Neuburger ends vegetarian line as meat substitute crisis deepens

Mühlviertel food producer Neuburger has discontinued its vegetarian product line after three years, saying production is no longer financially viable. High costs and weak demand are also weighing on meat alternatives, ORF Upper Austria reports.

The company cited high costs and insufficient demand for its decision. It declined to give an interview. ORF described the move as the second time Neuburger had pulled the plug on the product line.

Christoph Teller, head of the Institute for Trade, Sales and Marketing at Johannes Kepler University Linz, said more than a third of households buy meat substitutes occasionally, but not often enough to sustain sales. Low sales can make it difficult for products to remain profitable and keep their shelf space in supermarkets, he said.

Higher prices are prompting many shoppers to choose cheaper products and special offers, making premium meat alternatives particularly difficult to sell. Private-label products are benefiting from the trend, Teller said.

Figures cited in the report show that the share of people eating vegan rose from 1 percent in 2021 to 3 percent, while the vegetarian share increased from 4 percent to 7 percent.

Production costs remain a challenge, said Bettina Zieher, a professor of food technology. Some plant-based raw materials must be grown under controlled conditions requiring energy, light and heat. Processing plant proteins and turning them into a meat-like texture also adds expense, which is reflected in supermarket prices, she said.