New research shows that health is the priority for Chinese consumers when it comes to plant-based food – and the more they know about the benefits, the more they’ll eat it.

When you inform people in China about the benefits of a vegan diet, nearly all of them (98%) would be willing to eat more plant-based foods, according to a new survey.

This number stays the same for flexitarians, though this demographic has more people displaying a ‘strong willingness’ to add plant-based foods (64%, versus 57% of the total). This makes sense considering that flexitarian by definition refers to people actively reducing their meat intake – but even amongst meat-eaters (or omnivores), 54% are willing to up their vegan consumption once learning about the benefits.

The results are from a poll carried out by Kantar for ProVeg International, covering 1,000 consumers from Beijing, Shanghai and Guangzhou. It found that nearly a third (32%) of Chinese people identify as flexitarians, though the incidence of vegetarianism (1.5%) and veganism (0.9%) is low.

They were presented with 15 benefit statements about plant-based foods, 14 of which were based on peer-reviewed research. These included preventing or lowering the risk of type 2 diabetes, breast cancer, and antibiotic resistance; lowering body mass index (BMI); cutting greenhouse gas emissions; reducing global hunger; and being a source of delicious and satisfying meals (among others).

“We found that most people are concerned that they eat healthy food and that once they know just how healthy and climate-friendly plant-based food is, they will eat a lot more of it,” said Shirley Lu, managing director and Asia and China representative at ProVeg.

Health high on the agenda for China’s consumers

The survey participants were asked to agree or disagree with each of the statements, while also rating which ones would be the most effective in persuading them to eat plant-based food. Using this data, the pollsters created a four-quadrant Agreement/Persuasion Matrix.

Seven of the top 10 statements that respondents agreed with were related to health. The most popular was the one that suggested plant-based diets lowered BMI and reduced obesity rates, therefore also reducing rates of heart disease, stroke, high blood pressure, and high cholesterol. More than half (56%) of Chinese people believe this is true.

The BMI statement was also the most persuasive in encouraging increased plant-based consumption, leading the first quadrant of the matrix. The three other statements in this quadrant – which combined strong agreement with strong persuasion – were health-related too. They stated that plant-based diets are high in calcium and bioavailability (52% agreement), provide adequate protein (49%), and are iron-rich (51%).

In quadrant 2, which highlights benefits that were met with low agreement but still tend to be influential in increasing uptake of plant-based foods, the top statement suggests that these foods lower the risk of developing antibiotic resistance. This was also the most persuasive statement overall, and was followed in this quadrant by the statements that animal agriculture makes up 80% of rainforest destruction, beef and dairy are among the biggest sources of methane, and vegan diets can help reduce world hunger.

In contrast, the idea that plant-based foods are more energy-efficient and use fewer natural resources was the least persuasive argument, despite 49% agreeing with this. The statement people agreed with the least was that animal agriculture accounts for up to 20% of all greenhouse gas emissions, something that was also one of the most insignificant benefits for respondents.

Who should plant-based companies market to?

This reflects the emphasis Chinese consumers put on health over the environment. Overall, the main reasons for consuming plant-based food were health (46%), nutrition (39%) and food safety (35%). Only 24% are motivated by the fact that they are climate-friendly.

Conversely, the biggest barriers are dissatisfaction with the freshness of ingredients (cited by 36%) and the taste (31%), and uncertainty about the nutritional completeness (30%).

For food manufacturers, targeting the right demographic is key to hit home your message. While more women (59%) expressed a strong willingness to change their diet than men (41%), responses were very similar across the age ranges of both sexes, at between 24% for those aged 18-24 and 27% for 40- to 60-year-olds.

Meanwhile, 36% of flexitarians displayed a strong willingness to eat more plant-based food. Among income groups, it seemed the richer the person, the less willing they were to change. People earning between ¥15,000 and ¥25,000 ($2,000-$3,300) each month were most happy to shift to a plant-based diet (29%), and those on the highest household income (above ¥40,000/5,400) were the least likely to do so (16%).

The report recommends companies leverage the high-awareness and high-persuasion factors from the matrix, amplify the benefits that had low agreement but were still highly convincing, and market popular benefits with low persuasion rates in ways that can be more relevant to consumers.

Spotlight health, whether it’s produce or plant-based meat

In 2016, the Chinese government introduced the Healthy China 2030 policy, which stipulated that public health should be a precondition for all future socio-economic development. And four years later, it announced the 30-60 policy, committing to hit peak emissions by 2030 and become carbon-neutral by 2060.

Last year, a study by Singapore-based firm Asia Research Engagement found that China – the world’s largest producer of pork, fish and eggs – is expected to see animal consumption increase by 2030 despite falling population numbers. But if it is to meet the 1.5°C goal, 50% of all protein consumption in the country must be from alternative sources by 2060.

There are several things industry players can do to help nudge more plant-based consumption. Social media was found to be the most effective marketing tool, while a focus on nutritional transparency and lower price points will go a long way too.

Companies need to improve the knowledge and awareness of nutrition and food processing, and finance R&D efforts to develop healthier and tastier plant-based meat products. More investment in consumer education about meat analogues’ health benefits is crucial too.

Finally, vegetables that are high in protein, iron and calcium are particularly appealing to consumers, so marketing strategies that highlight the nutritional value of both fresh produce and meat and dairy analogues can be highly influential.

“China boasts a rich heritage of plant-based diets and a wealth of healthy plant ingredients. Government agencies, educational institutions, and plant-based food businesses can leverage this study to educate consumers about the benefits and impact of plant-based diets,” said Lu.

“By highlighting the health, environmental, and culinary advantages, we can collectively work towards transforming our food system to one that is beneficial for humans, plants, and animals alike.”

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Nestlé has introduced six new coffee lines to China, which include plant-based beverages and a first-of-its-kind upcycled innovation.

Already a market leader for 36 years now, global CPG giant Nestlé has invigorated its coffee portfolio in China to meet the growing demand for sustainable, plant-based bottled drinks.

Part of the new range are two vegan ready-to-drink offerings (Coconut Americano and Oatmeal Latte) and an upcycled coffee offering (Guoran Light Coffee) that is new to the Chinese market. The shake-up, which sees all sub-brands integrated into the Nescafé lineup, comes as Nestlé aims to consolidate its position in the country’s evolving coffee sector.

“Consumers’ coffee consumption is increasing, from initially one cup a day to possibly two to three cups a day. For us, this is an opportunity,” Alfonso Troisi, senior VP for coffee at Nestlé Greater China, said in a press chat at the FBIC summit last month. “As consumers enjoy coffee in more scenarios, we also need to expand more applicable products.”

Keying into consumer preferences

The Coconut Americano contains over 20% coconut water and is low in sugar and fat content, while the oat-based Oatmeal Latte has 7g of dietary fibre (which is why it’s positioned as a breakfast option).

This will speak to the increasingly health-conscious Chinese consumer. A 2023 report by Asymmetrics Research noted how milk alternative brands are highlighting attributes like ‘no sugar/cholesterol/trans fat’, ‘good for brains/eyes’, and ‘high protein/calcium’ on product packaging, alongside cleaner labels.

“China is promoting healthier and more nutritious food options in response to the Healthy China policy,” said David J Ettinger, chief representative officer at law firm Keller and Heckman Shanghai. “Therefore, foods offering health benefits and high nutritional value are going to likely lead the way. Chinese consumers will look to healthier options, like alt-proteins, so it will be up to the alt-protein industry to demonstrate that these novel foods provide another nutritious option for consumers.”

Moreover, the use of coconut and oat is a shrewd move from Nestlé, as Chinese consumers have indicated their preference for these flavours. There are more oat milk options in China than any other plant-based alternatives, thanks to its dominance in coffee. In tier 1 and 2 cities, oat and coconut have become common milk choices in lattes.

As for the upcycled beverage, this makes use of cascara, the outer husk of coffee cherries that are typically discarded. In many cultures and countries, this red ‘coffee fruit’ is used to make hot and iced teas, and it’s something increasingly being adopted by specialty coffee companies.

Cascara has a slightly sweet and fruity flavour, and while it does contain caffeine, it’s present in much smaller amounts than the seeds enclosed within, Troiso explained. “In Yunnan, people will make coffee peels into coffee fruit tea for drinking. Therefore, we use it as the main ingredient to make it a drinkable drink every day,” he added.

The Nestlé executive suggested that this product – the result of 10 years of work – was launched with the circular economy and the regenerative food system in mind. “The use of the same coffee bean has expanded from the conventional method of making coffee to the use of the entire coffee fruit, including the peel, and its value has been fully explored,” he said.

