The vegetable-based meat industry is on the rise, but challenges remain

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

According to Google Trends, global search interest for the term “vegetable meat” soared in early 2019 ahead of Beyond Meat’s initial public offering.

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

This growth is being spurred by concerns ranging from animal welfare to food security and the Covid-19 pandemic.

“In this era of shocks and instability, building a low-risk value chain means focusing on opportunities and the shift to plant meat shows no signs of slowing down,” said Elaine Siu, managing director of The Good Asia Pacific Food Institute.

But obstacles remain for the growing market.

Siu claimed that the vegetable meat market in Asia could be limited by established perception problems.

For example, simulated meat or vegetarian meat was previously eaten mainly by followers of Buddhism in China, he said.

“The reproduction of meat flavor and texture never went from a relatively basic level,” he said, adding that these traditional products have a specific purpose and that “their appeal is limited” to certain groups.

“In order for meat of plant origin to reach its full market potential in Asia, the sector must continue to free itself from its association with traditional simulated meats, which are expected to be sold at a low price and carry historical image luggage “. said Siu.

Farmers could also hinder the alternative protein sector, especially in the U.S., said Simon Powell, global head of topical research at U.S. bank Jefferies.

The U.S. Livestock Association in 2018 filed a petition to request an official definition of the terms “beef” and “meat” to try to keep vegetable proteins out of the description.

“Headline producers will put pressure on their governments to change labeling and mock consumer advertising to say it can’t be called meat,” Powell told CNBC via Zoom. “I think that’s potentially one of the biggest barriers.”

In October, the European Union rejected proposals to ban restaurants and shops from using words like sausage or burger when describing meat alternatives.

Powell added that if any of the meat plant companies had “some kind of accident” or a problem with their recipe, this will result in a “mass withdrawal” that could scare customers into eating these alternatives. .

“That’s a big‘ yes ’… but if they had to remember the product a lot, that could upset consumer confidence,” he said. “At some point, you’re going to get these events. This is going to push the industry back a little bit.”

On the other hand, Powell claimed that the “Instagrammability” of plant foods is one of the reasons the market is growing “worldwide”. Market growth could be hampered if novelty alternatives to meat disappear or disappear, he said.