Alternative Protein: Sustainable & Viable Diet
INTRODUCTION
Interest in “Alternative Protein” tipped strongly over the years, seeing incremental growth, and subsequently attracting huge capital inflow from investors.
According to the market research study published by Custom Market Insights under Forecast, Share, Growth & Trends, the demand analysis of the Global Cultured Meat Market size & share revenue was valued at approximately USD 129.66 million in 2021. Said value is expected to reach around USD 450 Million by the year 2030, at a Compound Annual Growth Rate (CAGR) of fifteen percent (15%) between 2021 and 2026.
This perhaps comes as no surprise as consumers are seeking a cheaper and more ethical diet amidst rising food cost and environmental concerns such as:
Escalating military tensions and violence caused by the Russia-Ukraine conflict; and its subsequent sanctions and boycotts.
Fatalities suffered by the global poultry industry due to the Avian flu, driving chicken meat and egg prices higher.
Rising cost of food production and living due to the energy crisis.
Pressure to reduce pollution, carbon footprint and greenhouse emissions.
Defined as protein derived from sources other than animals, alternative protein in general covers a wide variety of options, including plants, and cultured cell-based meat cultivated and grown under controlled conditions.
In other words, alternative protein is not limited to just one label, but describes a few types of emerging technology including:
Cultivated Meat/Lab-Grown Meat
Edible Insects
Mycoprotein
CATEGORIES OF ALTERNATIVE PROTEIN
Cultivated Meat
Cultivated meat, also known as Lab-Grown Meat, can be defined as an aggregation of animal cells, produced through tissue culture.
Cultivated meat has its origins as early as the year 2013. The first established case of cultivated meat was created by Mark Post, a Maastricht University student, and tested live at the London Conference.
Since its inception, the market has reached a valuation of USD 246.9 million in 2022.
The market is expected to expand at a Compound Annual Growth Rate (CAGR) of 51.6% from 2023 to 2030.
In terms of the weightage of its subsegments, lab-grown burgers dominated the market with a share of around 41% in 2022.
The burger segment is expected to gain notable traction, owing to growing consumer preference for sustainable and ethical meat alternatives.
Top 3 Cultivated Meat Startups In 2023
The strengths of cultivated meat are its flavour profile, nutritional value, and reduced dependency on crop production.
Nutritional Composition: Cultivated meat allows for precise control over the nutritional composition, making it possible to tailor products to specific dietary needs or preferences. This flexibility can lead to the creation of more personalised and healthier meat alternatives.
Taste and Texture: Through the use of tissue engineering techniques, cultivated meat can be developed to closely mimic the taste, texture, and mouthfeel of conventional meat. This can enhance consumer acceptance and satisfaction with meat alternatives.
Reduced Dependency on Crop Production: The cultivation of livestock feed crops, such as soybeans and corn, places a significant burden on agricultural resources. By shifting towards cultivated meat, which can be produced using fewer resources and without the need for large-scale crop production for livestock, the pressure on global crop production systems could be reduced.
While cultivated meats hold promise, there are several challenges and drawbacks presented against this alternative method:
Public Perception and Acceptance: The complex technology involved in cultivated meat production can be perceived with caution by the public. Scepticism and concerns regarding the safety, quality, and naturalness of lab-grown meat may impact consumer acceptance and adoption.
Regulatory Approval: Cultivated meat products are subject to rigorous safety checks by regulatory bodies such as the Food and Drug Administration (FDA) before they can be approved for commercialization and reach the market. This can involve a lengthy and costly regulatory process.
Energy and Resource Intensive: Currently, the production of cultivated meat requires significant energy use and resource costs. Scaling up production to a commercial level while minimising resource consumption and optimising efficiency is a challenge that needs to be addressed.
Animal Serum Use: Some culture media used in the cultivation process of meat cells may contain animal serum, which means that cultivated meat production is not entirely "animal free." This raises ethical concerns for individuals who seek completely animal-free alternatives.
