A new San Francisco startup is hoping to combat the trade in shark fins with biotechnology.

New Wave Foods is planning to use genetically modified yeast to produce collagen, which can be crafted into the desired fan-like structure typical of shark fins. “You start with a gel and then stretch it into the right conformation,” says Jenny Kaehms, a bioengineer and co-founder of the company.

It joins a host of startups hoping to tackle the ethical and environmental problems of animal products: Muufri, based in Silicon Valley, is developing “animal-free milk”, while Clara Foods is creating lab-grown egg whites. This follows the unveiling of a stem cell-based beef burger in 2013.

“The idea that is lighting up this entire industry is that you just can’t tell people that something is bad for everybody, so don’t eat it. That is the one thing that doesn’t seem to work,” says Ron Shigeta, science director at IndieBio, which funds innovative biotechnology. “That is why we are all interested in this sort of substitute meat product – it allows people to not change their eating habits.”

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Shark finning, which involves catching the animals, hacking off their fins and throwing the body back into the sea – a trade fuelled by demand for the traditional Asian dish of shark-fin soup – has led to severe declines in shark populations. WildAid, the conservation charity, claims fins from up to 73m sharks are used to make the delicacy every year, while a recent report by the Food and Agriculture Organisation of the UN estimated that world imports of shark fins amounted to 17,154 tonnes with a value of $438.6m (£287m) in 2011.

The idea for a “shark fin without the shark” is part of the goal of New Wave Foods to create what Kaehms terms “sustainable seafood” – but this isn’t the company’s only attempt to change what people put on their plates. Using a different technique, the team is working to produce a shrimp substitute from algae and plant proteins, and is hoping to have the product ready for market by early next year. “Shrimp is the highest volume consumed seafood in the US, so it just made sense for us to start with something that can make the biggest splash,” says Kaehms.

The company has already been exploring commercial interest for its plans. “We have been talking with hotel managers and catering managers and they are interested – there is a big push to remove shark fin from menus,” says Kaehms. But Fuchsia Dunlop, an expert in Chinese cuisine, believes there are still hurdles to negotiate. “One problem is that a lot of the time eating shark’s fin is about showing off and spending lots of money and eating something rare and exotic,” she says. “It is a noble aim to get people to have a substitute, but it would only work in some contexts.”

You just can't tell people that something is bad, so don't eat it. That is the one thing that doesn't seem to work Ron Shigeta, IndieBo

Vegetarian substitutes for shark fin, such as those made from bean noodles, are already on the market, says Dunlop, who also warns that the bioengineered product could end up being passed off as authentic by unscrupulous chefs. However, she believes New Wave Foods’ proposed product might find a niche among some health-conscious consumers who are concerned about pollution in seafood.

It is a consideration that has also occurred to Kaehms, who points to the current halt on crab-fishing off California, the result of toxin-producing algae, as proof that the food industry should welcome innovations. “It is a sign that the whole seafood system is risky,” she says. “We are working on making the best healthy alternatives.”

But conservationists caution that there is no simple solution to end shark finning. “Anything that can suppress the demand or provide an alternative for shark fin is quite helpful in the short term, but there will always be a demand for shark products, whether that’s fin, meat, cartilage or other by-products,” says Paul Cox, managing director of the Shark Trust. “Ultimately, in order to safeguard the future of sharks, we have got to keep pushing for a combination of sustainably managed fisheries and responsible consumer supply chains.”