How to survive in a marketplace for cultured meat

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How to survive in a marketplace for cultured meat

The scene for MMR Research Worldwide’s Stardate event, which took place in the Metaverse earlier this week, was 2030, when cultured meat has become the standard. Appropriately, the expert lineup examined the direction that culinary options will take in the future.

Considering that the industry is expected to generate $572 million in revenue by 2027, the prediction that cultured meat would be extensively accessible is not out of the ordinary.1. 2020 saw the commercial introduction of cultured chicken in two of the world’s leading countries, Singapore and Israel. In Singapore, Eat Just received the first regulatory approval in history to sell chicken as an ingredient, while SuperMeat, an Israeli company, is currently offering lab-grown chicken in its own restaurant.

The market is growing quickly, and the difference in price between it and its traditional equivalent is getting less. The price has dropped from almost $280,0000/kg in 2013 to $10/kg now, and predictions indicate that it may yet drop to $5.66/kg.1.

Globally, we are witnessing an increasing number of start-ups focused on cultured meat as well as increased funding from both the public and commercial sectors. Sustainability and animal welfare are the motivators.

But what does this mean for plant-based meat substitutes, whose flavor and texture are getting closer to those of the “real deal”? Is it possible to accommodate both options?

Meats and poultry made from plants: A curious diversion?

Sales of plant-based meat reached a record high in 2020, but in 2021 the market remained stagnant.2. Furthermore, as noted by MMR’s Chief Ideas Officer, Andrew Wardlaw, during Stardate, the meat substitute market has hardly surpassed one percent of US meat sales, despite frequent headlines about rising plant-based sales.3,4

The industry leader in plant-based meat, Beyond Meat, revealed last month that it will be reducing staff by 19% in an effort to achieve cash flow positive operations in the second half of 2023 after a decline in net revenues. Some have speculated that McDonald’s decision to discontinue the McPlant burger (produced by Beyond Meat) in the United States is the cause of the decline in shares.5, 6

Maple Leaf Foods, which reported a “marked slowdown in plant-based protein category performance,” has been harmed by a similar scenario. Michael McCain, the company’s president and CEO, stated that this might point to “systemic change” in an industry that was initially predicted to see rapid expansion. Maple Leaf Foods is examining its own investment in plant-based foods as a result.

A Good Food Institute report also addressed the questionable future of plant-based meat, stating that “the success of the plant-based meat category is not inevitable, despite the growth seen in the last decade.”

Three factors are responsible for the stagnation in the United States, according to Deloitte Insights, which stated that plant-based meats were receiving “a reality check.”

First, the addressable market was smaller than initially estimated. According to its research, there is “cultural resistance” to a product that some people find engaging, while others consider it to be “woke.” The second reason is that inflation has made individuals less ready to pay a higher price. In fact, compared to the previous year, Americans’ willingness to pay more decreased by 9%. Ultimately, customers are growing doubtful of the promised advantages and cynical. The largest shift has been in how people see health; in 2021, 68 percent of US consumers thought it was healthier than animal meat; today, only 60 percent of consumers hold this belief. Positive associations with the environment also show a similar decline.7.

“Did this been a trip of curiosity?” Wardlaw stated, highlighting the findings of an MMR poll that showed a lot of customers are now doubting the naturalness and contents of these goods.

“Will shoppers rebel and turn to natural products, and everything fall flat?”

Less convinced, the more genuine

It’s interesting to note that an MMR survey of customers in the Netherlands, US, UK, China, and Singapore found that people were put off not only by the high cost and the growing variety of plant-based meat options (one-third of them, in fact), but also by the perception that the perceived integrity of the product decreased as its performance increased.

What goes into making it taste like meat? said a male respondent from the United States. as it’s really not too bad. Louise Hitchen, Head of Digital Qual at MMR, says this response sums up the questions that most people have in perfect detail: how are companies that produce plant-based meat accomplishing such amazing outcomes?

She clarified, “We can see unease as the product gets closer to the real thing, but we also know people won’t compromise on sensory experience.”

The Together Agency’s Dr. Mark Hazelgrove, a behavioural science consultant, claimed that humans’ responses to robots that resemble humans quite a bit are comparable to this one. This is referred to as the “uncanny valley” psychological reaction.

“The uncanny valley begins as the non-meat entity becomes more meat-like,” he said. “It results from uncertainty.”

According to Dr. Hazelgrove, individuals get nervous when lines blur because they can’t tell what category the mimic belongs in. It falls into this gray area when food is “not quite non-meat nor meat.”

