Zhitong Finance APP learned that Huachuang Securities released a research report stating that microbial protein, which relies on microorganisms to produce protein, represents an active exploration of future food development directions under the "comprehensive food concept." In recent years, breakthrough progress has emerged frequently, from yeast protein being approved as a new food ingredient to domestic leading companies successively obtaining US GRAS certification, with commercialization steadily advancing. The microbial protein market represents a blue ocean worth tens of billions, with technology as the core competitive element and production capacity strengthening first-mover advantages. The firm recommends focusing on Angel Yeast Co.,Ltd. (600298.SH) and Jiangxi Fushine Pharmaceutical Co.,Ltd. (300497.SZ), which are expected to achieve large-scale commercialization first.
Huachuang Securities' main viewpoints are as follows:
**Microbial Protein: A New Protein Choice That Is More Nutritionally Balanced, Efficient, and Clean Under New Technology Empowerment**
Currently, China's market demand for high-quality protein continues to rise, but on the supply side, plant protein faces import dependency, while animal protein has limited production capacity and insufficient environmental protection. Overall, there is a gap between supply and demand for high-quality protein. Alternative proteins are manufactured based on new food technologies, with core advantages of nutritional balance, high efficiency, and cleanliness. In the medium to long term, as technology matures and costs decline, they are expected to become a breakthrough solution and deliver a dimensional reduction strike to traditional protein production.
Microbial protein is a subcategory of alternative proteins that stands out due to its technological superiority. It can develop proteins that meet specific attribute requirements, has high production efficiency, and greater potential cost reduction space. Commercialization is currently accelerating.
**Stage and Potential: Introduction and Validation Period, Accelerating Commercialization, Expected to Generate 60 Billion Blue Ocean Increment**
The earliest application of microbial protein in food can be traced back to 1985 when British company Quorn developed savory pies. Industry pioneers subsequently made forward-looking layouts in this field in the 2010s, and food-grade commercialization accelerated from 2020, currently in the introduction and validation period.
Microbial protein has two major technical pathways: biomass fermentation and precision fermentation. The former involves directional screening of target microorganisms, while the latter involves designing and modifying microorganisms through gene editing or mutagenesis modification, with higher technical difficulty. Correspondingly, the former has higher commercial maturity with meat and dairy products being popular layout areas, while the latter has slightly lagging progress, with products being functional proteins mostly used as additives or culture medium components with higher added value.
In terms of potential space, the firm calculates that under neutral expectations, China's microbial protein raw material factory-gate market size will be approximately 60 billion yuan by 2035. The core catalysts mainly depend on: first, technological progress and launching explosive products to accelerate penetration; second, if policy subsidies support its replacement of traditional animal protein, the space will be further expanded.
**Enterprise Layout: Startup-Type Excels in Technological Innovation, Traditional Track Leaders Have Capital and Business Synergy Advantages**
**Startup-Type: Flexible Innovation, Technology Leadership.** Leading startup-type enterprises excel in technological innovation and lead the industry, such as UK's Quorn, which conducted high-throughput screening of filamentous Fusarium as early as the 1960s and developed meat products based on this. US Impossible Food leads precision fermentation technology, developing plant hemoglobin to improve the flavor and color of plant meat. In China, startup-type enterprises represented by Changxin Biotechnology and Momi Biology follow closely in R&D progress, with multiple protein products passing US GRAS certification and commercial mass production imminent.
**FMCG/Meat Product Leaders: Light Asset Entry, Channel and Brand Advantages Can Be Reused.** FMCG companies and traditional meat enterprises lack technological advantages and mostly adopt light asset approaches such as investment and cooperative product development. For example, FMCG companies like Nestlé cooperate with US precision fermentation whey protein pioneer Perfect Day to develop animal-free dairy products, with brands endorsing products and reusing channel advantages for sales testing in some US regions.
**Fermentation Leaders: Hands-On Entry, Self-Built Capacity, With Synergistic Advantages in Strains, Technology, and Equipment.** Fermentation leaders like Anheuser-Busch InBev and Angel Yeast Co.,Ltd. have accumulated industrial fermentation experience and knowledge, entering the field based on business synergy. Domestically, Angel and Jiangxi Fushine Pharmaceutical have taken the lead in building 10,000-ton-level production capacity, far exceeding startup-type enterprises in scale.
**Competition Outlook: Technology as Core Competitive Element, Leading Startup-Type Enterprises and Fermentation Leaders With Both Technical and Capital Advantages Expected to Compete Favorably**
Technology is the underlying competitive element throughout all development stages of microbial protein enterprises, determining whether successful R&D and pilot-scale expansion can be achieved, whether regulatory approval can be obtained, and whether high-quality and affordable end products can be developed. Additionally, production capacity raises entry barriers through capital requirements, consolidates first-mover advantages through construction cycles, and scaling up capacity helps release economies of scale and reduce costs, benefiting first-movers to enter positive business cycles faster.
Leading startup-type enterprises can easily obtain financing support, while fermentation giants have both industrial fermentation technology synergy and strong self-generating capabilities. Both types of enterprises are expected to have competitive advantages.
**Risk Warning:** Technology development may fall short of expectations, consumer penetration rates may increase slower than expected, and there may be omissions in sorting related enterprises and information.
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