The 2021 State of Meat in Foodservice

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THE 2021 STATE OF MEAT IN FOODSERVICE

The 2021 State of Meat in FoodService

THE RISE OF PLANTS AND THE POWER OF IMPOSSIBLE™ PRODUCTS The meat industry is rapidly changing in response to consumer demand for options that are better for their health and the planet. This report summarizes the current state of the meat industry, and highlights the key differences between what consumers consider “plant-based meat” and Impossible™ products. It also includes key insights for restaurant operators looking to stay relevant and competitive in the face of changing consumer preferences.

KEY TAKEAWAYS • CONSUMERS ARE ACTIVELY REDUCING ANIMAL MEAT CONSUMPTION Across the United States, non-animal meat products continue to grow in popularity among meat eaters who are trying to reduce their meat consumption for health and environmental reasons. On the national level, 40% of US adults are actively reducing meat consumption, and 39% are considering it,1 illustrating that consumers are changing habits and plant-based meat consumption is not a trend—it is here to stay.

• WHEN CHOOSING ANIMAL-MEAT ALTERNATIVES, TASTE IS PARAMOUNT Taste remains the top barrier to trial and repeat purchase for plant-based meat products, so choosing a product that satisfies meat cravings is crucial. Many products on the market today do not deliver meat flavor or texture, which are the qualities that set Impossible products apart from the rest. Among a sample of restaurant operators, 89% rank Impossible Foods in the top three brands they believe to be best in class, with the majority ranking it at the very top.2

• ADDING IMPOSSIBLE PRODUCTS TO YOUR MENU DRIVES PROFITS Consumers are motivated and excited to eat at restaurants that offer Impossible products. In a survey of customers who visited restaurants serving Impossible™ items in 2020, 52% said they decided to order Impossible products before even going to the restaurant.3 In fact, some restaurants selling Impossible™ Burger have reported up to a 36% month over month increase in same-store sales after adding it to the menu.4

1 2 3 4

YouGov Profiles, Dec 2020 August 2020, Impossible Operator Tracker. 2020, In the Wild Field Study, MFour Earnest Research. “Burger King Bets on the Impossible.” Medium, Earnest Research, 30 Oct. 2019, www.medium.com/earnest-research/burger-king-bets-on-the-impossible-d9bc86c0bff4

The 2021 State of Meat in FoodService

DEMAND FOR MEAT ALTERNATIVES IS ON THE RISE The alternative meat marketplace is booming. UBS forecasts the U.S. market for plant-based meat to reach ~$15 billion by 2025—up from $1 billion in 2018 5—with 38% of adults already eating plant-based meat at least once a month (50% for adults below age 35).6 In an analysis of over 1,000,000 menu items, plant-based burgers are among the top ten fastest growing, expanding 362% in the past four years,7 and in retail, plant-based meat sales have risen +94% on average, outpacing animal-based meat.8 On menus and shelves across the United States, consumers can choose from myriad products that market themselves as tasting like meat from animals. But not all animal-free meat products are created equal.

WHY DO PEOPLE CHOOSE IMPOSSIBLE PRODUCTS? #1: TASTE Meat eaters looking for satisfying alternatives to meat from animals choose Impossible™ Sausage Made From Plants and Impossible Burger. Among foodservice operators aware of Impossible Foods, 89% rank it in the top three brands they believe to be best in class, with the majority ranking it at the very top.9 In a survey of guests who visited restaurants serving Impossible products in 2020:

58%

92%

said they were extremely satisfied by the taste of Impossible™ meat

5 6 7 8 9 10 11

84%

who ordered Impossible Burger said they were likely to order it again

said their perception of the restaurant increased after seeing an Impossible™ item on the menu10

Uncertainty around taste is the main consumer barrier to ordering a menu item with non-animal meat. So restaurant operators who want to offer a satisfying replacement for meat eaters must put taste first. Plant-based meat is no longer synonymous with frozen veggie burgers. And it’s true that even as the industry has evolved, most products that call themselves plant-based meat do not have the “real” flavor or texture of meat from animals. That’s where Impossible Burger is unique—it’s meat made from plants that cooks and tastes like ground beef from cows.11 In fact, some prominent TV personalities can’t tell the difference between Impossible Burger and ground beef from cows, and a beef lobbyist called it the “real deal” and a “wake-up call” for the livestock sector. The message is clear: Impossible Burger is the clear alternative that will keep meat lovers coming back for more.