Hitchen proposed that the category of plant-based meat should move away from meat in light of these viewpoints, noting that the impending release of cultured meat presents the ideal chance to make this change.

As per the MMR study, half of the participants think that plant-based meat will be surpassed by cultured meat. Hitchen said, “That’s even before it’s widely available.”

Dr. Hazelgrove concurred, but added that the cultured meat sector should also take this lesson to heart. “We must stop making comparisons. This is meat, not a comparison to meat, this is cultured meat.

He suggested that the meat category clearly define the place of cultured meat in the industry.

How to make cultured meat successful

Responding to the forces of the market

The MMR survey’s findings indicated that respondents’ top worries were mental health and climate change. However, these signal the beginning of a host of problems, such as upcoming pandemics and food shortages.

Surprisingly, nevertheless, the findings indicated that animal welfare ranks as the primary factor driving vegan and vegetarian diets in the West. It’s sustainable only in China.

It has been proposed that by cultivating animal cells, we might drastically lessen the detrimental effects of traditional meat production on the climate. Additionally, it is thought that these methods could improve pollution levels, delay the loss of biodiversity, and reduce the danger of zoonotic illness and antibiotic resistance.8

While these factors seem to be the main focus of most arguments in favor of the growing popularity of cultured meat, animal welfare is also given some “airtime.” Based on MMR’s findings, it could be wise to give animal welfare just as much attention, at least for the US and UK markets. Having said that, the study found find that customers already saw this new business as a means of lessening animal suffering.

Therefore, given that the factors driving plant-based meat are also driving cultured meat, how can companies make sure this market doesn’t fade away?

The wording on packaging matters.

The MMR study provided some fascinating insights into how people prefer to refer to cultured meat. “100% cultured meat” was positively welcomed because it suggested no other ingredients had been introduced. This is related to the uncanny valley dilemma that was mentioned previously in the conversation, which is the worry about the content and integrity of a product that is meant to resemble.

Remarkably, the term “slaughter-free” was also well received, demonstrating the advantages of communicating product benefits more clearly. Overall, respondents expressed less enthusiasm when using terms like “pathogen-free,” “lab-grown,” and “animal cells.” The conclusion was that words with a scientific focus did not usually evoke thoughts of food.

Geographically, “cruelty-free” was chosen by the British, followed closely by “slaughter-free”; “lean meat” was preferred by the US as well. China’s results, however, divided “pathogen-free,” “100% traceable,” and “clean meat” equally.

Nicole Johnson-Hoffmann, the CEO of Future Meat Technologies, stated during a discussion about her company that “cultivated meat” was their preferred word, but she added that “great marketing is a conversation with consumers.”

“Our main focus is to be transparent and direct, which often means using simple and direct language,” she said, adding that she would work with them to comprehend the terminology.

Will there be cultured meat, though?

According to Hitchen, there is a mixture of curiosity and reluctance regarding cultured meat. She cited research from MMR, which revealed that 50% of Americans, 43% of British people, and 61% of Chinese people are prepared to try it.

Hitchen went on, “Cultured meat is much easier to understand [than plant-based].” “It has a significant impact on climate change and is much closer to traditional meat.”

However, in the hypothetical situation of a Friday night when you’re craving steak badly, farm-raised meat continued to hold a considerable advantage over cultured or plant-based meat, with 50% of consumers choosing it.

However, an intriguing remark from a commenter in the UK pointed out that the menu might change depending on the day. “On a Tuesday, I’ll gladly serve it up; I won’t risk Friday night.” Does this imply that beef from traditional sources will be considered more of a luxury, comparable to a pizza ordered for takeout?

Johnson-Hoffmann expressed her strong belief that cultured meat will eventually be made broadly accessible, although the initial taste—which won’t be too unlike from Singapore—will be served at restaurants. She clarified, “That is a good way to ensure they [consumers] get a great sensory experience.”

She was asked if she thought it was likely that cultured meat would be commercially available worldwide by 2030, given the date of the event. Yes, in a nutshell—and not just for items, but for a whole ecosystem.

“We should have a fully operational supply chain for cultured meat by 2030,” she confirmed.

It’s true that cultured meat will soon be available in restaurants and on store shelves all over the world, but it will take an enormous victory to get the same market share as meat. Significant infrastructure, innovation, and funding will be needed for this. We also need to pay attention to what customers actually want and what we have learned from the plant-based sector.

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