Alternative protein sources have morphed, in just a few years, from a niche product into a mainstream phenomenon. Big players in the meat industry have come aboard this movement, and they must now work to communicate the sizeable impact of this trend and how they reflect their commitments to sustainable production and food security.
Mathilde Chatin, head of food and agriculture at regulatory and campaigning firm Hume Brophy.
What are they?
Alternative protein sources, such as plant-based, microbial-based and edible insects, are ‘eco-friendly’ protein sources, offering potential solutions to the global problems of food shortages, unsustainable farming methods and depletion of natural resources. Products range from imitation meat to plant-based produce and friendly alternatives to everyday products.
According to the Food Security Report, “the UK is a net importer of dairy and beef” but is “largely self-sufficient in production of grains” (producing 100% of its own oats and barley, and 90% of wheat). The UK also “produces over 50% of vegetables consumed domestically”. About 4% of UK consumers are vegans; another 7% are vegetarian. It is expected that by 2025, one in four of us could be vegetarian or vegan, according to recent statistics. Diversifying portfolio ranges and expanding into the alternative protein sector also offer food production companies a more robust position in safeguarding food security, alongside the ongoing efforts to manage global supply and demand trends.
Attracting investments
The interest in alternative proteins is growing, and manufacturers need to communicate the sizeable market opportunity. The UK is seeing increased interest from consumers who – with growing consciousness of their carbon footprint – weigh up alternative diets. The Biotechnical and Biological Sciences Research Council (BBSRC), the UK’s biggest public funder of non-medical bioscience, states in its 2022-2025 strategic delivery plan that it will jointly invest at least £20 million for developing alternative, more sustainable protein sources.
According to a poll by Eden McCallum, fewer than one fifth of respondents said they never avoided specific ingredients they identified as having a greater impact on the environment. While only 7% said they are always vegan, a further 31% said they at least sometimes adopted a vegan diet. This means that the market is growing, and investors should be aware of the potential for growth. In addition, research by economic advisory firm Oxford Economics projected the UK’s cell-based meat industry will be worth £1.7 billion in 2030.
For now, alternative proteins do not receive the attention due to them from investors: according to the BCG, buildings have received 4.4 times more mitigation capital than food production, even though building emissions are 57% lower than those tied to food production. The Project Drawdown group, which assesses climate solutions, places plant-rich diets in the top three of almost 100 options. Investors need to understand that alternative proteins have a much greater impact than other green investments – and manufacturers need to get that message out there.
The Good Food Institute has described 2021 as a record-high year for investments in sustainable protein companies, with an increase of 60% in investments from private capital. This positive trajectory in funding and investment for the alternative protein industry sets the scene for the future of global food producers and encourages industry players to diversify their portfolios and product offerings.
Communicating environmental benefits
It is important to remember that these innovative substitutes will play a role in tackling climate change. The production of plant-based food emits 90% less carbon than traditional meat rearing and processing. Similarly, plant-based food production uses 99% less land than meat. On the other hand, FAO forecasts that global meat consumption will grow by 70-100% by 2050. A large-scale switch to alternative proteins would free up enough of the projected staple crop supply to lower crop prices by as much as 12%. This balanced perspective will give the sector more credibility and scope to collaborate with other stakeholders on climate action.
Engaging with stakeholders
The UK has been named as a potential world leader in alternative protein regulation and development. However, the implementation of alt-protein-specific funding and policy targets will be crucial to making this happen.
The UK Government Food Strategy earmarks £120 million for investment alongside the UKRI in alternative protein research. Through funding and improving the regulatory frameworks, the government aims to support progress on a wide range of issues, including alternative proteins and gene editing.
It is undeniable that the future of food needs to become more sustainable. With political and technology tailwinds supporting the development of this space within the industry, it is hopeful that the agri-food sector will be equipped to tackle geopolitical challenges more efficiently and securely.
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