Summary By: Sian Richards | Original Study By: Swann, C., & Kelly, M. (2023) | Published: March 1, 2024
This report investigates different factors related to the success of meat alternatives and how conventional meat producers may respond.
Alternative meat products have the potential to revolutionize the food industry. For example, some experts predict that by 2030, these products could make up nearly one-third of the global meat and meat alternative market. The authors of this paper argue that industry pioneers such as Beyond Meat and Impossible Foods, as well as conventional meat producers, are driving this change.
In this report, researchers evaluate the disruptive impact of meat alternatives on the U.S. meat industry, looking at industry strategies, shifts in consumer spending, and other price-related factors. They conclude that successful meatless products have meat-like qualities, are easily accessible, and align with consumer values. They also discuss how conventional food producers can respond to the growing meat alternative market.
Factors Influencing Meat Demand
Food consumption patterns are changing. Food purchased for at-home consumption fell from nearly 78% in 1959 to 55.5% in 2019, and dining out has become more popular. The type of meat consumed by the average U.S. citizen also changed between 1959 and 2021. For example, beef consumption dropped from 61% to 24%, and chicken consumption rose from 7% to 34%.
Alongside concerns for health, the environment, and animal welfare, economic factors have an impact on the demand for meat products. For example, the demand for chicken, pig, and cow meat is sensitive to changes in consumer income and price changes. Some studies have found that a consumer’s age also impacts their consumption of different products (e.g., purchases of chicken meat increase with age relative to pig and cow meat purchases).
Expanding Meat Alternatives: Barriers And Opportunities
Demand for plant-based meat substitutes is on the rise, with a 10% sales growth in 2021 compared to 2% for meat products. The authors believe that the target market for non-meat alternatives is flexitarians —– meat consumers open to dietary substitutions.
Cultural customs and habits influence food market growth (think about eating turkey on Thanksgiving). According to the authors, changing food habits is easier when the substitute product closely resembles the original. This prompted Beyond and Impossible Foods to postpone product launches until their products’ taste and texture were sufficiently close to meat. Cell-based products might challenge plant-based alternatives, but the industry faces key challenges such as scaling up production, regulatory approval, and more.
Meat Industry Responses To Alt-Meat Growth
The authors point out that conventional meat producers may decide to actively prevent the growth of meat alternatives, for example through negative advertising and regulatory restrictions.
Alternatively, producers may decide to simply continue their focus on producing meat products rather than engage in what they may view as a fleeting trend. But underestimating the competition is risky: if they don’t participate and the market share grows, they risk falling behind. Instead, producers may decide to enter the alt-meat market. With profit to be made, the authors argue that meat producers can compete by investing money in innovations, using their existing infrastructure, and leveraging consumer trust.
Strategies To Enter The Alt-Meat Market
The authors also recommend ways for conventional meat producers to enter the meat alternative market. While these are geared toward the meat industry, the information may be insightful for animal advocates:
- Invest in research and development: While plant-based products may be more profitable than cell-based ones in the short term, the authors point out that investing in cell-based technology may pay off down the line. Producers should weigh costs and benefits of both approaches.
- Collaborate with existing alt-meat producers: Alt-meat companies may benefit from combining their technology with conventional meat infrastructure. However, the authors point out that there are many challenges in such partnerships, including debates about ownership rights and ethical concerns about vegan companies working with meat producers.
- Acquire or merge with an alt-meat brand: The benefits are similar to partnering with an alt-meat company, but this strategy may prevent some of the property rights and ownership challenges that arise in partnerships.
While the authors do not address it in their paper, meat companies that enter the alt-meat market may not have animals’ best interests in mind. As a result, they might not prioritize animal protection in their product development, and there may be further ethical concerns that arise when they compete with vegan companies for market share.
Animal advocates should be aware that consumer preferences are changing, indicating a growing market for meat alternatives. This is due at least partly to animal welfare and environmental concerns, meaning that we should continue emphasizing how eating meat harms the planet. Amid alt-meat’s impressive growth, advocates should also focus on supporting and collaborating with companies in this sector as well as calling for favorable policies to ensure these products remain readily available in the future.
