CHINESE PLANT-BASED MEAT MARKET

The ascent of plant-based meat alternatives has reshaped menus in restaurants and fast-food chains across the US, led by a parade of high-tech burgers, nuggets, and sausages that look (and sometimes taste) like the real thing. That’s all fine and good for American consumers who gravitate toward fried foods and processed meats. But what about the 1.3 billion people living in the world’s second-biggest economy?

Starbucks and KFC are testing China’s market preference for plant-based meat alternatives with new menu offerings.

Starbucks is partnering with the plant-based meat companies Beyond Meat and Omnipork to offer more vegetarian-friendly food options, such as lasagne imitating the taste and texture of beef. KFC, meanwhile, is also collaborating with the US agribusiness company Cargill to introduce a limited run of plant-based fried chicken in select locations in China.

The new products on offer by Starbucks and KFC represent the latest effort by both food and beverage companies and plant-based meat producers to test the Chinese market’s interest in new types of meat substitutes. The industry is still relatively young worldwide, and especially so in China.

UNDERSTANDING THE CHINESE PLANT-BASED MEAT MARKET CONSUMERS

• MAIN BRANDS STRATEGIES TO SELL PLANT-BASED MEAT IN CHINA

The concept of artificial meat is not new, especially in China. In China, imitations of meat products have existed since the 6th century, when Chinese Buddhists created vegetarian versions of traditional dishes.

What makes the new generation of plant-based meat different from previous iterations is the use of technology to design flavors and textures that look so much like meat that it can be difficult to distinguish. Beyond Meat, one of the industry’s leading companies, uses pea protein as an engineering base, while Impossible Foods – another industry leader – uses a soybean base.

Some companies, such as JUST Meat, develop meat in animal cell cultures, although these are not the same as meat of plant origin and have not yet been released for mass consumption.

Since meat of vegetable origin so closely resembles real meat, producers hope not only to reach vegetarian and vegan consumers, but also meat-eaters. To do this, producers use ethical arguments that plant-based meat is healthier and better for the environment than real meat.

• THE INCREASE OF PLANT-BASED MEAT CHINESE CONSUMERS

Chinese consumers are now more open to the idea of plant-based meat products, contributing to a healthy lifestyle.

Many Chinese consumers are actively seeking to reduce meat consumption. Chinese consumers are cutting back on meat consumption, opting instead for more vegetables, tofu, and vegan meat substitutes. China already has over 50 million vegetarians, who offer an immediate consumer base that doesn’t need to be convinced to experiment with meat alternatives.

According to research conducted in 2019, over 80 percent of consumers who had eaten plant-based meat within a six-month span were born after 1990.

The COVID-19 coronavirus epidemic has also highlighted some of the potential safety benefits of a pivot towards plant-based meat in China. Over 90 percent of the world’s meat comes from industrial farms, where animals are kept close to each other in potentially unsanitary conditions, which could favor epidemics.

While Chinese consumers have had little exposure to new plant-based meat products, there are signs that the market may be receptive.

US BRANDS VS CHINESE BRANDS – PLANT-BASED MEAT MARKET

China already accounts for 53 percent of the world meat substitute industry, compared to only 5.5 percent in the United States, although this segment is dominated by traditional meat substitutes.

Compared to North America, where companies like Beyond Meat and Impossible Foods have become market leaders, the Chinese market is more fractured. For example, Beyond Meat’s partnership with Starbucks is the company’s first foray into mainland China.

Domestic Chinese startups such as Zhenmeat and Starfield have emerged in recent years, offering similar plant-based meat substitute products, with the first products based on green beans and pea protein and the second based on bean protein. However, their food technology is still considered less advanced than their US competitors.

One area where local businesses can have an advantage, however, is to offer alternative meat products suitable for Chinese dishes and satisfy the local palate.

In addition to offering products such as hamburger patties and hot dogs, Chinese companies are developing plant-based alternatives for popular Chinese dishes, such as meatballs used in hotpots. Zhenmeat is also experimenting with 3D printed bones to mimic the experience of eating meat off the bone.