With the new year underway, we continue our snapshot series on Japan’s cultivated meat industry. In this installment, Meros analyst Sachika Onaka focuses on the overseas and Japanese regulatory landscape and reflect on key regulatory developments in 2024.
Overseas regulatory landscape
Singapore is the world leader in terms of implementing cultivated meat regulation. In 2020, it became the first country to approve the sale of cultivated meat when it approved Eat Just’s GOOD Meat, a cultivated chicken product. In 2023, the US followed suit by approving the sale of cell-cultivated chicken products from GOOD Meat and UPSIDE Foods, and in January 2024, Israel approved the sale of Aleph Farm’s cultivated beef.
In a first for the EU, the Netherlands established a code of practice in 2023 to allow for the tasting of cultivated meat, which had previously been illegal, even for researchers. Under the code, approved companies can conduct tasting events for up to 30 people in controlled and safe conditions.
Global legislative momentum continued in 2024, with the Korean government announcing the creation of a regulation-free zone to promote the R&D, production, and commercialization of cultivated meat in May. Similarly, in October, the UK government announced its intention to create a cultivated meat regulatory sandbox – an experimental space where companies can test their products under relaxed rules.
On the other hand, we have seen regulation move in the opposite direction in some places, with some states in the US and Italy taking steps to ban cultivated meat. In 2024, Florida and Alabama in the US signed into law legislation banning the manufacture, sale or distribution of cultivated meat. This reflects the mixed responses and concerns to cellular agriculture technology.
Japanese regulation on cellular agriculture – a regulatory grey zone
Currently, there is no explicit regulatory reference that either restricts or legalizes the sale of cultivated meat and seafood in Japan. This regulatory uncertainty is arguably the biggest hurdle for both domestic and foreign startups and companies wanting to continue R&D, conduct consumer tests, and develop manufacturing plants in Japan. As it is not illegal to conduct tastings, research labs and industry associations have organized private and restricted tastings. However, within the Japanese industry, there is a tacit understanding not to conduct public tastings or sell products until there is legal clarity. If public tastings of cultivated meat are conducted before regulatory approval, there is concern that the Ministry of Health, Labor and Welfare (MHLW) could invoke the Food Sanitation Act Article 7, effectively banning cultivated meat and seafood, creating an uphill battle for the industry.
The Consumers Affairs Agency (CAA), the Food Safety Commission of the Cabinet Office, and the MHLW are the key agencies responsible for developing the safety regulations and approval process of cultivated meat in Japan. They continue to monitor legislative developments abroad while continuing discussions around the formation of an approval process. For example, the Food Safety Standards Council of the CAA, which oversees the creation of food safety standard for cultivated met, is discussing and examining safety considerations at each stage of the production, including cells, inputs, processing and contamination risks. The council most recently met in November 2024 with the key takeaways from this meeting can be found on the CAA website or here in Japanese.
Although discussions on safety guidelines for manufacturing cultivated meat have begun, it remains unclear when Japan will finalize the approval framework and relevant legislation. Nevertheless, there have been developments. On October 21st, 2024, the Japan Association for Cellular Agriculture (JACA) – the industry association that advocates for and advises the Japanese government on regulations related to cellular agriculture – submitted proposals to both the CAA and the Ministry of Agriculture, Forestry and Fisheries (MAFF). The proposal contained two key recommendations: the establishment of a ‘consultation service’ and the clarification of the legal procedures required for market entry.
One factor often attributed to the slow progress in Japan’s cultivated meat approval process is the deadlock between the lack of a finished product available for testing by agencies and the companies’ preference for a clear regulatory framework before investing further into product development. JACA’s proposed consultation service would be established by the relevant agencies as an information hub and helpdesk to assist companies in identifying potential regulatory or safety issues as they develop products. It would also allow the government to collect manufacturing and production data from companies, which could help facilitate the formation of an approval process. JACA hopes that this exchange of information will allow both sides to move forward without stalling technological innovation.
Other challenges & recent developments
Legal clarity is the first of many challenges facing the cultivated meat industry. Other key issues include scaling production, lowering costs to reach price parity and increasing consumer awareness to create demand for cell-cultured products.
In Japan, achieving price parity will be critical to grow consumer demand, as the majority of consumers base their food purchasing decisions on safety and cost. This lack of consumer demand and unclear regulatory time frame has resulted in many domestic players focusing on establishing a global presence before turning their attention back to the Japanese market.
Having said this, some other developments in the latter half of 2024 could accelerate the change within the domestic industry. On October 1, 2024, the Good Food Institute (GFI) established a Japan office. GFI is a non-profit think tank that works to accelerate alternative protein innovation, with a focus on plant-based meat, cultivated meat and fermentation technology.
October seemed to be a key month for cultivated meat and seafood, with mainstream media coverage increasing. On October 25th, Japan’s leading business newspaper, the Nikkei published an article comparing Japan’s lack of regulation to other countries and highlighted concerns among the Japanese industry of the lag in progress. The following day Japan’s public broadcaster NHK ran a feature focused on cultivated seafood researchers and startups. With the establishment of GFI Japan and the ongoing efforts of domestic industry associations, we expect increasing coverage of the technological advances in the field.
Another factor in the mix is the upcoming Osaka Kansai World EXPO, running from April 13th to October 13th, 2025. The “Consortium for Future Innovation by Cultured Meat,” consisting of five corporations and Osaka University, is a participant in the Osaka Healthcare Pavillion. The consortium plans to display its 3D printing technology of cultivated wagyu at the pavilion.
Initially, there was some hope among the industry that legislation would be created allowing for tasting events to take place at the Expo. However, the reality is that public tastings are still far away. Regardless, displaying the 3D-printed cultivated wagyu meat will generate increased media coverage and consumer interest, creating a golden opportunity to increase awareness and understanding of cellular agriculture technology.
As the cultivated meat industry evolves, Team Meros will continue to monitor these developments in 2025. Please stay tuned for the next installment, where we’ll focus on cultivated seafood and its potential in Japan!
For further insights on cultivated meat, foodtech and biotech for food and agriculture, please reach out to inquiries@merosconsulting.com
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