·         CoBank: Meatless Meat Unlikely to Have Significant Impact on Protein Market in the Near-Term

Commercial viability, consumer acceptance, technological and regulatory hurdles among obstacles for cultured meat

 

·         Plant-based meats are poised for growth as innovation and investment in space speed ahead

… “We are really at the beginning of that S-curve, but we are seeing the same trends we saw 10 years ago in plant-based dairy”​ influencing plant-based meat development and sales…

 

 

Meatless Meat Unlikely to Have Significant Impact on Protein Market in the Near-Term

Commercial viability, consumer acceptance, technological and regulatory hurdles among obstacles for cultured meat

 

Source: CoBank

via PRNewswire - Dec 5, 2017

 

DENVER, Dec. 5, 2017 /PRNewswire/ -- Protein products derived from plant sources, insects and cultured meats will be among the top food trends to watch in the coming years. The effect of these efforts on livestock and poultry demand is not expected to be significant in the foreseeable future, according to a new report from CoBank's Knowledge Exchange Division.

 

Cultured meat developers are in a race to match price and quality to traditional meat offerings. Products currently in development are prohibitively expensive and years away from widespread commercial viability.

 

"The future success of alternative meat lies squarely with rising global demand for protein rather than a battle for the existing market share of animal protein food products," said Trevor Amen, an economist with CoBank. "The road to commercial viability and consumer acceptance of cultured meat is long and this type of product is unlikely to have a marked effect on traditional animal protein demand through at least the next decade."

 

The alternative protein category is certain to grow in the coming years, allowing pathways for more diversified protein products. However, the alternative protein market will be overshadowed by the current retail market size of $49 billion in sales for the entire meat and poultry category.

 

Commercial Viability and Consumer Acceptance

 

Rising global incomes will continue to drive consumers to a higher protein diet. Global gross domestic product is projected to grow by $38 trillion from 2016 to 2030, generating a 46 percent increase in meat and poultry consumption. Technology companies and alternative protein providers are exploring new protein products.

 

"The timeline for commercial viability of cultured meat products remains the greatest unknown," said Amen. "The consensus projection points to an initial market introduction in the next 3 to 5 years, most likely in restaurants and specialty stores and offered at a premium price to traditional meat offerings."

 

Supermarket adoption of these products is projected to take another 2 to 3 years as the technology becomes more affordable and acceptable to consumers.

 

Technological and Regulatory Hurdles

 

The timing and degree of market penetration for meat alternatives will largely depend on advancements in technology that reduce price and improve quality attributes.

 

"In addition to start-up companies, we're seeing agribusiness leaders investing in research and development projects surrounding meat alternatives," said Amen. "Similar projects are also underway in China, Israel, Japan and France."

 

Newly created cultured meat products will also need a regulatory framework before entering the market. Both the FDA and the USDA are closely monitoring developments in the cultured meat industry. It is unlikely that the agencies will rule on terminology that can be used to describe and market cultured meat until the technology is more developed.

 

A brief video synopsis of the report "Lab-grown Cultured Meat - A Long Road to Market Acceptance" is available on the CoBank YouTube channel. The full report is available to media on request.

 

About CoBank

 

CoBank is a $124 Billion cooperative bank serving vital industries across rural America. The bank provides loans, leases, export financing and other financial services to agribusinesses and rural power, water and communications providers in all 50 states. The bank also provides wholesale loans and other financial services to affiliated Farm Credit associations serving more than 70,000 farmers, ranchers and other rural borrowers in 23 states around the country.

 

CoBank is a member of the Farm Credit System, a nationwide network of banks and retail lending associations chartered to support the borrowing needs of U.S. agriculture, rural infrastructure and rural communities. Headquartered outside Denver, Colorado, CoBank serves customers from regional banking centers across the U.S. and also maintains an international representative office in Singapore.

 

For more information about CoBank, visit the bank's web site at www.cobank.com.

 

SOURCE CoBank

 

Related Links

http://www.cobank.com

 

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https://www.prnewswire.com/news-releases/meatless-meat-unlikely-to-have-significant-impact-on-protein-market-in-the-near-term-300566850.html

 

 

Plant-based meats are poised for growth as innovation and investment in space speed ahead

 

By Elizabeth Crawford, Food Navigator

05-Dec-2017

 

While household penetration of plant-based alternatives to meat in the US is only a small a fraction, innovation and sales in the category are poised for growth and could mirror the trajectory of plant-based milks, predicts a senior scientist with the Good Food Institute.

 

“Often there is a comparison made between plant-based dairy looking at where that is in market penetration at 9% or 10%, whereas plant-based meat is only a quarter of 1% penetration in terms of the total meat industry in the US,”​ and even less globally at a tenth of 1%, Liz Specht told FoodNavigator-USA at Food Vision USA in Chicago in November.

 

But, she believes that gap will soon close and sales of plant-based meat will climb quickly in the coming years.

 

“We are really at the beginning of that S-curve, but we are seeing the same trends we saw 10 years ago in plant-based dairy”​ influencing plant-based meat development and sales, she said.

 

New manufacturer mindset will drive growth​

 

For example, she noted, plant-based meat alternatives are no longer focused on niche vegetarians and vegans, but rather are “now being developed with omnivores in mind, with flexitarians in mind, who are choosing to eat a certain fraction of their meals with this plant-based meat alternative as the center of the plate.”​

 

As such, Specht says, “a lot of the innovation that we have seen in products is specifically trying to replicate the full consumer experience of conventional meat products. So, really catering to that taste, that mouth feel, the food sensory profile.”​

 

Products like Beyond Meat and the Impossible Burger are paving the way in terms of “recapitulating the experience of meat,”​ but in a way that makes consumers feel healthier, she said.

 

Another indicator that consumer adoption of plant-based meat alternatives is occurring is meat manufacturers are starting to invest in or make plant-based options to complement their traditional animal protein portfolios, Specht said.

 

“There is one company in Germany that has been a meat company since the 1800s and just three years ago came out with a line of vegan and vegetarian products, and that now comprises 20% of their total sales,”​ Specht said, adding, “They anticipate this will be 40% of their total sales in just three more years from now.”​

 

Protein sources, processing techniques will diversify​ ...

 

more, including video

https://www.foodnavigator-usa.com/Article/2017/12/05/Plant-based-meats-are-poised-for-growth-with-innovation-and-investment