The Challenges and Opportunities in the Alternative Meat Industry

Christie Lagally is the founder and CEO of Rebellyous Foods, a plant-based chicken manufacturing and technology company based in Seattle, Washington.

The views expressed in this article are the author’s own and do not necessarily represent those of AgFunderNews.

A Shifting Landscape

The alternative meat industry is undergoing significant changes, with many companies confronting funding challenges that stifle their ability to bring innovative technologies to market. For those who have managed to survive into 2025, the road to commercialization appears increasingly fraught with obstacles.

“It turns out this is a very hard problem to solve,” commented an investor, alluding to the lengthy journey that Rebellyous Foods has taken in striving for cost parity with traditional meat through advanced production technology. Ironically, while developing the technology may have been the easier task, implementing it in real-world scenarios poses a far greater challenge.

The Complexity of Market Forces

Factors such as taste, price, and availability often dominate discussions about alternative meats. However, the market’s success hinges on a complex interplay of various elements that resist transformation, perpetuating the dominance of animal meat.

For example, despite the health risks associated with processed meats, such as pork hot dogs often served in public schools, they remain popular due to budget constraints impacting millions of students.

Even in environments like cardiac wards—where health is a priority—beef is still served, primarily because it is cheaper than plant-based substitutes. The rise of industrial farming practices continues to drive meat production globally, raising concerns about potential pandemics akin to COVID-19.

Size Matters

Global meat production is the largest single food source, with people consuming an average of 94 pounds per year, equating to a daily quarter-pound hamburger. This colossal scale enables large meat companies to weather setbacks with relative ease. In contrast, smaller alternative meat companies may falter at the slightest disruption, such as a product recall or health scare.

Strategic Time Management

The meat industry has a century-long head start in optimizing its operations, from supply chains to processing technologies. This historical momentum has created a deeply entrenched system that favors animal protein.

For emerging alt-meat companies striving for competitive pricing and growth, breaking into this established marketplace necessitates a comprehensive challenge to the norm. However, many companies lack the time needed to achieve significant market entry, with venture capital typically expecting returns within 5-10 years, in stark contrast to the century-long returns expected by meat companies.

Comfort Zones: A Dual Challenge

The most formidable barrier to change is the comfort level that both consumers and investors have with traditional meat products. While consumers may recognize the health and environmental concerns of meat consumption, habitual familiarity often trumps this awareness.

Investors, too, are cautious. Though the alt-meat sector is ripe for disruption, the similarities in the comfort levels experienced during the transition from landlines to cell phones do not apply neatly to the current food ecosystem.

Adapting to Market Conditions

To effectively compete against the entrenched meat industry, alt-meat companies must focus on developing robust business models that emphasize agility and responsiveness. This involves blending size considerations with the ability to pivot quickly when strategies falter.

Moreover, planning financial conservatively is essential. Preparing for potential downturns enables these companies to sustain operations during challenging periods.

Accelerating Time-to-Market

While experience in the market is advantageous for building momentum, alt-meat companies can optimize their processes to shorten timeframes dramatically. This can be achieved by employing agile methodologies in product development, ensuring a steady flow of improvements and innovations.

By constructing a future-ready production system from the outset, alt-meat companies can leapfrog over outdated methods still prevalent in traditional meat production.

Redefining Consumer Comfort Zones

Consumer preferences are shaped by comfort, dictated by taste, price, and convenience. For alt-meat companies, providing products that mirror conventional meats can facilitate gradual acceptance. Effective market research is critical for understanding and addressing barriers to conversion.

The Future of Protein

While animal-based meat has historically dominated diets, the rapid intensification of production is a relatively recent development. Products we consider staples today, such as chicken nuggets, have only emerged in the last few decades.

The dynamics of the alternative meat sector may shift, provided companies remain agile, responsive to consumer needs, and ready to innovate. By addressing the comfort zones of both consumers and investors, alt-meat can redefine its position in the world of protein sources.

The potential for alternative meat to transform human protein consumption is not only attainable but also imperative for a sustainable future.