Industry Analysis of Lab Grown Meat

Brief Overview of the Lab Grown or Cultured meat Meat Industry

Different names given by the different companies which are given below:-

- Healthy Meat
- Slaughter-Free Meat
- In Vitro Meat
- Vat-Grown
- Lab-Grown meat
- Cell-based meat
- Clean Meat
- Cultivated Meat
- Systhetic Meat
Why the need of Lab grown meat?

 Widespread fears about zoonotic diseases, especially African swine fever and
highly pathogenic avian influenza.
 Contamination risk by salmonella and E Coli, which may be present in traditional
slaughterhouses and meat-packing factories
 It does not require antibiotics either, unlike animals raised of meat, thereby
reducing the threat posed to public health by growing antibiotic resistance.
 To Offer alternative to traditional meat products that could feed a lot more
people.
 Mitigate the environmental impact of meat consumption.
 Reduce the amount of water usage, as the standard production of just half a kilo
of meat requires around 9000 litres of water, as compare to 94 litres required for
cultured meat.
 According to the Good Food Institure(GFI)’s 2019 State of the industry Report on
cultivated meats, compared to conventional meat, cultivated meat could reduce
a. Land use by more than 95%
b. Climate change emissions by 74-87%
c. Nutrient pollution by 94%.
 According to some estimation the Green House Gas emissions due to animal
agriculture is more than the GHG emissions of all cars, trucks, trains, planes etc
combined
 Misuse of natural resources the animals Grown in factories required space to stay
and also grow their food which uses 20% of global fresh water and 77% of global
agricultural land.
 Animal ethics, every year about 9000 crore land animals are slaughtered so that
they could be served to us as food.

What is Lab Grown Meat or Cultured Meat? And the process of generation of it?

- Cultured meat is meat produced by in vitro cell culture of animal cells instead of
from slaughtered animals.
- Cultured meat is produced using many of the same tissue engineering techniques
traditionally used in regenerative medicine.
- The concept of cultured meat was popularized by Jason Matheny in the early
2000s.
- The theoretical possibility of growing meat in an industrial setting has long been
of interest. In a 1931 essay published by various periodicals and later included in
his work Thoughts and Adventures, British statesman Winston Churchill wrote:
"We shall escape the absurdity of growing a whole chicken to eat the breast or
wing, by growing these parts separately under a suitable medium."

A Schematic of the Process for Lab Grown Meat-

Step -1. Tissue taken from the Animal

Step -2. Stem Cells Extracted from the tissue.

Step -3. Stem cells grown into muscle fibers in a bioreactor

Step 4. Muscle Fibers are the processed into food products such a burger patties.
According to the GFI report, of 2023, 159 companies were focused on cultivated meat
products, including

 Future meat technologies (Chicken, Lamb, beef) in Israel.

 Biftek (Beef) in Turkey
 Cubiq foods (Chicken Fat) in Spain
 Neitherlands-Bases Meatable (Pork,beef)
 French Company Gourmet (Foie gras)
 US-Bases Memphis Meats (Beef, chicken, duch)
 Delhi-Based Clear Meat, which is developing cultured chicken
Five porter model framework for the Lab Grown Meat industry-

1. Threat of New Entrants:

- Entry into this industry would require heavy investment like Capital investment,
research and development.
- Regulatory approvals and access to biotechnological.
- Risk of entry by potential competitors is more concern at the product level.
- Very limited approval received as on date from the government as of now only
Two California-based companies, Good Meat, and Upside Foods received U.S.
government approval to produce and sell the ‘cell-cultivated chicken’. And
the first country to approve the sale of alternative meat was Singapore in 2020.
- Their biggest entry threat may come from a substitute product, which is a
product that is from outside the industry rather than one from a new competitor
or an existing smaller competitor.

2. Bargaining Power of the supplier:-

- Raw material supply is limited

- Existing supply is inconsistent quality
- As the industry grows, suppliers may have to adjust meet increasing demand.
- The areas where the buyer has power over the company of Beyond Meat, involves
the price point at which the food is sold.
- It has a no switching cost and the access to different variations of vegetarian/
vegan food is growing the buyer has more choices.

3. Bargaining Power of Buyers:-

- Demand is increasing of chicken meat.

- Buyers base their decision mainly on price.
- It can be purchased from the other suppliers as well
- These companies need to compete on price, quality and comparison with the
taste to original meat.

4. Threat of Substitutes:-

- Alternative products are easily available in the market that is traditional chicken,
beef etc.
- Lab grown meat has lower cycle of production and higher price.
- The switching cost between food items is rather low, and consumers do not have
the same type of brand loyalty with smaller priced options such as food as they
would with a more expensive item such as a car.
- Where cultured meat foods has captured Burger King in the fast food sector, it let
McDonalds slip away as they are unable to keep up with production. This makes it
so that Beyond Meat will be able to roll out into McDonalds soon.
 5. Competitive Rivalry:-

- Lab Grown meat industry is not very competitive.

- It view international competitions in national market as a threat to demand.
- Although there are not many firms that can rival the size and scale of Beyond
Meat, the company’s biggest competition is cultured meat, with many companies
trying to emerge into the market of plant-based meat substitutes.
- The two biggest firms cultured meat foods and Beyond Meat, is that they are
quite similar in origin, culture and even mission statement. Both want to help the
planet and revolutionize the meat industry.

