[Food Tech Acceleration] 'Alternative Food' Core of Food Tech... Rapid Growth Pace

Alternative Foods Gain Attention as Sustainable Eating Options
Global Plant-Based Meat Market Expected to Reach 221 Trillion KRW by 2030
Intense Competition Among Korean Conglomerates to Capture Growing Market
Improvements Needed in Meat Mimicry Technology for Stable Growth

Alternative meat 'Better Meat' displayed at Shinsegae Food's plant-based meat deli 'The Better'

[Asia Economy Reporter Eunmo Koo] Among the food tech industries, the most spotlighted field recently is undoubtedly alternative foods. As interest in future foods with sustainability?such as health and safety, environmental protection, and animal welfare?increases, alternative foods that can complement the shortcomings of existing foods are expanding their position as an alternative. The domestic alternative food market, which has now entered its early growth stage, is expected to accelerate its growth pace as consumer base expansion and corporate investments converge.

According to GlobalData, a UK consulting firm, the domestic plant-based meat market grew from 16.9 billion KRW in 2016 to 20.9 billion KRW in 2020. It is expected to grow by about 30% more to reach approximately 27.1 billion KRW by 2025. Not only in the domestic market, but the global plant-based food market, which was valued at 29.4 billion USD (about 40 trillion KRW) in 2020, is also projected to grow more than 400% to 162 billion USD (about 221 trillion KRW) by 2030.

Alternative foods refer to foods processed by using plant-based raw materials or cultured cells to maintain a similar taste and texture to those found in traditional meat, seafood, and dairy products while retaining the protein content. Alternative foods have recently emerged as a new food trend amid growing concerns about food security and sustainable food sources. Compared to traditional methods of obtaining meat through slaughter, alternative foods are regarded as an environmentally and ethically improved approach, gradually becoming a core area of the next-generation food tech industry.

In particular, the increasing awareness of environmental and animal welfare issues among the younger generation, who are expected to become the core consumer group, strengthens the positive outlook for the alternative food market. According to a survey by Embrain, 7 out of 10 domestic MZ generation (Millennials + Generation Z) believe that “table culture should change to plant-based alternative meat that considers the environment.” Jomijin, a researcher at NH Investment & Securities, stated, “As awareness of alternative foods spreads to the general consumer base, financial capital is flowing into the alternative meat market. This has led to active research and development related to alternative meat, clearly indicating that the alternative meat market is moving in a positive direction.”

As expectations for market potential expand, competition among domestic conglomerates to secure market leadership is intensifying. CJ CheilJedang, the leading food company in Korea, launched the alternative meat specialty brand 'Plantable' last December and released vegan dumplings and kimchi. Last month, they expanded their product lineup to include items such as rice patties, hamburger steaks, and rice balls, announcing plans to focus on plant-based foods as a future new growth business. CJ CheilJedang aims to grow related sales to 200 billion KRW by 2025.

Shinsegae Group is also actively investing in alternative foods. Shinsegae Food launched the alternative meat brand ‘Better Meat’ in July last year and introduced plant-based sliced ham and other products to the market. In July this year, they opened a plant-based meat deli in the Gangnam area of Seoul and launched consumer-targeted (B2C) products such as plant-based canned ham.

Last month, Pulmuone announced the launch of its sustainable food brand 'Earth Diet' and plans to actively pursue future food businesses including alternative meat. Earth Diet is divided into 'Plant-based Earth Diet,' which uses minimal additives and only plant-based ingredients, and 'Animal Welfare Earth Diet,' which includes products such as chicken and chicken breast made from animal welfare-certified ingredients.

CJ CheilJedang's plant-based food brand 'Plantable' products

Recently, the scope has expanded beyond meat-centered products to seafood, eggs, and dairy products. In June, Ottogi took its first step into the alternative seafood market by launching 'Untuna Plant-based Basil Tuna,' made from plant-based soy protein, through its in-house startup 'Unfisk.' Additionally, Dongwon Group, the leader in the domestic tuna market, recently applied for trademark registration of the plant-based alternative tuna brand 'PlanTuna' with the Korean Intellectual Property Office, signaling expected competition with Ottogi. However, alternative seafood food technology is relatively unstable, making these products more expensive than those made from conventional seafood.

The domestic alternative food market is now entering its full-fledged stage and is expected to maintain a high growth rate in the future. However, for the domestic alternative food industry to sustain stable growth, significant improvements are still needed in technologies that mimic the texture and taste characteristics of real meat.

Many domestic companies are launching alternative meat products centered on finished products and accelerating research and development (R&D) such as additive development to improve completeness. However, the protein materials used domestically remain limited. Moreover, there are very few companies producing plant-based textured protein, leading to reliance on imports, and the related technology is still in its early stages. Researcher Cho analyzed, “Currently, many companies are merely blending imported raw materials and technologies. For product development and smooth supply, meat-mimicking technology needs to advance beyond the current level.”