According to the Zhitong Finance APP, Huachuang Securities released a research report stating that microbial protein, relying on microorganisms to produce protein, is an active exploration of the future food development direction under the &#34;Big Food Concept.&#34; In recent years, there have been breakthrough developments, from the approval of yeast protein as a new food ingredient to domestic leaders obtaining U.S. GRAS certification, with commercialization steadily advancing. The microbial protein market is a blue ocean worth billions, with technology as the core competitive element, and capacity enhancement reinforcing first-mover advantages. It is recommended to pay attention to ANGEL YEAST (600298.SH) and Fushine (300497.SZ), which are expected to achieve large-scale commercialization first.
<h2>The main viewpoints of Huachuang Securities are as follows:</h2>
Microbial Protein: A New Nutritionally Balanced and Efficiently Clean Protein Choice Empowered by New Technology
Currently, the demand for high-quality protein in the Chinese market continues to rise, but on the supply side, plant protein relies on imports, while animal protein faces capacity constraints and environmental issues. Overall, there is a gap in the supply and demand of high-quality protein. Alternative proteins, manufactured based on new food technologies, have core advantages in nutritional balance and efficiency. In the medium to long term, with technological maturity and cost reduction, they are expected to become a breakthrough solution, posing a dimensional challenge to traditional protein production. Among them, microbial protein is a subclass of alternative protein, standing out due to its technological superiority, capable of developing proteins that meet specific attribute requirements, with high production efficiency and greater potential for cost reduction, and commercialization is currently accelerating.
Stage and Potential: Introduction and Verification Period, Commercialization Accelerating, Expected to Foster a 60 Billion Blue Ocean Increment
The application of microbial protein in food can be traced back to 1985 when the British company Quorn developed savory pies. Subsequently, industry pioneers began to layout this field prospectively in the 2010s, and since 2020, the commercialization of food-grade products has accelerated, currently in the introduction and verification period. Microbial protein has two main technological paths: biomass fermentation and precision fermentation. The former involves the directional screening of target microorganisms, while the latter involves genetic editing or mutagenesis to design and modify microorganisms, which is technically more challenging. Accordingly, the former has a higher level of commercial maturity, with meat and dairy products being popular areas of layout, while the latter is slightly lagging, with functional proteins primarily used as additives or culture medium components, offering higher added value. In terms of potential space, the firm estimates that the market size for microbial protein raw materials at the factory end in China is about 60 billion yuan by 2035 under neutral expectations, with core catalysts mainly depending on technological progress and the rapid penetration of blockbuster products, as well as policy subsidies supporting the replacement of traditional animal proteins, further opening up the space.
Corporate Layout: Startups Excel in Technological Innovation, Traditional Industry Leaders Have Financial and Business Synergy Advantages
Startups: Flexible innovation, technology-driven. Leading startups excel in technological innovation and lead the industry, such as the British company Quorn, which high-throughput screened filamentous fungi as early as the 1960s and developed meat products based on it; and Impossible Foods in the U.S. leading precision fermentation technology, developing plant hemoglobin to improve the flavor and color of plant-based meat. In China, startups represented by Changjin Bio and Momi Bio are closely following the pace of pioneers, with multiple protein products passing U.S. GRAS certification and commercialization mass production imminent
Fast-Moving Consumer Goods / Meat Products Leader: Light asset entry, reusable channel and brand advantages. Fast-moving consumer goods companies and traditional meat companies lack technological advantages and often adopt light asset approaches such as investment and cooperative product development. For example, Nestlé collaborates with the American precision fermentation whey protein pioneer Perfect Day to co-develop animal-free dairy products, leveraging brand endorsement and reusable channel advantages for sales testing in certain regions of the United States.
Fermentation Leaders: Engaging in the market and building production capacity, possessing synergistic advantages in strains, technology, and equipment. Fermentation leaders like Anheuser-Busch InBev and ANGEL YEAST have accumulated industrial fermentation experience and knowledge, entering the market based on business synergies. In China, ANGEL and Fushine have taken the lead in building production capacities of tens of thousands of tons, significantly higher than startup companies.
Outlook on the Landscape: Technology as the core competitive factor, leading startups and fermentation leaders possess both technological and financial advantages, expected to have a competitive edge.
Technology is the underlying competitive factor throughout the development stages of microbial protein companies, determining whether successful research and pilot scaling can be achieved, whether regulatory approvals can be obtained, and whether cost-effective end products can be developed. Additionally, the capital requirements for production capacity raise entry barriers and the construction cycle solidifies first-mover advantages. Increased production capacity helps release economies of scale and reduce costs, benefiting first movers to enter a positive operational cycle more quickly. Leading startups find it easier to secure financing, while large fermentation companies possess both industrial fermentation technology synergies and strong self-sustaining capabilities, with both types of companies expected to have a competitive advantage.
Risk Warning: Technology development may fall short of expectations, consumer penetration rates may not increase as anticipated, and there may be omissions in the review of related companies and information

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300497

Huachuang Securities released a research report, recommending attention to ANGEL YEAST and Fushine, as these two companies are expected to be the first to achieve large-scale commercialization of microbial protein. The microbial protein market has enormous potential, with technology being the core competitive factor. Currently, the demand for high-quality protein in China continues to rise, creating a supply-demand gap. Microbial protein, with its balanced nutrition and efficient cleanliness, is accelerating the commercialization process

Huachuang Securities: The commercialization of microbial protein is accelerating, suggesting to pay attention to ANGEL YEAST and Fushine