$635 million investment by global governments in alternative proteins

The GFI (Good Food Institute) 2022 State of Global Policy Report emphasizes the need for additional support despite the $635 million investment by global governments in alternative proteins in 2022, urging policymakers to increase funding for innovation, sustainability, and food security to unlock the industry’s full potential.

Alternative proteins are proteins produced from plants or animal cells, or by way of fermentation. Today, consumers have access to various plant-based and fermentation-derived alternative proteins, However, options like cultivated meat are still in development.

Promoting a more environmentally friendly and ethical approach to food consumption, alternative proteins are animal-free ingredients that replace traditional animal-derived proteins like meat, dairy, seafood, and eggs.

These alternative proteins offer a wide array of choices to consumers who want to reduce their reliance on animal products, appealing to environmentally conscious consumers.

They offer a diverse range of plant-based and food-tech options sourced from plants, fungus, algae, and cultured meat, meeting the demand for sustainable, ethical, and innovative food choices while replicating taste, texture, and cost-effectiveness.

In addition to their popularity for being considered healthy and nutritious, plant-based proteins like soy, peas, and pulses are also favored by many consumers for their perceived environmentally friendly profile. Moreover, these ingredients serve as an alternative protein source for individuals with sensitivities to, or those who choose to avoid, meat or dairy.

Global governments in alternative proteins

As per Naturesfynd, the alternative protein industry saw substantial growth in 2020 with a remarkable $3.1 billion in investment, resulting in a variety of innovative options beyond traditional plant-based proteins.

Timo Recker, co-founder of Next Gen Food, shares the belief that alternative proteins have the potential to meet the world’s nutritional needs effectively as per source from economist impact.

The Indian plant-based food market is set to expand at an 11.8% CAGR from 2021 to 2028. By 2030, projections suggest the vegan food sector could encompass 7.7% of the global protein market, valued at US$162 billion.

To further strengthen the burgeoning Alternative protein sector, India’s Ministry of Skill Development and Entrepreneurship introduced the pioneering role of “Plant-Based Food Technologist” in August 2022. This groundbreaking move, a global first, is listed on the government’s National Qualifications Register.

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Consumer interest in plant-based protein options is growing due to various factors. One significant reason is the increasing awareness of the environmental impact of meat production. Livestock farming is a major contributor to greenhouse gas emissions, deforestation, and water pollution. As people become more conscious of the need for sustainable food choices, they are turning to alternative proteins as a solution.

Plant-Based Meat & Initiative

The concept of plant-based meat has evolved over time. While earlier options like tofu and seitan were mainly intended as meat replacements, newer plant-based meats aim to closely mimic the sensory experience of consuming real meat.

Plant-based meat is increasingly integral to vegan diets, with the global market valued at USD 4.40 billion in 2022 and projected to grow at a CAGR of 24.9% from 2023 to 2030 as per report by grand viewre search. This signifies a rising demand as more people embrace plant-based diets.

Utilizing innovative techniques and ingredients like soya, gluten, and pea protein, these products provide consumers with alternatives that resemble the taste and texture of meat, appealing to those transitioning to a plant-based diet or seeking sustainable food choices.

This next-generation alternative is directly produced from plants, resembling and tasting like conventional meat but with additional health benefits like less fat, more fiber, and no cholesterol, while still providing essential nutrients.

With its positive impact on health and the environment, many people worldwide are switching to plant-based diet. Plant-based meat could be a sustainable answer to global environmental concerns.

Frank Hu from Harvard University said that the current animal protein-oriented food system is unsustainable due to population growth and its adverse health and environmental effects. Thus, exploring alternative protein sources becomes crucial for a more sustainable and healthier food system.

Plant-based diets are recommended by experts to enhance both human and planetary health, while excessive animal protein consumption is linked to chronic conditions like heart disease. Replacing some animal-sourced protein with plant protein may significantly lower mortality risk.

Both the Danish Government and Protein Industries Canada (PIC) are actively investing in and supporting the plant-based food industry in their respective countries. As per Veganfirst the Danish Government has committed DKK 675 million to Plantefonden, a plant-based fund, to drive research towards climate-friendly foods in Denmark.

Meanwhile, PIC is offering $10 million CAD to fund AI-based food tech projects that aim to improve plant-based food production in Canada reported at betakit, canadian tech site. This investment is intended to accelerate the commercialization of new foods and ingredients, making Canada’s plant-based sector more efficient and sustainable.

