(Bloomberg) -- Lab-produced meat and even insects are set to take a greater share of your dinner plate, posing a challenge to plant-based proteins that have become increasingly popular, according to Fitch Solutions.
Cellular-based protein alternatives are being developed, with price the main hurdle stopping them from entering the mass market, the research company said. Lab meat also allows for meat cuts, which are harder to synthesize in the plant-based version, it said.
“They offer a solution to food sustainability and environmental worries,” Fitch Solutions said in a Dec. 19 note. And unlike plant-based alternatives, they “do not have to synthesize taste and texture as they are meat,” it said.
Insects are already eaten in some countries, with potential for this to expand. “We've seen the launch of insect offerings in countries that don't traditionally consume them, especially in the snack sector,” Fitch Solutions said.
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For plant-based ‘meat,' market saturation, greater regulation, and questions around sourcing and health are obstacles, according to the company. While Beyond Meat and Impossible Burger are American darlings in the fake-meat industry, an increasing number of firms are tapping into consumer worries about health, animal welfare and the environment.
The use of genetically modified ingredients in some plant-based products could lead to a backlash, while higher salt content is a concern in some cases, Fitch Solutions said. Greater M&A activity is possible in the medium term, it said.
To contact the reporter on this story: Anuradha Raghu in Kuala Lumpur at araghu3@bloomberg.net
To contact the editors responsible for this story: Anna Kitanaka at akitanaka@bloomberg.net, James Poole
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