2019 was the year of plant-based patties. Their popularity exploded and meat substitutes from a petri dish seamed a concept from a distant future. Fast forward to 2021 and post-quarantine, restaurants in some parts of the world are already serving lab-grown chicken and beef. Should manufacturers of plant-based meats be worried? Will cell-based meats disrupt the plant-based industry just like plant-based startups disrupted meat processing factories? Several factors will determine those paradigm shifts in the next decade. Let’s examine a few.
Production Costs
Makers of lab-grown or cell-based meats are also aiming to become game-changers in the arena of global protein and nutritional sources. The cost of cell-based meats is certainly going down. From the first lab-grown patty in London 2013 with a price tag of nearly 1.2 Million per pound to companies in the US and Israel today competing to lower the cost of cell-based meats to less than $50.00 per pound. While we can expect the cost of production to go down even more in the next couple of years due to massive funding from venture capitalists and angel investors, economic factors are still significant hurdles.
“Key sources of protein inputs for novel PBM are relatively inexpensive. The majority of plant-based products are primarily formulated with pea, soy, or wheat protein. The agricultural prices (received by farmers in the United States) for these key proteins are 3.8–12.7 times lower than prices received for cattle, hogs, and broilers. In fact, sometimes soy and wheat are combined with ABM to reduce costs for processed meat products21. When standardized by cost (2009 data) per gram of protein, soybeans ($0.01/g) and wheat ($0.03) are still remarkably less costly than cows ($0.32/g), pigs ($0.22/g), and chickens ($0.12/g)22. Despite this glaring discrepancy on the key protein input level, novel PBMs tend to cost more than their animal-based counterparts in a retail setting. This discrepancy may be partially due to processing costs as 94.3% of retail costs for crop products are associated with post-harvest processes, while this accounts for ~50% of the retail costs for beef22. Furthermore, aside from primary proteins, PBMs often include plant-based fats, flavor enhancers, and color additives which contribute to cost. Some consumers are willing to pay premiums for meat substitutes linked to personal health benefits23.” Quoted from nature.com Visit the site for the full article.
Pioneers in Cell-Based Protein Biz
While the list of startups in CBM (Cell-Based Meats) industries is growing, some notable pioneers and key players are Mosa Meat, Memphis Meats, Aleph Farms, BlueNalu, Finless Foods. These companies are making everything from lab-grown beef, poultry to cell-based seafood substitutes.
Cell-Based meats and consumer appeal
While CBMs do not come from butcher shops they do not always appeal to every vegan or even a carnivore. These meats are true products of scientific work in laboratories and despite their safety, consumers are still a bit skeptical about them and will need some time to get accustomed to that “synthetic meat” idea. Plant-based meat substitutes have their foundation on vegetable proteins and consumers are willing to incorporate these products with a lot less skepticism in their diets. Both kinds of alternative meats are intended for wide consumption and not only flexitarians or vegans but the adaptation period amongst consumers might take a while.
Government Regulations
Just like Plant-based protein manufacturers had to go through various obstacles in their attempts to adhere to government regulations not only in the US but also in the EU. Cell-based meat makers will have to comply with strict government rules and guidelines. Will these new products be labeled “imitation meats”, “cell-based” meats, or something completely different? Time will tell. Since plant-based protein makers are already ahead of the game in this arena, it will take a while for CBM companies to catch up with them.