Pricing: Although the price of cultivated meat has been decreasing over the years, it remains relatively high compared to conventional meat products. Cost reduction efforts and improvements in production efficiency are necessary to make cultivated meat more affordable and accessible to a wider consumer base.
To date, the biggest challenge towards adoption is the cost of growth media.
Growth media is the liquid broth in which cultured cells grow and proliferate until maturity in mass to form burgers, nuggets, or fillets, which is a major issue.
Growth media is predominantly used in the pharmaceutical industry, where relatively small quantities of cells are used to produce very high-value products. For cultured meat, over 500 litres of media is needed to produce 1 kilogram of meat. One litre of growth media can cost a few hundred dollars, almost all of which is attributed to a couple of essential, high-value ingredients called growth factors produced at high-cost and low volume.
Optimising the bioreactor- The vessel where the cells grow is a critical component in maintaining the optimal environment. The industry standard bioreactors are stirred tank bioreactors, which, while easily scalable, require a lot of medium. The stirring process can also cause shear strain stresses on cells. Overall, these bioreactors are more suitable for the pharmaceutical industry than for cultured meat, and bioreactors beyond stirred tank designs that may improve production costs would be a great step towards solving the issue at hand.
EDIBLE INSECTS
The concept and practice of insect consumption can be traced back to Asian cultures of early ages, but recently saw increased consideration and adoption.
Edible insects are rich in amino acids, vitamins, minerals, and other nutrients, and require fewer resources than conventional animal proteins to rear; it is increasingly being considered a potential solution to the growing demand for protein.
In terms of revenue, animal nutrition accounted for the largest revenue share of over 75.0% in 2020. Insect protein is primarily consumed as a feed additive for poultry, aquaculture, and other animals.
As awareness and demand for edible insects continue to rise, Singapore Food Agency (2023) was said to be giving the green light for the human consumption of 16 species of insects such as crickets, silkworms and grasshoppers.
This is no doubt good news for the global insect protein market which was already valued at USD 249.9 million in 2020 and which was growing at 27.4% CAGR.
Top 3 Insect Protein Startups In 2023
Edible insects are a great source of protein as it also contains amino acids and has a greater conversion of nutrients.
Nutrient Rich: Insects are a good source of essential amino acids, which are required by the human body for various physiological functions, including tissue repair and growth. Insects are rich in nutrients such as polyunsaturated fatty acids, vitamins (including B vitamins), and minerals like zinc, iron, and calcium. Additionally, they can provide healthy fats, including omega-3 and omega-6 fatty acids, which are beneficial for cardiovascular health.
Efficient Feed Conversion: Insects are highly efficient in converting feed into edible weight. They have a high feed conversion rate compared to traditional livestock, such as cattle or pigs. This means they require less feed to produce the same amount of edible protein.
Utilisation of Agricultural By-products: Insects can be raised on low-value agricultural by-products, such as bio waste or food waste, which can contribute to the reduction of organic waste and create a more sustainable food production system.
Greenhouse Gas Emissions Reduction: Compared to traditional livestock, insect rearing generally produces lower greenhouse gas emissions. This is due to the lower feed conversion rates, efficient resource utilisation, and the lower methane production associated with insect metabolism.
However, Edible insects also have some disadvantages and challenges, especially in relation to their production for human consumption.
Societal Scepticism: The different factors of insect protein production, such as feed used, rearing methodology, and safety concerns (potential contamination, health complications) remain a high barrier for insect protein to gain societal acceptance. A great number of resources and lengthy processes will be mandatory to provide assurance or education to sceptical consumers.
Limited Consumer Appeal: The medium of which insect protein can be consumed will be required to work along the perceived entomophobia of the public, which will greatly limit product variety. Insect protein also has a low amino acid balance score, and may be difficult for consumers to digest. Furthermore, the distinct texture, appearance, and aroma of insect protein will largely serve as a deterrent for product formulation and adoption.
Energy and Resource Costs: The economy of scale for large-scale commercial production of edible insects is still not clear, especially in relation to its technology maturity, value chain and land capacity.
Price of Product: Production of edible insects requires a higher quality of food stock to raise the insects. This creates barriers to the cost of production and ultimately the price that can be offered for human consumption.
