Plant-based meat alternatives taking root in China

For a new generation of Chinese consumers, meat no longer confers the status it once did. Meat substitutes, however, do resonate more closely with younger consumers’ aspirations.

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Yum China believes that there is great potential for plant-based meat in China. | (Fotokon | BigStockPhoto.com)
Yum China believes that there is great potential for plant-based meat in China. | (Fotokon | BigStockPhoto.com)

China is proving no exception to the growing demand for alternative proteins. While meat consumption may still be a sign of status in the country, younger generations, more accustomed to easily available meat than previous generations, are looking to alternatives for all the same reasons as younger consumers in Western markets.

While the alternative proteins market remains small in China, and may have been slower to develop than in some western markets, there is, nevertheless, growing consumer interest, prompting the Chinese Institute of Food Science and Technology, late last year, to issue a voluntary standard for Plant Basted Meat Products.

The new standard covers areas such as definitions, technical requirements, and guidelines on the labelling, packaging, transportation and storage of plant-based meat alternatives and will be implemented in June this year.

The industry-produced standard has been drawn up in response in response to a flurry of activity in the sector. Since 2019, at least a dozen plant-based meat alternative companies have emerged, according to the US Department of Agriculture, launching a variety of products. Large, multinational businesses have also entered the market.

In the short term, this increase in activity posing little threat to the poultry sector. Meat alternatives remain expensive in China, costing at least as much or more than similar meat portions. This is leading companies to concentrate on alternatives to beef and pork. However, as technology improves and production costs lower, alternatives to all meats will emerge and plant-based chicken alternatives are already available.

Most meat alternative products in China are being sold in the hotel, restaurant and institutional service sectors, allowing consumers to try them without having to prepare them themselves. Where they are sold in grocery stores they are usually positioned next to more traditional vegetable based products such as tofu and other soy-based products, rather than near meat products. Some companies, however, are directly marketing to consumers, taking advantage of e-commerce channels, particularly for home consumption and snack presentations.

Euromonitor forecasts that China’s meat substitutes market will be worth US11.9 billion by 2023. Given the size of the market and changing consumer tastes, it is an attractive market.

Changing tastes

China has witnessed a huge increase in meat consumption. In 1975, for example, the country consumed only 7 million metric tons of meat. By 2018, that figure had risen to 86.5 million, reports policy research organization the Center for Statistics and International studies.

This increase in demand can be attributed to the country’s growing middle class, fostering a shift away from grain-based diets to an increasingly meat-based based diet. While once, meat may have been a luxury for almost all consumers in the country, and its consumption, at one time, discouraged due to lack of supply, meat consumption is now seen as a sign of success.

However, preferences are changing, especially among the urban and younger consumers. This change reflects changes occurring in other parts of the world, were younger consumers believe that eating less meat is healthier, as well as better for the environment and animal welfare.

Mainstream moves

In late April last year, Yum China announced that it would trial its Plant Based Chicken Nuggets for a limited period across three cities. Pre-sale coupons were needed to purchase the nuggets and sold out within an hour of being offered.

Commenting on the introduction, Joey Wat, CEO of Yum China said: “The test of KFC’s Plant Based Chicken Nuggets caters to the growing market in China for delicious alternative meat options on the go. We believe that testing the plant based chicken concept with one of our most iconic products will take this increasingly meatless trend to a new level.”

In June, the company announced that it would be offering the Beyond Burger, again for a limited period.

Wat commented that Yum saw great potential for plant-based meat in China and the trial of the Beyond Burger was the latest iteration of the company’s ongoing commitment to introduce new and innovative products to Chinse consumers.

Products that imitate meat still face some hurdles in China for example, adapting tase and texture, raising awareness and understanding and affordability. However, the type initiatives carried out by Yum China, for example, will not only raise awareness among consumers but seeking consumer feedback will allow the company to adapt products to better align with local tastes and preferences.

The nuggets trial paved the way for partner company Cargill do debut its PlantEver consumer brand in China. The brand is offering chicken-alternative nuggets and beef-alternative patties.

PlantEver-chicken-nuggets

Cargill’s PlantEver chicken nuggets are now being rolled out in China at retail level. | Courtesy Cartill inc.

The products are produced locally and are gradually being introduced in online and offline channels. The company noted that it was taking an inclusive approach to the future or protein by investing in both animal and alternative proteins.

However, the challenge posed by plant-based product that mimic meat to traditional poultry and meat needs to be kept in perspective. The country continues to increase its meat consumption and its import figures for last year should be reassuring for anyone concerned by the growing interest in alternative meats. According to the country’s Ministry of Commerce, China imported 7.41 million tons of meat during the first three quarters of 2020 an increase of 72% on same period the year before.

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