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Alternatively, plant based meat products are doing quite well in the US. The problem is that the corporate world, being essentially incapable of moderation and
by m0llusk 4y ago
Alternatively, plant based meat products are doing quite well in the US. The problem is that the corporate world, being essentially incapable of moderation and self-control, banked on a quick ramp up in growth leading to economies of scale in the very short term. What went wrong was that hyped bet on quick growth. This is a common problem in the US because fast growth brings better returns especially for investors and so is more desirable than less risky slow growth.
This means there will most likely be a period of shake up in the industry which will be followed by leadership being taken up by more reasonable producers who have the capacity to tolerate modest profits and a period of relatively slow growth as the market gets a foothold.
Venture capitalists should take note of this demonstration of how growth is not the only important variable and fast growth is not always most desirable, especially with relatively new products and market segments.