By Maple Leaf Foods has made revisions to its projections for plant proteins due to customer feedback and demand. The company reported a 10% decrease in second-quarter sales compared to the previous year.
According to Maple Leaf Foods, it has become evident that the initially predicted high growth rates for the plant protein category are unlikely to be achieved. This conclusion is based on customer feedback, experience, buy rates, and household penetration. However, the company still anticipates that the category will continue to grow at more moderate yet appealing rates. Current estimates suggest an average annual growth rate of 10% to 15%, making the plant protein market worth $6 billion to $10 billion by 2030.
Positive Outlook for Meat Protein Sales
In contrast to the decline in plant protein sales, Maple Leaf Foods experienced a 6.6% increase in second-quarter sales within its meat protein group. This growth was driven by higher volumes and pricing strategies implemented to counter inflation.
Despite the challenging economic conditions resulting from the post-pandemic recovery, European conflicts, high inflation, and market disruptions, Maple Leaf Foods remains optimistic. The company expects its Meat Protein Group to achieve mid-to-high single-digit sales growth in 2023. This outlook is supported by brand leadership, growth in the U.S. market, and the popularity of sustainable meat products.
Upcoming Projects
Maple Leaf Foods has set ambitious timelines for its ongoing projects. The poultry-processing facility in London, Ontario, is anticipated to be fully operational by the end of this year. Meanwhile, the Bacon Centre of Excellence in Winnipeg, Manitoba, is expected to be fully functional during the second half of the year.
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