A customer tries a plant-based meat substitute product on the Restaurant & Bar and Gourmet Asia expo on the Hong Kong Convention and Exhibition centre in Hong Kong on November 11, 2020.
Peter Parks | AFP | Getty Images
SINGAPORE — Demand for meat options has grown and can proceed to rise, but the industry nonetheless has hurdles to beat in numerous components of the world, analysts stated.
Worldwide search curiosity for the time period “plant-based meat” skyrocketed in early 2019 months earlier than Beyond Meat’s preliminary public providing, in accordance with Google Trends.
The international meat substitutes sector is price $20.7 billion, and is ready to develop to $23.2 billion by 2024, market analysis firm Euromonitor instructed CNBC.
That development is being spurred by considerations starting from animal welfare to meals safety and the Covid-19 pandemic.
“In this era of shocks and instability, building a low-risk value chain means focusing on where the opportunities are, and the shift towards plant-based meat shows no signs of slowing down,” stated Elaine Siu, managing director of The Good Food Institute Asia Pacific.
But obstacles remain for the burgeoning market.
The plant-based meat market in Asia could also be restricted by established notion points, stated Siu.
For instance, mock meat or vegetarian meat was beforehand primarily eaten by followers of Buddhism in China, she stated.
“Replication of the taste and texture of meat was never pushed past a relatively basic level,” she stated, including that these conventional merchandise serve a particular function and “their appeal is viewed as limited” to sure teams.
“In order for plant-based meat to reach its full market potential in Asia, the sector must continue to break free of its association with traditional mock meats, which are expected to be sold at a low price point and carry historical image baggage,” stated Siu.
Cattle farmers might additionally stand in the best way of the choice protein sector, particularly within the U.S., stated Simon Powell, international head of thematic analysis at American financial institution Jefferies.
The U.S. Cattlemen’s Association in 2018 filed a petition asking for an official definition of the phrases “beef” and “meat,” in a bid to maintain plant-based proteins out of the outline.
A herd of beef cattle collect within the shade of outdated barn on May 4, 2020 in Owings, Maryland.
Mark Wilson | Getty Images News | Getty Images
“Incumbent producers are going to lobby their governments hard to change the labelling, to mess around with consumer advertising to say you can’t call it meat,” Powell instructed CNBC through Zoom. “I think that’s potentially one of the biggest barriers.”
The European Union in October rejected proposals to ban eating places and retailers from utilizing phrases equivalent to sausage or burger when describing meat options.
Powell added that if any of the plant-based meat firms had “some kind of accident” or drawback with their recipe that ends in a “massive recall,” that would make clients afraid of consuming these options.
“This is a big ‘if’ … but if they were to have a big recall of product, then that might dent consumer confidence,” he stated. “At some point, you’re going to get these events. That’s going to set the industry back a bit.”
Separately, Powell stated the “Instagrammability” of plant-based meals is one cause why the market is rising “everywhere in the world.” Growth of the market might be hindered if the novelty of meat options fades away or wears off, he stated.