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@ Kemal
2023-08-03 06:10:10Originally published here: https://medium.com/@kemalyaylali/insatiable-rising-appetite-for-lab-grown-meat-investments-e92d0b3536df
In recent years, a revolutionary concept has taken center stage in the food industry — lab-grown meat, known by various names like cultured, cultivated, clean, and cruelty-free. This groundbreaking technology has become a hot topic among investors, and for good reason. In a significant development, the U.S. Department of Agriculture (USDA) granted clearance to Good Meat and Upside Foods, allowing them to sell lab-grown chicken in stores and restaurants across the United States. With the FDA also endorsing the technology, these companies are now accelerating their production efforts.
Environmentalists are hailing this innovation as a much-needed solution to the environmental issues caused by traditional meat production. Conventional meat sources contribute to nearly 60 percent of greenhouse gas emissions from food production, along with deforestation and water scarcity. In stark contrast, lab-grown meat has the potential to reduce the carbon footprint by a staggering 92 percent compared to beef, 17 percent compared to chicken, and 52 percent compared to pork. Furthermore, animal welfare activists are optimistic that this technology could ultimately put an end to the cruelty seen in slaughterhouses and inhumane conditions on farms.
For those unfamiliar with lab-grown meat, here’s a simplified explanation: In specialized food factories, scientists cultivate and grow cell samples from animals, such as pigs and cows, until these cells transform into a form of meat that we are familiar with, like pork or burger patties. Once approved by regulatory bodies, the resulting food is deemed safe for human consumption.
However, ongoing scrutiny by these agencies ensures the continued safety of lab-grown meat. The prospects of lab-grown meat have set investors’ expectations soaring. Leading consulting firm McKinsey predicts that the cell-based meat industry could generate a whopping $30 billion in revenue by 2030. Some experts even foresee a future where 60 percent of all meat could be produced in labs by 2040. The industry has witnessed a surge of interest, with nearly 100 startups entering the market in 2020, compared to just four in 2016. These startups have attracted over $1.2 billion in investments from enthusiasts and celebrities like Leonardo DiCaprio.
Additionally, around 40 companies are gearing up to provide support and tools for these enterprises to bring their products to market. However, skeptics remain cautious. The cost of growing meat in a factory remains high, as evident from the first lab-grown burger produced in 2013, which cost over $300,000 to create. Although production costs have dropped significantly since then, lab-grown meat may still be beyond the reach of the average consumer for some time. There are also concerns about consumer acceptance — are people willing to consume meat produced in a lab, and will they feel confident about its safety?
For aspiring investors looking to jump into this emerging market, there are currently limited options for publicly-traded companies. Steakholder Foods (STKH), an Israeli company that utilizes 3D printing technology in cultivated meat production, is listed on the Nasdaq. Cult Food Science Corp. (CULTF), based in Vancouver, Canada, is the first publicly-traded cultivated meat company in North America, listed on the Toronto and Frankfurt Stock Exchanges.
However, most of the companies in this sector are privately held startups. Among them are notable players such as Prolific Machines, Bond Pet Foods, and Momentum Foods, with the latter combining lab-grown meat with plant-based products. South Korea’s TissenBioFarm claims to have a unique method for producing whole-cut meat, setting itself apart from others that focus on ground or minced meat.
Investors looking to gain early exposure to the lab-grown meat market might consider buying stocks in established companies like Tyson Foods (TSN), which has invested through Tyson Ventures in startups like Memphis Meats and Future Meat Technologies. JBS, a Brazilian-based enterprise with a 51 percent stake in the Spanish firm BioTech, is also planning to go public. JBS is constructing a factory in 2024 that could potentially produce 1,000 metric tons of lab-grown beef annually.
The underlying message is clear: Thought leaders, including Bill Gates, believe that if we truly want to combat climate change, all meat produced in wealthy nations should come from laboratories. This visionary idea not only promises a sustainable future but also opens up exciting investment opportunities for those who recognize its potential. As lab-grown meat gains momentum, investors stand to make a positive impact on the planet while reaping significant rewards.