“Chinese consumers still like fruit tea flavours, whether it is fruit juice, or other flavoured and tea-based beverages. Therefore, we hope that in addition to coffee lovers, we will also want some other users to try this new product.”

Taking on the Chinese coffee boom

Coffee consumption in China is increasing, with people drinking two to three cups a day. The market reached 617.8 billion yuan ($85.5B) in 2023, and is slated to surpass the trillion-yuan mark ($138B) by next year. It has resulted in increased competition between coffee companies like Luckin, Costa, Starbucks, as well as Nestlé. While it dominates the instant coffee realm, the latter’s targeted move into bottled drinks represents its need – and willingness – to adapt.

“China has a highly dynamic coffee market and growth, and tends to form its own unique and constantly evolving coffee consumption trends,” Troiso told FoodNavigator-Asia.​ “Based on insights into the local coffee market, we have rearranged our product lines based on consumption scenarios and target groups to ensure better and more targeted product innovation based on consumer needs.”

In fact, last year, Nestlé appointed its first local R&D head for Greater China to identify emerging market trends and preferences of younger consumers. The conglomerate has also shortened its product launch cycle from 12-18 months to eight to 10 months, and is now aiming to bring that down to six months. Nescafé, meanwhile, will soon launch a coffee innovation centre in Shanghai to capitalise on the coffee opportunity.

“We pay close attention to the various stages of consumers’ lives and what kind of coffee needs they have in those stages,” Troiso said at FBIF. “We found that the majority of Chinese users were exposed to coffee for the first time during the gaokao [the national college entrance exam]… As they enter the workforce, their needs change, and we adapt our products to those changes.”

He added: “Our goal is to be a brand that can stay close to the needs of consumers, such as providing products that lift spirits and meet the needs of different user groups. We want to create a brand image that is close to the minds of consumers. In recent years, we have also worked to promote the sustainability of coffee, which has also resonated more with young people.”

Troiso suggested sustainability is the joint responsibility of the entire industry, reiterating Nescafé’s 2030 plan of cutting emissions in half and sourcing 50% of its coffee through regenerative agriculture by the year. “We have clear targets to reduce carbon emissions, so we have taken different measures at all levels,” he said.

“In addition, consumer awareness is also very important. We strive to educate consumers about the sustainability of coffee and share information about sustainable coffee, because consumer choices drive progress on sustainable projects.”

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Singapore-based 70/30 Food Tech has closed a $700,000 seed extension round, which has helped it launch a research lab to develop mycelium-based protein products, starting with shredded chicken.

70/30 Food Tech’s latest fundraiser saw participation from existing seed investors as well as Better Bite Ventures. The round has facilitated the opening of a Mycelium Research Lab to advance the startup’s R&D into fungi-based proteins.

“We believe that mycelium-based sustainable protein products can be a gateway to broader consumer adoption in Asia, especially given the familiarity and positive perception of fungi in the region,” said Better Bite Ventures founding partner Michal Klar. “We liked 70/30 Food Tech’s product pipeline and unique go-to-market strategy.”

Founded in 2020 by Eve Samyuktha and Mike Huang, F&B consultants working in China’s plant-based sector, the company makes vegan ready meals using its biomass-fermented mycelium chicken. In 2021 alone, as part of its test launch, it shifted 25,000 of these meals.

Now, to scale up and expand further, 70/30 Food Tech has launched its new research lab in Bangalore, a city known as India’s tech hub. “We chose Bangalore not only for the R&D, but also are aiming India as one of our markets for future products,” Samyuktha told Green Queen. “The per capita consumption of meat in India is significantly low compared to [the] rest of Asia. However, there is a rising demand for poultry and we want to be on the brink of it and offer exciting solutions.”

She added: “Having the lab in Bangalore is super cost-effective compared to Singapore, so the iterations and runs are larger in number.”

Using mycelium to offer Asians cost-effective alternative proteins

The company began its initial pilot-scale experiments in biomass fermentation in 2021 at the Shanghai Academy of Agricultural Sciences, with the primary aim of developing affordable alternative protein solutions. Having surveyed several B2B consumers – for whom it makes mushroom- and soy-based proteins, including the Chinese restaurant chain Guaka – the startup concluded that price is a key aspect of protein diversification.

“Achieving cost-efficiency is crucial and food businesses in China and other parts of Asia will likely be interested in products that can offer competitive pricing compared to animal-based products and this, in turn, can attract a larger market share and drive adoption,” said Doris Lee, CEO of GFIC, GFIC, the independent partner organisation of the Good Food Institute APAC.

A report by alternative protein think tank Food Frontier last year found China to be the most favourable market for plant-based food, although India was on the other end of the list. But across Southeast Asia, high price was a key barrier for these foods. Analysis by Asymmetrics Research also found that in China, many middle-income consumers are cutting back their impulse spending and looking for better-value products. Pork and beef prices have fallen, toughening the challenge for plant-based brands trying to sell to foodservice, which is a cost-sensitive approach.

Moreover, a recent study has shown that mycelium production can be done on a large scale and with lower costs, developing a protein that can grow in a relatively short period – days instead of the months or years it takes to grow animal-derived or even plant-based food. With greater investment in resources and infrastructure to cut production costs and educate consumers on mycelium as a potential dietary staple, the authors argue that the fungi ingredient could be a solution for global hunger and food insecurity.

While manufacturing costs are currently under wraps, 70/30 Food Tech will likely be looking to reach price parity with conventional chicken – already one of the cheapest meat products you can buy – sooner rather than later.

70/30 Food Tech to replace existing offering with mycelium chicken

The mycelium study above also extolled the fungi root’s nutritional and environmental benefits. This is important for 70/30 Food Tech too, with Samyuktha noting that the startup is working to get its mycelium certified as a carbon-neutral food – a process that requires extensive data collection.

“Our feedstock is byproducts of other food manufacturers that would be generally regarded as waste, but safe for food reuse,” she explained. “Data required will involve the entire supply chain of the mycelium production, including cost of transportation, how we isolate and extract the parent strains to the downstream processing, storage and packing.”

The study, which was authored by employees of US mycelium meat leader Meati, revealed that mycelium can take on different desired tasting notes through biochemistry and flavour chemistry, while being high in protein with all essential amino acids and micronutrients. It has been shown to lower LDL cholesterol too, with the potential to reduce food waste by valorising the sidestream and be produced in a cost-effective manner.

“Nutritionally, I am excited to say that not only the amino acid profiles are similar to meat, but certain amino acids are significantly higher compared to chicken,” said Samyuktha. Additionally, biomass fermentation allows companies to eschew the extrusion process commonly used for soy protein, while the use of specially mutated fungi strains and bioreactor process designs allows 70/30 Food Tech to follow a close-to-market commercialisation approach.

“The first pilot run successfully gave us the texture of shredded chicken,” the founder said, before adding: “The key challenge is the downstream processing and ‘odour’ removal, which has been very time consuming.” But it’s not just chicken – or meat, for that matter – that’s in the works. “We are dabbling with a possible fatty substitute for traditional cow-milk butter.”

With retail a capital-intensive channel, the focus remains on B2B solutions, where 70/30 Food Tech wants to replace its current offering with its mycelium-based mushroom-soy blend, pending regulatory approval.

The startup was Asia’s first mycelium protein company, while last year, Shanghai-based CellX expanded into the sector too. It’s an industry that has seen a flurry of innovations and developments in the last year. This includes Meati’s launch of a D2C marketplace, chicken nuggets and mycelium jerky SKUs, Esencia Foods‘ whole-cut seafood analogues, Better Nature‘s soybean mycelium chicken, Libre Foods‘ whole-cut chicken breast, and Bolder Foods‘ cheese alternatives.

Plus, investors have shown heightened interest in the sector, with MyForest Foods bagging a $15M Series A extension in June and Infinite Roots securing $58M in Series B funding last month.

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With leading beauty conglomerates announcing new beauty lines featuring recombinant collagen, the potential for China to be a leader in the synthetic biotechnology ingredient industry.

In December 2023, the leading international beauty brand, L’Oréal launched the second generation of its Age Perfect Collagen Royal Anti-Aging Face Cream, tailored exclusively for the discerning Chinese market. This groundbreaking release marked a pivotal moment for L’Oréal Paris skincare as it introduced the pioneering inclusion of recombinant collagen into its product line for the very first time, and also marks an important step in the commercialization of the recombinant collagen industry. The recombinant collagen incorporated into this formulation is said to feature an amino acid sequence that claims 100% homology to type III collagen found in human skin. Its touted unique triple-helix flexible bending structure purportedly allows this collagen variant to seamlessly interact with the skin’s natural collagen, potentially stimulating collagen production at its core. 

