At the end of last month, the U.S. Food and Drug Administration (FDA) evaluated that the cell-cultured salmon developed by Wildtype is safe and approved its sale. While cell-cultured meat made from livestock cells like chickens and cows has been approved in the U.S., this is the first time cultured seafood has been put on the market.
The news about the approval of cell-cultured salmon has recently become a hot topic domestically. This is because Wildtype is the company that SK invested $7 million (about 10 billion won at the time's exchange rate) in November 2022. In August of that year, Chey Tae-won, the Chairman of SK, raised interest by posting a photo of Wildtype's cell-cultured salmon on social media, referring to it as "salmon flesh produced through cell cultivation."
Domestic food corporations are increasingly entering the cell-cultured meat market, which allows for obtaining protein without killing animals. Alternative foods like cell-cultured meat have emerged as future food sources in response to food issues and climate change. Domestic corporations are securing growth momentum by investing equity in startups and engaging in technological collaboration.
◇SK is the most active in investing in cultured meat
Cell-cultured meat is artificial meat created by extracting stem cells from living animals and growing them in a culture medium. It is a fusion of biotechnology and food technology, changing the landscape of the global food industry as social interest in the climate crisis and animal rights grows. In 2020, Singapore was the first to approve chicken cultured meat, and the U.S. officially approved chicken cultured meat products in 2022. Last year, Israel permitted beef cultured meat.
The most proactive corporation in securing cell cultivation technology in Korea is SK. In 2020, SK took its first step into this market by investing in Perfect Day, a U.S. alternative dairy protein company. Perfect Day produces milk protein through microbial fermentation without dairy cows. By last year, they had invested a total of 130 billion won in this company across three rounds.
Subsequently, in 2021, SK invested 29 billion won in Nature's Fynd, which manufactures dairy and meat products through microbial fermentation, and 50 billion won in the British corporation Meatless Farm, which creates alternative meat from plant-based proteins. SK is also investing in various alternative food corporations in China through a joint fund with the Chinese food distribution company Joyvio Group, contributing 50 billion won to this fund.
However, SK has not yet concretized its alternative meat business. A company official noted, "As this is the first FDA approval for cell-cultured seafood, growth in the green food sector is expected in the future," adding that they are reviewing various strategic options for the alternative food business.
◇Investing successively in domestic and international alternative meat corporations
Hanwha has also incorporated cultivated meat technology as a future food source in the process of restructuring its portfolio centered on the bio industry. They are broadening their technological base by investing in the U.S. cell-cultured seafood company Finless Foods and domestic cultured meat startup Danagreen.
The backbone of Hanwha's green bio business is Hanwha Solutions. In 2022, it established a food tech research center in Guro-gu, approximately 240 pyeong in size, and changed its name to the Bio ENG Research Institute the following year.
The center is led by the former COO of Seaweed, a domestic seaweed-based cultured meat startup, who was recruited early last year. Seaweed, founded by doctoral researchers from the Daegu Gyeongbuk Institute of Science and Technology (DGIST), has developed a medium (culture solution) and support structure to grow cultured meat using seaweed.
The former center head also revealed goals to secure growth factor technology that will accelerate the production of cultured meat by next year, and to begin commercialization in earnest from 2030. A company official stated that "we have successfully synthesized growth factors and are currently conducting commercialization tests to see if large-scale production is feasible," adding, "We do not foresee any setbacks in our plans to secure growth factor technology by next year."
Daesang is also ramping up its efforts in the green bio sector. They plan to enter into strategic partnerships with the cultured meat startup SpaceF and cell-cultured medium company Xcell Therapeutics, and to introduce mass production facilities for cultured meat within this year to push for commercialization.
CJ CheilJedang is developing cell-cultured medium materials in collaboration with the domestic startup K-Cell BioScience, while Pulmuone is working with the cultured meat startup Simple Planet to develop a hybrid product combining plant-based ingredients and cultured meat. Samyang Foods, which saw its stock price rise due to its spicy chicken noodles, has also recently started research on cultured meat.
◇Reduce greenhouse gases and ensure animal rights
The reason domestic corporations are increasingly entering the cultured meat market is due to its growth potential. U.S. consulting firm A.T. Kearney predicts that the global cultured meat market will grow to $630 billion (approximately 860 trillion won) by 2040. As consumer interest in animal welfare rises, there is also growing skepticism about the sustainability of traditional livestock farming and fishing.
The Food and Agriculture Organization (FAO) of the United Nations forecasts that 35% of global meat consumption will be from cultured meat and 25% from plant-based alternatives by 2040, while the proportion of traditional meat will decrease to 40%. This conclusion stems from the assessment that livestock farming, responsible for 15% of global greenhouse gas emissions, cannot continue amid the climate change crisis.
Last year, alternative food companies and the corporations that invested in them formed the "Bio Future Food Industry Council" at the Korea Bio Association. The inaugural chairman, Jung Il-doo, the representative of Simple Planet, noted that "Korea's technology is good enough to stand shoulder to shoulder with other countries like the U.S. and Singapore," adding, "We expect to move beyond the research stage this year and see tangible results, such as actual productization."