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High Steaks: The Business of Fake Meats

  • Writer: Atharva T.
    Atharva T.
  • Apr 6, 2024
  • 8 min read

Updated: Dec 23, 2024

Introduction:

People today are very inquisitive when it comes to meat substitutes as in ethics, environment, and health, consumers are inclined toward new and sustainable alternatives. Currently, the fake meat industry is on the verge of entering the mainstream culinary space, presenting an alternative for people who want to limit or completely cut out animal meat from their diet plans. Advancement of biotechnologies and an expanding market will determine whether we are at the brink of a dietary revolution that reshapes the nature of what we eat.




The Options

Plant-Based Meat

Plant-based meat represents a transformative approach to redefining our culinary landscape by crafting alternatives that capture the essence of animal-based meat without the ecological and ethical drawbacks. Here's a closer look at what plant-based meat is and the strategies employed to seamlessly replace traditional animal meat.


Key Features:

  • Ingredient Selection and Flavor Mimicry:

  • Plant-based meat manufacturers strategically choose a combination of plants to replicate the flavors and textures found in traditional meats.

  • Utilizing natural flavor enhancers and spices helps achieve a taste profile that closely resembles that of animal-based meats.

  • Texture Replication through Processing:

  • Advanced processing techniques such as extrusion and texturization are employed to recreate the fibrous and chewy texture characteristic of certain meats.

  • Nutritional Enrichment:

  • Plant-based meats are often fortified with vitamins, minerals, and other nutrients to match the nutritional content of traditional meats, addressing concerns about protein, iron, and B12 deficiencies.

  • Marketing and Branding:

  • Companies invest in attractive packaging and messaging to entice consumers and dispel preconceived notions about the taste and quality of plant-based alternatives.

  • Emphasizing the environmental benefits, such as reduced greenhouse gas emissions and land use, positions plant-based meat as a sustainable and conscientious choice.

  • Collaborations and Expansion:

  • Collaborations with popular food chains and restaurants expand the reach of plant-based options, making them more accessible to a mainstream audience.

  • Plant-based meat companies strategically expand their presence globally to tap into diverse markets with varying culinary preferences.

  • Continuous Research and Innovation:

  • Continuous investment in research and development allows companies to stay ahead in terms of flavor, texture, and nutritional improvements.

  • Regular introduction of new plant-based products keeps the market dynamic and encourages consumer exploration.



Modified Plant-Based Meat

Lab-Grown Meat


Financial Challenges of Fake Meats:


Despite the promising potential, fake meat producers face significant financial challenges.


Key hurdles include:


Reaching the Target Customer Base

The marketing and consumer education efforts required to make fake appealing to a broad audience necessitate substantial investment. Market research firm SPINS reports a significant surge in sales of plant-based meat products, which reached $1.4 billion in the US alone, marking a 45.9% increase. Moreover, an in-depth study by Nielsen shows that plant-based meat sales increased by 45.6% over the past two years, outpacing conventional meat sales.

 

Lab Expenses

The production process of cultured meats is a big financial challenge that has been resource-intensive and technologically sophisticated. In particular, the capital budget for buying and maintaining instruments, cell culture media, and growth factors as well as the energy-intensive tasks of managing controlled environments are high and difficult to budget for. The industry study report by Zion Market Research reveals that the cultured meat market is expected to reach 592.69 million USD by 2030 and maintain a 13.11% CAGR growth rate, which indicates the market has a great prospect.


Scaling Up and Social Acceptance

The increase in production allows the company to reduce the cost, but at the same time, it presents the manufacturer with major financial obligations. Additionally, the mainstreaming approval of these advanced food items is a critical aspect in bringing about consistent demand. From the consumer viewpoint, the Good Food Institute & the Plant Based Foods Association report shows that the retail sales of plant-based meat grew 36% over the last two years even reaching 1.4 billion dollars in 2020.