L’Oréal’s launch of this product seems to underscore their commitment to capitalizing on scientific advancements and biotech innovations in skin care. More importantly, the entry of international brand L’Oréal has made China’s hot recombinant protein market even more topical. 

What is collagen?

There are at least 28 identified types of collagen, classified according to homology and biological function, each characterized by distinct structures and varying prevalence in the animal body. Collagen is crucial for various functions, including skin elasticity, joint flexibility, hair and nail well-being, and overall tissue health. Its versatility is evident in skin care, where collagen is a common ingredient, potentially imparting anti-ageing effects and promoting smoother, resilient skin. The pharmaceutical field utilizes collagen in medical treatments, wound healing, and regenerative medicine due to its biocompatibility and bioactive properties. Collagen’s influence extends beyond healthcare into the food industry, where it plays a role in dietary supplements, functional foods, and beverages. This multifaceted protein serves as a cornerstone in addressing diverse health and cosmetic needs, highlighting its significance across healthcare, skincare, and nutrition. Moreover, in the culinary world, collagen is used as a gelling agent and thickener, particularly in broths and gelatinous desserts.

Collagen can be manufactured through two primary methods: natural extraction and synthetic biotechnology. In the natural extraction process, collagen is derived from animal sources like cattle, pigs, and marine animals. Typically, collagen is extracted from specific animal parts, such as the skin, bones, or scales. On the other hand, synthetic biotechnology employs genetically engineered microorganisms, such as bacteria and yeast, to express collagen. The resulting product, known as recombinant collagen, undergoes fermentation and downstream purification processes.

The ascent of recombinant collagen has captured significant attention, driven by its advanced biotechnological approach that ensures precise control over collagen characteristics and the production of high-purity products. Noteworthy advantages encompass enhanced safety features, such as heightened hydrophilicity, reduced immune rejection, and robust processability, addressing concerns linked to animal-derived collagen. Its positive environmental impact is evident in the elimination of the need for animal husbandry and fishing practices, thereby contributing to marine biodiversity conservation and improved animal welfare. This innovation also eliminates the requirement for cold chain transportation, facilitating easy storage and offering a more sustainable alternative. As fermentation preparation scales up, the economic viability of recombinant collagen increases. 

Despite these advantages, challenges persist in the commercialization process, focusing on the expression of the triple helix structure, gene fragment selection, triple helix structure construction, and overcoming obstacles in cell transfection and protein purification. While recombinant collagen is still in its early commercialization stage, the current emphasis is on scaling up production and reducing costs to facilitate broader adoption.

The history of recombinant collagen in China

Research into recombinant collagen in China has a substantial history. In the 2000s, a research team initiated the exploration of synthetic biology technology for developing recombinant collagen. This effort eventually culminated in the establishment of the first publicly listed company in this domain, Xi’an Giant Biogene. Notably, in 2014, Nanjing University of Science and Technology collaborated with Jiangsu Jland Biotech to jointly undertake the “Key technologies for high-density fermentation of genetically engineered bacteria to express collagen, efficient separation processes, and their Industrialization” project as part of the China National High-tech Research and Development Program, commonly known as the 863 Program. This initiative has since led to the incubation of numerous research and commercialization projects in the field.  

The start of 2024 brings optimistic developments to the industry. Jiangsu Trautec, a recombinant collagen company backed by Japanese beauty brand Shiseido and French luxury brand LVMH, initiated the process of registering for listing guidance with the Jiangsu Securities Regulatory Bureau on January 8. This marks a promising start for the sector. As of today, it is estimated that more than 30 companies are actively developing and commercializing recombinant collagen pipelines in China. Jiangsu Trautec, Jiangsu Jland Biotech, Shanxi Jinbo Biopharmaceuticals (a supplier of recombinant collagen ingredients to L’Oréal), and Xi’an Giant Biogene currently stand at the forefront of the industry.

Recombinant collagen: the economic opportunity

According to research by Frost & Sullivan, the retail sales for China’s animal-derived collagen and recombinant collagen markets in 2021 are projected to be 17.9 billion yuan (2.77 billion USD) and 10.8 billion yuan (1.67 billion USD), respectively. The CAGRs from 2017 to 2021 of animal-derived collagen and recombinant collagen markets stand at 21.8% and 63.0%, respectively. The collagen market is anticipated to sustain a robust growth trajectory in the coming years. By 2027, the overall size of China’s collagen product market is estimated to reach 173.8 billion yuan (24.42 billion USD), exhibiting a CAGR of 34.3%. Within this, the CAGR for recombinant collagen is forecasted to be 42.4%, surpassing that for collagen derived from animal sources at 25.3%. The expected increase in the penetration rate of recombinant collagen from 37.7% in 2021 to 62.3% in 2027 is noteworthy, indicating a substantial market shift. Consequently, the market size for recombinant collagen is predicted to reach 108.3 billion yuan (15.22 billion USD).

The recombinant collagen startup landscape

For example, Liven Proteins is a Canada-based company focused on the production of animal-free collagen ingredients for China and the global market. Liven uniquely plays in the food and nutrition sector, particularly focusing on functional foods, beverages, and nutraceuticals to support healthy ageing. In comparison with collagen for skin, hair and nails, collagen ingredients for health benefits, such as Type II collagen for joint health, are premium ingredients with 10-100x price compared with commodity collagen. Odourless and completely soluble, Liven’s ingredients also offer adaptability for creating consumer-friendly products that meet the increasing demand for health-conscious choices.

Other recognizable international players in the field of recombinant collagen encompass Avantor, ProColl, Merck, ACROBiosystems, Geltor, and Jellatech. Still, with the fast development and commercialization in China, it will be difficult for China to be left behind, not only for collagen but in all coming applications in the recombinant protein space. As of today, there are numerous examples of Chinese companies’ successful commercialization of fermentation products and holding leading positions in the subsectors, such as hyaluronic acid, amino acids, and erythritol.

The development of the recombinant collagen market in China for skincare applications is indicative of the increasing power of synthetic biology to replace traditional animal-based sources. The application of recombinant collagen in the medical and cosmetics industries is just the beginning. We expect that with the development of technology and the expansion of production scale, recombinant collagen will soon be applied in other areas with lower cost structures, such as nutraceuticals, functional foods and beverages, and even bulk raw materials for food production. 

This post was authored by Rouyu Wu, Director of Investment and Innovation at Dao Foods. For a more in-depth view of China’s developments in fermentation and new proteins, download The New Protein Adoption in China Report.

The post L’Oréal Launches Animal-Free Collagen Skincare in China, As Recombinant Technology Gains Steam appeared first on Green Queen.

At a major APAC food tech conference in Singapore last month, I spoke to four alt-meat founders from India, China, the Philippines and Australia to find out what Asian consumers want from plant-based meat products.

Last month, as part of the Singapore International Agri-Food Week (SIAW), the Asia-Pacific Agri-Food Innovation Summit organized by Rethink Events welcomed over 1,000 global leaders to meet and learn about Asia’s agri-food system to “accelerate the transition to a climate-smart food system” as organizer Rethink Events states on the event website.

As part of the week’s programming, I chaired a discussion about the ‘Healthier Proteins Shaping the Future for Plant-Based Innovation’ on stage. Joining me were four founders and leaders from plant-based meat startups in the APAC region, each representing some of the biggest markets in India, China, the Philippines and Australia, as well as the APAC Science and Technology Director from one of the world’s leading flavour companies.

Our discussion spanned a range of topics, from how important are clean labels to whether Asian consumers are still actively purchasing these products. We talked about what factors influence decision-making, what new ingredients are being developed in the sector, and what brands can do to build confidence in the nutritional value and overall quality of plant-based products

Most of all, the question we were trying to answer was: what does the Asian plant-based consumer want? The key takeaway from the discussion is that each Asian market is unique and its consumers have very specific and very different needs.

The below transcriptions have been edited for clarity and concision.

Anand Nagarajan, Co-Founder at Shaka Harry on Indian Consumers

On the Indian plant-based meat consumer: India is not one market. We’ve got 1.4 billion people, so it’s important not to view the Indian market as one ubiquitous market. The relationship to meat is complicated. In terms of who our consumer is, we have a very simple definition: anyone who has an affinity for the taste of meat is the consumer we’re looking for. We are going after the two-thirds of Indians who eat meat. Culturally, a large percentage of the Indian population that still consumes meat would abstain from it for close to 150 days of the year for various reasons. Some people abstain from meat on certain days. Some people will not eat meat at home. Some people only eat meat when they travel. Some people won’t eat meat on festival days. But all these people may want something that’s a familiar taste. This is where we position Shaka Harry.

