Мохд Асиф
Российский экономический университет имени Г. В. Плеханова
магистрант (Международный инновационный менеджмент)

THE SOCIAL AND ECONOMIC IMPACT OF THE LAB-GROWN FOOD INDUSTRY

Mohd Asif
Plekhanov Russian University of Economics
Master’s Student (International Innovation Management)

Abstract
This research aims to investigate the social and economic impacts of the lab-grown foods industry. The lab-grown foods industry is still emerging as more countries focus on developing policy regulations for investing in this sector. The research will focus on "Eat Just" Company, an American-based firm with growing operations in Singapore, Japan, and other Asian countries. The firm uses its 'Good Meat' brand to offer its lab-grown products including chicken and beef items. Through various sources, the study establishes how this enterprise is influencing the industry. In the long run, the study outlines the relationship between the lab-grown food industry, and its social and economic impacts.

Keywords: impact of the lab-grown food industry, relationship between the lab-grown food industry and its social and economic impacts


Рубрика: 08.00.00 ЭКОНОМИЧЕСКИЕ НАУКИ

Библиографическая ссылка на статью:
Мохд А. The Social and Economic impact of the Lab-grown food Industry // Современные научные исследования и инновации. 2022. № 5 [Электронный ресурс]. URL: https://web.snauka.ru/issues/2022/05/98151 (дата обращения: 20.04.2024).

Introduction

Once, lab-grown food production was a pipe dream among many hardcore environmentalists. Today, the lab-grown food sector has come a long way, with several companies venturing into the industry. The lab-grown food industry has progressed to the extent that countries are increasingly embracing policies to spur production. Equally, this progress is witnessed by actual sales companies make annually from selling lab-grown food products. Amidst this growth, the lab-grown food sector is still an emerging industry. With the many barriers in the industry, an increased number of companies have expressed optimism to release their products out there to the public in a couple of years. One of the firms that have made remarkable progress in lab-grown foods is Just Meat Company. The San Francisco-based company thrives in selling lab-grown meat in Singapore, Hong Kong, Japan, and other markets in Asia. The Asian market is lucrative for lab-grown food items due to their well-defined policy and regulatory framework encouraging this investment. The lab-grown food industry positively influences the society by addressing food security, human health, climate change, sustainability, and cost issues facing the globe.

Literature review

Humans had no option but to produce and consume natural foods sourced from nature and production factories for a long period. Little was known about lab-grown foods that could be produced in a laboratory environment. According to Stevens & Ruperti (2021), lab-grown foods are differentiated from natural foods in their production. Unlike natural foods such as meat that has to be produced by rearing the animal, lab-grown foods are not created in the natural setting. Instead, these foods are made by taking the stem cells of a live animal and creating a conducive environment (nutrient-rich conditions) for growth. For instance, meat could be produced by conducting a small skeletal muscle biopsy. The biopsy is taken from a live animal, and then the stem cells are isolated and grown in a bioreactor fitted with proper conditions for its growth. Under this condition, the cell would be split into fat and muscle cells. The process would create a biomass that is processed, leading to the edible meat as the final product.

A critical attribute associated with lab-grown foods is sustainability. According to Whiting’s (2020) research, lab-produced foods, especially cultured meat offers a sustainable alternative to consumers. Food is one of the basic needs for human survival and productivity. However, the continued exploitation of land, water, and air resources raises concerns over the adverse impacts of food production on the population and the planet. Sustainability is a major concern in the current era due to the sharp growth in the population of people on earth. As the population increases, and resources are exploited to offer enough food to the table, alternative production methods are welcome. Contextually, growth in the production of lab-produced foods would address sustainability issues in the long term. As a future sustainable food production alternative, lab-grown foods are likely to play a significant role in creating better societies. World leaders are looking forward to creating a better and sustainable future by tapping on new technologies and approaches to food production. For this reason, lab-grown foods are timely in creating better societies where natural resources are not constrained. Instead, growth in this industry would reduce the pressure exerted on land, soil, water and others resources to produce food.

