Health is one of the most important factors influencing consumer acceptance of cultured meat, also known as lab-grown meat, according to analysts at Barclays.
They pointed out that, following United States Department of Agriculture (USDA) approvals on labelling for GOOD Meat and UPSIDE Foods in the last week, both companies now have one remaining step in the regulatory review process before they can start commercial production, being a USDA Grant of Inspection on their production facilities.
“We, therefore, believe it is critical to assess health and nutrition data as we believe consumer acceptance remains the ultimate lever for the opportunity to be fully realized, ahead of full commercial approvals,” the analysts wrote in a note to clients.
On food safety, the analysts said transparency around manufacturing would be crucial to building consumer trust around cultured products as concerns relating to their stated benefits, especially given their limited track record, remain one of the key consumer pushbacks around cultured meat.
On nutritional profile, they noted that the data to date was “encouraging” but it was still too early to draw any reliable conclusions about the long-term effects of eating cultured meat products.
“Relative to some plant-based products which may contain multiple ingredients that are highly processed or contain artificial additives, we believe cultured meat has the potential to be viewed as a healthier alternative to traditionally sourced meat,” they wrote.
The analysts also wrote that, overall, they see cultured meat as better positioned than plant-based products to disrupt the “alternative protein landscape.”
One company set to benefit as cultured meat gains broader acceptance is CULT Food Science Corp (CSE:CULT, OTCQB:CULTF), an investment platform focused on lab-grown food such as early-stage cultivated meat and cultured diary companies around the world.
Nonetheless, there are numerous plant-based food companies well positioned to support growing demand from consumers who avoid traditionally sourced meats as they exercise caution around cultured meats, such as Zoglo’s Food Corp. (CSE:ZOG) which offers nutrient-rich, plant-based appetizers, vegetables, and meat substitutes.
Contact the author at emily.jarvie@proactiveinvestors.com
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