“Future of Food I: Is Plant-Based Meat Poised to Rebalance Global Protein Consumption?” Investment Bank, www.ubs.com/global/en/investment-bank/in-focus/2019/future-of-food.html 2019 Generation IF Report, Harmon Atchison Datassential MenuTrends Total US MULO, Latest 26 weeks ending 1/24/21, IRI custom research IF Operator Tracker 2020 In the Wild Field Study, MFour IF Jan. 2020 IHUT, In a home usage study, 70% of 254 US consumers who cooked with Impossible™ Burger thought the taste was comparable to or better than ground beef from cows

The 2021 State of Meat in FoodService

#3: CURIOSITY AND EXCITEMENT The cultural relevance of Impossible Burger drives purchase, especially among consumers age 35 and under. The Impossible Burger has been referenced in iconic television shows like SNL and The Daily Show. Celebrities and athletes have come out in big numbers to support the brand, and more sustainable eating choices in general. Jay Z, will.i.am and Serena Williams are among the celebrity investors in Impossible Foods. Katy Perry wore an Impossible Burger “dress” to the Met Gala in 2019. 

#2: HEALTH AND SUSTAINABILITY Health is a top factor in consumer decision-making. Increasingly, customers are trying to replace red meat with other satisfying and satiating options, like Impossible products. Over 90% of Impossible Foods consumers identify as meat-eaters and are actively looking for ways to incorporate healthier alternatives into their diets.12 On the national level, 40% of U.S. adults say they are actively reducing meat consumption and an additional 39% say they are considering it.13 Sustainability also continues to rise as a purchase motivator. When asked why they chose Impossible Burger over beef from cows, 22% of consumers said “because it’s environmentally friendly.”14 When Impossible Foods launched the Impossible Burger in 2016, concern for the environment wasn’t even in the top ten reasons for purchase—now it’s No. 3.15 Consumers who choose to eat plant-based foods more often rank the fact that it’s “better for the environment” in their top five motivations. According to a June 2020 poll of U.S. adults by Mattson, 65% of people said they choose to eat plant-based foods more often because of the “general health benefits” and 48% said they chose it because it’s “better for the environment.” While health benefits are a top motivation for choosing plant-based foods, Mattson president and chief innovation officer Barb Stuckey said the motivation is shifting: “more people [are] choosing toeat plant-based foods…because they think it’s better for the environment—a major change in just two years— especially among younger consumers,whereas for older consumers it’s more about health.”16

“A plant-based diet is healthier for me and the environment.I invested in Impossible Foods to provide plant-based options for people that may not have ever had those choices due to cost and availability. I also don’t have to sacrifice the taste and flavors I enjoy. My entire family can’t get enough.” — Serena Williams

Gen Z and Millennials love the Impossible Burger and Impossible Sausage Made From Plants, and are actively seeking them out. While 18–34-year olds make up 30% of the total US general population, 45% of Impossible eaters fall between the ages of 18 and 34.17 For operators, especially those with aging demographics, offering Impossible products is an opportunity to have the most inclusive menu for existing customers, drawing in their children and grandchildren for multigenerational dining experiences.

MILLENNIAL Born: 1980–1994 Age: 25–39 years

GEN Z Born: 1995–2001 Age: 18–24 years

12 January 2021 Impossible Foods Brand Tracker 13 Sep. 2020, YouGov Profiles 14 2020, In the Wild Field Study, MFour 15 Impossible Foods Impact Report 2019 16 Watson, Elaine. “SHIFT20: How Are Consumers Thinking about Plant-Based Eating? Mattson Unveils New Survey Data.” Foodnavigator, William Reed Business Media Ltd., 14 July 2020, www.foodnavigator-usa.com/Article/2020/07/14/SHIFT20-How-are-consumers-thinking-about-plant-based-eating-Mattson-unveils-new-survey-data 17 Sep. 2020, Impossible Foods Brand Tracker

The 2021 State of Meat in FoodService

WHO IS SELLING IMPOSSIBLE PRODUCTS? The availability of alternative meat is expanding rapidly across the United States, and it’s now easy to find in over 100,000 retail stores, national chains, corner cafes, and local spots like your favorite neighborhood pizza joint. Restaurant operators and retailers have an increasingly good reason to offer animal-meat alternatives—especially Impossible products—because they are a proven business driver, with restaurants who sell Impossible products reporting up to a 36% MoM increase in same-store sales after adding Impossible™ Burger to the menu.18 Adding Impossible products to the menu also increases brand perception, traffic, and repeat sales with customers who purchased Impossible Burger at restaurants reporting:19

