For years now, investors and consumers alike have been eager to jump at the chance to embrace innovative and sustainable alternatives to conventional meat, reflecting a growing awareness of the cruelty of animal husbandry and factory farming’s heavy carbon footprint.
In most new and innovative industries, leaders emerge to push the envelope. In the cultured meat sector, most players are not addressing what appears to be the sector’s key challenge: bridging the gap between technology and infrastructure. One company, MeaTech, is rolling out a proven 3D bio-printing technology that will enable the scaled, uniform production of cultured meat that, according to them, will be delicious and nutritious, rivaling and even often potentially exceeding the quality of conventional meat.
Why enormous revenue growth is in the cards for cultured meat
The cultured meat sector is positioned for substantial revenue growth in the next two decades. Kearney forecasts that the demand for global protein will nearly double through 2040 driven by global population growth and wealth accumulation. Meanwhile, the alternative meat industry is expected to significantly increase its share of the global protein market driven by the growing number of alternative meat products available and growing consumer distaste for animal cruelty.
As a result, according to Kearney, the cultured meat sector’s revenues are expected to grow at an impressive 41% p.a. between 2025 and 2040 which will lead to a 35% global meat market share and a $US630 billion revenue opportunity. From an investor’s standpoint, this type of forecasted growth is worthy of attention. There are few (if any) other sectors expected to grow this dramatically over the long term.
Who is MeaTech?
MeaTech is an Israeli cultured meat company developing advanced biological processes and 3D bioprinting technology to produce real meat products sustainably. Part of the company’s future strategy is to license its proprietary technologies and processes to B2B customers, such as meat manufacturers and retail stores. The technology is designed to be modular and customisable to customers’ current and future needs.
In addition to 3D bioprinting whole cuts of meat, MeaTech is also planning to enter the market in the near term with hybrid products: a combination of plant- and fungi-based ingredients and cultured meat biomass. The latter, according to the company, will provide a more authentic meaty experience for meat-eating consumers who wish to reduce their meat intake.
Food safety is a significant issue in the food industry in general and a common concern specifically raised among curious potential consumers of cultured meat. With products produced in a controlled, sterile environment and no animals on site, the company’s fully automated approach to producing meat from animal cells will be big news for consumers looking for meat products made using production methods than are safer than those available today. The company’s production facilities include a robust integrated monitoring system which further reduces the risk of pathogen contamination.
A unique approach
MeaTech’s 3D bioprinting technology is being seen as a game changer for the sector. The company has developed a unique multiple-nozzle modular printing head that can print complex structured meat products with pinpoint precision at an industrial rate of production without impacting cell viability. According to the company, this is a significant technological achievement — a key milestone for MeaTech and a huge step forward for the industry. It will allow meat manufacturers and retailers to efficiently mass produce whole cuts of meat with formations and proportions of fat and muscle tissue that mimic conventional meat and with uniformity of thickness, size, density, and shape.
MeaTech’s revenue growth to accelerate
MeaTech is positioned to participate in the sector’s compelling growth opportunity in the short- and long term. The consensus analyst estimate currently reflects MeaTech generating $6.5 million of revenue in 2023 followed by $24.0 million in 2024. The revenue growth opportunity after 2024 is significant due to the sector’s high structural growth expectations and the company’s astute twofold commercialisation strategy: joint development agreements with plant-based product manufacturers and cultured meat technology and infrastructure for B2B customers to efficiently scale production.
Recently, MeaTech announced the completion of a $6.5 million registered direct offering with a US-based institutional investor . The involvement of institutional players in any company is a good sign, but this is an even more powerful signal during these times of market turbulence. The investment priced at $3.50 which, in and of itself, is a premium over the current stock price, and includes warrants that can be exercised for up to an additional $6.5 million. This shows the belief of institutional investors in the vast potential of MeaTech as a leading player in the cultivated meat industry.
An exciting player in the sector
With proprietary technology and a unique market entry strategy, MeaTech is positioned to grow strongly while also helping to accelerate the sector’s structural growth. As this plays out, and the company transitions from development stage to industry leader, it is expected to benefit from the cultured meat industry’s enormous growth potential. As a result, MeaTech stands out as a promising leader at the heart of the cultured meat space and the food tech industry in general.