Market Share and Growth Prospects

It is worth mentioning that plant-based meat products have already occupied a market share of $8 billion, this number has increased by 7% in dollar sales from 2021. This growth trajectory testifies to a strong consumer demand and the business potential of the industry. Alongside this, the figure shows us that Statista data reports that the global plant-based meat market was worth of USD 8.1 billion in 2020, and it is expected to reach USD 13.8 billion by 2024, which in turn indicates a significant trend of growth. Particularly, it was revealed by a consumer survey carried out by YouGov that 70% of respondents buy both conventional meat and plant-based substitutes, which means that these products can go side-by-side in the same households and reflect the varied eating habits of different individuals.

 


How are these companies faring so far?

An examination of the current market share for each category reveals diverse trends. Plant-based alternatives have gained significant popularity, with a growing market share driven by consumer demand for sustainable and ethical choices. Modified plant-based products are also making strides, offering a balance between taste and health. Lab-grown meat, while still in its infancy, holds promise for a more sustainable future but faces challenges in terms of production scalability and consumer acceptance.


A Closer Look:


Claims surrounding the benefits of fake meats, such as lower carbon footprints and health advantages, vary across categories. Plant-based options generally boast lower environmental impacts and health benefits due to reduced saturated fat content. Modified plant-based products focus on optimizing nutritional profiles, while lab-grown meat presents an opportunity to address ethical and environmental concerns associated with conventional meat production.

 

Other claims include:


Reduced carbon footprint: Plant-based and lab-grown meats emerge as clear champions in decreasing greenhouse gas emissions relative to traditional livestock farming, however, lab-grown meat has not yet surpassed environmentally friendly plant-based meats thanks to current production methods.


Health benefits: Fake meats generally contain lower saturated fat and calories as well as more fiber than animal meats although it may vary with the level of processing and additives used.


Feeding a growing population: Through the decreased use of livestock, meat alternatives can be instrumental in addressing food security by the potential liberation of resources and land for direct human consumption.


Conclusion:


At the end of the journey, the landscape of replacement meats is various and has a lot of potential, and each category has different features and some difficulties. Given the fact that consumers' preferences are changing all the time, the success of alternative non-meat products will ultimately be based on addressing financial barriers, improving product attractiveness, and offering consumers efficient reasons for the widespread acceptance of innovative food solutions. The future of fake meat is certainly going to be unusual, and that might lead to a turning point and a transition towards a more sustainable and ethical food industry.

 

References


GCF Global. (2019). The Now: What is Lab-Grown Meat? GCFGlobal.org. https://edu.gcfglobal.org/en/thenow/what-is-labgrown-meat/1/


Good Food Institute . (2022, February 24). Deep dive: Plant-based meat end product formulation and manufacturing | GFI. Gfi.org. https://gfi.org/science/the-science-of-plant-based-meat/deep-dive-plant-based-meat-end-product-formulation-and-manufacturing/


Lab-Grown Meat Market Report: 2031 Key Data. (n.d.). Www.linkedin.com. Retrieved April 6, 2024, from https://www.linkedin.com/pulse/lab-grown-meat-market-report-2031-key-data-analytic-markets-dbzdf


National Geographic. (2023, August 15). What exactly is lab-grown meat? Here’s what you need to know. Premium. https://www.nationalgeographic.com/premium/article/lab-grown-cultured-meat-alternatives


Research, Z. M. (2023, October 2). Cultured Meat Market Size Will Attain USD 592.69 Million by 2030 Growing at 13.11% CAGR - Exclusive Report by Zion Market Research | Global Cultured Meat Market Size, Share, Trends Analysis Report. GlobeNewswire News Room. https://www.globenewswire.com/en/news-release/2023/10/02/2753105/0/en/Cultured-Meat-Market-Size-Will-Attain-USD-592-69-Million-by-2030-Growing-at-13-11-CAGR-Exclusive-Report-by-Zion-Market-Research-Global-Cultured-Meat-Market-Size-Share-Trends-Analys.html


Swartz, E., & Bomkamp, C. (2022). The Science of Cultivated Meat. The Good Food Institute. https://gfi.org/science/the-science-of-cultivated-meat/


 

 
 
 

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