“Inside were four quarter-pound brown patties. I tossed one on the grill. It hit with a satisfying sizzle. Gobbets of lovely fat began to bubble out. A beefy smell filled the air. I browned a bun. Popped a pilsner. Mustard, ketchup, pickle, onions. I threw it all together with some chips on the side and took a bite. I chewed. I thought. I chewed some more. And then I began to get excited about the future.” [1]
This yummy description of a burger aficionado is in fact a review of Beyond Meat, a California-based company, which creates food products that replace animal protein with plant-based protein. The company has set itself the aspirational mission of “improving human health, positively impacting climate change, conserving natural resources and respecting animal welfare.”
It is no secret that livestock, the source of our meat, are big emitters of greenhouse gas (GHG). Yet the figures may nonetheless surprise: Livestock account for 14-18% [2] of human-induced GHG emissions—about as much as the world’s entire car fleet [3]. The reason is that animals belch and fart formidable amounts of methane, a GHG 25 times more powerful than carbon dioxide [4]. Indeed, methane emitted from livestock could be responsible for about 14% of global warming since the Industrial Revolution [5].
The ambitious emission targets of the 2015 Paris agreement may not be achievable at if on current dairy and meat production trends [6]. Many food producers have tapped into this concern (and a rise in health consciousness) by replacing meat with plant-based proteins. Yet these mostly appeal to a small, environment and health-conscious minority. As Barack Obama recently pointed out, most of us are emotional about food. Food is part of our deeply ingrained habits and culture. Hence, most of us do not want to change our eating habits, let alone being told what to eat [7].
While this is a challenge for the meat substitutes industry, it did not hinder Beyond Meat. CEO and founder Ethan Brown identified the emerging opportunity of climate conscious-consumers’ demand for climate friendly products in 2009. He teamed up with two professors from the University of Missouri with the aim to create a recipe that would taste as closely to meat as possible. After years of research [8], they launched several products made of plant proteins, water, oil and natural flowers that could replace both beef and chicken meat. These products are widely praised for successfully replicating the structure, smell, look and especially the taste of meats [9]. Exactly this might give Beyond Meat an edge. Since its products taste so good, the company wants to target not only vegetarians and vegans, but also meat lovers less inclined to change their eating habits. The fact that their newest product, the Beyond Burger can be found in the meat aisle and not in separate sections for meat substitutes illustrates this.
Beyond Meat nonetheless faces many challenges.
One is pricing. At $5.99 per pack of four patties, the firm is competitive in the US, but it would not be in emerging markets, such as China and India, where much of future meat demand is set to come.
Another is competition. Cu
rrently, only one other US firm, Impossible Burger, offers a similar, close-to-meat-like product. Beyond Meat would potentially appreciate more competition as this might help to raise consumer awareness. Yet as consumer habits—or indeed GHG-related regulations—evolve, strong competitors are likely to emerge. Third is consumer acceptance: Although Beyond Meat is as close to actual meat as it gets, there is a risk that a majority of consumers will not make the switch.
Beyond Meat’s key innovation was to see climate change as an opportunity rather than a threat for the food industry. Since many people do not know about the climate-change impact of meat production, one of their priorities should be to raise awareness about these issues. Partnerships with schools and universities would help. Teaming up with large (ideally premium) burger chains could provide a further boost to its business. Chipotle’s hugely successful addition of tofu to its burrito options in 2013 shows that meat alternatives have potential in the fast food industry [10]. Finally, providing information about the GHG emissions of its produts could further help to boost adoption.
It is still unclear whether Beyond Meat will remain a niche player or become a serious alternative to meat. As concerns about climate change continue to rise, shifts in consumer preferences may create conditions for Beyond Meat’s sustained expansion. But as Bill Gates, one of the firm’s most popular advocates and investor, puts it “We can’t ask everyone to become vegetarians.” [11]
Sebastien Marlier & Moritz Steinle (word count: 781)
References
[1] https://www.outsideonline.com/1928211/top-secret-food-will-change-way-you-eat
[2] http://www.fao.org/news/story/en/item/197623/icode/
[3] http://www.independent.co.uk/environment/climate-change/climate-change-meat-industry-creates-same-amount-of-greenhouse-gases-as-all-the-vehicles-in-the-a6747561.html
[4] Steinfield, Henning. United Nations Report. “Livestock’s Long Shadow: Environmental Issues and Options.” November 2006
[5] http://www.economist.com/news/science-and-technology/21688374-researchers-new-zealand-are-trying-prevent-livestock-belching
[6] https://www.forbes.com/sites/jeffmcmahon/2016/01/01/paris-agreement-will-impact-meat-and-dairy/#ca5213d446bd
[7] https://www.nytimes.com/2017/05/09/world/europe/obama-food-milan-seeds-chips.html
[8] http://www.slate.com/articles/technology/technology/2012/07/beyond_meat_fake_chicken_that_tastes_so_real_it_will_freak_you_out_.html
[9] https://www.gatesnotes.com/About-Bill-Gates/Future-of-Food
[10] https://www.outsideonline.com/1928211/top-secret-food-will-change-way-you-eat
[11] https://www.gatesnotes.com/About-Bill-Gates/Future-of-Food
As a meat consumer I am not sure if I would be persuaded to switch from meat to a meat substitute, based on claims of proximity in flavor. I personally am more inclined to substitute meat for non-processed alternative sources of protein, like beans or quinoa. I am suspicious of products if I don’t understand their processing.
