China’s appetite for protein developed through fermentation grows, amid drive to boost demand for meat alternatives, net-zero goal
- Investors’ interest in alternative protein has extended to fermentation and cell-based protein technologies, which are more suitable for long-term deployment, think tank says
- At a meeting in March, Chinese President Xi Jinping said that it was necessary for China to develop proteins from plants and microorganisms or fermentation
Chinese investors and policymakers are showing a growing interest in fermentation and cell-based protein technologies, with the expectation that they can diversify China’s protein supply, reduce food-related carbon emissions and overcome the challenges of current plant-based meat products.
The country’s fermentation alternative proteins sector has recorded eight investment deals since 2020, with total financing of more than 80 million yuan (US$11.9 million), according to GFI Consultancy, the Shanghai-based strategic partner of Good Food Institute Asia-Pacific (GFI APAC), Asia’s leading alternative protein think tank.
Fermentation-enabled and cell-based proteins are expected to play an integral role in a more self-sufficient food system in China. The country’s “alternative protein industry has ushered in a critical transition period, from rapid expansion to quality development”, the consultancy said in a report published on Wednesday.
“Investors’ interest in alternative protein has extended to fermentation and cell-based protein technologies, which are more suitable for long-term deployment,” it added.
Industry studies show that interest in plant-based meat and other alternative proteins is on the rise. China’s plant-based meat market has been continuously growing in the past few years, reaching 748 million yuan in market size in 2020, up 10.6 per cent from 2019, according to the latest research released by market research firm Euromonitor International last year.
The plant-based meat sector, however, faces several key hurdles in the Asia-Pacific region. According to a consumer survey conducted by leading global food company Kerry Group last year, consumers in the region believe current plant-based meat products still have much room to improve, especially in terms of taste, texture and nutrition.