Plant-based meat giant's five-year battle in China: investing in factories but losing hundreds of millions, ultimately withdrawing completely

After entering the Chinese market, alternative meat initially attracted attention among young people in some cities. In 2020, by partnering with well-known chain restaurants to launch plant-based burgers and other products, many tried them out of curiosity. The concepts of environmental protection and health sounded appealing, and people saw this as a new option.

Not long after the products were launched, problems became apparent. The texture was noticeably different from real meat, and it easily fell apart during cooking, making it inconvenient for Chinese stir-fries or soups. Consumers cared more about how it actually tasted than just the concept. The company invested heavily in marketing and hired experts to discuss nutritional value, but these efforts didn’t fully improve the user experience.

To better meet local needs, the company built a factory in Jiaxing, Zhejiang, in September 2020. The factory’s location near Shanghai offered good transportation, and its planned capacity was large. The goal was to reduce costs through local production and avoid some tariffs. The factory began operation in April 2021, supplying the first batch of products to nearby fast-food restaurants. The company tried adjusting recipes by adding common seasonings like ginger and garlic, launching new products such as plant-based dumpling fillings, and selling in supermarkets. However, the prices were much higher than regular meat.

Sales initially showed some improvement through promotions and tastings. However, repeat purchases were limited. Many people felt the texture resembled processed soy products, with coarse fibers and a lack of the aroma of real meat. Surveys indicated most consumers viewed these products as occasional treats rather than everyday ingredients. Price was a clear barrier, and local brands offering more affordable options quickly captured a significant market share.

In 2022, the company opened stores on Tmall and Pinduoduo, selling burger buns and sausages directly. Live-streaming sales temporarily boosted traffic, with monthly sales fluctuating but conversion rates remaining average. Most returns were due to unsatisfactory texture and a strong bean-like flavor. The company improved products by reducing additives and launching low-sodium versions. Production increased to support exports in the surrounding areas. However, local competitors continued expanding with more affordable prices. By the end of the year, sales slowed, inventory pressure grew, and the company reduced promotions, focusing on core cities. Research showed that while tastings appreciated the appearance, few consumers chose these products long-term. Under changing economic conditions, people preferred to buy genuine meat at better prices.

In 2023, sales continued to decline. The company participated in environmental campaigns, emphasizing the benefits of reducing carbon emissions, but consumer response was lukewarm. The factory added production lines and developed more imitation pork products, expanding retail points, though shelf space was limited. Data from the first half of the year showed domestic brands held the majority share.

The development of plant-based meat in China highlights the importance of adapting to local eating habits. Consumers care about taste close to real meat, reasonable prices, and suitability for various cooking methods. The industry needs ongoing technological improvements to better meet daily needs. When choosing food, people always weigh health, taste, and affordability. Do you think plant-based meat can still find a suitable place in China’s future market?