I wonder if an alternative could be imposed from a regulatory point of view, for example establishing a methane tax, following the sugar tax put on carbonated drinks in some countries. People consume more meat than in the past because cost of production has gone down significantly. Making meat more expensive would likely cut demand.
In my opinion, Beyond Meat’s model if successfully scaled, can really make a great contribution to the environment. However, the ‘if’ is big. I would think without knowing the exact details of how this meat substitute is processed and what could be its potential side effects, it would be difficult for people to make a switch. The promotion of this substitute has to be accompanied by measures that dissuade people from consuming meat (which only government is capable of taking).
The two comments above raise concerns about not understanding how the product is made and hence being cautious to consume it. This made me think: Do you really understand how the meat you consume is processed and all the medicines and food that is used in the process while raising the animal and in the end slaughtering it? I am a meat consumer myself but would not argue to really exactly know what goes into the food I consume. Hence I might as well give beyond meat a try – their intentions at least seem honorable.
While I personally find a plant-based alternative to meat, which also provides additionally health benefits and cannot really be distinguished in taste I great idea, I am doubtful about the broad market adoption of the product.
I believe that the future lies in artificially grown meat – meat created in a laboratory (I guess, kind of like a greenhouse for plants). This option eliminates many of the issues that we face in meat production to date. It would eliminate any animal cruelty claims, as no animals would be harmed in the process. The environment would be greatly relieved as the livestock no longer “Burps and farts” into the atmosphere. In addition, the costs of meat production would be decreased greatly, as no livestock would need to be fed, taken care of or have space provided for them. While consumers from developed countries (and particularly EU-citizens due to previously implanted regulations on gene-manipulated food production) may not feel 100% comfortable consuming artificially grown meat, the every increasing populations in many developing countries will not care about this aspect and rather appreciate the affordability of a vital, and previously potentially luxurious, part of their diet.
Interesting to read how you hypothesize artificial meat will be the future, and I dare to challenge your vision. Artificial meat is facing lots of challenges, some might be overcome (taste, scalability) others, like the animal wellfare, seem more difficult. To grow cell cultures you need Fetal Calf Serum (FCS), basically the blood of a fetus w/o the red blood cells. It is derived at the slaughterhouse. You can already imagine how many vegetarians and even meat eaters would be less inclined towards artificial meat.
I personally think Beyond Meat could be a promising product, but it will only work if governments will educate people on the impact of their meat consumption
I think that this business has great potential as long as it can work out where in the alternative meat industry it wants to position itself. I personally agree with some of the previous comments that health-conscious eaters and vegetarians will not be so inclined to eat Beyond Meat as a regular source of protein as there are healthier, less-processed options available. However, I see potential in high-end markets and restaurants where they may not want to compromise on the texture, flavours and looks of the meat dishes when they are catering for the needs of vegetarians and vegans or people conscious of the environmental issues of farming animals. Consumers in high-end markets are also generally more aware of social problems such as the environment and how their choices in food affect such problems.
If Beyond Meat can work this out, it will no doubt be a breakthrough in meat-alternatives.
In another article (http://insead.edublogs.org/2017/05/20/green-red-tomatoes/) we read that the agriculture sector accounts for 25% of greenhouse emissions. Therefore it would be very interesting to compare the environmental impact of the artificially produced versus natural meat to get a better understanding of the sustainability potential of such substitutes.
I think this is a great idea, especially as an animal lover, I think it is very impactful! However, one concern I have is that it is not fully tested if the nutrition is meat can be completely duplicated and replaced by those in soy. Thus, I am not sure that this idea would be widely adopted beyond the vegetarian community.