The way much of the world views meat is rapidly changing. Scientific reports disclosing the negative environmental impact of the meat sector have been prolific, alongside growing health concerns surrounding excessive consumption of processed meats. Furthermore, the previously niche portion of the market concerned with ethical practice has expanded into the mainstream. The latter has been breathtakingly fast — there was a 600% increase in the number of US consumers identifying as vegan between 2014 and 2017 (from around 1 to over 6% of those surveyed). But this, of course, is just the beginning.
The millennial generation is starting to define spending, and as such we’ve seen a food industry under pressure to provide greater transparency over supply chain operation. More and more companies have begun to take marketed views on sustainability and good practice, as consumers avidly take to voting with their money. Furthermore, there is little doubt that we will eventually see increasing regulation from many governments to complement consumer standpoints and incentivise sustainable approaches — particularly as climate-related pressures grow.
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Given all of the above, companies which primarily profit from the meat industry face a problem rooted in a lack of future prospects. The same issues are faced by the dairy and fish industries, and in mid-2018 an investor advisory group expressed their dismay over a lack of action in the face of mounting risk. This is because, at that stage, only 5 of the 60 major international food groups had backed alternative proteins, a major shortfall considering alternative proteins are forecast to account for a third of the broader protein market by 2054. As the meat industry will be competing with plant-based, insect-based, lab-grown, and microbial-derived proteins — the pressure is on to grab a piece of the pie.
Diversification is key.
The US alternative protein market is still relatively small — at around 10–20% of the conventional meat market — but it is growing up to 10 times faster. This growth has been hard to ignore, and since 2017 several large meat-processing and supply companies have begun to look to alternative channels. As the world’s second-biggest producer and marketer of chicken, beef, and pork; Tyson Foods is a key example of the changing landscape.
“If you think about it, a protein strategy inclusive of alternative forms is intuitive for Tyson Foods. It’s another step toward giving today’s consumers what they want and feeding tomorrow’s consumers sustainably for years to come.” Tom Hayes, President and CEO, Tyson Foods
Countries that have seen headquartered, traditionally meat-orientated companies investing in plant-based proteins since 2017 — including launching in-house meat-alternative ranges. Select companies are shown.
Tyson Foods have moved to invest in both plant-based and lab protein approaches. In 2018, Tyson increased its 5% stake in plant-based Beyond Meat, alongside investments in the Israeli start-up Future Meat Technologies and US-based lab-meat firm Memphis Meats. Other investors in Memphis Meats included Bill Gates, Richard Branson, and US Agri-firm Cargill — with the latter dropping the term ‘animal’ from its protein division.
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Although the investments in alternative proteins made by the US firms are small compared to the parallel investments within their conventional protein arms, much of the latter is aimed at cleaning up animal protein divisions and is aligned with changing strategy. Other meat companies in Canada and Europe are joining the fray, with many launching their own alternative in-house products. But, investment from meat companies aside, the rise of the new rulers of the alternative protein space is a tale of innovation and marketing prowess.
A similar, more ethical product to meat might not be enough for some. Cue Beyond Meat’s “Go Beyond” campaign, which focuses on attracting athletes and celebrities as ambassadors for plant protein. Impossible Foods got their “Impossible Burger” adopted by top chefs and restaurants across the US, with a much talked about (in NZ at least) 2018 launch on Air New Zealand’s Los Angeles to Auckland business-premier menu. Both companies are soaring into 2019, with Beyond Meat’s products available at over 33,000 locations across the US, and Impossible Burgers are now served at over 5000 restaurants in the US, Hong Kong, and Macau.
“Our real “product,” the measure by which we determine success, is a thriving planet for future generations.” Patrick Brown, CEO of Impossible Foods.
Although Memphis Meats have not yet launched a product, their ability to attract top investors, as previously mentioned, has given them the opportunity to set industry standards. In 2013, the first lab-grown meat cost €250,000 to produce, but by 2018 an Israeli lab produced steak strips for US$50 a piece. The pace is unprecedented, and with interest in synthetic meat technology growing to match, it won’t be long before the first scalable products hit our shelves.
Truly global?
There are those who may point to alternative proteins as a ‘western world’ shift, one which may not be adopted in the East with the same gusto. However, the analysis suggests, at least for beef, that Chinese and US consumers are somewhat aligned, with the former placing a greater consideration on perceived health consequences surrounding red meat consumption. Furthermore, plant- and insect-based diets are utilised by much of the developing world already — it has been the excesses observed in a few wealthier countries which have had the greatest impact.
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Thus, the focus of our scorn should be on excess: there is still growth to be had in the premium, grass-fed and welfare-focused meat sector. As such, alternative proteins are set to complement the more sustainable parts of the conventional meat industry, as technological innovation rushes to provide scalable solutions to our growing environmental crisis.
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