70%

of those who purchased an Impossible product in the past six months have come back to purchase again

52%

think adding Impossible products to the menu would improve the overall perception of the restaurant

55%

would visit the restaurant just to order the Impossible Burger

Sales of plant-based meat in grocery stores are also experiencing massive growth. In September of 2020, the consumer insights firm Numerator found that Impossible Burger sales come in lieu of animal meat or other plantbased brands, not in addition to it, with 78 cents per dollar of Impossible Burger sales coming from shoppers who decide to buy Impossible products instead of other plant-based brands or animal-derived meat. Within this group of consumers, 92% of Impossible Burger sales come at the direct expense of animal meat.20 Additionally, in retail stores where it is sold, Impossible Burger is reported to be the #1 item in plant-based ground beef in dollar productivity and has been incremental to the plant-based ground beef category, contributing to overall segment growth of 22%.21 Our foodservice partners echo this sentiment, reporting that Impossible Burgers sell 3X more than leading competitors when they are head-tohead on the menu.22

18 Earnest Research 2019: April 2019 vs. March 2019 credit, debit, and bill pay activity from millions of anonymous U.S. consumers 19 2019 Impossible Foods Concept Test 2. 2020 Impossible Foods Brand Tracker 20 Starostinetskaya, Anna. “92 Percent of Impossible Burger Sales Directly Displace Animal Meat.” VegNews.com, 18 Sept. 2020, www.vegnews.com/2020/9/92-percent-of-impossibleburger-sales-directly-displace-animal-meat 21 Impossible Foods custom research definitions based on IRI data, Total US MULO Ending 6-14-20 22 Bloomberg 2019

The 2021 State of Meat in FoodService

WHICH MENU ITEMS ARE SELLING? Today, it’s becoming common to find alternatives to ground beef from cows, like Impossible Burger, in familiar dishes like meat sauces, tacos, or pastas thanks to their versatility. Plant-based sausage has also become increasingly popular and preferred over animal-derived meat options. In a test of over 200 U.S. consumers, an Impossible Sausage Patty Made from Plants breakfast sandwich was preferred 54% to 46% over the same breakfast sandwich made with the leading brand of animalderived sausage patty. But the burger still holds the number one spot in menu popularity. In an analysis of 1,000,000 menu items by four-year growth, the plant-based burger is in the top ten fastest growing menu items, expanding 362% in the past

four years 23 and debuting as the second most popular food ordered on GrubHub in 2020.24 Impossible Foods is at the heart of this explosion of growth as the only branded item on Yelp’s most mentioned words and phrases since 2010.25 

“Nobody will miss the beef, the Impossible Burger is delicious! It’s just a damn tasty burger! I loved that Impossible [Burger] can be seared on the outside with a rosy, juicy inside—just like a medium-cooked beef burger.” — Chef Craig Wong, Pastis

THE PLANT-BASED BURGER IS IN THE TOP 10 FASTEST GROWING MENU ITEMS, EXPANDING

362%

IN THE PAST 4 YEARS

23 Datassential MenuTrends 24 Grubhub, “State of the Plate 2020.” grubhub.com, 9 July. 2020. https://media.grubhub.com/media/News/press-release-details/2020/Grubhub-Releases-Second-Annual-State-of-thePlate-Report/default.aspx 25 “Yelp’s 15th Anniversary.” Yelp, www.yelp15.com/

The 2021 State of Meat in FoodService

CONCLUSIONS AND RECOMMENDATIONS Consumers are increasingly choosing to purchase products that align with both their taste preferences and their values. Incorporating plant-based meat into the menu in familiar and innovative ways is one way restaurants can address these shifting consumer demands, and serving delicious products that consumers love and are searching out makes all the difference. Offering Impossible products in your store or restaurant drives business and brand perception. Impossible products are displacing meat derived from animals in grocery stores and showing up on restaurant menus all over the world. They’re popular among meat eaters who are trying to reduce their meat consumption, and those looking to reduce their impact on the planet. Based on these trends, restaurant chains should consider offering alternative options that cater to everyone—specifically people who love and eat meat. Taste is what sets Impossible products apart from plant-based meat alternatives. Many consumers are curious but unsure about taste when it comes to meat alternatives, so choosing a product that truly satisfies their meat cravings is incredibly important. That’s what distinguishes Impossible products from the rest—even the most devoted meat eaters will become converts with one bite.

Become a partner of Impossible Foods! Email us at [email protected] or request a sample here.