Yes, the alternative proteins sector is thriving

It’s 2024. The early days of the pandemic were nearly four years ago. Alarm over economic turbulence has given way to navigating volatility. Cultivated meat has achieved game-changing regulatory milestones. The alternative proteins industry is currently valued at more than US$8 billion in the USA alone, with hundreds of innovators and established companies and investors entering the space, major advancements happening in science and technology, positive market signals, and growing consumer interest. Increasingly, companies are using AI to expedite R&D. Significant deals are still getting done. In short, the alternative proteins industry is rapidly growing and evolving in exciting ways, while also keeping its eyes wide open on tackling the biggest challenges and opportunities ahead.

Until recently, the sector was still considered nascent, especially for precision fermentation and cultivated meat. Now, however, the industry has firm footing. More than 140 companies dedicated to fermentation exist across 30 countries. At least 100 additional companies have a business line in alternative protein fermentation, including major food companies such as Nestlé, Unilever, and Bel Group. Across 26 countries and in every major world region, more than 150 companies exist that are primarily dedicated to producing cultivated meat. And nearly every one of the top global food companies is involved in the plant-based industry either through investment, acquisition, or partnerships, and most manufacture their own plant-based food products.

Aside from the sheer number of companies flowing into the sector, multi-company collaborations and alliances are another positive sign. Just look at recently formed alternative protein groups: the Fungi Protein Association launched in November 2022; the Precision Fermentation Alliance kicked off in February 2023; and at the end of last year, the Future Ocean Foods Association made its debut. These consortiums underscore the benefits of industry-wide collaboration, knowledge-sharing, and alignment on key market-growing fronts such as consumer awareness, perceptions, messaging, and more.

To produce an adequate amount of food to feed a growing global population with business-as-usual meat production, we will need multiple planets. Yet this is the only Earth we have, and it is in rapid decline

The alternative proteins sector is following the arc of previous transformative innovations, adjusting perspectives as it evolves. Investors are taking a measured approach to funding startups at all stages – requiring proof of concept, techno-economic analysis, and prudent allocation of capital. Manufacturers understand that simply being able to produce a meat, egg, dairy, or seafood analog is not enough. Optimizing for taste and nutrition is now widely embraced as a critical priority. There is greater acknowledgement that technology has a long way to go to achieve the input costs necessary to reach price parity with conventional options, especially for cultivated meat. As a result, timelines are becoming more realistic. The ways people think about possibilities and transitions within the sector are changing as well. There is serious interest in how hybrid/blended options might advance long-term objectives.

Perhaps most importantly, the way we produce food is at long last capturing widespread attention from those working to advance global climate and biodiversity goals. Last year’s COP28 featured an unprecedented focus on food and agriculture, with explicit call-outs acknowledging the role that a transition toward alternative proteins can play in slashing emissions, reversing deforestation, and preventing pollutants from harming ecosystems worldwide. Investors focused on climate tech are considering alternative protein companies as they add to their portfolios. The inclusion of alternative proteins in climate and biodiversity initiatives comes not a moment too soon. Plant-based meat causes up to 98% less emissions and uses up to 93% less land and 99% less water than conventional meat. Cultivated meat could cut the climate impact of meat by up to 92%, reduce air pollution by up to 94%, and use up to 90% less land.

The industry is maturing, getting stronger from experience, and moving quickly as it adapts and grows. As such, this is the perfect time to carefully consider what comes next. What are the true obstacles to progress and innovation? Certainly, government investments in infrastructure and research around the world will be necessary for large-scale commercialization and scaling. We need greater collaboration to promote information-sharing, unlock IP, and achieve critical capacity to meet growing global demand. We must remain open-minded about new technologies and solutions. And we should invite everyone to the proverbial table. There are countless lessons to be learned from existing industries.

The absolute best way to ensure advancement, however, is focus. This is a complex and dynamic sector with a critical, timely mission. Distractions will always abound. They will come in many forms, including economic volatility, geopolitical uncertainty, regulatory blockades, challenging media narratives, and disproportionate attention to a single company’s fate. Amid the noise, however, only one thing matters. To produce an adequate amount of food to feed a growing global population with business-as-usual meat production, we will need multiple planets. Yet this is the only Earth we have, and it is in rapid decline.

Fortunately, we have a solution, a mandate, and momentum. Here’s to alternative proteins continuing to thrive in 2024 and far beyond!

Laine Clark is the Innovation & Entrepreneurship Manager at The Good Food Institute, the international nonprofit working to shift the global food system to options that are better for the planet, people, and animals. This article is republished from the Q1 2024 edition of Protein Production Technology International, the industry's leading resource for alternative proteins. To subscribe to all future editions, please click here