On creating products for specific occasions: How do we create salience in a customer’s life, rather than trying to over-intellectualize the conversation? If something needs a lot of education…it won’t scale. We can’t educate a billion people individually. Even if I were to take the 100-200 million high-end consumer market, I can’t sit down and educate every single one of them. Instead, we focus on occasions. How do I win breakfast? How do I win school lunch prep? How do I win at a Saturday family gathering? We’re saying: here’s a very good product, it’s priced well and it is tasty. We’ll give you an occasion for when you need to have this at home. And we find that a far easier method to scale, rather than pursuing micro-markets.

On whether Indians want healthier products: Do Indian consumers want healthier products? There’s a disconnect between what the consumer tells you they want versus what they’re ready to pay for. When they go into the store, and you give them two products, one being healthier but with a 20-30% price premium, they will choose the value product. That’s what we are seeing. 

On We have an entire line of clean-label products coming out soon with easy-to-read, natural ingredients. Thanks to consumer insights, we’ve developed a millet range. Millets is something that traditionally Indians have consumed a lot and consumers have very positive connotations about it. But here the point is not to mimic a meat experience. Rather we’re saying: here’s a very good product. We’re going to ‘de-junk’ your regular roti and paratha. We’re taking the gluten out.  We’re adding natural fiber. The initial market response has been fantastic. So de-junking regular meals and giving consumers a superior version of everyday foods is working really well.

Shaka Harry is a plant protein company based out of India with a range of ready-to-eat products designed for the Indian palate and for Indian cuisines. 

Astrid Prajogo, Founder and CEO at Haofood on Chinese Consumers

On the Chinese consumer base: Our consumer base is very interesting. They’re not flexitarian, but they’re gym-goers. So they choose our product because they are looking for specific protein with specific features- that’s one type of consumer that is pretty loyal to us. We also have the forein vegan community. Although not a large group, they have strong purchasing power. They also have a voice, which can be powerful. Finally, we have the local Chinese vegan community as well, they continue to support our products.

On what Chinese consumers are looking for from meat: We have spent the last couple of years studying how Chinese consumers approach buying meat. Not just plant-based meat, just meat. That’s what we want to understand. And taste is absolutely key, especially umami. China is the land of tasty food, every single part of the country has great-tasting food. So first: taste – they demand great taste. Second is safety. McKinsey published research earlier this year that revealed that for Chinese consumers, health and safety are the most important. Part of safety is for a product not to contain ingredients that consumers deem less safe, like methylcellulose or added gums so our definition of clean-label is free from added artificial ingredients, be it binders or perseveratives. We combine different types of plant proteins and we work with fruit fibres, so we can make a clean-label product where the cost is actually reasonable- we’re down to under $3.5 per kilogram.

Haofood is a Shanghai-based specialist in Asian plant-based meat designed for Asian applications.

Stephen Michael, Co-Founder and CEO at WTH Foods on Filipino consumers 

The Philippines is a pretty sizable country- we have over 110 million Filipinos, and it’s a very meat heavy culture. As a predominantly Catholic country, we don’t have any dietary restrictions, so I’m jealous of my Thai and Malaysian friends whose vegetarian market exists already. In the Philippines, it’s almost non-existent and that’s what we are up against. Culturally and traditionally, a lot of dishes are meat-based, so putting out a plant-based meat product might not be the best idea. We’re continuously trying to figure out what the Filipino consumer wants. It seems they see something as healthy when it is local with added functional benefits in terms of beauty or physical aspects. So for example, if plant-based meat products are helpful for slimming, or if eating these products can help radiate beauty- that’s a driver. The entry point for the Filipino market is health, more than whether something is plant-based. Sustainability and animal welfare are very, very far down the list in terms of our consumers adopting plant-based meat.

When Filipinos think about health, they go for descriptive words like ‘organic’ or ‘cholesterol-free’, ‘low sodium’, ‘low fat’, ‘low sugar. Adding to that, Filipino consumers want their food to be more fortified or to have a unique ingredient like a local oil. For example, we’re trying mungbeans as an additive to respond to that demand- it’s a local and natural ingredient. to add a more local and natural ingredient to that. Consumers want to avoid preservatives and flavor enhancers so they do look at the ingredient list and want a cleaner label as well. For more of our plant-based meats, we fortify with local proteins or local ingredients to give them a more local and healthier profile. 

There’s actually been a bit of pushback with plant-based meats when we offer Filipino favourites like sisig and sausages and holiday hams, where Filipinos will go for the real thing instead of the plant-based version, which has been a difficult scenario. So we’re done pretending to be meat. Achieving something as close to meat as possible will require that long list of ingredients and our customers are looking at labels, and if they don’t understand certain ingredients, they deem it to be less healthy. So we are actually in the midst of a pivot in terms of products. We are decreasing the number of our ingredients for our second generation of products and we don’t try so hard to be the meat product. I believe in the alternative protein industry and I believe there will be increased demand and need for protein, so we’re looking into high-protein snacks in more shelf-stable formats. The Philippines is an archipelago shipping frozen meat across all the islands is a logistical nightmare. So it’s a triple challenge: how do you ship your products across an archipelago, while making them shelf-stable and reducing the number of ingredients so they can be clean-label?

WTH Foods is a plant-based alternative protein startup based in Manila.

Chris Coburn, General Manager APAC at v2food on Australian plant-based meat consumers

On why Australia is different from the rest of Asia: I would say Australia is a little bit different from the rest of Asia, where I think we’re still seeing animal protein as being aspirational. Consumers in the rest of the region are looking to purchase animal products now that there’s more wealth available and a growing middle class. In Australia, as in a number of the developed markets, we’re seeing this trend to be a reducetarian, where people who have reached peak meat consumption are probably looking to come back the other way. If you look at animal consumption per capita in Australia, obviously it’s at levels that are close to the UK and US, unlike the rest of Asia.

On v2foods’ Australian consumer base: I would say v2food’s consumer base is the conscious consumers, those who are looking to reduce their meat intake, so we have a different challenge to the rest of Asia. Probably half of our retail sales are from this younger demographic -the millennials / the single-income-no-kids / the double-income-no-kids / those coming into families over the next 10 years- those conscious consumers looking to reduce meat consumption and consume alternatives.

On clean labels: I think from a portfolio point of view, we’re looking at the clean-label issue in two different ways and trying to distinguish from those more indulgent occasions where consumers are looking for that great taste and probably a treat and those everyday occasions where people are looking for more healthy options. In the first group of our products, we have burgers and sausages, and we’re competing against animal protein products which are highly processed, and for those, we are really trying to drive taste as the priority for our target consumers. Our biggest fear is that sometimes our competitors’ products are not good, and consumers are having a bad experience. So we really feel like taste is important for the category of products like sausages, burgers, and nuggets. 

v2food is Australia’s number-one plant-based meat company.

Ai Mey Chuah, APAC Science & Technology Director at Givaudan Singapore on Asian Consumer Tastes 

Ultimately for our customers, the most important thing is taste. If their products don’t taste good, and don’t look appealing, they won’t get a repurchase by the consumers. So in our business, what we do is customize the solutions to meet the needs of their consumers from the regions that they are marketing their products to. 

I would say that in APAC cost is still a very important factor. So while for our Europe and US business, clean-label and natural solutions are very important, for the APAC region cost is still the determining factor- we help our clients change their label to be more cost-effective, rather than clean-label, as our [clean-label] solutions tend to be more expensive. 

Some markets like China have well-educated consumers who don’t like artificial ingredients or additives in their products, so when it comes to replacing ingredients like methylcellulose, Asia is slowly gaining traction and we have products in our portfolio like citrus fibre that can act synergistically with certain proteins to actually provide that texture that is meat-like, juicy and succulent. 

Givaudan is a global leader in fragrance and flavour; the company develops tastes and scents for food companies all over the world.

The post What Do Asian Consumers Want From Plant-Based Meat? 4 Startup Founders Spill All. appeared first on Green Queen.

A new report by Asymmetrics Research outlines the opportunity for protein diversification in China, highlighting key active categories, overall trends and what’s in store for the future for alternative proteins in the country.

In August, research by Singapore-based firm Asia Research Engagement found that to align with a climate-safe future and decarbonise, alternative proteins would need to make up 50% of China’s protein consumption by 2060. It came amid a host of advancements in the country’s alt-protein sector, across cultivated meat, fermentation-derived protein, and plant-based food.

