26 September 2022 - Speaking this morning at the Feedinfo Summit, Inigo Charola, co-founder and CEO of Biotech Foods, a Spain-based producer of cultivated meat, shared his outlook for his sector and its transformation in the coming years.
Important changes are expected to unfold in Europe in the next couple of years, he said, as consumers will become increasingly aware of cultivated meat as a new protein option and the sector itself embarks on its industrialisation phase.
Charola explained that the pace of change has already been dramatic since 2017 – the year his company was founded. Five years ago it was a challenge to explain the benefits of such technology; now the value chain is starting to realise how it can help the full food protein production system. “Progress has been made,” he said, adding that cultivated meat has also benefitted from the growth of plant-based meat producers who are making their products more and more attractive.
Moreover, awareness is growing as traditional meat suppliers are seeing cultivated meat more as an opportunity now and want to be part of this growth. “Meat processors are increasingly becoming protein processors,” he commented.
In Charola’s view, there isn’t or shouldn’t be competition between traditional and alternative meat. Instead, he expects a more balanced food protein system moving forward.
Currently the technologies are in place to follow the promise offered by alternative proteins, he said. The equipment and the raw materials are available, but of course they need to be adapted for meat production. The food industry itself also has wide experience with food microorganisms and sees a lot of room for further improvement.
The cultivated meat sector is now moving towards an industrial phase of production with companies investing and building new facilities in Europe, Israel and the US. “This is happening now,” Charola said, adding that a new milestone will be reached by 2024 when the first production facilities come online.
Naturally, the growth won’t come without its barriers. Charola mentioned that he sees the three main challenges being the aforementioned scaling-up (how efficient production will be), the regulatory environment, and of course consumer acceptance which will ultimately be influenced by the information about cultivated meat production made available to them. A lot will depend on this. However, the pace of acceptance will differ per geography as some markets will be slower and others ahead of the curve, like Singapore which has been consuming cultivated meat since 2020.
According to Charola, there will be plenty of opportunities for cultivated to cater to demand in the processed meats sector in the next few years as, in his estimates, approximately 60% of meat consumed today is processed.
However, to satisfy that demand, the challenge will be to reduce consumer prices for cultivated meat and become a competitive food protein option. “It can be done,” he said, but conceded that it is hard to determine what the price difference will be.
On another note, Charola, highlighted that he sees increased opportunities for partnership between cultivated meat producers and the animal nutrition sector as, he says, “cells have to be fed.” “They need amino acids, vitamins and other components. Companies are working on this s we speak.”
