KEY POINTS
- The worldwide meat substitutes sector deserves $20.7 billion, and is set to grow to $23.2 billion by 2024, marketing research business Euromonitor informed CNBC.
- Demand for meat alternatives has grown and will continue to increase, however, the market still has hurdles to overcome in various parts of the world, experts stated.
- That consists of cultural barriers, objections from incumbent meat business, and the danger of an event that impacts consumer confidence.
Demand for meat alternatives has grown and will continue to rise, but the market still has hurdles to conquer in different parts of the world, experts stated.
Worldwide search interest for the term “plant-based meat” escalated in early 2019 months before Beyond Meat’s preliminary public offering, according to Google Trends.
The international meat replaces sector deserves $20.7 billion and is set to grow to $23.2 billion by 2024, marketing research company Euromonitor informed CNBC.
That growth is being spurred by concerns varying from animal welfare to food security and the Covid-19 pandemic.
“In this age of shocks and instability, building a low-risk value chain implies focusing on where the opportunities are, and the shift towards plant-based meat shows no signs of decreasing,” said Elaine Siu, handling director of The Excellent Food Institute Asia Pacific.
However, barriers remain for the burgeoning market.
Cultural barriers
The plant-based meat market in Asia may be limited by recognized perception issues, said Siu.
For example, mock meat or vegetarian meat was formerly mostly eaten by fans of Buddhism in China, she stated.
“Duplication of the taste and texture of the meat was never ever pushed past a fairly fundamental level,” she stated, including that these standard items serve a particular purpose and “their appeal is viewed as restricted” to specific groups.
“In order for plant-based meat to reach its full market potential in Asia, the sector should continue to break free of its association with conventional mock meats, which are expected to be offered at a low rate point and carry historic image baggage,” said Siu.
Objections from the traditional meat market
Livestock farmers might also stand in the way of the alternative protein sector, specifically in the U.S., said Simon Powell, worldwide head of thematic research at American bank Jefferies.
IN the U.S. Cattlemen’s Association in 2018 submitted a petition requesting the main definition of the terms “beef” and “meat,” in a bid to keep plant-based proteins out of the description.
“Incumbent manufacturers are going to lobby their governments hard to change the labeling, to mess around with consumer marketing to say you can’t call it meat,” Powell informed CNBC through Zoom. “I think that’s potentially one of the greatest barriers.”
The European Union in October rejected proposals to prohibit restaurants and stores from using words such as sausage or burger when describing meat alternatives.
Consumer confidence, customer tiredness
Powell included that if any of the plant-based meat business had “some type of mishap” or problem with their dish that results in a “huge recall,” that could make consumers scared of eating these options.
“This is a big ‘if’ … however, if they were to have a huge recall of item, then that might dent customer self-confidence,” he stated. “At some time, you’re going to get these events. That’s going to set the industry back a bit.”
Separately, Powell stated the “Instagrammability” of plant-based food is one reason that the market is growing “all over worldwide.” Development of the market might be hindered if the novelty of meat alternatives vanishes or wears off, he stated.