The ongoing discussion on the greenhouse emissions from beef cattle breeding and other ruminants accounts for the highest agricultural emissions over 25% (3.8GT of CO2e). Climate change is a major issue, and finding ways to reduce our carbon footprint is paramount. The US FDA in 2023 approved the first lab-grown chicken, sparking conversations on the future of the industry. Singapore preceded this in 2020, and cultivated steak was approved for consumption in Israel in 2024. The UK also made major strides by becoming the first country in Europe to approve cultured meat for pet food. Of the total meat consumption, pet food accounts for a quarter of it.
The concept of lab-grown meat began in the early 2000s; however, the major breakthrough arrived in 2013 when Dutch scientist, Mark Post, developed the first lab-grown burger. Since then, significant progress has been made. For instance, Michelin-starred chef, Dominique Crenn, has partnered with Upside Food to offer cultured chicken at the esteemed Atelier Crenn restaurant.
So how exactly is cultured meat produced? Firstly, animal cells are harvested, and these cells are subsequently fed the necessary nutrients to multiply. This process is quite comparable to yeast culture in petri dishes. The benefit to this process is that it requires limited resources such as land, water, and electricity compared to traditional methods.
Despite the development and growth of this sector, hesitation remains from the public due to the so-called “yuck factor,” the psychological consideration of consuming lab-grown meat. There is apprehension from consumers with the idea as they feel it is perhaps ethically unsettling or unnatural. This definitely poses a challenge to the adoption of these meals to reach more households. Nonetheless, the cultured meat industry is projected to reach a market value of $25 billion by 2030. This growth is driven by technological advancements, increasing consumer awareness, and significant investments from both start-ups and established food companies.
Over the past decade, the cost of producing cultured meat has decreased dramatically. The first lab-grown burger in 2013 cost $330,000 to produce. Today, companies like Future Meat Technologies have cut that down to about $10 a pound; the substantial costs reductions can be attributed to improvements in cell culture media and bioreactor technology, making cultured meat more accessible to the average consumer.
Start-ups in the cultured meat market compete with established meat companies such as Tyson Foods and Cargill. While these incumbents benefit from established supply chains and economies of scale, entrepreneurs use innovative technologies and sustainable practices to carve out their niche. For example, Aleph Farms and Future Meat Technologies are at the forefront of developing high-quality cultured beef and chicken products.
Upside Foods CEO Uma Valeti comments that “This isn’t just about meat - it’s about reimagining the food system,”. Innovators like Valeti are not focused on producing meat alone, but also on creating a more sustainable and ethical food system. Companies like Aleph Farms and Shiok Meats are pioneering new methods to produce cultured meat that simulate the taste and texture of traditional meat.
Various regions are using unique ways to encourage the cultured meat industry. The proactive regulatory role and investment in biotech infrastructure make Singapore a global leader in this regard. On the other hand, the US is focusing on regulatory clarity and consumer education to drive adoption. Understanding these regional strategies is crucial for investors and companies interested in the cultured meat market.
Will cultured meat ever outcompete beef, or will it remain a premium niche? This question remains at the heart of the industry’s future. As production costs continue to lower, and consumer acceptance improves, cultured meat has the potential to become a mainstream product. However, this is contingent upon extensive innovation and investment in the market.
Investors ought to monitor regulatory shifts and emerging start-ups in the cultured meat industry. Companies like Aleph Farms, Future Meat Technologies, and Upside Foods are at the forefront of this revolution and offer exciting opportunities for growth. By staying informed and engaged, investors can certainly capitalise on this rare opportunity for well-done returns.
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