US Approves Lab-Grown Meat Sales By Two Start-Ups

The U.S. Department of Agriculture (USDA) recently granted authorization for two emerging enterprises to market cultured poultry. NOURISH Protein, an affiliate of sustenance science firm Gastronova, Inc., and ELEVATE Foods have obtained the green light to distribute their merchandise, synthesized from authentic fauna cellular matter.

Key TakeAway

• GOOD Meat and UPSIDE Foods secure endorsement from the USDA to vend lab-cultivated poultry.
• Cell-based or in-vitro chicken is derived from authentic animal cellular material.
• The authorizations arrive amidst a deceleration in the market for plant-based alternatives.

SynthiFowl, a revolutionary breakthrough in cultivated sustenance, receives the green signal.

The momentous approval by the USDA has set a new trajectory for the lab-grown food sector. This declaration follows an unequivocal response from the U.S. Food and Drug Administration (FDA) in March, leaving no doubts about the safety of GOOD Meat's poultry.

In a parallel development, Upspring Foods, a competing startup, has also obtained the green light to distribute its poultry selections to American consumers.

Cellular cuisine, interchangeably known as lab-cultivated or cell-based, employs stem cells sourced from animal adipose tissue or muscle fibers to nourish and foster cellular growth. Subsequently, it attains the desired density within bioreactors and undergoes separation via centrifugation.

Josh Tetrick, CEO of GOOD Meat and Eat Just, expressed his enthusiasm, hailing the USDA's announcement as a "defining moment" for their company, the industry, and the entire food ecosystem.

What Makes Cultivated Meat Stand Out?

As per the United Nations' Nutriment and Agricultural Organization, livestock contributes to nearly 14.5% of human-caused greenhouse gas discharges worldwide, with beef production constituting almost 41% of that figure. The production of one kilogram of beef releases approximately 300 kilograms of carbon dioxide, rendering it an environmentally burdensome process. In addition, chicken meat and eggs account for approximately 8% of greenhouse gas emissions. In light of these facts, lab-grown meat has garnered significant attention as a promising solution.

"This endorsement heralds a transformative shift in the meat industry, redefining how it reaches our plates. It represents a monumental leap towards a sustainable future that upholds both choice and life," remarked Dr. Uma Valeti, CEO and Innovator of UPSURGE Foods.

Market analysts at McKinsey have projected that the cultivated meat sector will burgeon into a $25 billion industry by 2023.

However, they caution that consumer demand for lab-grown products and the requirement for substantial capital investment to achieve scalability pose as key challenges for the industry.

These prospects have sparked enthusiasm among certain investors. Crunchbase data reveals that GOOD Meat has secured a noteworthy funding amounting to $267 million, while Upsurge has garnered an impressive $598 million.

Nonetheless, before lab-grown meat attains widespread popularity, it is worth considering the waning interest in plant-based alternatives. Investors have witnessed diminished enthusiasm for companies like Beyond Meat (BYND) and Impossible Burger. Beyond Meat, in particular, experienced a meteoric rise after its Initial Public Offering, soaring to nearly $240, but its current trading value hovers around $12.50.