Food shortage and poverty are real social issues facing many of the developing and emerging economies. As of the current projections, the globe’s population would be 10 billion in 2050. According to GlobalData Consumer (2021), feeding this population is a big challenge in the industry. This challenge is heightened by the need to boost the volumes produced without compromising the carbon emissions emitted into the atmosphere. Saving the planet is a priority for everyone since it is the only place humans depend on for their food. As the world battles with the pandemic, the food shortage problem threatens many. As of 2020, an estimated 2 billion people have been victims of this shortage. Lab-produced food sources are likely to supplement conventionally produced food. As a supplement, lab-grown foods would significantly help the world population cope with the projected growth in global food shortage. Food shortage and poverty are real enemies of progress in most poverty-stricken societies. When communities cannot access quality and nutritious foods, their health is likely to be compromised, leading to low productivity. Low productivity would affect their utility at the place of work, directly affecting economic growth and development.

Lastly, growth in the lab-grown food industry will create better social lives for people by improving human interactions with nature. In the recent past, human interaction with nature has been worrying. The current climate change and global warming concerns are outcomes of the poor interaction between the environment and humans. The growth of this industry is likely to create better societies by reducing the need to rely on conventional livestock and agriculture practices responsible for global emissions. According to Gillafrica (2021), conventional agriculture practices accounts for an estimated 14.5% of all GHG gases emitted. The effects of these gases cannot be understated, as they are largely responsible for the climate change and global warming issues evident today.

Methodology

Object of the research: Eat Just (US based company)
Subject of research: To investigate the social and economic impacts of the lab-grown foods industry.

Theoretical background

This study involved the use of a qualitative approach where a diversity of secondary literature sources, including articles, books, and websites were used. The choice of this research design was informed by the need to gather sufficient information in regards to the trends in the production of lab-grown foods across the globe. Equally, this approach enabled the research to develop substantive approaches to unearthing evidence on the impacts of the industry on communities. The researcher sought to establish the economic and social impacts of investing more in lab-grown foods, addressing critical global problems. The research design helped the researcher successfully establish the correlation between the lab-grown food industry and the well-being of society.

Hypothesis 

This study has two hypotheses, the real and the null hypotheses.

H1: Lab-grown food industry growth has contributed to the social and economic well-being of society by addressing food security, human health, climate change, sustainability, and cost issues facing the globe.

H2: Lab-Grown Food industry growth has not had any contribution to the social and economic well-being of the society by addressing food security, human health, climate change, sustainability, and cost issues facing the globe.

Data Collection 

The study deployed secondary data sources, including articles and books. The diversity of secondary sources on this subject was available through diverse databases. The researcher selected sources that presented credible and relevant information on lab-grown food products and their social and environmental impacts. The collected data were subjected to an analysis process, leading to the findings. The findings of this research are captured in the subsequent sections. The use of secondary data sources helped enable the researcher to offer evidence for the findings presented.

Research Ethics 

The researcher was keen to observe ethical principles in conducting this study. First, the researcher observed the need to research and write original work. It was necessary to present research findings that were non-plagiarized. For this reason, all borrowed materials were appropriately cited. Also, the researcher was keen to maintain proper codes of conduct with the supervisor to make this project a success. Observing professional research protocols allowed the researcher to run the research process without failure.

Findings

This research finds the lab-grown food industry to have social and economic effects in people living in different parts of the world. First, the study establishes Eat Just Company as one of the most progressive firms in the industry. The San Francisco-based firm has successfully made significant in-roads to the international markets, including Singapore, Japan, Hong Kong, and others. The firm makes and sells lab-grown chicken nuggets to different consumers through its ‘Good Meat’ brand. Through the chicken nuggets sold through its outlets, the firm pursues markets receptive to lab-grown food products, including Singapore. In Singapore, lab-grown meat has had high penetration levels among consumers who increasingly have embraced new items.

Equally, this study established that lab-grown food items are increasingly evolving from being a product for the few but to the mass markets. Companies are increasingly targeting to reach out to the public markets. Although real barriers against its penetration in terms of legal and sociocultural factors exist, companies in the sector have largely embraced changes in policy targeting the wider public (Stevens & Ruperti, 2021). For instance, Eat Just Company partners with other restaurants to introduce its lab-grown chicken nuggets to the wider public by opening a window to a delivery service. After introducing the new product to the market, the demand for the items has been on the rise. This trend reveals that the sector would significantly impact the food industry.

