Agribusiness giant Cargill, one of the largest meat producers in the United States, believes it can take on plant-based companies like Beyond Meat to become a major player in the meat alternative industry.
Cargill came relatively late to the plant-based market, behind competitors like Tyson and Smithfield, which the company told CNBC was part of a “deliberate and thoughtful” strategy. Now that the industry’s initial rapid growth has plateaued, many other conventional meat companies are treating plant-based products as a fad, putting Cargill at an advantage.
Cargill predicts an increase in demand
Brands like Beyond Meat and Impossible Foods may be more established in the plant-based sector, but Cargill has far more investments. The corporation is predicting a growing demand for protein as the world’s population grows in the coming years – and it has quietly acknowledged that animal meat will not be able to meet that demand.
However, Cargill believes many consumers are dissatisfied with the meat alternatives currently on the market and is working to develop improved products. This means investing in farmed meat and fish as well as plant-based products, while also lowering prices. Additionally, the corporation is partnering with other companies to improve its research and development processes.
“Heritage of Invention”
Cargill launched its first alt meat range in 2020 featuring hamburgers and ground meat. The company said at the time that it was looking to compete directly with market players such as Beyond Meat and Impossible Foods. The same year, Cargill also launched a plant-based range called PlantEver for the Chinese market.
In 2021, the corporation’s CEO said plant-based products were set to “cannibalize” the conventional meat market. By then, Cargill had already invested in companies such as pea protein producer PURIS and farmed meat company Aleph Farms.
More recently, Cargill partnered with innovative plant-based fat producer Cubic Foods to commercialize the startup’s fat technology on a large scale. In March, Cargill unveiled a burger made with cubic fat at Expo West, telling FoodNavigator that the corporation aims to be an “inclusive protein provider.”
“We have a heritage of innovation and are always pushing the boundaries of what’s possible with plant-based solutions,” Cargill says on its website. “This includes creating label-friendly materials to meet today’s product development needs, but also full optimization of side streams from our manufacturing process. But we know great talent exists outside our walls – which is why we’re investing in plant-based startups and innovators and enabling them to benefit from our sheer scale.”