Now, Asymmetrics Research has published the third edition of its annual China Alternative Protein Products Market Landscape report, which highlights the key trends, challenges and opportunities for protein diversification in the world’s second-most populous nation.

“This year has been challenging in a China that is fraught with uncertainty – consumers, businesses and investors are generally spending more conservatively,” Huiyi Lin, chief insights officer at Asymmetrics Research, told Green Queen. “Nonetheless, there are opportunities for food products which offer good value both in cost and health benefits.”

She added: “Brands need to probe different consumer segments’ motivation and turn-off factors, and ultimately food needs to taste good. Fermentation and cell-culture protein technologies are at an early stage, the growth path would require support from regulators and commercial scaling partners.”

“In the post-pandemic era, consumers are placing greater emphasis on nutritional value and affordability,” said Jeremy Yeo, acting general manager of Beyond Meat China. “Additionally, there’s a pronounced shift towards products that prioritise health, flavour and environmental sustainability. ‘Green’ and eco-friendly options are not mere trends; they mark a profound evolution in consumer tastes and values.”

Here are 10 key takeaways from the China Alternative Protein Products Market Landscape report:

Alt-protein investment has been slower in 2023

Amid the wider investment squeeze in the global food tech category, China’s alt-protein industry has also suffered from a slower funding environment, which has been exacerbated by tough fundraising and macroeconomic conditions. Local investors are less bullish about CPG categories including food, while foreign investors are adopting a wait-and-see approach “due to geopolitical tensions, decoupling strategies and uncertainty”.

Plant-based meat – which had a relatively high deal flow in 2021 and 2022 – saw fewer investments in the past year, while larger deals have involved cultivated and fermentation startups. Interest in cultivated meat has increased due to high-level policy callouts, but it has been affected by cautious sentiments this year. Eventual investors usually tend to be experienced in biomedical fields. Additionally, Chinese meat giants are said to be paying attention to cultivated meat startups, but there hasn’t been any tangible action yet.

“Cell-based meat is gaining more attention in the capital market, and R&D and manufacturing costs will continue to fall with technological progress,” said Larry Lee, CEO of the China Plant-Based Foods Association.

Plant-based milk, meat snacks and functional foods are key segments – but eggs and cheese are not

The report highlights a few key active categories, led by plant-based milk and ready-to-drink beverages, alt-meat snacks, SKUs and prepared meals, vegan yoghurt and ice cream, and functional protein foods. However, despite being the largest egg producer in the world, vegan egg replacement is a less active category, alongside cheese and cream.

“China’s plant-based milk market is experiencing a blend of tradition and innovation,” said Vivian Wang, founder and CEO of plant milk brand Vitalbox. “Enzymatic hydrolysis oat milk coexists with traditional soy milk and coconut milk.”

Alt-meat and milk brands are restructuring and diversifying

As a result of slow market penetration, high marketing costs and fundraising difficulties, the plant-based milk and meat markets have seen a reduced number of players, with many brands also restructuring adjusting their portfolios and brand positioning, and diversifying their offerings.

Echoing the global stagnation of plant-based meat, several startups in this space have downsized, suspended operations, or exited the market. Many multinational vegan players have changed team structures, personnel and strategies, but remain committed to the market. “The market will need more high quality, diversified protein products,” said Cecilia Zhao, impact programme manager at food consultancy Lever China.

“Although adoption of plant-based meat in China lags behind Western markets, there is a dedicated consumer base motivated by health, safety and dietary diversity, necessitating solutions to taste, additives and cost issues,” added Astrid Prajogo, founder and CEO of Haofood. “Targeting specific consumer groups with customised products and marketing approaches holds great promise in this evolving market.

Health consciousness is high on the agenda

Brands are honing in on the health aspects of their products – similar to the shift seen in the international market – with marketing messages a key outlet for doing so. Many plant-based milk brands highlight ‘no sugar/cholesterol/trans fat’, ‘good for brains/eyes’, and ‘high protein/calcium’ alongside cleaner labels, while some use functional ingredients like DHA, collagen and peptide to target specific consumer needs.

Likewise, plant-based meat products highlight attributes like ‘no trans fat/cholesterol’, ‘fewer calories’, ‘dietary fibre’ and ‘natural ingredients’. It chimes with the results from a 1,206-person study last year, which found that health is the stronger driver of plant-based meat purchases for Chinese consumers.

“China is promoting healthier and more nutritious food options in response to the Healthy China policy,” said David J Ettinger, chief representative officer at law firm Keller and Heckman Shanghai. “Therefore, foods offering health benefits and high nutritional value are going to likely lead the way. Chinese consumers will look to healthier options, like alt-proteins, so it will be up to the alt-protein industry to demonstrate that these novel foods provide another nutritious option for consumers.”

Prices and spending are in full focus

Across the country, many middle-income consumers are now reining in their spending on impulse purchases and looking for better value on products. Prices of pork and beef have fallen, which has ramped up the challenge for plant-based brands trying to sell to food service, which is a cost-sensitive approach. Many have lowered their product prices by 10-30% in the last year as a result.

Raw milk prices have dropped too, which means initiatives like Starbucks offering oat and almond milk at price parity are paramount. “Overall, consumers are more price-sensitive,” noted Blue Canopy Biotech’s Chenfeng Lu. “Despite this, the consumption of healthy foods is not strongly affected by the economic environment.”

Oat milk reigns supreme

Despite soy being the traditional milk alternative in China, oat milk has really risen up the ranks and now leads the way in terms of form and flavours, with the widest product range out of all plant-based milks. This is followed by soy, coconut, almond and a smattering of others.

Oat milk’s utility in coffee is a big reason for its dominance. Most barista milk products that highlight ‘frothability’ as a key feature are oat-based, and thanks to brands like Oatly and Luckin Coffee, tier 1 and 2 cities have seen oat (and coconut) become common latte choices – though the report highlights an expansion of B2B applications beyond coffee as a key challenge.

“The market is still in its early stage,” said Oatly China’s sustainability director, Chloe Lin. “It is crucial to educate and guide consumers, listen to local consumer needs, work closely with upstream and downstream value chain, and conduct in-depth research in raw material quality, processing technology, production equipment, product taste and nutrition.” (The company has had its share of struggles in China recently.)

Education and regulation remain major hurdles for fermentation

Both biomass and precision fermentation have attracted interest, but product application needs to be stepped up, and production needs scaling. Most companies are focused on a single type of fermentation tech, but firms like Changing Bio and Blue Canopy are among the few working with both precision and biomass fermentation.

Some startups do have a diversified portfolio, with products and applications in cosmetics, industrial and biomedical sectors too. The report calls for increased application for B2B consumers, including functional products and blended meat (like Mush Foods is doing).

Precision fermentation, in particular, needs increased consumer awareness and regulatory approval, especially when it comes to GMOs. In May 2022, China’s National Health Commission approved single-cell green alga Chlamydomonas reinhardtii as a new food raw material in May 2022 – a positive sign, albeit for a non-GMO ingredient.

Cultivated pork and traditional meats are high-priority

As the world’s largest pork producer, it’s hardly a surprise that pork is the most popular cultured meat being produced in China, followed by chicken, beef and seafood. Companies like CellX and Joes Future Food are making cell-cultured pork, while Jimi Biotech makes cultivated chicken.

Additionally, some producers are making high-priced animal parts used in traditional Chinese cuisine, such as deer antlers (Jimi Biotech) and fish maw (Avant Meats).

Cost and regulation are key barriers for cultured meat

As is the case globally, scaling up production and reducing costs are the main obstacles facing cultivated meat (alongside regulatory approval). CellX opened a 2,000-litre pilot facility in August, while Joes Future Food produced pork fat in a 500-litre bioreactor in September. Meanwhile, some are developing serum-free or non-animal culture media to reduce costs – Jimi Biotech’s serum-free medium is made from soybean and corn extracts.

Meanwhile, China doesn’t have a clear regulatory framework, something that’s still under review by the National Health Commission and China National Center for Food Safety Risk. This is why some companies are focusing on Singapore or the US – the only two countries that have approved the sale of cultivated meat.

Policy support for alt-protein in China has increased

Government support for alt-protein has become more prominent in the last two years in China, with measures being formed at local, provincial and regional levels. In February, for example, the annual Central No. 1 Document mentioned a diversified food system of animals, plants and microorganisms.

In May 2022, the country’s 14th five-year plan for bioeconomy development highlighted an advancement of synthetic biology, and exploration of man-made protein and novel foods – two months after President Xi Jinping called for a Grand Food Vision that included the plant-, microorganism- and animal-based protein sources. And in December 2021, the 14th five-year plan for agricultural and rural tech development called for research in cultivated meat, synthetic egg and dairy, and recombinant proteins.