Another finding is that the lab-grown food industry grows in the volumes of products and servings made. In this regard, lab-grown food manufacturing companies are increasing their sales and profitability, contributing to the economy (Whiting, 2020). The growth of the lab-grown food company producers means a lot for the economy. This sector expands the volumes of food items sold in the market. As this growth becomes evident, more job opportunities are created. The projected growth in this industry would lead to the significant economic performance of the economy. The food sector, primarily in agriculture and hospitality, contributes significantly to the national GDP of many countries in the West, Latin America, Asia, Europe, China, and the Asian region.

Moreover, this study established that the growth of the lab-produced food industry directly impacts the social lives of individuals in the unforeseen future. Currently, many communities are involved in rearing animals for meat and dairy products. As the lab-grown food sector expands, meat producers are likely to reconsider their stand and move towards this industry. This trend will lead to enhanced efficiency in producing meat and other foods. For instance, it would be possible to produce large volumes of high-quality meat products in a relatively lesser period than conventional methods.

The lab-grown food industry would contribute to the better economic performance of economies by reducing the exploitation of resources. The exploitation of resources, especially land, water, and air, is rampant in agriculture. The current conventional production methods are exploitative of these resources, affecting the economy. As communities increasingly embrace lab-grown foods requiring less energy, land and other resources would be protected. In the end, it would contribute to economic posterity. Economic posterity will happen when these resources are used to generate value to communities. There is a high likelihood of economic growth in communities where land and other resources are appropriately utilized.

Also, lab-grown foods are likely to have a significant social impact in society by creating a better environment for all. Creating a better environment and planet for all is a shared responsibility. Lab-grown foods address a major environmental concern; land resources exploitation. Conventional food production methods have placed huge pressure on land, water, and other natural resources (Whiting, 2020). For instance, current estimates indicate that 25% of the total land space/surface supports livestock farming. Equally, another 30% of the global freshwater resources are exploited to sustain the production of dairy and meat products. These statistics reveal that the conventional approaches to food production are largely exploitative of the natural resources. For this reason, lab-grown food alternatives are timely and useful in addressing these issues. Lab-produced food production does not need acres of land, volumes of pesticides, and drugs. Instead, it allows food producers to make products friendly to the planet.

Although the current cellular agriculture has not achieved the environmental objectives it was meant to address, there is no such optimism that this goal would be addressed soon. Lab-grown foods, especially beef products, are a timely resource as they add value in creating efficient production systems (Gillafrica, 2021). As compared to conventionally produced beef, lab-grown meat is proven to be more economically friendly. The economic viability of producing lab-grown meat is economically viable. This study finds alternative food source as critical in the current period, where feeds in the conventional approaches are more expensive (Whiting, 2020). For this reason, companies are under pressure to produce more cell-based foods with reduced emissions. This pressure means that companies have to invest in expanding their capacity to produce lab-grown food products. On the other end, farmers are compelled to find new creative ways to boost their production volumes without harming the environment through added carbon emissions.

Notwithstanding the social and environmental gains of producing lab-grown foods for humans, societal habits are highly unlikely to change drastically. According to Thomson (2019), there is a high likelihood for many societies to express restrain in purchasing these foods in the initial period of its introduction. However, slight changes in the efficiency of the production of cell-based foods could be a game-changer. Contextually, the pursuit of creating more efficient approaches to making lab-grown foods increases the chances for these alternatives to take over the market in the long term. The current trends and successes in the development of lab-grown foods is remarkable. Breakthroughs in the production and sale of these foods in the different global market are indicative of a better future to come. For this reason, investors should consider getting more involved in the sector.

Lastly, the growth of the lab-grown food products will enhance the quality of life of individuals in different societies. People’s quality of social life depends on their access to welfare and basic needs. As noted in the study, lab-grown food products are a remedy to food shortage challenges that are prevalent today. By maximizing on this trend, it is possible to address food shortage and create stable societies. The social impacts of this industry are manifested through the growth of new communities advocating for a better planet for all. To create a better planet, it is essential to protect critical resources, including land and water.

Discussion

Lab-Grown foods, especially meat products are becoming popular today. Thomson (2019) explains that lab-produced foods are the best solution to the economic problems relating to the ecological impacts of conventional livestock farming and agriculture. Lab-grown foods would create economic solutions to the high costs of conventional agriculture and livestock management. Currently, the industry is expanding, which means that more food would be made available for the growing population. As the global population increases, the economy is threatened if the food shortage problem is not fixed. Lab-grown foods play a critical role in addressing the current economic challenge of food shortage.

