Amid the slowdown in sales of plant-based meat and investment in alternative proteins, innovation is losing a little momentum too, according to a new patent analysis.
Patent filings for plant-based and cultivated meat are mirroring the trends seen in the retail and investment sectors, with the number of applications on a downward correction after years of sustained growth.
That’s the takeaway from the fifth edition of IP firm Appleyard Lees’s Inside Green Innovation: Progress Report, which reviewed global patent filings in the energy, AI, materials and food sectors in 2022.
The analysis revealed that patent applications for cultivated meat fell by nearly 10% from 125 in 2022 to 113 in 2023, a far cry from the 9% increase in the former year. Meanwhile, the decline in plant-based meat filings continued for a second consecutive year, falling by 20% from 280 to 223.
“In the cultivated meat sector, funding, regulation, and consumer uptake remain key challenges for innovators, alongside upscaling and production efficiency,” said Emily Bevan-Smith, a patent attorney at Appleyard Lees.
James Myatt, a partner at the firm, added: “In plant-based meats, sales fell by 12% and some manufacturers have either reduced operations or gone into administration.”
Plant-based meat patent filings fell, but consumer interest may be renewing
The decline in new priority filings (the first patent application for a unique invention) for plant-based meat was largely driven by a 37% dip in the US. European applications were more stable, with the number of filings 30% higher than the US – this is in stark contrast with previous years, where the two regions have competed closely on innovation, and is reflective of a stronger market for these products in Europe.
Unique assignees, which indicate the number of individual patent applicants or owners who have filed a patent for a given technology, for vegan meat alternatives decreased in 2023. This suggests that fewer entities are filing patents and that the industry is becoming more challenging for smaller businesses.
While the flavour and texture of these products were key focuses for companies in 2022, there was an equal decrease in the number of filings in each of these areas in 2023. The reduction was also consistent across all protein types, with applications for tofu and tempeh showing the largest decrease
In terms of companies, Cargill and Unilever made a record number of applications in 2023. The former spotlighted wheat gluten, lentil flour, pea protein and corn protein, while the latter’s surge reflected the eventual sale of The Vegetarian Butcher to JBS-owned Vivera. Fuji Oil and Roquette Frères were also among the top filers, though their totals fell slightly from 2022. And Nestlé had the most significant decrease among the major applicants.
The report suggests that the drop in plant-based meat innovation was possibly due to “continuing commercial difficulties in the industry”, alongside consumer concerns around ultra-processing and unsatisfactory taste and texture. Plus, these products can cost up to 82% more, making them less appealing to shoppers.
That said, the number of filings in 2023 was the third highest ever recorded, and remained higher than at any point before 2020, showcasing continued R&D in the space despite the “apparent wavering of consumer interest in plant-based meat products”.
Appleyard Lees says there are causes for optimism. Plant-based meat products held their own in taste tests with omnivores, just as recent evidence suggests public concerns over the health ills of plant-based meat are largely unsubstantiated.
“It seems possible that a renewed wave of consumer interest in plant-based meat could be approaching, driven by innovations improving the quality of plant-based meats and reducing the cost of their manufacture,” the report reads.
Cultivated meat innovation needs government and investor support
The IP firm argues that patent filings for cultivated meat may have peaked in 2022 – for now. The lack of investment and regulatory uncertainties in the US likely contributed to the 40% fall in applications in the US in 2023. It is now only marginally ahead of Europe and South Korea.
Speaking of which, Europe also saw a 25% decline in patent activity, which Appleyard Lees ascribed partly to a split between pro- and anti-cultivated-meat regulations, along with growing apprehension about the industry’s effect on farmers.
In Asia, though, things were more positive. Japan experienced a doubling in application numbers after then-Prime Minister Fumio Kishida publicly endorsed cultivated meat. South Korea witnessed an increase too, thanks in large part to government support for industry innovation.
There was a decrease in the share of unique patent applicants for cultivated meat in 2023. Dutch cultured pork producer Meatable was the top filer, with applications related to the methods of culturing and maturing cells and increasing fat accumulation to tune flavours.
South Korean conglomerate Hanwha Solutions Corporation was the second busiest applicant. And in the longer term, Ivy Farm Technologies, Upside Foods, Korea Food Research Institute, and Ajinomoto have all been prominent patent filers in this segment since 2019.
“Global patent activity in the cultivated meat sector shows a strong push to appeal to consumers by creating products that closely resemble conventional meat in flavour, texture, nutritional value and cooking behaviour,” said Myatt.
“A significant hurdle for this sector is securing investment and navigating local regulatory environments, which in some geographies (and key markets) are uncertain and polarising,” the report states. “Despite these issues, patent filings are increasing, and may continue to increase, in countries where this technology has government support.”
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