“Government guidance and policy support is necessary – it would be best to have subsidies for start-ups and R&D institutions to raise the level of innovation,” said Lee from the China Plant Based Foods Association. “Investors should be more patient, avoid following trends blindly with unrealistic expectations of rapid returns. Companies should focus on the product based on consumer needs, step up R&D, improve product quality and differentiation.”

“In the post-pandemic slower growth environment, alternative protein players with products in the market need to provide tasty and high-value offerings, which fulfil specific consumer segments’ health and nutritional wants,” added Huiyi. “In the longer term, new technologies of fermentation and cell-based culture, and blended products hold interesting possibilities.”

The post China Alt-Protein: 10 Things to Know About Protein Diversification in China – New Report appeared first on Green Queen.

The Good Food Institute (GFI) APAC’s first State of the Industry report highlights the funding rollercoaster that is alt-protein, Singapore’s reputation as an innovation launchpad, barriers to the adoption of plant-based meat, and the receptiveness to blended meat products. Plus, a separate report by GFI showcases the potential of sidestream valorisation.

GFI APAC launched its first State of the Industry report last week, showcasing alt-protein’s tremendous potential and heightened challenges in Asia-Pacific. The think tank explores the investment gap in the sector, describes the importance of scaling up and presents a consumer survey showcasing interesting results and opportunities for alt-protein producers, including those working with blended meat.

Here are the key takeaways:

APAC private alt-protein investment reached a high, then fell off a cliff

2022 was a record year for alt-protein financing in the region. Public funding increased by 207% from 2021, from $31M to $94M. This sum was actually 37% higher than the all-time total up to 2021 ($68M). The current total ($162M) accounts for 16% of all alt-protein investments globally.

Similarly, at $551M, private financing was up by 45% year-on-year, surpassing $1B in all-time funding. But the sector was also affected by the global downturn in VC funding, which reached a 13-quarter low, with the first half of 2023 only witnessing $47M in investment.

After surpassing Australia/New Zealand in funding last year, Singapore has now given way to the Antipodean nations when it comes to investments in the first half of 2023. Australia and New Zealand garnered $20M in funding, followed by South Korea ($13M), mainland China ($8M) and then Singapore ($3M).

APAC’s business ecosystem is growing rapidly

There are now at least 206 startups working with alternative proteins in APAC, with 20 launching just last year. Interestingly, most of these new startups from 2022 are focused on B2B rather than B2C, which is an inversion from earlier years.

Of the 206, 130 companies belong to the plant-based pillar, 46 in the cultivated meat space, and 30 in fermentation. Australia (45%) leads the region in terms of precision fermentation startups – like Eden Brew, Cauldron and All G Foods – followed by Thailand (27%). Singapore, meanwhile, is home to the highest number of biomass fermentation (39%), cultivated (33%) and plant-based (21%) startups in APAC.

Singapore is a testbed for R&D exports

Despite the decline in private funding, Singapore remains a “global testbed” for the region, helping producers incubate, innovate, partner, and export their alt-protein offerings internationally. At least 25 non-local companies have a presence in the island state for R&D and business development, while it’s home to almost a quarter (24%) of all alt-protein startups in APAC.

Shared R&D facilities and progressive regulatory frameworks are enabling companies to scale up their products and conduct market tests. The country was the first in the world to approve the sale of cultivated meat, and these feats are why its trade minister Alvin Tan dubbed it “the best place in the world for food innovation”.

Alt-protein needs $10B of investment – per year

Despite the record public funding numbers, alt-protein’s share of funding is minuscule when looking at it more closely. GFI APAC cited data from the Climate Policy Initiative from 2022, which revealed that only about 3% of all climate finance goes to agrifood systems (that has minutely risen to 4.3% this year).

According to GFI APAC, alt-protein only represents 0.5% of that share (with APAC making up 0.1%), despite these foods significantly reducing the impact of food on the environment, which accounts for a third of all emissions. For example, a study earlier this year found that veganism can cut emissions, land use and water pollution by 75% compared to meat-rich diets.

The report estimates that if funding for alt-protein could capture just 8% of the global meat market by 2030, the reduction in GHG emissions would be equivalent to decarbonising 95% of the aviation sector, adding that “unlocking the full benefits” of alternative proteins will require about $10.1B in public funding annually.

Overcoming scale-up challenges is key

The report states that there’s an urgent need to address the alt-proteins scale-up barriers, which is key to achieving mass production and price parity with conventional proteins: “Building factories cheaply and proving demand in early markets will help to make scale-up more affordable, easier to finance, and lower risk.”

Co-manufacturing organisations can further support efficient scaling-up, and Singapore has established the platform for derisking early scale-ups, with companies like Esco Aster and SGProtein leading the way. And while first-movers are exploring the scaling advantages of other APAC countries for later-stage co-manufacturing, there are significant gaps in the region’s scaling capacity. The report says that considerably more alt-protein tech facilities are needed across scales, especially demonstration, first-of-a-kind, and commercially proven plants.

Consumers want to try more plant-based meat, but barriers keep them at bay

The report also published results of a six-country, 5,971-person survey about plant-based meat, dividing participants into sceptics, rejectors, novices, curious, expanders and enthusiasts based on their responses. Thailand seems to be the most receptive to plant-based meat, while Singapore surprisingly has the highest number of sceptics (unlikely to try) and rejectors (who want to lower their alt-meat intake).

Like the US and Europe, health is the biggest driver of plant-based meat intake for Asian consumers too, followed by taste and affordability. But when it comes to barriers of consumption, this is flipped, as price takes top priority, followed by nutrition and flavour.

If they were more affordable, nutritious and better-tasting, it would increase the number of APAC consumers who eat meat alternatives from 5% to 63%. And 15% of these respondents say they would fully replace conventional meat with plant-based if their concerns are alleviated – highlighting a massive growth opportunity for brands in this space.

Flexitarians are also key for these companies. Plant-based sceptics and novices are also the groups that consume meat the lowest, while meat intake is trending up for enthusiasts, who are the current buyers and represent higher-income consumers. This means that the people who eat the most plant-based meat also consume conventional meat more often than the rest.

Blended meat is of high interest – especially to vegan sceptics

Blended meat products – which combine plant-based ingredients and proteins with animal-derived meat – are on the up right now. A majority of consumers (93%) showed at least some interest in these foods, with over half saying they’re very interested.

Notably, almost two-thirds of sceptics and rejectors showed some interest in blended meat, with nearly a fifth of the latter very interested. Enthusiasts were the most interested, reflecting their wishes for diverse protein options.

When presented with an option to choose from tofu/tempeh, beans/legumes, plant-based meat and blended meat, the groups that eat vegan meat alternatives the least – sceptics, rejectors and novices – placed blended meat on top, while the former two put plant-based at the bottom. For the rest, plant-based meat leads the way, but blended meat comes second.

This reflects the potential of blended meat to flip the perception of consumers apprehensive of plant-based meat, and help them move towards lower meat consumption.

Sidestream valorisation could advance alt-protein

In a separate report by GFI’s US division, the think tank analysed eight high-volume crop sidestreams in the US, Canada and Mexico to determine which has the highest potential for plant-based, fermented and cultivated protein ingredients.

Soy meal (commonly used as animal feed), tomato pomace and canola meal were ranked as the crops most ideal for sidestream valorisation to make protein concentrates for plant-based products. Soy meal also ranked as the top crop to upcycle for protein hydrolysates for fermentation and cultured meat media – developing this sidestream could help tackle the cost and scale-up challenges mentioned above.

For fermentation-based proteins – specifically lignocellulosic-derived sugars – corn stover was earmarked as the most useful sidestream, followed by soy straw, rice hulls and sugarcane trash. All these crops were measured against criteria like production volume and cost, environmental credentials, and functional attributes.

“We currently produce significant amounts of waste due to low-value utilisation and disposal of things like agricultural residues, processing side chains and food losses generated throughout the supply chain,” said Lucas Eastham, a senior fermentation scientist at GFI. “The valorisation or the upcycling of agricultural and processing side streams presents an opportunity for us to shape the circular bioeconomy, and this will help us reduce waste and increase food production.”

TLDR: to reach its full potential in APAC, alt-protein needs significantly higher public and private investment, better taste, nutrition and prices, more facilities to derisk scaling up, and higher sidestream valorisation.

Read the full GFI APAC State of the Industry 2023 report here.

The post ‘The Centre of Challenges & Solutions’: 7 Alt-Protein Takeaways from GFI APAC’s State of the Industry Report 2023 appeared first on Green Queen.

