The food industry is responding to demands for plant proteins that are cleaner, tastier and more sustainable. In this opinion piece, Hadar Sutovsky, VP of corporate investments and general manager of the ICL Planet Start-up Hub at ICL, explores how the plant-based sector is evolving into its third major phase.

The plant-based movement is in full swing. According to a recent state of the industry report by the Good Food Institute, global plant-based meat and dairy sales reached $29 billion in 2023, and companies dedicated to producing plant-based meat, seafood, eggs and dairy have reaped an aggregate of private investments amounting to roughly $8.5 billion.

Hundreds of new plant-based meat, seafood, egg and dairy products hit retail shelves in the US in 2023, including plant-based steak, sushi, boiled eggs, beef, ribs and more. Major food corporation continue to engage in the category, releasing plant-based versions of popular branded products like Tyson nuggets, Nestlé mince, Haagen-Dazs ice cream, Kraft Heinz cheese slices and Kraft Mac & Cheese products.

The plant-based protein industry is now evolving into its third major phase. While the initial wave focused simply on providing alternatives to animal products, and the 2.0 era emphasised creating more realistic meat mimics, today's consumers are demanding more sophisticated options. Products must not only taste great but also align with personal health goals, offering high protein content, lower fat and clean label ingredients.

The challenge facing manufacturers now extends beyond merely replicating meat – they must create products that deliver exceptional nutrition while providing a sensory experience that delights the palette, are minimally processed, planet-friendly and resourceful. It may be a tall order, but the food-tech arena is alive and kicking with activity in formulating solutions that can bring these demands to life.

AI-led innovation

Artificial Intelligence (AI) is a powerful tool being leveraged by food-tech companies to drive forward plant-based protein development. These advanced AI systems employ culinary-inspired algorithms to help formulators discover and engineer alternative proteins that can deliver precise sensory parameters, functionality and nutritional values set by commissioners, with unprecedented accuracy and speed.

Through the analysis of vast datasets, AI identifies plant-based ingredients that can effectively mimic the texture, taste and nutrition of animal products. Moreover, AI's predictive capabilities in understanding plant protein interactions enables food-tech scientists to develop increasingly sophisticated plant-based meat, cheese and dairy alternatives.

For example food-tech start-up Protera has developed an AI-driven discovery platform that rapidly identifies promising plant-based protein candidates and their unique functionalities with laser precision. By decoding the fundamentals of proteins, the platform helps create novel proteins that can be seamlessly transformed into a broad range of next-generation food products.

Diversifying protein

The landscape of plant-based proteins is also expanding with new novel varieties entering the scene. Whereas the first generation of plant-based proteins in the 1.0 era depended largely on soya, wheat, and basic legumes that were highly processed and had sensory shortcomings, the 2.0 and 3.0 era has introduced new forms of plant proteins sourced from pea, fava bean, microalgae, mycoproteins and nutritional yeast that are nutritious, versatile and evermore functional.

A recent Mckinsey report projects that ingredients made with biotechnology could play an important role in the future of food. Over the past five years, $4 billion has been invested to develop novel ingredients ranging from mycelium proteins to animal-free eggs.

Food-tech start-up MycoTechnology explores mycelium (fungus) as a plant-based protein source, using innovative fermentation methods to create protein-rich ingredients that provide functional benefits for plant-based products. Elsewhere, InnovoPro utilises chickpea-based protein as a sustainable, allergen-free alternative that has been gaining traction in the food industry.

Plantible Foods derives its plant protein from Lemna, a sustainable aquatic plant, providing an alternative to traditional protein sources. Lemna acts as a high-performance, clean label binder and emulsifier designed to replace methylcellulose as well as eggs in alternative meat and seafood applications.

Hybrid blends which combine plant-based proteins with traditional or fermentation-based ingredients for enhanced functionality are also emerging.

Investing in health and sustainability

With growing consumer demand for better-for-you and good-for-the-planet food and beverage concepts, many major food corporations are seeking to gain their stakes in this burgeoning movement, largely through engaging in corporate venturing.

These companies are implementing strategic initiatives to nurture food-tech startups and access innovative solutions that will help them meet evolving consumer demands.

Danone’s venture arm invested in Nature’s Fynd, a start-up that produces Fy Protein: a fungus-based protein grown through fermentation. This venture comes as part of a strategy to diversify its plant-based dairy and protein offerings beyond traditional soya and almond-based products. This is just one example of many such ventures.

According to the previously mentioned Mckinsey report, while still in their early stages, innovative products from both established CPG companies and ambitious start-ups are already gaining shelf space in retail stores nationwide, and consumers seem to have developed quite an appetite for these products.

In a survey of 1,500 US consumers, more than half expressed enthusiasm for exploring novel plant proteins. This openness is primarily driven by the perception that these innovative ingredients may offer superior health properties, equal or better taste compared to traditional options, as well as enhanced sustainability.  Clarifying these benefits on food labels can further encourage adoption of these products by consumers.

As plant-based proteins become a cornerstone of future food, prioritising nutritional value, sustainability, sensory enjoyment and long-term food security will become essential for food formulators and manufacturers. Embracing innovation and collaboration between start-ups, corporations and academia will be the ingredients of success.