meat
BYND
$14.93 (2.68%) $0.39

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
327%
 
S&P 500 Returns
105%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/27/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.