Beyond Meat executive chairman Seth Goldman said on Wednesday that the company has targeted an end-of-2020 start of production for its Asian expansion, with China as the first launching pad.
In an interview with Reuters, Goldman admitted that there are challenges along the way in the plant-based meat manufacturer's goals of dominating the massive Chinese market - a market that has yet to be tapped by popular products such as the Beyond Sausage.
Goldman said during a food conference in Chicago that Beyond Meat needs to establish "a manufacturing presence" in the country before it can penetrate the market. The process itself involves inking deals with retail customers in the country and quickly building supply chains.
China is still the world's most populous nation, paving the way for many western companies to get a slice of the profits that the world's second-largest economy has to offer. Beyond Meat is faced with a rival in the form of Impossible Foods.
The two companies have been competing to get inside China first so they can gradually expand throughout Asia. The Chinese market is recognized by many sectors, not just in plant-based meat industries, as a starting point in reaching out to other Asian nations.
So far, Impossible Foods revealed in September that it is prioritizing China in terms of expansion in global markets, while Beyond Meat's Goldman clarified that while it is too early to predict the outcomes in the Chinese market, it has been working with an aggressive approach.
In a recent report about the plant-based meat industry by investment bank Barclays, it was forecasted that the sales in the sector could hit $140 billion or around 10 percent of the world's total meat industry in 10 years, Mail Online reported.
The report's predictions came from the apparent success that both Beyond Meat and Impossible Foods are experiencing. It is further expected that more vegan-inspired products will be introduced in the coming years as more people show increasing concern for the environment's deterioration as impacted by traditional meat-manufacturing practices.
Market expert and investor Altschuler Malek noted that for alternative meat products to find success in the global stage, companies should focus on three key factors: producing goods available in large volumes, having reasonable prices, and come with a great taste.
It remains to be seen how Beyond Meat and its rivals will fare with the said factors. On the other hand, the company reported third quarter net sales of $92 million, beating analyst expectations of $82.2 million.
Beyond is currently processing potential partnerships with KFC, Subway, and McDonald's. Tests for the collaboration started in Q3.
