A visitor attempts a plant-based meat replacement item at the Restaurant & Bar and Gourmet Asia exposition at 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 actually grown and will continue to increase, however the market still has difficulties to get rid of in various parts of the world, experts stated.
Worldwide search interest for the term “plant-based meat” escalated in early 2019 months prior to Beyond Meat’s going public, according to Google Trends.
The international meat replaces sector deserves $20.7 billion, and is set to grow to $23.2 billion by 2024, marketing research business Euromonitor informed CNBC.
That development is being stimulated by issues varying from animal well-being to food security 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, handling director of The Good Food Institute Asia Pacific.
But barriers stay for the growing market.
Cultural barriers
The plant-based meat market in Asia might be restricted by recognized understanding concerns, stated Siu.
For example, mock meat or vegetarian meat was formerly mostly consumed by fans 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 items serve a particular function and “their appeal is viewed as limited” to specific groups.
“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.
Objections from the conventional meat market
Cattle farmers might likewise stand in the method of the alternative protein sector, specifically in the U.S., stated Simon Powell, international head of thematic research study at American bank Jefferies.
The U.S. Cattlemen’s Association in 2018 submitted a petition requesting a main meaning of the terms “beef” and “meat,” in a quote to keep plant-based proteins out of the description.
A herd of beef livestock collect in the shade of old 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 informed CNBC through Zoom. “I think that’s potentially one of the biggest barriers.”
The European Union in October declined propositions to prohibit dining establishments and stores from utilizing words such as sausage or hamburger when explaining meat options.
Consumer self-confidence, customer tiredness
Powell included that if any of the plant-based meat business had “some kind of accident” or issue with their dish that leads to a “massive recall,” that might make consumers scared 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 food is one reason that the marketplace is growing “everywhere in the world.” Growth of the marketplace might be impeded if the novelty of meat options vanishes or diminishes, he stated.
