Europeans aren't biting on vegan meat: Nestlé downsizes at Czech factory

From expats.cz

Nestlé will lay off 80 workers at its Krupka plant in the Czech Republic as European consumers show weak demand for plant-based meat alternatives

Nestlé has announced plans to lay off 80 employees—one-fifth of the workforce—at its Krupka factory in Czechia's Ústí nad Labem Region. The move responds to a slowdown in European consumer interest in plant-based meat substitutes, including vegan burgers and vegetarian schnitzels.

The company says it will provide support for affected workers in their job searches. The decision highlights broader challenges in the European market for plant-based foods, where demand has fallen short of pre-pandemic expectations.

Nestlé remains committed to plant-based products but acknowledges that market conditions, including inflation and rising competition, have affected growth prospects.

                          Nestlé Garden Gourmet products in an Austrian supermarket. Photo: Shutterstock / HelgaQ

Declining demand and market challenges

Nestlé’s spokesperson Tereza Procházková explained that the company had hoped for stronger growth in the plant-based sector after the COVID-19 pandemic but has instead seen lower-than-expected consumer demand across Europe.

"The current situation is very disappointing," Procházková said. "The European market for plant-based alternatives is growing more slowly than we anticipated."

The Krupka facility, which employs around 400 people, produces vegan and vegetarian meat substitutes such as burgers and schnitzels. Despite Nestlé’s optimism about the future of plant-based foods as an option to diversify diets, the sluggish sales have forced the company to reduce production capacity.

Procházková emphasized that the layoffs are not a reflection of a retreat from the category but a necessary adjustment to current market realities. "We have tried to maintain production and jobs while waiting for market conditions to improve, but this has not happened so far," she said.

Support for workers amid regional unemployment

The layoffs are scheduled to take place gradually starting in September, following employee notice periods. Nestlé is collaborating with local labor offices and unions to assist displaced workers. An advisory center will be set up within the factory to help affected employees navigate the job market and access retraining or other support.

Martina Bečvářová, director of the regional labor office in Ústí nad Labem, stated that while the region has historically had one of the highest unemployment rates in the country, the expected job losses are not likely to significantly worsen the local employment situation.

In May 2025, the unemployment rate in the Teplice district, where Krupka is located, stood at 5.7 percent, the second lowest in the Ústí region.

Bečvářová noted that available job vacancies in the area are increasing and expressed hope that at least half of the laid-off workers will find new employment opportunities nearby. Nestlé is actively contacting other local employers to facilitate potential job transitions for interested employees.

Nestlé is one of the world’s largest food companies, operating in 189 countries. In the Czech Republic, besides the Krupka plant, it runs factories in Olomouc and Holešov. The company has been present in the Czech market since 1992.

https://www.expats.cz/czech-news/article/europeans-aren-t-biting-on-vegan-meat-nestle-downsizes-at-czech-factory