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Largest deal over
$114million
foods
Intelligence. Accelerated
thesmartcube.com
A recipe for success
Market Intelligence: Leverage regular contextualised market intelligence to track trends, opportunities (discovery of innovative ingredients) and risks in the sector
M&A/Partnerships: Identify potential partners and acquisition targets to get a head-start and benefit from third-party specialisation and investments
Product Positioning and Marketing Strategy: Undertake competitive intelligence and analyse historical marketing spend and changing ROIs to
effectively develop marketing strategies; focus on communicating sustainability and transparency clearly to win consumer approval
Assess Your Sourcing Strategy and Category Supply Chains: Identify alternative suppliers, supply locations and
sourcing strategies to to adapt to changing product specifications
R&D and Patents Research: Focus on R&D and monitor patents filed by competitors to discover new ingredients
and efficient processes to convert plant proteins into meat substitutes
Consumer Sentiment Analysis: Track consumer sentiments through social media analysis and surveys to understand
consumer attitude and perception towards new products and ingredients
Regulatory Landscape Monitoring: Closely monitor the ever-evolving regulatory framework (related to quality standards and trade) and
political stability across different countries of operation
With a forecast market value of $6.4 billion by 2023, meat alternatives are big business. Here are the four major trends driving change
From lab-grown meat to mycoproteins, these are the fastest growth categories (and drivers) in the multi-billion-dollar alternative meat market
The Smart Cube’s patent analysis shows market leaders are innovating in three key areas
Alternative Protein Sources Landscape: Analysis by The Smart Cube1
The past year saw more global fast food chains enter the market too, partnering with Beyond Meat and Impossible Foods to provide animal-free alternatives
Key Innovators - by Patents Filed1
Is it turkey, tofu, or something in between? With Thanksgiving and Christmas just around the corner, what will you be eating this holiday season?
We explore key trends in the meat substitutes market and how F&B companies are trying to stay ahead of consumer demand.
Global meatsubstitutes market
$4.6billion
2018
$6.4billion
2023F
CAGR6.8%
Key Growth CategoriesBesides plant-based meat substitutes, development of lab-grown/cultured meat is also coming to the fore (lab-grown meat has not been launched commercially yet)
Growth Drivers u Growing health concerns such as diabetes and obesity among
consumers
u Increasing adoption of vegetarianism or veganism with a focus on clean-label ingredients
u Increasing GHG emissions from large-scale livestock farming
u Growing focus on animal welfare and sustainability
The not-meat market trends
It’s (not) aliiive!
Three areas of innovation
Soy, wheat, pea and potato – our new sources of protein
3D-printed prime cuts
The Colonel, Ronald…everyone’s getting on board
Taste, texture and nutritional benefits
Ingredient SuppliersSuppliers using plant-based protein, such as pea and wheat proteins
Suppliers developing algae and fungi-derived proteins
F&B CompaniesF&B companies using oats, chickpea, rapeseed, and sunflower and camelina seeds – in addition to soy, pea, wheat and potato – as protein sources
Healthy Protein.
Healthy Planet.
u Alternative protein sources overcoming challenges (such as risk of allergies and GMO-related concerns) posed by use of soy
u Growing use of peas, oats, rice, chardonnay seeds, barley and quinoa n Beyond Meat uses pea and rice protein
u Use of algae- and fungi-derived protein, which is more economical than plant-based ingredients n Impossible Foods uses algae-derived heme
Unilever is investing in shear cell technology to texturise plant protein into meat substitutes, which offers higher energy efficiency, smaller carbon footprint and greater flexibility than conventional methods such as extrusion
Beyond Meat utilises yeast cell walls to improve fibrous texture formation during extrusion of meat substitutes
Ingredient suppliers (Roquette, Cosucra, ADM and Burcon NutraScience) improving processing techniques to produce protein isolates to reduce bitterness of plant proteins, while increasing yield
General Mills is optimising ratio of thickness and length of extruder channel to improve protein quality
Novameat – a Spanish start-up – developed a 3D-printed vegetarian steak using rice, pea and seaweed proteins
Note: 1) The information has been collated from various technological resources, including patents filed between January 2014 and August 2019
Note: 1) The information has been collated from various technological resources, including patents filed between January 2014 and August 2019
Note: 2) The list is indicative and comprises introductions during January–September 2019 3) Lab cultured meat is not yet commercially available in the market
Category NameKey Examples
Date Company Name Product Details
Vegetarian meat substitutes
May 2019 Quorn Quorn smoky fajita strips and spicy tikka strips (meat-free with low saturated fats)
June 2019 Beyond Meat
Beyond Beef (plant-based ground meat without GMO soy)
Meatier Beyond Burger (made from pea, mung bean and rice)
June 2019 Raised & Rooted (Tyson Foods)
Nuggets (made from a blend of pea protein isolate and plant ingredients)
July 2019 Gardein (ConAgra Brands)
Chick’n wings, Chick’n tender and Chick’n nuggets (made from a blend of wheat and pea protein)
Breakfast sausage patties (beefless)
Lambless vindaloo and porkless thai curry (meatless meals)
Vegan meat substitutes May 2019 Vivera 100% fat-free vegan bacon (replicates
taste and texture of real bacon)
Seafood substitutes
February 2019 Good Catch Foods Plant-based tuna
September 2019 Ocean Hugger Foods
Unami (plant-based eel made from eggplant)
Lab-cultured meat substitutes3 - Memphis Meats Cell-grown meat
These are some of the products we’ve seen transform the faux-meat landscape
We’re also seeing a great deal of innovation in the processing techniques behind meat alternatives
One of the biggest challenges for faux-meat producers is making their products taste like…well, meat. Market leaders are using a range of additives and compositions to achieve this — and delivering health benefits along the way
For most people meat is a primary source of protein, which means faux-meat producers need to offer viable, protein-rich alternatives
New on the menu in 20192
~48%Largest segment of 2018 revenue
WheatSoy Mycoproteins Others (including pea, potatoes, etc.)
