Guotai Haitong: The era of new proteins is beginning, and the Chinese market for mycoprotein may usher in explosive growth.

Guotai Haitong released a research report stating that mycoprotein is an efficient new 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. As various microbial proteins continue to be approved and launched in China, downstream applications are expanding from single protein ingredients to multiple categories, and the mycoprotein industry is expected to see explosive growth in the Chinese market. Guotai Haitong's main points are as follows: What is microbial protein? Microbial protein is an efficient new 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. At the same time, the two product forms of mycoprotein (wet basis/dry basis) can greatly satisfy various application needs of downstream food products, and can be blended and processed with other food ingredients, making it a high-quality new protein source capable of large-scale commercial production at present. Why is microbial protein needed? Traditional animal and plant protein supply faces high pressure, weak elasticity, many constraints, and insufficient supply relative to demand. Complete batch fermentation of microorganisms typically completes cell harvesting within a few days, while livestock and poultry breeding and fattening and crop growth require months or more. Under the long-term growing demand trend for cost-effective protein, obtaining protein from microorganisms has become a practical and feasible 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-level production, and overseas demand and consumer acceptance for mycoprotein have been validated. Microbial protein has entered the early industrialization stage in the domestic market Since 2023, the National Health Commission has repeatedly approved yeast protein and various Fusarium protein ingredients. As industry capacity is gradually released, downstream food applications are expected to continue to enrich, and consumer acceptance of mycoprotein may gradually increase. Under the premise of continuously growing domestic protein demand, the bank believes that the industry's industrialization process is expected to accelerate. Tianjin Ringpu Bio-Technology's mycoprotein Tianjin plant is expected to commence production by the end of 2026, and it is an important enterprise in China's microbial protein sector. Risk warnings Risk of downstream demand falling short of expectations, risk of reduced production efficiency, and food safety risks.