The global market for cultivated meat—meat grown directly from animal cells—is projected to grow by over 50% annually by 2030. Initially a high-cost laboratory curiosity, the industry is transitioning to large-scale bioreactor facilities. This shift has driven significant technological breakthroughs, particularly in media formulation and cell line development, which have lowered production costs.
Firms are reinvesting supernormal profits into research and development (R&D) to develop proprietary scaling technologies. This long-term reinvestment is critical to achieving dynamic efficiency, enabling companies to lower their average cost curves over time and introduce superior, more realistic textured products. However, some economists note that the high capital requirements have led to market consolidation, raising barriers to entry for smaller biotech startups.
Define the term ‘dynamic efficiency’ (Extract C, line 8).
