Plant Based Meat Mooncakes Sell Out in China

China's domestic plant-based meat brands (Zhenrou and Shuang Ta) launched meat substitute mooncakes on Tmall. Shuang Ta's products ( some 1,000 cases at 24 dollars a pop) sold out within 3min proving that it is possible to successfully subvert China's deeply entrenched cultural demand for meat. In a head to head taste test between meat mooncakes and meat substitute mooncakes 80% of those surveyed reported they were unable to tell the difference between the two. Industry leaders Impossible Foods and Beyond Meat are planning to enter China's market. From a regulatory perspective there is no specific framework for plant-based meats. The continued development of this industry will likely prompt regulators to formulate new standards going forward.

Last Friday, September 13th, was Chinese Mid-Autumn festival (lunar Aug. 15th). As we all know, moon cakes are the traditional food that Chinese people always eat during this day.

Every year, Chinese families engage in heated debate about which kind of moon cake they should buy. Fresh meat moon cake, which is a favorite in southeastern China, attracted a lot of attention this year, mainly because of a new concept, plated-based meat ^[1].

Subverting Cultural Norms: Plant Based Mooncakes

Zhenrou (珍肉), was the first plant-based meat brand in China. Using the iconic Shanghai fresh meat mooncake as their reference, Zhenrou developed their plant-based meat moon cake. This product launched on Tmall in September this year, limited to 3,000 sets, priced at 88 yuan (about us $13, as pictures shown below). Before selling online, they invited more than 30 Shanghainese to test. At that time, nearly 80% of them said they didn't taste any differences between plant-based and real meat ^[2].

Later, Shuang Ta Food Co., Ltd. (双塔食品) also launched their plant-based meat, limited to 1000 cases on its Tmall flagship store, and sold at 168RMB (about us ＄24). Surprisingly, it was sold out in just 3 minutes ^[3].

Overseas brands Target China

There is a huge amount of innovation lag between China and the West (on both sides). In China's food sector this often translates to delayed engagement with global trends both at a industry level and at a consumer level. Although the plant-based meat industry is huge on a global scale, the concept has yet to gain any significant traction amongst mainstream Chinese consumers…. yet.

Despite this industry leaders like Beyond Meat and Impossible Foods have big ambitions for the Chinese market. Brands like Beyond Meat, saw sales in Hong Kong increase 300% last year^[4]. Impossible foods CEO, Patrick O. Brown also revealed that the company is in communication with Chinese government departments and different Chinese companies, and he predicts that their products will enter the Chinese market this year or next ^[5].

Domestic Plant-based Meat VS Overseas Products

Despite domestic products having local home field advantage, there are major technical disparities between Chinese companies and international powerhouses like Beyond Meat and Impossible Foods that could see these companies eventually dominate the Chinese market too.

According to the co-founder of Dao Foods International, Zhang Tao, he points out that there is a gap between domestic plant-based meat and the products in U.S, mainly reflected in texture and taste ^[6]. Li Jian, head of Zhenrou's research team, added that existing Chinese products rely on seasoning and some extra processing before they are served and do not encompass any major technical innovation ^[7].

No Established Reference Standards for Plant Based Meat

However, plant-based meat is a concept that has emerged only in recent years. There are no substantial technical specifications or reference standards for these products in China.

1. Short shelf life affects and microbial stability

Renowned China food industry analyst Zhu detailed how ^[8], shelf life and microbial stability, good nutritional value, clean label, sustainable and environmentally friendly are all concepts gathering momentum in China's food sector and likely to significantly shape product development and consumer preference going forward.

Zhenrou's moon cakes have a similar shelf life compared to the meat version and can be kept in room temperature for about five days. In terms of shelf life, plant-based meat moon cakes meet the demands of consumers.

2. Lack of a robust regulatory framework

Lu Zhongming (CEO of Zhenrou) revealed that the "go-to" national standard for China's plant-based meat sector is the soy products national standard. This is not particularly useful nor particularly desirable and a new standard or framework of standards will be needed to facilitate regulated growth in the sector ^[9].