The biggest barrier towards large-scale adoption is its economic viability.
As governmental regulations are sinking in, it is only a matter of time before its safety concerns are addressed.
Then the main barrier towards commercialisation is viability concerns:
Are there economies of scale that can support large-scale production of edible insects efficiently?
Are there sufficient market demand such that the product can be offered at a viable price for producers/resellers?
Mycoprotein
Fungi-based proteins or single-cell proteins are often referred to as mycoprotein (based on the Greek word “mykes” for fungus), or meatless meat.
Mycoprotein has textures comparable to meat as it is chewy and tender, but derived from fungi (a type of unicellular microorganism) rather than animal.
Considering arable land restrictions and the need for CO2-neutral solutions, single-cell protein sources offer an interesting approach to the challenge of sustainable protein supply for food and feed.
The development of mycoprotein, the Fusarium Venenatum (PTA 2684) is nothing short of fascination. Through 15 years of research, toxicity and nutritional testing, the British company Rank Hovis McDougall (RHM), partnering with Imperial Chemical Industries (ICI), developed the first-ever mycoprotein brand, Quorn™ in 1985.
With its protein quality likened to that of soybeans, the fungus can be modified so as to function as either a fat or cereal replacer.
Since its inception, the market has reached a valuation of USD 50.3 billion in 2021. The market is expected to grow at a Compound Annual Growth Rate (CAGR) of 9.7% from 2022 to 2030.
Top 3 Mycoprotein Startups In 2023
Part of mycoprotein’s appeal lies in that it not only contains high fibre and lower fat, but also in its strength in versatility as an ingredient, and likeliness to meat after processing.
Taste and Texture: Through the addition of eggs in a mix, mycoprotein can achieve a meat-like texture when frozen. Its neutral flavour and aromatic profile allow it to be a versatile ingredient.
Nutritional Advantages: Mycoprotein not only contains higher fibre, but also a lower fat content than conventional meat; which greatly aids the control of blood cholesterol and blood sugar, and may come in helpful in managing type 2 diabetes and obesity.
Resource Friendly and Environmentally Conscious: Mycoprotein is capable of growing on bio-waste alone, effectively cutting out the costs for fertilisers of any form. Mycoprotein also possesses a higher yield per unit area compared to other high-protein crops, and leaves a lower carbon footprint than cultivation of plants and meat in general.
While there is no denying the myriad of clinical and environmental benefits mycoprotein brings to the table, there are several challenges and disadvantages identified throughout the decades.
Environmental Complications: The growth conditions, harvest location, and harvesting seasons greatly affect the quality of mycoprotein and its nutritional value. Evaluation of mycoprotein’s sustainability also largely depends on the type of products and species. Environment-reliant production systems are cheaper, but come off as less efficient.
Process Heavy: Mycoprotein may prove to be difficult to digest in a largely unprocessed or raw state, and traditionally involves glucose, a relatively costly feedstock in its production.
Stunted Customer Appeal: On a global level, many consumers remain unfamiliar with mycoprotein. A recent legal settlement requires labelling on all fungus-based products to explicitly include the term “mould”, which greatly affects consumer perception of the product and could impede growth.
In the long fight for future foods, the health complications tied to the consumption of mycoprotein serves as its biggest challenge.
While having time to its advantage to establish itself as a means of alternative protein that is considered safe by a large majority; mycoprotein is recognised as having the potential to cause an allergic reaction in the human body. According to the Quorn website, true allergy reactions of their line of products remain exceptionally low and mycoprotein is not classed as an allergen in the UK, but is still recognised as a potential allergy inducing component.
Mycoprotein products may also contain other allergens such as egg, milk and gluten. In addition, past mycoprotein consumers have reported adverse reactions; which includes gastrointestinal symptoms such as diarrhoea, or allergic-type reactions, including urticaria (hives) and anaphylaxis.
An additional concern is cited in a 2019 review with the National Library of Medicine, which indicated that there’s a chance that susceptible consumers will become sensitised to mycoprotein, and subsequently develop a specific allergy to it.
