Fake meat sales are now plunging because of high prices and being too 'woke' for consumers ⁠— here's the 1 timeless takeaway for investors

The sudden reversal of this trend highlights several economic factors that impact consumers and investors alike. Here’s a closer look.

The 'wokeness' backlash

While the term “woke” first popped up in the Black American community, it has grown into a global phenomenon as a catch-all term for everything relating to awareness of racial and social justice matters.

Part of the reason the term is so widely used and loosely defined is that corporate entities have embraced it so thoroughly. Organizations like Whole Foods, Pinterest and Adidas adopted the trend to restructure everything from human resources to marketing campaigns — a phenomenon the Harvard Business Review has dubbed “woke washing.”

Plant-based meat companies are closely associated with this phenomenon. Beyond Meat and Impossible Foods mention “climate change” and “animal welfare” several times on their website, and in corporate reports.

The marketing strategy worked initially, driving double-digit annual sales for both companies and major brand partnerships. However, the growing cynicism about woke capitalism has upended this strategy. Data from Information Resources Inc., or IRI, suggests that fake meat sales declined in 2022, while analysis from Deloitte Consulting LLP. indicates that the market may already be saturated in the U.S.

Deloitte also suggests that consumer disenchantment with the term “woke” is making these products less appealing for the average shopper.

Inflation impact

The cultural backlash against “wokeness” isn’t the only reason for declining sales. Inflation could be driving consumers away too.

Food costs were a key driver of inflation in 2022. The current rate of inflation is 3.7% — a much improved score over the 6.5% rate of December 2022.