Guotai Haitong has released a research report stating that mycoprotein is an efficient novel protein supply pathway, and overseas consumer awareness and demand have already been validated. As industry capacity is gradually released, China's mycoprotein industry is expected to usher in rapid development.

With various microbial proteins continuously approved and landing in China, downstream applications are expanding from single protein ingredients to multiple categories, and the mycoprotein industry in the Chinese market is expected to see explosive growth. The main viewpoints of Guotai Haitong are as follows:

What are microbial proteins?

Microbial proteins represent an efficient novel protein supply pathway, with nutritional value comparable to traditional meat. The Protein Digestibility Corrected Amino Acid Score (PDCAAS) of mycoprotein approaches 1.0, with a balanced essential amino acid profile, making it a high-quality complete protein. Meanwhile, the two product forms of mycoprotein (wet basis/dry basis) can greatly satisfy various application needs of downstream food products and can be compounded and processed with other food ingredients, making it a high-quality novel protein source capable of large-scale commercial production at present.

Why are microbial proteins needed?

Traditional animal and plant protein supplies face high pressure, weak elasticity, and numerous constraints, with supply falling short of demand. Complete batch fermentation of microorganisms typically completes cell harvesting within days, whereas livestock and poultry breeding and fattening as well as crop growth require months or longer. Under the long-term growing demand trend for cost-effective proteins, obtaining proteins from microorganisms has become a viable pathway.

Overseas company products have completed commercial validation

Currently, Fusarium products from brands such as Quorn, ENOUGH, and Nature's Fynd are already sold in major overseas markets, with brand scale continuing to expand. Leading enterprises have gradually moved from pilot-scale to ten-thousand-ton production, and overseas demand and consumer recognition for mycoprotein have been validated.

Microbial proteins have entered the early industrialization stage in the Chinese market

Since 2023, the National Health Commission has approved yeast protein and various Fusarium protein ingredients multiple times. As industry capacity is gradually released, downstream food applications are expected to continue to enrich, and consumer recognition of mycoprotein may gradually increase. Under the premise of continuously growing domestic protein demand, the bank believes the industry's industrialization process is expected to accelerate.

Rip Biotechnology's mycoprotein plant in Tianjin is expected to commence production by the end of 2026, making it an important enterprise in China's microbial protein production sector.

Risk warnings: Risks of downstream demand falling short of expectations, risks of reduced production efficiency, and food safety risks.