Where Do Alternative Proteins Fit in the U.S. Market?
Alternative Meat Markets 110221
Plant-based dishes are getting a lot of attention on the menu at the United Nations Climate Change Conference UK 2021. But experts say U.S. livestock producers don’t need to be worried.
“At the onset of the pandemic, we saw grocery stores sell out of some things like meat,” recalls U.S. Farm Report’s Tyne Morgan on AgDay TV. “There were a few pictures circulating where it was only the plant-based protein left on the shelf. It looked like the demand wasn't as high for those.”
Has that changed today as we see kind of consumers get back out and eating out? Morgan asked Purdue University economist Jayson Lusk during the 2021 U.S. Farm Report College Roadshow.
“I think a year ago, we were seeing really strong year-over-year sales growth in these plant-based meat alternatives and a lot of investment dollars flowing in that space,” Lusk said. “I think it had a lot of folks worried, a little concerned, at least if you're in the animal protein side of things as to what's happening. That sales growth seems to have leveled off a bit in the in the past few months.”
Some of Purdue’s consumer research suggests there were a lot of people who wanted to try something new. Although he believes there will be a home for alternative meat products, he said people still have a very positive impression of traditional meat products currently.
Top Challenges for Alternative Proteins To Scale Up
Labor challenges have added new kinks for alternative protein companies, too. With fewer workers and higher input costs, alternative proteins are still priced at a premium.
“If they want to compete, they're going to have to improve their taste and bring their price down. The only way they're going to do that is to grow and have economies of scale. But that's really hard to do in our current environment when you have higher prices of input materials and higher labor and wage rates,” Lusk said.
Alternative proteins aren’t going way, he added. “It's not going to go away, but I don't think it's this sort of apocalyptic forecast that some say is going to completely take over the industry. Nothing I'm seeing suggests we're anywhere close to that, but it will grow.”
Lusk said the question is, will it grow to be 5% of our market or 25% percent?
Are Alternative Proteins Sustainable?
As the world population continues to grow and the demand for protein increases, can alternative proteins alone meet the need?
Jason Rowntree, professor of sustainable agriculture at Michigan State University, doesn’t think so.
“We’re going to see increased soil erosion and increased use of pesticides and fertilizers. When you take the most nutrient-dense thing you have on the planet and you take it off the menu and say here eat these peas, beans (which I love all),” Rowntree said. “The point being you take something considerably less nutrient-dense and you’re going to have to eat a lot more of it.”
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