China food-firms think ‘plant-based’ after Corona sparks shift to healthy alternatives

Though still a niche business compared to China’s giant meat supply chain, vegetarian alternatives to meat are gaining ground following health scares like the novel coronavirus and African swine fever, and a small but growing consumer-base is building in their wake. 

U.S.-based Beyond Meat Inc said last week that it had signed a deal to open a production facility near Shanghai. It has also launched a partnership with cafe giant, Starbucks, for its plant-based meat products to be sold in China.

Zhenmeat, a Beijing-based startup, whose products include plant-based meatballs, beef patties, steak, pork loin, crayfish and dumplings, is one of many small Chinese companies entering the market. These “meatballs” are now available on a trial basis at a Beijing store of Chinese hot-pot chain Hope Tree.

“Now, after COVID-19, consumers are more concerned about health and restaurant brands are responding to this,” founder and CEO Vince Lu claimed, adding that sales were “up considerably” since June.

Many curious customers at the Beijing Hope Tree restaurant said the meatballs – made from a base of pea and soy protein – tasted like tofu.

“Actually you can tell that it isn’t meat but the feel of it in your mouth is very similar to beef. And I guess that plant-based meat is a little healthier than beef,” said Audrey Jiang, 30.

Lu states that there is a lot of competition in the market but the real competitor was the meat industry itself.

“The most important thing is that our true competitors are not those global giants who have already achieved great success such as Beyond Meat or Impossible Foods,” he said.

“Our true competitor is the whole livestock sector. It’s the animal protein industry.