By 2027, the alternative proteins market is expected to be worth $27.05 billion, but what exactly are they and who are the key players?
Alternative protein is a general term for animal protein alternatives produced through plants, algae, fermented proteins, cultured or ‘clean’ meat, and even insects. Consumers are increasingly switching to alternative proteins as they become aware of the carbon emissions, water consumption, deforestation, and moral dilemmas associated with traditional animal farming.
These changes have boosted entrepreneurship and start-ups in the FoodTech industry. Memphis Meats now produce lab-grown protein and secured $161 million in funding in 2020 alone. Meanwhile, Perfect Day have developed protein using precision fermentation and have raised $300 million to develop their product. In total, alternative protein companies have raised $6 billion in the last decade, with $930 million in 2020 alone. Investors are backing the development of these alternative protein technologies.
However, while the logic and environmental superiority of alternative proteins might be undeniable, all FoodTech companies must overcome the difficulty of changing customers’ food habits. Customers have frequently commented that some alterative protein products lack the ability to replicate the taste and texture of animal products.
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SubscribeTo combat this, industry leaders such as Quorn and Roquette have called for start-ups to innovate solutions to improve the shape, texture, and taste of alternative proteins as part of the next Future Food-Tech innovation challenge.
Tim Ingmire, Senior Vice President of Research and Development at Quorn told FoodNavigator that it is ‘looking for breakthroughs to allow [Quorn] to mimic the experience of cooking with whole chicken cuts’ and that the company’s focus is on producing something ‘realistic, nutritious and sustainable’ that will make it easy and more appealing for people to switch to alternative proteins.
In my personal business ventures, I have invested in two companies that I believe can overcome this hurdle. ALOHA create plant-based protein products that contain all nine essential amino acids and Eat JUST, whose JUST Egg product is a delicious plant-based alternative to traditional eggs. Created using protein-rich mung beans, JUST Egg has a similar flavour and texture to its animal-based counterpart, making it an attractive alternative protein source for consumers concerned about health, ethics, or sustainability.
What’s sure is that innovation in FoodTech will continue to accelerate and we will see more and more protein production opportunities. As the market grows, protein alternatives will continue to attract considerable financial investment and, while I do not believe that global veganism is a realistic goal, the production of nutritious and attractive alternative proteins is key to reducing our reliance on traditional animal farming.
