---
title: "Be & Cheery's New 'Artificial Meat' Snack: A New Opportunity for the Snack Industry?"
description: "Recently, Be & Cheery launched an 'artificial meat' snack called 'New Meat Era Smoked Mini Sausages', drawing attention as China's first such product. Artificial meat is defined internationally in two categories: one synthesized from plant proteins, amino acids, and fats, and another cultured from stem cells in labs. Most products on the market are the former, known as plant-based meat, while the latter remains in R&D."
author: "李青林"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
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published: "2020-03-04"
categories: "Capital, Earnings & M&A, Consumer & Categories"
language: "en"
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original_source: "https://mp.weixin.qq.com/s/9NR9IlqxKeUjwCEcg5_wQw"
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citation: "李青林. “Be & Cheery's New 'Artificial Meat' Snack: A New Opportunity for the Snack Industry?.” New Distribution, 2020-03-04. https://xinjignxiao.com/en/articles/be-cheery-s-new-artificial-meat-snack-a-new-opportunity-for-the-snack-in-c345c30b/"
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---

# Be & Cheery's New 'Artificial Meat' Snack: A New Opportunity for the Snack Industry?

> Recently, Be & Cheery launched an 'artificial meat' snack called 'New Meat Era Smoked Mini Sausages', drawing attention as China's first such product. Artificial meat is defined internationally in two categories: one synthesized from plant proteins, amino acids, and fats, and another cultured from stem cells in labs. Most products on the market are the former, known as plant-based meat, while the latter remains in R&D.

