Increasing Appetite for Alternate Proteins Driving United States Lab-Grown Meat Market
- Published | 10 July 2023
Regulatory approval for cell-based cultured meat is expected to boost the expansion of United States lab-grown market at a robust growth rate.
Lab-grown meat, also known as cultured or cell-based meat, has emerged as a revolutionary alternative to traditional animal agriculture. Produced through the cultivation of animal cells in a laboratory, the innovative technology for lab-grown meat has gained significant traction in recent years due to the potential of lab-grown meat to address various environmental, ethical, and health concerns associated with conventional meat production through animal farming.
Regulatory Pathway & Timeline for Lab-grown Meat in the United States
On June 21, 2023, the United States Department of Agriculture (USDA) in a landmark decision granted regulatory approval for the sale and consumption of lab-grown meat, marking a significant milestone for this emerging industry for alternate proteins. The USDA approval was in response to the application by Upside Foods and Good Meat, the companies focused on lab-grown meat, to produce and sell chicken products derived from clusters of sample animal cells grown in large metal vats (lab-grown meat). Both companies are the first to complete a multi-step approval process for lab-grown meat. The US Food and Drug Administration (FDA) has determined that lab-grown meat is safe to eat.
Upside Foods and Good Meat gained approval for selling lab grown meat across the United States from the USDA after years of research, development, and regulatory discussions, positioning lab-grown meat as a viable and regulated alternative to conventionally produced meat. The United States becomes the second country in the world, after Singapore, to allow sales of lab-grown meat in its market. The approval for lab grown meat is expected to have far-reaching implications for the food industry and pave the way for a more sustainable and ethical future of meat production.
In 2022, the USFDA and the USDA collaborated to establish a regulatory framework to oversee the production and labelling of lab grown meat. The framework for lab grown meat ensures that the production processes and safety standards are upheld, providing consumers with confidence in the quality and safety of lab grown meat products.
The United States regulatory approval recognizes lab-grown meat as a new category of food, distinct from both traditional meat and plant-based alternatives. It sets forth guidelines for the labelling and marketing of lab-grown meat products, ensuring transparency and accurate representation for consumers.
Shifting Consumer Preferences
The approval of lab-grown meat in the United States market brings forth a range of benefits for consumers. Firstly, lab-grown meat addresses sustainability concerns by significantly reducing the environmental impact associated with conventional meat production. Lab-grown meat requires fewer resources, emits low greenhouse gases, and eliminates the need for unsustainable large-scale animal farming.
Secondly, cultured meat offers an ethical alternative to traditional meat consumption. By cultivating animal cells in a lab, the need for animal slaughter and the associated ethical concerns are mitigated. Lab-grown meat appeals to consumers who are increasingly concerned about animal welfare and want to make more conscious choices about their food.
Lab-grown meat, in addition, has the potential to offer safer and healthier food options. It eliminates the risks of foodborne illnesses and reduces the need for antibiotics commonly used in livestock farming, addressing concerns related to food safety and antibiotic resistance.
Growth and Investments in Lab-grown Meat Market in the United States
The US lab-grown meat market size has witnessed substantial growth in recent years. BlueWeave Consulting, a leading strategic consulting and market research firm, in its recent study, estimated the value of United States lab-grown meat market at USD 28.42 million in 2022. Several startups and established companies are actively developing and commercializing lab-grown meat products. At present, numerous startups and companies are involved in the production of lab-grown meat. It has been a significant growth, as there were only four companies focused on the manufacturing of lab-grown meat in 2016.
Investments in the United States lab-grown meat market have also surged, with venture capitalists, food companies, and even celebrities recognizing the potential of the disruptive technology for producing lab-grown meat. As per the estimates by Good Food Institute (GFI), a leading nonprofit organization focused on alternate proteins, about USD 900 million was invested in lab-grown meat companies in 2022. In the same year, UPSIDE Foods, a leading producer of lab-grown meat in the United States, received a total investment of USD 400 million. During 2013–2022, companies focused on the lab-grown meat in the United States recorded the total invested capital of USD 2.8 billion with a 10-year average growth of 196%.
With regulatory approval in place, consumer acceptance of lab-grown meat in the United States is likely to increase. As more consumers become aware of the environmental, ethical, and health benefits, the demand for lab-grown meat is expected to grow substantially in the United States market. Hence, BlueWeave Consulting expects United States lab-grown meat market to expand at a robust CAGR of 16.28% during the forecast period between 2023 and 2029. As a result, lab-grown meat market in the United States is projected to more than double to touch USD 70.3 million by 2029 from USD 28.4 million 2022. This robust outlook for the United States lab-grown meat market will drive innovations, cost reduction, and scalability in production processes. It, in turn, is making lab-grown meat more accessible to a wider consumer base across the country and beyond.
Market Challenges and Outlook
While the United States lab-grown meat market shows great promise, it still faces certain challenges. The high production costs and the scale-up of manufacturing processes remain key obstacles to widespread adoption of lab-grown meat in the United States. However, as technological advancements and economies of scale are achieved, the players in the United states lab-grown meat market are expected to address these challenges effectively.
The future of lab-grown meat market in United States appears bright. Consumer demand for sustainable, ethical, and healthier food options continues to rise, driving the growth of the United States lab-grown meat market. With ongoing research and development efforts, increased investments, and regulatory support, lab-grown meat is poised to become a mainstream alternative to traditional meat consumption in the United States and across the globe.
Conclusion
Lab-grown meat is expected to transform the US food industry by offering a sustainable, ethical, and healthier alternative to conventionally produced meat. The market for lab-grown meat in the United States is experiencing significant growth, driven by shifting consumer preferences and increased investments. As the alternate proteins industry overcomes production challenges and gains regulatory support, lab-grown meat is expected to revolutionize the way meat is produced and consumed in the United States, paving the way for a more sustainable future.
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