Driven by consumer demand for animal-free, sustainable and healthier protein alternatives, the interest and use of alternative protein has significantly increased in the past decade and is continuously growing.
The global plant-based food market was valued in 2020 at just over €21,5 billion, and by 2028, it’s predicted to hit more than €57 billion. This growth is being driven by conscious consumers, but also by brands that continue to provide customers with new, innovative, and exciting plant-based products.
Whereas soy and wheat have been running the alternative protein show until recently, a wider variety of protein-rich plants has now become more accessible. Startups in the plant protein space are venturing beyond soybeans and wheat.
Alternative protein sources encompass biotechnological innovations such as lab-grown meat and fungal protein, single-cell proteins from yeast and algae, and new animal sources like edible insects. Also, many plant substitutes that are not mainstream yet - such as seaweed, barley, lentil, lupin, rice, and potato - are driving the next wave of plant-based innovation.
Having a diversity of plant protein sources is not only healthier than their meat counterparts - it is also more sustainable. The more the protein business diversifies, the more sustainable it becomes.
More plant protein choice leads to less reliance on resource-intensive animal proteins, more opportunities to grow raw materials locally, and improved yields through diversified crop rotation.
Startups investing in plant protein sources are competing for a place in a meatless (or less meat) world. And they’re driving innovation in the meat analogue space, where they’ve been able to improve the protein levels, texture and taste of plant proteins.
Despite the current rate, the alt protein business is not developing fast enough to significantly reduce global meat production and consumption, and to reduce the impact of the food industry on climate change. There are still many opportunities for the world’s largest food retailers and manufacturers to make a protein diversification roadmap, which includes evaluating their current and future risk exposure to animal protein supply chains and transitioning to sustainable alternatives.