Unilever Struggles to Sell Its Plant-Based Meat Business Amid Declining Demand

Unilever is facing difficulties in selling its plant-based meat brand, The Vegetarian Butcher, as consumer interest in meat alternatives continues to decline, industry experts say. The company has hired investment bank Piper Sandler to facilitate the sale, but potential buyers may be hesitant due to the brand’s financial struggles and broader market downturn.

Unilever acquired The Vegetarian Butcher in 2018, aiming to capitalize on the growing plant-based food trend. However, the brand has struggled with profitability, generating around €50 million in annual sales while operating at a loss.

The plant-based meat industry, once predicted to be a game-changer, has seen a dip in sales. U.S. retail sales of plant-based meat fell from $1.7 billion in 2022 to $1.6 billion in 2023, as consumers shift towards less processed food options. Critics, including U.S. Health Secretary Robert F. Kennedy Jr., have labeled plant-based meats as “ultra-processed,” further damaging their market appeal.

Unilever’s decision to sell The Vegetarian Butcher aligns with its broader strategy to streamline operations and focus on top-performing brands. However, experts warn that the brand’s financial struggles and the overall market decline could make it difficult to attract buyers. Competitors like Nestlé are also reassessing their presence in the plant-based meat market.

Analysts suggest that the industry’s potential could be revived if traditional meat prices rise, making plant-based alternatives more competitive. For now, Unilever’s efforts to exit the sector highlight the growing challenges faced by plant-based food companies in a changing consumer landscape.