Conclusion:-

There are still significant hurdles to be overcome before cultured meat is widely
available.

Apart from ensuring that the products are affordable- currently still a challenge- and
dealing with consumer mistrust, producers of alternative meats will face resistance from
traditional meat producers.

However this industry has promising growth potential due to its sustainability but is also
faces challenges related scaling up production and consumer acceptance from the
traditional meat producers.

SWOT ANALYSIS OF Lab Grown MEAT:-

1. STRENGTH

- Highly skilled ambitious professions eager to develop the technology.

- Interest from some investors
- Existing patents skills and information for stem cell culture grow
- Competitive, new, innovative technology.

2. WEAKNESS

- Lack of funding and investments for further research.

- Limited existing knowledge both from researchers and potential funders.
- Still small scale and very expensive to produce.
- Technology is not yet marketable.

3. OPPORTUNITY:-
- High demand for meat products, growing middle class and population growth
- Potential to become affordably priced
- Higher levels of food safety, traceability and transparency for the consumer
- Many technologies can eventually been accepted by society if there is a perceived
benefit to the customer.
 4. CHALLENGES:-
- Technology ownership may breed oligopolies
- Not accepted by the novel food legislative actions or other political decisions
- Lack of societal acceptance; food is not technology therefore challenging to gain
acceptance
- Trend to move toward more plant based diets, based on political push and
communication (health and/or environmental arguments).

CURRENT TRENDS ON CULTURED MEAT:

- The Singaporean government has a “30 by 30” goal which is an effort to meet 30
per cent of the city state’s nutritional needs locally by 2030.
- In Israel, Prime Minister Benjamin Netanyahu tasted cultivated meat and went on
to provide government support to the alternative protein sector.
- Educational institutes in the Netherlands and the United States have developed
university courses in this sector.
- The alternative protein sector holds great promise for the world. According to
management consultants A T Kearney, the plant-based meat sector is expected
to be $370 billion by 2030.
- In February 2019 the Maharashtra state government signed a MOU with Good
Food Institute (of USA) for cell-based research and production of meat.
- Animal welfare organization Humane Society International (HSI) India and the
Centre for Cellular and Molecular Biology (CCMB) in Hyderabad have joined hands
to develop lab-grown meat in India. The partnership looks to promote the
technology to develop clean meat while bringing start-ups and regulators
together under the same roof.
- Internationally, clean meat is available in some countries, but in India, we expect
it to be available by 2025.

Current Market share of the Lab Grown Meat:-

- The cultured meat market size was valued at $1.64 million in 2021, and is
estimated to reach $2788.1 million by 2030, registering a CAGR of 95.8% from
2022 to 2030.
- Cultured meat, also known as in vitro meat, is a subtype of artificial meat and is
produced by tissue engineering technology and cellular agriculture. Humans have
been dependent on meat to meet their nutritional requirements, as meat serves
as an ideal source of omega-3 fatty acids, vitamin B12, protein, and iron. The in
vitro meat is grown in the laboratory by harvesting muscle cells from animal in
the culture media for growth and proliferation.
- On the contrary, scientists are actively working to reduce the cost of production.
Future Meat Technology, a lab-grown meat start-up, is trying to get the price
down to a commercial level, its timeline to meet this goal has changed from 2020
to more recently aiming for 2022. In 2013, the first cell-based burger was
unveiled by Mosa Meat that costs almost around $400,000. It shows that the cost
for production is high currently, but it may be lowered in future can this challenge
can be solved by innovating cost reducing processes
- It was tested first time in 2013 in TV press conference it was produced by Dr.
Mark Post in Maastricht University, Netherlands. Lab meat burger was costed
around USD. 250,000 in 2013 in 2019 similar kind of lab meat burger was around
USD. 9. So the cost reduced by 20,000 times within 6 years.
- The players operating in the global cultured meat market have adopted various
developmental strategies to expand their market share, increase profitability, and
remain competitive in the market. The key players profiled in this report include
Aleph Farms Ltd., Cubiq Foods S.L., Future Meat Technologies, Meatable B.V.,
Memphis Meats , Mission Barns, Mosa Meat BV, Redefine Meat, and Vow Group
Pty Ltd.
Investments received and future of in Lab Grown Meat:-

- Investments in plant-based meats have cooled off in the last year with many
venture capitalists turning their attention to lab-grown meat.
- Venture capitalists invested $2 billion in cultivated protein/meat last year.
- Investment made by Mr. Bills Gates in Lab Grown meat
 Profitability of lab grown Meat

- Prices are high but not high enough to turn a profit.

- Technical challenges and unit economics are still huge challenges for the sector.
- Another report, also published in March by Boston Consulting Group and Blue
Horizon — a Swiss-based VC firm that invests mostly in alternative protein start-
ups — reached a similar conclusion: by 2030, cultivated meat will reach parity of
price, taste and texture with meat from farmed animals. These projections are
consistent with how rapidly the cost of cultivated meat has decreased so far. The
first lab-made patty introduced to the public in 2013 cost €250,000. From there,
prices went down at a break-neck pace. Now in 2023 the lab-made patty was
amount to €9. There is significant reduction of price so in our view this business
will be profitable in the future and will depends on the market demand,
investment received and taste developed.