According to Vegconomist, over the past five years, PIC has made substantial investments of nearly $500 million CAD in various Canadian startups and research projects focused on advancing plant protein technologies.

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The report highlights Australia emerges as a plant-based protein industry leader, set to reach $136.35 million USD by 2026. The government’s dedicated investment of AUD 113 million ($74.6 million) in a plant protein production project as reported by GlobalTradeAlert, further strenghtens this leadership position.

Vegconomist confirms Australia’s frontrunner position in this rapidly growing sector, driven by significant investments, totaling $1 million, in facilities for Harvest B’s plant protein factory. With a strong commitment to sustainability, Australia shapes the future of the food industry, meeting rising demand for ethical food choices.

Cultivated meat & Initiative

Cultivated meat, also known as lab-grown or cell-based meat, presents an alternative protein produced by growing animal cells without raising or slaughtering animals. It addresses the environmental concerns of traditional meat production, with livestock raising and slaughter contributing over 50% of greenhouse gas pollution in the food sector.

GFI research shows substantial emission reductions of about 25% for chicken and up to 92% for beef. This makes cultivated meat a promising, eco-friendly, and ethical solution for a sustainable food system with great potential to provide a reliable supply of protein.

By late 2022, the industry saw substantial growth, with 150+ companies receiving $2.6B in investments. Ongoing research aims to make cultivated meat more accessible and widespread in the future.

In November 2022, Upside Foods, a USDA-approved and a leader in cultivated meat based in San Francisco, made history as the first company to receive the U.S. Food and Drug Administration (FDA)’s approval for cultivated meat as per source from PR news wire.

Their groundbreaking achievement positions them to revolutionize the cultured meat industry, with plans to introduce cultivated chicken in restaurants this year and expand to grocery stores by 2028.

Check out :  How is Cultivated meat made?

Eitan Fischer from california, founder of Mission Barns, demonstrated that a single sample from one pig can yield millions of tons of cultivated meat during a taste test at an upscale Manhattan hotel with the Guardian. The quality of the meat, showcased in meatball and bacon, even impressed a vegetarian.

In April 2022, the Israel Innovation Authority granted $18 million for the “world’s largest” cultivated meat consortium. It unites 14 companies and 10 universities to advance cultivated meat technologies, aiming to transform meat production sustainably and ethically.

The project holds great promise in addressing global food challenges and reducing environmental impact. Reported by The Times of Israel.

Denmark invests DKK 675 million ($99.4 million) in “The Plant Fund” to boost its plant-based food industry. The campaign supports brands like Dryk, Naturali, and Cavi-art to expand globally, addressing pressing environmental concerns. According to The Beet’s report, it aims to uplift the plant-based market sustainably.

Highlighting their dedication to sustainability, the Netherlands is at the forefront of shaping the future of protein production.

According to a report from Future Protein Production, a €60 million (US$65 million) investment in cellular agriculture, a pioneering technology creating animal products from cells, has been made through the National Growth Fund. This investment propels the advancement of cultivated meat and agriculture.

Fermented Meat & Initiative

Through ancient fermentation, proteins and fats transform innovatively for various uses. Concurrently, the movement to create new fermented ingredients is rapidly growing. This process utilizes microorganisms, where fermentation produces alternative proteins.

Notably, fermented meat, employing bacteria or yeast, enhances flavor and shelf life under controlled conditions. It’s intriguing that after mastering meat fermentation, its scope extends beyond beef and pork to include seafood. Nevertheless, caution remains essential due to bacterial risks, especially with fermented fish, as it can lead to severe foodborne illnesses like botulism.

Israel’s ministry of health grants approval to Remilk’s innovative precision fermentation-animal-free protein. Additionally, the Israel Innovation Authority (IIA) has recently announced a NIS 50 million ($14 million) investment for a fermentation facility, as reported by timesofisrael.

The State of Global Policy Report highlights global attention on the USA’s recent approvals. China’s focus on alternative proteins in its bioeconomy plan.

In 2022, governments increased support for alternative proteins, but annual backing falls short of realizing full benefits for the economy, climate, and food system. The GFI recommends raising funding for research, development, commercialization, and regulatory measures to ensure safe market entry.