Discussion
Optimistic View: Venture Capitalists
As Asia has one of the most adventurous palettes; while consecutively one of the largest consumer markets in the world, the business opportunity that it presents makes it an interesting subject for alternative protein.
While a study by Journal Foods revealed that 40% of consumers in the US and UK are highly open to trying cultivated meat, Asia has been behind in its adoption of alternative protein.
Gautum Godhwani, CEO and Founder of Good Startup, Asia’s first ever alternative protein oriented Venture Capital Firm, noted that the adoption of alternative protein in Asia is slumped compared to its western counterpart, making it difficult to offer price tempting products; and requires great effort for merely a small portion of market share.
Godhwani is also aware of how two-thirds of global funding in the sector went to American companies last year, and how the U.S. is a significantly mature market for the faux meat sector, with a high level of consumer awareness and availability of a wider range of alt protein products.
"Therefore, it has many companies with high-scale production facilities. This way, they can offer lower prices to consumers. That's a very healthy dynamic because when you have more scale and more choices, you end up bringing more consumers in over time."
According to a Good Food Institute APAC report, investment into alternative protein has been slowing down in recent years, with an observed 50% quarterly decline in 2022.
"The alternative protein industry had a 50% reduction quarter over quarter, so clearly the sector has been impacted," said Godhwani. "This situation is forcing founders to become more cautious and lean as they're finding ways to stretch capital further than before."
Regardless, he founded the company in the year 2021, and Good Startup raised about $34 million the following year for its first alternative protein fund. He has also noted how in spite of the current funding winter that the alternative protein industry faces, that does not mean innovation has stopped in the area.
Quoting predictions from experts on how Asia is catching up, and how Asia’s inherently diverse consumer preferences may serve as a point of interest, Godhwani notes on how Asia may very well grow into the world’s largest alt protein market in the year 2025.
Pessimistic View: Academic Researchers
Experts from segments outside of the Venture Capital ecosystem however, would not be so optimistic towards the “what could-be” of alternative proteins.
As an example, popular Dutch scientist, academic co broadcaster, Professor Louise Fresco, warned that animals will remain a vital role in the food chains of the future, despite pressing environmental concerns.
Delivering her speech as keynote speaker at 2022’s City Food Lecture, London, Loiuse suggested that current meat alternatives and vegan products are incapable of replacing the nutritional value of meat, nor its role in the food chain.
“Chickens and pigs can do something that we cannot also do: These animals can recycle our food waste. Eat an apple and you know you cannot eat 100 percent of it. There is a tremendous amount of waste. Waste is far higher than we expected, based on the latest figures we leave as much as 500 calories per person worldwide, leftover, lost, damaged or not consumed.”
“If we could use that to feed animals, that would then provide us with other nutrients then we would be a lot better off.”
In contrast to widespread concerns about the effect of beef production on carbon emissions and biodiversity loss, Fresco said: “It wouldn’t be easy to do away with animals, you would still be left with lots of greenhouse gases.
“What we know now for the first time is that grasslands are a perfectly possible way to capture carbon and leave it in the soil. Not forests, forests do that when they are growing fast, but grasslands are a permanent way of capturing CO2.”
The rise of meat alternatives and plant-based products has been one of the biggest stories in the fresh produce industry, yet Fresco said they are no panacea to global food insecurity and health.
“If we don’t eat much fish and meat, where are the proteins coming from? Plants are not as easily digestible because they contain more fibres but we can substitute some of the animal protein in processed meat.”
“All these vegan burgers have a big problem: they are ultra-processed. You have to use a lot of force to blend the beans in such a way to look like meat. You have to put in a lot of stabilising factors and colourings, and so on. So from a nutrition point of view it’s not a great solution.”
Fresco also ruled out insect proteins for their unreliable production, as well as seaweed and algae products, which remain “really complicated” and grow slowly; while lab meat, at an average of £22,000 per kilo, remains far too costly.
“We still have a long way to go, but we are best to look at meat, fish and shellfish as part of the story.”
