Many Americans are losing their taste for alternative meats, an economist says.

Plant-based meat alternatives skyrocketed in popularity in 2020, with U.S. sales increasing 46% in value year over year to $1.4 billion. But consumer interest has waned in the past year due to negative consumer perceptions in terms of affordability, taste and versatility.

A lot of the growth in sales was related to the pandemic. With a lack of availability of different foodstuffs in grocery stores, consumers were willing to experiment and diversify their meal options, said Billy Roberts, senior food and beverage economist for CoBank.

But continued use of plant-based meat hasn’t really stuck. Volume sales for the 52 weeks ending July 2, dipped about 20% compared with the same period a year earlier, he said.

“I think we’re seeing a market that’s kind of starting to shake out a little bit,” he said during a recent podcast on a new report from CoBank’s Knowledge Exchange.

Consumers might try it again in the future, but it’s not going to be a go-to item for most “flexitarian” consumers, he said.

“A lot of consumers in the plant-based meat area kind of indicate there are some issues with taste even though they’re still purchasing plant-based meats … they’re falling a little bit short in terms of mouth feel, in terms of flavor compared with the animal proteins,” he said.

That’s an area of opportunity for plant-based meat manufacturers, and there’s plenty of them out there.

Another factor that coincides with value is versatility, and plant-based meats aren’t as versatile as animal-based protein. There are only certain applications for them, and most of them have to be cooked in a certain precise way, he said.

A lot of plant-based meats are falling short in taste and convenience, and price can’t be discounted as a major issue. The product retails at a significantly higher margin than its animal-based protein counterparts, he said.

Another drawback is the complicated ingredient list, with at least a dozen and usually a lot more different components, he said.

“That doesn’t translate to the consumer as natural; it really translates as heavily processed,” he said.

In and out

Some companies in the category are starting to fall away, with bankruptcies among some plant-based meat manufacturers, he said.

“But we’re also seeing some major players come into the market as well, not necessarily solely focused on plant-based meats, a lot of … animal-based protein manufacturers,” he said.

A lot of food giants — including Nestle, DSM, Cargill and Unilever — are starting to take the lead when it comes to patent applications for plant-based meats. That signifies how diverse this category and how more diverse it’s probably going to get, he said.

It also signals trouble for smaller startups that had their shot and didn’t really resonate with consumers, he said.

“They’re probably just going to fall by the wayside as these major manufacturers have increased their involvement in the category,” he said.

Kellogg, Kraft Heinz and other manufacturers are also getting involved, he said.

Manufacturers are going to look at the plant-based meat market on a global scale because there are certain markets where plant alternatives are ideal for cultural and religious reasons, he said.