With South Korea recently advancing regulatory approvals for cultivated meat, the partnership comes at a pivotal time for the industry.
It will both expedite the introduction of cultivated seafood products to the South Korean market and serve as a model for future partnerships across Asia.
One of the largest per capita seafood markets globally, South Korea presents a significant opportunity for the commercialisation of sustainable and ethical seafood solutions.
The plug-and-play production solution
The firm’s model focuses on developing technology and then partnering with companies to bring it to various markets.
“So far, we’ve collaborated with companies interested in building facilities, like Cell Agritech in Malaysia, while also establishing supply chains. This allows us to deliver production capabilities for larger facilities if there is demand.
“In South Korea, our goal is to create a consortium that brings together key suppliers so we can collectively offer scalable and plug-and-play solutions. We aim to identify the right food producer in Korea to collaborate with us as a customer. This consortium will ultimately enable us to work closely with a food production company,” said UMAMI Bioworks CEO Mihir Pershad.
This model promotes scalability, a key focus for the firm.
“One key aspect is technical scalability, but cost scalability is equally important. By letting food producers co-finance or fully finance production, we can tackle the financial aspects of scalability more effectively than if we had to raise substantial funds on our own,” said Pershad.
Technical scalability is influenced by the type of product. For instance, producing chicken nuggets requires reaching a specific minimum scale to be cost-effective. In contrast, when it comes to premium seafood, like unagi, which can cost between $130 to $225 per kilogram at restaurants, the firm can work with smaller volumes and still achieve price parity.
“We consider how much we need to produce to maintain profitability, even with small profit margins, allowing us to start selling without incurring losses. The next critical point is determining the production volume necessary to provide a profit margin that our customers find acceptable, especially since they are investing in the facility. Given that we’re focusing on these premium species, we believe we can achieve this at a lower scale compared to cheaper meats,” said Pershad.
A scalable production model not only reduces costs but also supports sustainability by minimising resource use and stabilising supply – essential factors in making cultivated seafood an environmentally friendly and economically viable option.
However, sustainability alone is not enough to drive demand for cultivated seafood – consumers must be convinced of other benefits that directly affects them.
“The challenge lies in figuring out why consumers should buy cultivated products. While sustainability is often cited as a reason, it hasn’t been a strong enough motivator for consumers.
“It basically comes down to consumers’ self-interest – what do they think makes a product better for them? This will vary across various market segments, but there are common themes,” said Pershad.
In the case of cultivated seafood, food security and potential for customisation are significant growth drivers.
Addressing product stability, food safety, and customisability
Building on a Memorandum of Understanding (MOU) signed on 5 September 2024 between UMAMI Bioworks, KCell Biosciences, and WSG, the collaboration aims to establish a scalable, sustainable domestic production pipeline for cultivated seafood in South Korea.
The pact leverages KCell Biosciences’ expertise in cell culture media, WSG’s bioprocessing hardware, and UMAMI Bioworks’ seafood cultivation technology.
There are notable supply issues in seafood, such as volatility in prices and the low availability of certain seafood, like Japanese eel or bluefin tuna, which are endangered or protected species. Pershad believes that solving these issues could create a strong market niche for their products.
Consistency is key – when consumers see that cultivated seafood products are consistently available on shelves, it builds trust and encourages regular purchases.
Food safety is another crucial aspect in building consumer trust. Unlike wild-caught fish, cultivated seafood allows for rigorous testing, ensuring the absence of harmful substances, which is becoming increasingly important to consumers.
“With cultivated products, we can test every batch instead of just spot-checking like with wild-caught fish. We can guarantee that our products are free from microplastics, antibiotics, and heavy metals – concerns that are increasingly relevant as waterways become more polluted.
“This is crucial in markets like the US and China, where consumers tend to seek healthier, cleaner food options as their disposable income grows,” said Pershad.
There is also potential in customising products to meet consumer preferences. This includes enhancing flavours and nutritional profiles to cater to specific dietary needs without compromising taste.
“For example, if someone enjoys snapper but dislikes salmon yet needs more omega-3s, we could create a snapper with higher omega-3 content. This would meet dietary needs without the undesired flavour. We could even explore reducing the fishiness in certain seafoods,” said Pershad.
The key is to identify what consumers desire but cannot access or afford at their preferred price point, and then developing a strategy to fulfil that demand.