Matthew Kenney, the vegan author and celebrity chef behind Plant Food + Wine, is expanding his empire to China with food halls inspired by his Plant City F&B concept, with the help of global scale-up firm The Wellness Agency.

The man behind Double Zero, Plant Food + Wine, Besina, New Burger, Make Out and Plant City – whose business spans five continents and 22 major cities – is now embarking on one of his largest projects yet. Teaming up with The Wellness Agency, a firm that helps wellness brands to scale globally, vegan celebrity chef Matthew Kenney is bringing his empire to China.

Kenney is working on five food halls with a similar concept to his Providence, Rhode Island-based Plant City – touted to be the world’s largest vegan food hall, co-founded with entrepreneur Kim Anderson) – in five markets: Guangzhou, Shanghai, Chengdu, Shenzhen and Macau. Each of the food courts will have 12 to 14 plant-based restaurants, with some individual concepts including VEG’D (vegan fast food), Double Zero (wood-fired pizza) and Ayre (Ayurvedic cuisine).

In addition to the restaurants, there will be food and lifestyle retail experiences, as well as experiential concepts. “As the public perception of plant-based eating continues to evolve and gain popularity around the world, I look forward to expanding Plant City across China,” said Kenney. “Our goal is to provide a one-stop destination for plant-based eating that will be appreciated by vegans, omnivores and carnivores alike.”

Celebrating local chefs and flavours

“With talented chefs like Matthew Kenney leading the charge, millions of people around the world are adopting plant-based diets for ethical, environmental, and health reasons,” added The Wellness Agency founder and CEO Jay Faires. “The Chinese market, in particular, is seeing massive growth… We’re excited to expand Matthew Kenney’s Plant City across China, offering an array of new healthful, innovative, and delicious plant-based culinary options to the country’s denizens.”

Faires said that Kenney will be significantly involved, “if not in operations, then in the partnership”, adding that the chef will be “a big part” of the creative process of the food halls (alongside Anderson), which “will likely integrate some local plant-based chefs”. And there will be a big focus on Asian cuisines through their interpretation. The food courts are set to begin opening by 2025.

In terms of funding, investors are yet to be determined and may be involved on a project-by-project basis. “We met with several large real estate and retail developers while we were there, specifically in Hong Kong, Shenzhen and Chengdu,” said Faires, adding that the project will potentially be open to collaborations with local food brands, chefs and food personalities.

Matthew Kenney’s celebrity status

Kenney rose to fame in the 90s with his namesake restaurant Matthew’s, a year after whose opening he was named Food & Wine magazine’s Best New Chef in 1994. He opened further restaurants Mezze, Monzu Canteen, Commune and Commissary, which closed down due to the post-9/11 economic crisis.

A pioneer of the raw food movement, he was a founding partner of Pure Food and Wine, the raw vegan eatery that attracted controversy in the 2010s for failing to pay its staff (Kenney left the restaurant in 2005). Since then, he has established his culinary academies and lifestyle brand Matthew Kenney Cuisine. Most recently, Kenney – who has authored 14 books – partnered with entrepreneur Max Koenig to launch Earth Company, a whole-food plant-based ready meal brand.

In 2016, Kenney told Green Queen about his ‘Crafting the Future of Food’ mantra. “The work we’re doing is part of something larger… a mission to change the way the world thinks about its food choices,” he explained. “We are educating ourselves and our students to make sound ingredient choices, to support more sustainable processes and to promote a plant-based lifestyle that’s delicious, healthful, innovative and accessible. This is the future of food.”

Kenney’s Plant Food + Wine at the Four Seasons in Los Angeles is frequented by famous personalities like Taylor Swift, Oprah Winfrey and James Cameron, while his Double Zero pizzeria counts the likes of Jay-Z and Chris Martin as regulars. Could the China expansion see a touch of celebrity too?

Faires met with Margaret Zhang, editor-in-chief of Vogue China, who approached Matthew to head up the culinary side of some major events that would involve over 100 celebrities and influencers. Vogue has a new spot in the Forbidden City palace complex in Beijing, where a tentpole event on November 24 is set to be attended by Vogue editor-in-chief Anna Wintour. Kenney has cooked for her events going back to the mid-90s in New York City, said Faires.

Might there be a rekindling?

The China plant-based opportunity

Recent reporting by China Dialogue, a non-profit “dedicated to promoting a common understanding of China’s environmental challenges”, suggests that Chinese consumers are increasingly interested in “safer and more sustainable foods”. A 2022 survey of 579 Chinese consumers in four major cities showed that 85% of respondents had tried plant-based meat alternatives and “were willing to pay more for these products”.

According to analysis published by Singapore-based social enterprise Asia Research and Engagement, “to align with a climate-safe scenario, by 2060 China would rely on alternative protein sources for 50% of its protein consumption”, which it breaks down as follows: plant-based proteins (24%), fermentation-derived protein (16%), and cultivated meat/seafood (10%).

Previous data from Euromonitor projected the vegan and vegetarian food sector would be worth $12 billion this year (2023) and a 2020 Dupont study predicted a 200% increase in demand for meat alternatives within five years. These early estimates have not quite materialised and China’s plant-based meat market remains small, with only a handful of plant-based meat alternative brands on shelves.

However, data about other types of plant-based products is encouraging. In a 2022 report by Asymmetrics Research about China’s Alternative Protein Landscape, the authors identified plant-based milk and RTD beverages, plant-based yoghurts, plant-based ready meals, plant-based functional foods and plant-based “meat” snacks” as the most promising product categories for brands looking to target an urban Chinese consumer demographic that was willing to spend on healthy and safe food products.

In the same report, Green Monday and OmniFoods co-founder and CEO David Yeung said that Chinese customers love to explore new food products to buy and are looking for new and trustworthy brands, while Haofood CEO Astrid Prajogo said that while consumer awareness about plant-based meat was improving, taste and price remained the major purchasing drivers. Xiaomin Zhang, cofounder and CE) at MetaMeat said that “the combination of plant-based meat products and prepared dishes is an important direction for the B2C market.” This bodes well for Kenney and Co.

With additional China reporting and research by Sonalie Figueiras.

The post Exclusive: Vegan Celebrity Chef Matthew Kenney Expands His Plant City Empire to China appeared first on Green Queen.

Launching this week, a new platform of industry stakeholders across nine Asia-Pacific countries is looking to facilitate collaboration to advance the regulatory approval of cultivated meat in the region.

Established by the APAC Society for Cellular Agriculture and the Good Food Institute APAC, the APAC Regulatory Coordination Forum is described as a platform for cross-border dialogue between cell-cultured food producers, industry associations and think tanks, and government agencies and regulators in multiple jurisdictions.

Launching at Singapore International Agri-Food Week (October 31 to November 2), the forum aims to help develop nations’ regulatory frameworks via increased data and knowledge sharing between countries, streamlined review processes for companies hoping to enter multiple markets at once, and reduced trade barriers.

A group of 11 stakeholders from nine countries – including APAC-SCA and GFI APAC – have signed a memorandum of understanding to mark the platform’s formation. These include GFI’s India and Israel chapters, Cellular Agriculture Australia, Japan Association for Cellular Agriculture, Cell AgriTech (Malaysia), University of Brawijaya (Indonesia), Future Ready Food Safety Hub (Singapore), Society for Food Sustainatech (South Korea), and law firm Dentons’ China branch.

More companies and organisations may be added as signatories in the future (on an invitation-only basis), pending approval from GFI APAC and APAC-SCA. At least 37 companies are known to be working with cultivated meat and seafood in Asia, according to GFI. Mirte Gosker, managing director at GFI APAC, says global distribution must expand beyond early adopters for cultured meat to reach its full potential. Currently, only two countries allow the sale of cultivated meat in the world. Singapore was the first to do so in 2020, followed by the US earlier this year.

“By bringing together industry leaders and regulatory officials from countries across Asia Pacific, we are working to reduce duplication of efforts, streamline international approval processes for novel food producers, and create a clear pathway to market for innovative new products,” said Gosker.

Collaboration on regulatory criteria and ‘fast lanes’

“Member entities will be invited to participate in regularly scheduled discussion sessions about the latest developments in regulatory processes, as well as unresolved questions in need of further consideration. They will also have access to private discussion platforms where best practices, advice, and confidential insights can be shared among regional stakeholders,” Gosker adds.

“Through this increased knowledge-sharing and cross-border coordination, we aim to develop clear and effective pathways to commercialisation of cultivated foods, reduce time to market for producers, and create a level playing field when it comes to imports and exports.”