Also, the economic costs of carbon emissions are high. Addressing carbon emission, climate change, and global warming would help create stable economies. A 2011 lifestyle assessment study established that lab-meat production processes emit 96% less GHG gases, use 45% less energy, and 99% less land. This means that by adopting lab-grown foods, better economies are created. Addressing economic challenges such as land and water resources scarcity should be a priority (Gillafrica, 2021). The continued adoption of lab-grown foods in different communities ensures that these resources are free from unnecessary exploitation. In the same breath, it ensures that economic growth becomes sustainable for the benefit of all community members.

Also, lab-grown foods contribute significantly to creating a better economy. The 21st century is characterized by many startups and established companies involved in the production of lab-grown foods. For instance, Future Meat Company invested an estimated $14 million to build a production plant supporting its process of making cultured meat products (Stevens & Ruperti, 2021). Many other global startups are quickly getting into the industry, revealing the likely contribution that the sector would have on the economy. In the next decade, the lab-grown food sector is expected to experience consistent growth in the volumes and capacity of its companies to offer alternative options to conventional agriculture. This pattern of change will create more jobs and opportunities for people to produce food in the lab settings.

Additionally, lab-grown food production would create better social lives where people would interact better with their animal counterparts. Currently, many countries face the serious animal and human conflict due to intensive agricultural practices to produce food. For instance, animal ranches have snatched communities millions of acres of land that would otherwise have been put to communal use. For instance, it is estimated that the globe has an estimated 70 billion land animals and another 90 billion marine peers that are slaughtered annually for human consumption. Taking these animals out of the food production would improve the quality of life of humans and these species by eliminating disease outbreaks and strain over food.

Conclusion

In conclusion, this study offers evidence showing that lab-grown food industry growth has contributed to social and economic well-being by addressing food security, human health, climate change, sustainability, and cost issues facing the globe. Lab-grown food production requires less water and feeds. Also, lab-grown food production systems cause less GHG gas emissions into the planet. In essence, lab-grown foods have significant economic and social impacts on society. Over time, the industry’s growth will revolutionize food production, leading to global economic growth.


References
  1. Gillafrica, D. (2021). Becoming a commercially available meat product, May 4, 2021. Retrieved from/: https://earth.org/lab-grown-meat/
  2. GlobalData Consumer (2021). Breakthrough for lab-grown meat as Eat Just’s cultured chicken makes it to restaurant tables in Singapore, January 22, 2021. Retrieved from/: https://www.foodprocessing-technology.com/comment/eat-just-lab-grown-meat-restaurant/
  3. Shu, C. (2020). Eat Just to sell lab-grown meat in Singapore after gaining ‘world first’ regulatory approval. Tech Crunch, December 1, 2020. Retrieved from/: https://techcrunch.com/2020/12/01/eat-just-to-sell-lab-grown-meat-in-singapore-after-gaining-world-first-regulatory-approval/?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAAFK7E_DsWfYJ9VvykXKq9xo5dUYsyw1cvZCUyu6AVJYbv7eCxLzG1Qj9ZJ7fJVtLs-1zKaT8rdLawr1rCvRKXgomE1jk4rdBum3GgfSqwUlviU4WMriFY7q2fo20b5UaQ-DGbANKfQjPe1vFMcmBBf6UXHyj4u95lRe06FQDaPUv
  4. Stevens, H. & Ruperti, T. (2021). Lab-grown meat is on the rise. It’s time to start asking tough questions. The Guardian, June 17, 2021. Retrieved from/: https://www.theguardian.com/food/2021/jun/17/lab-grown-meat-no-kill-food
  5. Thomson, A. (2019). Does Lab-grown Food Have the Power to Transform an Industry? Industry Week, April 12, 2019. Retrieved from/: https://www.industryweek.com/the-economy/article/22027450/does-labgrown-food-have-the-power-to-transform-an-industry
  6. Whiting, K. (2020). How soon will we be eating lab-grown meat?, October 16, 2020. Retrieved from/: https://www.weforum.org/agenda/2020/10/will-we-eat-lab-grown-meat-world-food-day/


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