The Plant-based Meat industry is focused on providing sustainable alternatives to traditional meats using technologies like fermentation, extrusion, and 3D printing, among others. While early meat substitutes failed to garner a large consumer base due to shortcomings in taste and texture, modern alternative meat products use advanced processes to overcome these issues while enhancing the nutritional profile of plant-based meat products.
Increasing concerns about health and well-being, climate change, and sustainable food production drive the industry, while premium prices and highly processed ingredients remain obstacles to consumer adoption. However, cost-effective production methods, new ingredients such as mycelium and algae, and most recently, the use of AI to improve the efficiency of production processes are likely to help the industry close the gap between traditional meats and plant-based substitutes.
The plant-based meat industry is dominated by early- and seed-stage startups with growth and pre-seed startups collectively accounting for less than 20% of total companies. Most of the startups are exploring the production of red meat substitutes, followed by alternative poultry and seafood. The emergence of plant-based ingredient and technology suppliers lags behind meat alternative producers, with only 20 startups established during 2020–2023.
Notably, over 70% of the startups in the industry already have a commercialized product, underscoring the industry’s commercial viability. Incumbents in the industry have expanded their market presence by using in-house solutions, acquisitions, and investments, with most being consumer packaged goods manufacturers or meat producers
Around half of all companies are prioritizing the development of plant-based beef products, while many are also exploring plant-based alternatives for chicken, pork, and seafood.
Notable startups include Beyond Meat, Impossible Foods, NotCo, and Nature’s Fynd, all of which have achieved unicorn status, with a combined valuation of USD 10.9 billion. Plant-based meat startups have collectively raised USD 7.8 billion (as of November 2023). Impossible Foods leads the industry with USD 500 million raised in its latest round (up to USD 1.9 billion total funding). Between 2020 and 2023, the number of plant-based seafood startups increased significantly, with 20 new companies emerging. Most of these startups are based in the US, while a few notable ones like Redefine Meat, SavorEat, and Equinom hail from Israel.
The growing popularity of plant-based meats, the rise in vegan and flexitarian populations, and a shift toward healthy eating habits have pushed industry-leading CPG companies and conventional meat producers to enter the plant-based space. While the primary strategy has been partnerships, companies are exploring in-house product development and M&As to get a foothold in the industry.
Tyson Foods, Cargill, Maple Leaf Foods, and ADM have chosen to invest directly in the alternative meat space, strategically positioning themselves to cater to both the animal meat and alternative meat markets. Tyson Foods leads among incumbents, investing aggressively in alternative meat startups through its fund, Tyson Ventures.
Many retail chains have partnered with plant-based meat companies, with retailers like Kroger, Tesco, Trader Joe’s, and Publix releasing plant-based alternatives under private labels. These partnerships have been key in increasing access to plant-based alternatives and expanding the retail presence of disruptors.
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