APAC Regulatory Coordination Forum lays out six key goals in its MoU. The first involves facilitating the coordination of regulatory efforts across APAC to build an effective regulatory environment for cultivated proteins, as well as minimise hurdles and bottlenecks.

The platform is also seeking to set up a mechanism for continuous, systematic cross-country dialogue between stakeholders. “Our aim is to transparently share information, collaborate on inputs such as data or safety assessments, and provide open discussions and viewpoints between partners across the region,” the MoU states.

Another goal is mutual recognition of coordinated regulatory frameworks in the region, such as aligning on criteria for safety testing, labelling and inspections. This would help reduce the time and resources needed for approval, and minimise trade barriers and costs for consumers. “These efforts could potentially culminate in the development of trust between authorities to create ‘fast lanes’ for approval of companies already authorised for sale in another regional country.”

Ensuring religious standards and defining novel approaches

The APAC Regulatory Coordination Forum wants to ensure cultured meat and seafood adhere to religious rulings and standards (like halal and kosher), where it noted that coordinated efforts are required to build consensus around the topic. Last month, three Shariah scholars told alt-protein leader Eat Just – the parent company of GOOD Meat, the producer that earned regulatory approval in Singapore – that cultured meat can be considered halal if it meets certain criteria.

The group also aims to standardise regulatory approaches on new approaches yet to be looked into, such as novel cell cultivation technologies and the definition of hybrid and blended meat. Finally, it plans to coordinate information to all participants transparently, bringing each member up to date with current developments and trends in the sector.

“The regulatory forum is established to bring forth a platform to facilitate open and transparent discussions regarding regulatory matters in cellular agriculture,” said Peter Yu, programme director at APAC-SCA. “We hope to build a repository of information that can aid in regulatory coordination across the APAC region while providing a pathway for new jurisdictions to quickly get up to speed.”

In addition to GOOD Meat, Australia’s Vow Food is another cultivated meat company that has filed for regulatory approval in APAC, applying to the bilateral Food Standards Australia New Zealand for its cell-cultured quail. But it’s unknown if other companies have filed for approval anywhere, as Gosker explains: “Several companies have publicly discussed their submissions for regulatory approval in Singapore (for example, Meatable), but unlike in Australia/New Zealand, this information is not required to be publicly disclosed by the government.”

She adds: “Japan and South Korea will likely be next in line among APAC countries to develop such frameworks, as both nations are proactively seeking input from industry groups to craft clear and efficient safety review processes. No timeline has been set for when this work will be completed.” Meanwhile, Israel’s Aleph Farms is waiting to hear back from regulators in Switzerland and the UK for its application.

“The biggest barrier to cultivated meat approvals in emerging markets is the need for regulators to adapt existing regulatory frameworks or develop new standards,” Gosker says. “This will vary country-by-country, based on their existing regulatory regimes, but by sharing best practices and proactively facilitating conversations between industry leaders and regulators, the APAC Regulatory Coordination Forum aims to streamline and accelerate this process in a way that is beneficial for governments and innovators alike.”

“Ultimately, we envision a clear and effective contingency for the industry as a whole towards commercialisation of cultivated food products across the region,” said Yu. “We encourage the participation of any potential new members vested in these matters, located among any of our APAC member countries.”

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Agrifood tech startups in Asia-Pacific saw an investment of $6.5B in 2022, a 58% fall from the year before – but agtech funding for farmers and primary novel food production increased by 24% year-on-year, according to a new report by AgFunder.

A new report by AgFunder – in collaboration with the Bill & Melinda Gates Foundation, venture capital fund Omnivore, and AgriFutures Australia – has revealed that downstream food tech funding in APAC has been hit by the global VC fallout from 2022. However, the financing of startups supporting farmers and primary production (upstream) has increased.

‘Upstream’ generally refers to agricultural biotech, farm management and robotics systems, as well as novel farming tech, while ‘downstream’ covers technologies removed from farms and primary production – i.e., food delivery, restaurant, meal kit startups, etc. The latter usually attracts much higher amounts of cash injections in the region, though that is no longer the case.

Meanwhile, companies working with midstream technologies – which connect farmers and food producers to retailers, agro-processors and other clients – raised $620M million in 2022, with India’s Waycool and China’s Mojia Biotech receiving big checks.

As for this year’s trends, the report found that total agrifood tech financing in the first half of 2023 ($2.6B) was down by nearly 50% from the same period last year, but the number of deals remains similar.

Overall funding decline

AgFunder’s analysis showed that agrifood tech startups received $6.5B in funding in 2022 – a 58% decline from the $15.2B they raised in 2021, which was a record-breaking year. A report published by AgFunder and Temasek earlier this year highlighted that the global agrifood tech sector saw record-breaking raises of $51.7B that year thanks to “cheap money” and “increasingly outlandish tech valuations”.

In terms of upstream startups, year-on-year funding grew by 24% from 2021-22, marking the first time in years that upstream funding ($3.2B) overtook downstream investment ($2.7B). This is a win for the over 450 million smallholder farmers who are responsible for 80% of APAC’s food production.

Within the downstream sector, e-groceries continue to be the largest category, attracting $1.6B in funding. Indian startup Blinkit – an app-based instant grocery delivery service – received an injection of $150M, before being acquired by restaurant aggregator and food delivery giant Zomato.

The decline in downstream deals mirrors global trends analysis by Pitchbook last month, which found that in Q2 this year, food tech VC funding dropped by 75.1% year-on-year, while the number of deals (1,207) was down by 39.3% annually. But while quarterly funding also dropped by 13.9%, the deal count grew to 268 in Q2.

Pitchbook suggested that this could indicate a “return of investment activity after a pause due to caution surrounding the closure of Silicon Valley Bank at the end of Q1”. However, the declining deal sizes “may reflect a new, more careful paradigm”.

According to the AgFunder-Temasek report, the global decline between 2021 and 2022 could be short-lived as many of the world’s macro challenges – including inflation, food insecurity and labour shortages – are driving interest in agri-food tech investments. “With more discipline from founders (and investors too!), the industry can capitalise on the growing interest in using technology to transform our food and agriculture system to be better for people and our planet,” read the report. “[2023] could be a vintage year to invest in agrifoodtech.”

Upstream on the up

Within APAC, upstream agtech companies attracted 1.6% more investment in the first half of 2023 compared to the same period the year before as well, reaching $1.7B.

In 2022, agricultural biotech startups received the largest share of upstream financing, commanding $813M of the total – that’s nearly half of the overall investment in this category globally. “While a couple of very large deals contributed to these totals, there was also greater deal activity in this segment, which includes on-farm inputs for crop and animal agriculture, confirming investors’ growing interest in this space,” AgFunder says. China’s Zhongxin Breeding – which provides breeding services for pigs – secured the year’s largest deal with its $327M seed round.

Meanwhile, Innovative Food – the segment that includes alternative protein – “bucked the global decline in funding to the segment”, with year-on-year investment increasing to $527M, albeit with a smaller deal count. This aligns with industry think tank the Good Food Institute APAC’s recent report that revealed that sector funding in the region grew by 43% from $293M to $562M – though the two largest funding rounds took place in Q1 2021.

Startups working with farm management software, sensing and IoT ($334m), farm robotics ($252m) and novel farming systems ($254m) – which include indoor farming, aquaculture and insect farming – brought in more investment across fewer deals as well.

Country-wide figures

Across APAC, India ($2.3B) surpassed China ($1.3B) as the country with the highest cash injection in this sector last year, largely due to the loss of downstream mega-deals that propelled China’s agrifood tech industry in 2021. These nations were followed by Indonesia ($716M) and South Korea ($461M).

But this looks to be short-lived, with China overtaking India to grab the top spot with $861M in investment in the first half of 2023. Indian startups have received $712M, followed by Hong Kong ($400M) and Australia ($146M).

Overall, Southeast Asian startups commanded $1.7B in funding in 2022, while Australian companies saw total investment reach $316M – a rate that was maintained in the first half of 2023 with $146M in financing. Meanwhile, agrifood tech startups in Japan brought in $212M in 2022.

Finally, while debt, early and growth-stage deals numbers have increased steadily since 2018, late-stage funding declined from 2021.

“Few readers will be surprised that funding for Asia-Pacific’s food and agriculture startups has fallen significantly over the past year and a half, much like the rest of the world,” said AgFunder Managing Editor & Head of Media & Research Louisa Burwood-Taylor. But she added: “Seeing the rise of categories like Ag Biotech, which haven’t typically been a strength across the region, as well as growing early-stage deal activity, is promising.”

Read AgTech’s full Asia-Pacific AgriFoodTech Investment Report 2023 here.

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