Beyond Meat, which co-developed McDonald's McPlant vegan burger, said sales fell 30.5 percent to $102.1m in the quarter to 1 July, missing analysts’ expectations.
The US company, founded in 2009, now has a market value of just $981 million and its stock has plummeted almost 70 percent since August last year.
In response to its earning report Beyond Meat said it had been hit by 'softer demand in the plant-based meat category, high inflation, rising interest rates and ongoing concerns about the likelihood of a recession'.
Ethan Brown, the company’s chief executive, said doubts around the health benefits of eating plant-based meat has also impacted sales.
'This change in perception is not without encouragement from interest groups who have succeeded in seeding doubt and fear around the ingredients and process used to create our and other plant-based meats,' he said.
'As we look to the future, we remain steadfast in our belief that plant-based meat, and Beyond Meat specifically, will play an important part of the global response to a climate crisis that appears to be rapidly intensifying, while also delivering health benefits to the individual consumer.'
Beyond Meat has slashed prices on its core products to bring them in line with or lower than their animal protein equivalents in an attempt to bring in more customers.
It comes as Americans continue to battle the cost of living after a period of high inflation, soaring interest rates and increased food bills.
Other brands such as Oatly, Nestl and Innocent Drinks owned by Coca Cola have pulled some of their vegan products from sale amidst a growing rejection of the often pricier options.
Beyond Meat is now forecasting 2023 revenues between $360m and $380m, down from its previous estimate of $375m to $415m, and below last year’s revenues of $418.9m.
The company's sales have slumped despite high profile celebrity endorsements from the likes of Kim Kardashian.
Clive Black, a retail analyst at investment group Shore Capital, told The Guardian the vegan market had been overhyped.
'The real market is nowhere as big as some people hoped and some people ramped up. Reality is dawning' he explained.
'We looked with some incredulity at the number of companies that were drawn into this space and the amount of shelf space that was given to it in supermarkets.
'There will be some winners, but the numbers will be relatively small because we’ve been through a bubble' he added.