Protein ‘Shake-Up’ Could Push Faux Meat Market to $240 Billion
· New technologies advance and consumers change diets: Jefferies
· Global meat market projected to be at $2.7 trillion by 2040
By Tatiana Darie, Bloomberg
September 17, 2019
The alternative meat market is poised to rise to $240 billion over the next two decades as new technologies gain ground and consumers change their diets, according to Jefferies.
The great “protein shake-up” could see faux meat reach 9% share of the estimated $2.7 trillion global meat market by 2040, analyst Simon Powell forecasts, from less than 1% now. The size of the plant-based meat market has been one of the biggest debates in the food industry recently, with estimates ranging from between $10 billion and $40 billion to as high as $140 billion.
Plant-based meats, like the one produced by Beyond Meat Inc., are currently leading the category but lab-created “cellular” meat could overtake its plant-based counterpart, Powell said. “The cellular-based alternative industry has the potential to grow fast off a small base and could quickly start mass producing real meat if it can reduce costs and industrialize the current lab-based approach,” he wrote.
Rising estimates for the faux-meat market are one way to justify the eye-popping valuations for its producers. Beyond Meat, for example, commands a valuation of $9.7 billion, or 110 times its 2018 sales. Its closely-held peer, Impossible Foods Inc., is valued at $1.52 billion, with revenues estimated at $110m in 2018, according to data compiled by PrivCo.
Investments in lab-created meat companies have trailed their plant-based peers as commercial products have yet to emerge. Private cell-based meat firms received $50 million in new investments last year, according to data compiled by Good Food Institute, compared to more than $500 million for plant-based food producers.
While taste, costs and ingredients will ultimately differentiate the products, both categories stand to disrupt the large global meat market, Jefferies’ Powell said. Other catalysts...
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