Meatsubstitutes
1
1 2 3
2
3
Growth Potential in Emerging MarketsAsian markets present significant growth potential for
meat substitute products led by growing popularity of soy and gluten-based food products
Soy and gluten are frequently used as meat substitutes in Asian cuisines
Raw Material
DiversificationShift from conventional sources of plant protein
such as soy and wheat to pea and potato protein, and fungi-
derived protein
Alternative sources reduce allergen risk and
GMO-related concerns related to soy and
wheat protein
Lab-grown Cultured MeatDevelopment of lab-grown meat alternatives with similar taste profiles and
features of traditional meat
Some examples include Memphis Meat and Mosa Meat
InvestmentsEstablished traditional meat players investing or partnering with meat substitute start-ups to obtain an early mover advantage
Adoption/Commercialisation Status
Inno
vatio
n Fo
cus1
Low
High
Low High
Soy
Pea
WheatPotato
RapeseedSunflower Seeds
Lupine
AlgaeFungi
Corn
ChickpeaRice
Oats
Canola
Commercialised Texturised Proteins
Protein Sources Under Development
Other Protein Sources
Soy, wheat, pea and potato - our new sources of protein
Companies using innovative sources as soy protein replacement – the largest used source
Taste, texture and nutritional benefits
Development of compositions and additives to impart meat-like texture and flavour to meat substitutes
3D-printed prime cuts
Improvement in extrusion equipment and technologies to mimic fibre-like texture of meat
Market
Tr e n d s
Organoleptic PropertiesCompanies using plant-derived fibres to improve hydration, texture, mouthfeel, and cross-linking properties of meat analogues
n E.g. Unilever is using xanthan gum and galactomannan to increase the juiciness of meat substitutes
Health BenefitsUtilising natural and innovative ingredients to improve nutritional value of meat analogues while enhancing textural and sensory attributes
n E.g. Cargill’s dietary fibre with high β-glucan content reduces cholesterol and risk of heart diseases
n E.g. USDA disclosed that use of chardonnay seed extracts can reduce risk of obesity
Key Innovators – by Patents Filed1
Key Innovators – by Patents Filed1
2023F2018
The
future
of food
FAUXMEAT
2019 AugustBeyond FriedChicken
2019 SeptemberBeyond MeatballMarinara Sub
2019 JulyBeyond Sausage Breakfast Sandwich
2019 September Beyond Meat Burger
2019 OctoberBeyond BBQCheeseburger
2019 AugustThe ImpossibleWhopper
2018 SeptemberThe ImpossibleSlider
2019 AprilThe ImpossibleCheeseburger
2019 NovemberBurger King announced it will roll-out a meat-free version ofits Whopper burger in Europe in a partnership with Unilever
Growth spurts and growing pains
For the industry leaders growth has been rapid, but not without its obstacles
The meat substitutes market is primarily driven by investor push rather than consumer pull
Meat & Seafood alternatives start-ups in the US attracting investment
u In December 2018, Unilever acquired The Vegetarian Butcher
u In March 2018, Kerry Group acquired Ojah, a high protein meat substitute manufacturer
u Impossible Foods has raised over $750 million in total disclosed funding as of May 2019, with its total valuation estimated to be about $2 billion
u Beyond Meat’s shares peaked in July 2019, having risen five-fold in value from their debut price of $46 in early May, though have since fallen due to restrictions being lifted on share sales
u Both plant-based and cultured meat involves higher production costs compared to conventional meat
Global F&B companies are resorting to M&As to expand product portfolios
However the meat substitute start-ups are not currently generating any profits
Key tactics to help F&B companies stay ahead in a dymanic, fast-growing market
To find out more about how our solutions can help you with these intelligence and innovation strategies, please visit our website or contact us on [email protected]
Key Consumer TrendsInnova Market Insights survey (2019)
Bank of America Merrill Lynch survey (2019)
Harris Interactive’s UK-based survey (2018)
75%of respondents thought that plant-based alternatives
are too expensive and younger consumers appeared to be more open to meat-free alternatives than older shopper groups
of Americans are purchasing meat alternatives2/3 of consumers surveyed
globally stated that they would consider/have
already purchased a plant-based protein alternative to meat
1/336% often or sometimes buy
22% buy on rare occasions
10% always buy meat alternatives
By 2050, the world’s population will grow to more than 9 billion. There’s no way to produce enough meat for 9 billion people. Yet we can’t ask everyone to become vegetarians. That’s why we need more options for producing meat without depleting our resources.
– Bill Gates Impossible Foods investor
VC firms and traditional meat companies are investing aggressively in meat substitute start-ups
Celebrities and athletes have also shown interest in investing in these companies
$192million
in 2018
Retail price of plant-based vs conventional meat
Ground beef
Plant-based ground beef $12
$3
Production price of lab-grown vs conventional meat
Conventional meat
Lab-grown meat
$1.05
$12