Recently, Be & Cheery launched an 'artificial meat' snack called 'New Meat Era Smoked Mini Sausages', drawing attention as China's first such product.
What is artificial meat? Currently, the international definition of artificial meat falls into two categories: **one synthesized from plant proteins, amino acids, and fats; another cultured from stem cells extracted from live animals in laboratories.** Most artificial meat products on the market are the former, commonly known as plant-based meat. The latter is still in the R&D stage, with no company achieving mass production.
**-01- Fierce Competition Abroad, Quiet Layout at Home**
Abroad, many players have entered the artificial meat arena, including food giants. Recently, Nestlé launched a plant-based tuna salad, and earlier, Burger King introduced a beef-flavored burger without beef.
In May 2019, Beyond Meat listed on NASDAQ, becoming the world's first artificial meat stock. Founded in 2011, Impossible Foods has raised over $750 million through multiple rounds of capital. In 2019, PepsiCo also acquired a vegan snack company.
Shortly after Be & Cheery launched its artificial meat snack, Starbucks announced on February 26 that its 1,200 Canadian coffee stores would start selling Beyond Meat plant-based breakfast sandwiches the following week, marking the first time the world's largest coffee chain offered 'artificial meat' products.
It's clear that the overseas artificial meat market is highly competitive, with Beyond Meat, Impossible Foods, Kellogg's, Cargill, Nestlé, and PepsiCo vying for retail and foodservice market share.
Compared to the intense competition abroad, the domestic market appears relatively calm, with few companies involved in artificial meat. On February 27, Shuangta Food hit the daily limit up, its 20th such move in a year, due to its subsidiary signing a contract to sell 85% pea protein to Beyond Meat.
Looking at the stock trends of Beyond Meat and Shuangta Food, Shuangta is clearly seen as China's version of Beyond Meat, with both companies rising nearly 200% in less than a year. After all, Shuangta had already partnered with Beyond Meat before the artificial meat concept gained traction. Meanwhile, Jinzi Ham's beef-flavored plant-based patties, produced in collaboration with DuPont, are already available on Taobao.
In the domestic market, most companies are still in a wait-and-see mode regarding artificial meat, with those involved keeping a low profile. The only domestic funding for 'artificial meat' is a seed round of several million yuan for the company 'Zhen Rou'. Additionally, many large food or meat companies are investing in R&D, formulations, and market research related to artificial meat.
Recently, Fujian Qingshan Paper Industry Co., Ltd., listed for over a decade, officially began laying out its 'artificial meat' market strategy, developing healthy 'plant-based artificial meat' products with research teams.
Brands like Haixin Food and Anjoy have also expressed intentions to enter the artificial meat space. While foreign markets see fierce competition, domestic players are quietly positioning themselves. Be & Cheery's artificial meat snack may help drive the development of China's artificial meat market.
**-02- Vegetarian Meat vs. Artificial Meat**
Some might say that Weilong, Xiange, Jin Mofang, and Three Squirrels also have snacks similar to artificial meat. In fact, these products can be called 'vegetarian meat', which is quite different from artificial meat. Common domestic vegetarian meat is a soy product that imitates meat. The differences are mainly in the following aspects:
**Different raw materials:** Vegetarian meat primarily uses soybeans and tofu skin; artificial meat mainly uses plant proteins extracted from legumes. For example, the smoked mini sausages use plant protein ingredients, combined with secondary purified konjac flour and other ingredients.
**Different processes:** Vegetarian meat involves physical processing, while artificial meat involves chemical separation. Vegetarian meat is typically formed through thermal processing like extrusion and cooking to mimic meat texture, with meat flavors added to create various tastes.
Artificial meat's process is more complex, aiming to replicate meat characteristics while adding nutrients for a more balanced nutritional profile. Be & Cheery's product is produced through technical cooperation with DuPont.
**Different nutrition:** Vegetarian meat is a secondary processing of soy products, while artificial meat aims to replicate more of meat's nutritional components.
Thus, vegetarian meat and artificial meat are fundamentally different. Currently, artificial meat is mainly targeted at foodservice channels, while vegetarian meat appears more in retail. Be & Cheery's launch of China's first artificial meat snack can be seen as expanding artificial meat into a new category.
**-03- Does the 'Artificial Meat' Market Have Potential?**
According to Beyond Meat, in the long term, the U.S. artificial meat market could reach $35 billion, and the global market could reach $182 billion. The potential is enormous. But does the 'artificial meat' market in China truly have potential?
**1. Changing Consumer Demand**
Domestic consumers are increasingly demanding healthy foods, and younger consumers are more willing to try new things. For instance, Be & Cheery's artificial meat snack has attracted much consumer attention.
**2. Shifting Mindsets**
Mindset is a major factor influencing consumer demand. As vegetarianism grows in China, plant-based artificial meat will certainly attract this group. This is evident from the widespread acceptance of vegetarian meat in China, which consumers have generally embraced.
**3. Product Demand**
In recent years, plant-based protein foods have frequently appeared in the Chinese market, including first-tier brands like plant-based protein beverages. Consumer demand for plant-based protein products is steadily increasing.
**From the perspectives of consumer demand, mindset, and product demand, the domestic artificial meat market has great potential, but it won't be quickly realized in the short term. This is mainly due to the following points.**
**(1) Primarily Foodservice Channels**
Currently, China's artificial meat is still in R&D, mostly appearing in foodservice settings. In 2019, artificial meat was made into dishes like chicken rolls, lion's head meatballs, cold noodles, and burgers at Alibaba's Xixi Park canteen, and was showcased at the Taobao Maker Festival media conference in August. The few artificial meat products launched domestically are mostly for foodservice.
**(2) Low Consumer Education**
When mentioning artificial meat, many consumers associate it with counterfeit products, mainly because the concept isn't widespread in China. Additionally, psychological factors make consumers sensitive to artificial meat, so habits won't form quickly. Therefore, consumer education is crucial for artificial meat to enter the Chinese market.
**(3) Higher Prices**
Currently, artificial meat is more expensive than real meat. On Tmall's flagship store, Be & Cheery's artificial meat sausages are priced at a promotional 14.9 yuan per 160g pack, with a standard price of 33.8 yuan. In comparison, Be & Cheery's hand-torn vegetarian meat is 29.7 yuan per 200g pack. This places artificial meat snacks in the mid-to-high-end range.
**In foodservice, artificial meat is even pricier due to complex production processes and lack of scale to reduce costs.** Thus, for a considerable period, artificial meat prices will remain relatively high.
Therefore, **in the domestic market, artificial meat faces difficulties in short-term development: first, few companies have entered, and products are scarce; second, consumer awareness is still nascent.** However, in the long run, as more companies enter and consumer awareness grows, artificial meat products still have significant development space in China.
**-04- What Does Be & Cheery's Entry into Artificial Meat Mean for the Snack Industry?**
**A month after Be & Cheery launched its artificial meat snack, food and beverage giant PepsiCo announced it would acquire Be & Cheery from Haoxiangni for 4.953 billion yuan. Earlier, in 2018, PepsiCo had acquired Health Warrior, a plant-based health food company focused on superfoods.**
Beyond valuing Be & Cheery's diverse product categories, asset-light model, and e-commerce focus, we can speculate that PepsiCo might leverage Be & Cheery to enter the artificial meat snack market in China.
After launching its first artificial meat product, Be & Cheery revealed plans to soon release a second artificial meat product and a second-generation product developed with DuPont, making artificial meat snacks even more snack-like. With the PepsiCo acquisition finalized, it may provide technical support for Be & Cheery in the plant-based protein field.
**For Be & Cheery, launching artificial meat snacks not only supplements its product line but also enhances its brand competitiveness.**
**For the snack industry, Be & Cheery's pioneering move will accelerate other brands' entry into artificial meat snacks.** Among snack brands, Three Squirrels already has vegetarian meat snacks, while Lai Yifen stated in 2019 it wouldn't touch the artificial meat concept. But with Be & Cheery's new product, it remains to be seen if Lai Yifen will change its stance.
**It's foreseeable that as artificial meat technology becomes more widespread, more snack brands will enter the field. Online channels will be the best promotion platform for artificial meat products, given their traffic, rich formats, and proximity to younger consumers. Artificial meat snacks may debut as premium products.**
In the future, more innovative brands may emerge in the artificial meat sector. Especially after the pandemic, consumers' demand for healthy foods is growing, accelerating the snack industry's shift toward health. However, it's undeniable that **'artificial meat' hasn't yet gained widespread consumer recognition and may appear as a niche product in the short term. In the long run, as production technology advances and more brands enter, costs will decrease, making prices more affordable.**
Be & Cheery's launch of artificial meat snacks is not only a bold innovation for the brand but also a driving force for the snack industry. Amidst increasing product homogenization, Be & Cheery's move stands out as a refreshing change. In the face of fierce market competition, proactive change is the driving force for sustainable brand development.


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## Citation metadata

- Publisher: New Distribution
- Author: 李青林
- Published: 2020-03-04
- Canonical: https://xinjignxiao.com/en/articles/be-cheery-s-new-artificial-meat-snack-a-new-opportunity-for-the-snack-in-c345c30b/
- Original source: https://mp.weixin.qq.com/s/9NR9IlqxKeUjwCEcg5_wQw

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