By Leah Douglas
Cell-cultivated meat companies could receive new investment since U.S. regulators cleared the product’s sale last month, but the sector must scale up and lower costs to seriously challenge conventional meat, said investors and major food companies.
Several startups have developed the technology to grow meat from harvested animal cells, hoping to court meat-eaters seeking a more environmentally friendly option and vegans or vegetarians who avoid meat for moral reasons.
Cell-cultivated meat companies could receive new investment since U.S. regulators cleared the product’s sale last month, but the sector must scale up and lower costs to seriously challenge conventional meat, said investors and major food companies.
Several startups have developed the technology to grow meat from harvested animal cells, hoping to court meat-eaters seeking a more environmentally friendly option and vegans or vegetarians who avoid meat for moral reasons.
“It’s a big deal,” he said. “It removes a risk.”
But the companies must now lower costs, said Leticia Goncalves, president of global foods at Archer-Daniels-Midland (ADM) (ADM.N), an investor in Good and Believer.
“Technology success and regulatory approval was the first hurdle,” she said. “Second is scalability at the right cost.”
Difficulty competing with conventional meat on price has plagued the plant-based meat sector, which has failed to meet market share expectations.
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