Impossible Foods, Beyond Meat eye bigger cut of Covid-19 driven growth in Asia’s plant-based foods segment
- Asia represents 44 per cent of meat consumption globally and this number is projected to grow by 70 per cent by 2050: Impossible Foods executive
- Beyond Meat’s highly successful IPO has raised considerable interest in alternative proteins among Asian investors, Hong Kong fund says
The battle for market share in Asia’s meatless meat sector is heating up, even amid an economic slowdown driven by Covid-19 lockdowns, which have badly affected the restaurant industry.
Industry participants agreed that public concern over health and food safety in the wake of the pandemic will boost the long-term fortunes of alternative protein makers such as Impossible Foods and Beyond Meat, the two best-known manufacturers. The pandemic, along with the African swine fever, which decimated China’s pig herds, are expected to accelerate consumer adoption. Moreover, interest among Asian entrepreneurs has grown alongside that of investors and consumers.
Last month, Impossible Foods stepped up its expansion efforts in Asia with the relocation of Nick Halla, a senior vice-president, to Hong Kong. Halla said in an interview that Asia represented 44 per cent of meat consumption of about 700 billion pounds (317.5 billion kilograms) globally, and that this number was projected to grow by 70 per cent by 2050.
“If you want to have an impact, it has to happen in Asia,” he said, adding that Impossible Food’s revenue grew sixfold in 2019 on the back of openings in Singapore and expanded restaurant distribution in Hong Kong.
On March 16, Impossible Foods announced it had raised US$500 million in Series F funding, led by South Korea’s Mirae Assets, with existing investors Horizon Ventures, Singapore’s Temasek and Khosla Ventures joining the round. Halla said he was pleased with the presence of Asian venture funds. “We wanted to get knowledge of Asian markets and make connections,” he said. “Hong Kong and Singapore are great test beds for us to learn.”
Halla declined to comment on a potential initial public offering, but said that with the recent funding round, the company had the money it needed for expansion. So far, Impossible Foods has raised US$1.3 billion. Hong Kong tycoon Li Ka-shing was an early backer, investing in Impossible Foods through his private-equity unit, Horizon Ventures.
