[COVID-19 Transformation] Alternative Meat for Vegetarians... Now a Solution to the Food Crisis

From Flavoring with Plant-Based Ingredients like Soybeans

to Cell-Based Cultivation Methods, the Trend is Changing

Market Size Expected to Double in Five Years

[Asia Economy Reporter Kwon Jaehee] As alternative meat emerges as a solution to the food crisis, the market is expanding. Alternative meat refers to products made by using plant-based ingredients such as soybeans, wheat, and nuts to mimic the taste of meat, or 'clean meat' produced by culturing livestock muscle cells. The pandemic appears to be reshaping the food landscape.

The leading U.S. alternative meat manufacturer Beyond Meat reported first-quarter sales of $97.07 million this year, more than doubling compared to the same period last year. Its stock price has surged over 60% since the beginning of this year.

Public perception of alternative meat has changed due to the COVID-19 pandemic. Previously seen mainly as a niche market targeting vegetarians, it is now gaining traction as a mainstream option linked to concerns about food security. Consumers' growing awareness of environmental issues and food safety is also cited as a factor driving the growth of the alternative meat market.

UK-based global investment bank Barclays forecasts that cultured meat will account for more than 10% of the total meat market within the next decade. According to market research firm MarketsandMarkets, the global alternative meat market is expected to expand from the current $12.1 billion (approximately 14.8 trillion KRW) to $27.9 billion (approximately 34.2 trillion KRW) by 2025.

Although U.S. companies are actively developing products, the market is likely to be largely formed in China. China traditionally has high meat consumption. According to China Industry Information Network, the size of China's meat product market is expected to grow from 1.5994 trillion yuan in 2016 to 2.06 trillion yuan (approximately 345 trillion KRW) this year.

Within less than a year from last year to this year, about 2,000 Chinese companies have entered the alternative meat market. The stock prices of cultured meat-themed companies such as Shuangta Foods, Jingliang Holdings, and Fenglu Group have risen by more than 5%. U.S. companies are also targeting the Chinese market one after another. KFC began pilot sales of chicken nuggets made from cultured meat in China last month. Beyond Meat entered the Chinese market on the 22nd of last month by partnering with Starbucks, selling three menu items made with cultured beef through Starbucks. Previously, Beyond Meat and Starbucks had launched cultured meat sandwiches in Canada. Beyond Meat’s competitor Impossible Foods has also announced plans to enter China within one to two years.

The trend in alternative meat is also changing. While plant-based ingredients have been the mainstream method to replicate meat flavor, cultured meat is gaining attention recently. This involves producing meat products from stem cells extracted from tissue cells of cattle, chicken, pigs, etc. Currently, production costs are high, making mass adoption difficult, but it is expected to be launched next year.