The plant-based meat industry is growing, but challenges remain

SINGAPORE – Demand for meat alternatives has grown and will continue to rise, but the industry still has barriers to overcome in various parts of the world, analysts said.

A worldwide search interest for the term “plant-based meat” was broadcast in early 2019 months before Beyond Meat’s first public offering, according to Google Trends.

The global meat substitute sector is worth $ 20.7 billion, and is expected to grow to $ 23.2 billion by 2024, market research firm Euromonitor told CNBC.

That growth is driven by concerns ranging from animal welfare to food security and the Covid-19 pandemic.

“In this time of panic and instability, building a low-risk value chain means focusing on where the opportunities lie, and the move toward meat is not based on plants are showing signs of slowing down, “said Elaine Siu, managing director of The Good Food Institute Asia Pacific.

But barriers remain for the growing market.

The plant-based meat market in Asia may be limited by established opinion issues, Siu said.

For example, mockery of meat or vegetable meat was largely eaten by followers of Buddhism in China, she said.

“Replicas of the taste and texture of meat have not been pushed beyond a very basic level,” she said, adding that these traditional products serve a specific purpose and “their appeal is seen as restricted ”to certain groups.

“For plant-based meat to reach its full market potential in Asia, the region must continue to be free from its link to traditional meat decoction, which is expected to be sold at a low price point and historical image bags. behavior, “said Siu.

Cattle farmers could also stand in the way of the other protein sector, especially in the U.S., said Simon Powell, global head of subject research at American bank Jefferies.

The U.S. Cattlers Association in 2018 submitted a petition seeking an official definition of the terms “beef” and “meat,” in an effort to keep plant-based proteins out of the description.

“Ordinary representatives are going to lobby their governments hard to change the written information, to go around with consumer advertising to say you can’t call it meat,” Powell told CNBC via Zoom. I think that is probably one of the biggest obstacles. “

The European Union in October rejected proposals to ban restaurants and shops from using words like sausage or burger when describing other meat options.

Powell said if any of the plant-based meat companies had an “accident of some sort” or a problem with their recipe that leads to a “big memory,” consumers might be afraid of the options. other that eat.

“This is a great thing if… but if they had a great memory of a product, that could boost consumer confidence,” he said. “At some point, you’re going to get these events. That’s going to put the industry back a bit. “

Separately, Powell said that “Instagrammability” of plant – based foods is one reason the market is growing “everywhere in the world.” Market growth could be hampered if newborn meat options are drained or worn away, he said.