BOSTON — Dramatic, above-inflation price increases for animal products during the pandemic have led to unprecedented increases in sales, funding and public awareness of the alternative protein sector. Growing global concerns about food security and climate impact have further fueled this development. With 25% of global greenhouse gas emissions caused by the food value chain, switching to alternative proteins could be the most capital-efficient and high-impact solution to tackling the climate crisis. It is projected to represent at least 11% of all meat, seafood, eggs and dairy products consumed globally by 2035. Alternative proteins will save three times the emissions for every dollar invested versus the next best tool in the box – low-carbon cement – ​​according to a forthcoming report from Boston Consulting Group (BCG) and impact investor Blue Horizon.

The report, “The Untapped Climate Opportunity in Alternative Proteins” will present the results of a survey of more than 3,700 consumers in seven countries (China, France, Germany, Spain, United Arab Emirates, United Kingdom and United States) regarding their reasons for trying alternative proteins and the inhibitors that prevent them from buying even more. Three-quarters of survey respondents cited healthier eating as their main motivation for consuming alternative protein, while more than 30% of consumers would completely change their diet to alternative protein if they thought it would have an impact. major positive on the climate.

Across all markets surveyed, consumers have a positive view of alternative protein: 76% are aware of the category and around nine in 10 said they like at least some of the alternative protein products they have tried. While consumers in China and Germany are the most willing to pay near parity with protein equivalents, no consumer in any region is willing to pay a premium for alternative proteins that match meat in taste, texture and nutrition – a price premium requires added value.

“Nearly one in three people in the world are food insecure. Coupled with the impact of the ongoing geopolitical crises on the supply chain and food prices, the pressure on the global food system is immense,” said Ben Morach, director of BCG. director and partner. “Moving away from animal-based protein will lead to shorter, more resilient and potentially more local supply chains. The widespread adoption of alternative proteins can eliminate the risk of supply chain disruptions and play a vital role in the fight against climate change, with consumers playing a key role. to propel this transition.”

Bjoern Witte, CEO of Blue Horizon, added: “The products consumers see on shelves today will be followed by a wave of cleaner, healthier and tastier protein alternatives as technology helps increase the ‘innovation. We have seen the rapid pace of development of these technologies in our own portfolio as well as throughout the food technology industry, leading to an improved overall range of consumer products. This is great news for today’s consumers, but we’re really just getting started. Future generations will greatly benefit from the demonstrable impact it will have on the environment, as our analysis of climate data shows. This is the second report from BCG and Blue Horizon confirming that protein processing is the most effective way to avoid emissions and generate Employee Capital Impact (IoCE). If we achieve 11% market penetration by 2035, which is our goal, we could save more carbon emissions than decarbonizing 95% of the aviation sector. The positive impact is ab decidedly massive, centuries-old drivers have never been stronger – the time to invest is now.”

Acceleration of financing

Capital invested in alternative proteins has grown at an annual rate of 124%, from $1 billion in 2019 to $5 billion in 2021, with investments in fermentation and animal cell companies leading the way. Investment in alternative proteins is increasingly global. Middle Eastern backers, which tend to focus on animal cell-based investments, accounted for 11% of global alternative protein investments last year, while APAC investments, fueled by deals plant-based, increased by 92%.

For investors, a key finding of the report is that plant protein investments are more CAPEX efficient in reducing carbon dioxide and methane emissions than in any other industry. Market penetration of plant-based proteins, as projected in the Food for Thought I baseline scenario, would save 0.85 gigatonnes of emissions by 2035. This savings potential is equivalent to the decarbonization of the majority of the aviation industry. Investing in plant proteins saves the most emissions per capital invested – at least twice as efficient as investing in cement, iron, steel, chemicals or transport. Blue Horizon has developed a proprietary impact framework where each investment is assessed via a theoretical impact value, allowing the company to calculate an accurate IoCE.

Significant advances in the regulation of alternative proteins

Sensible and effective regulation is imperative to ensure that the rapid innovation and growth of the alternative protein market provides customers with safe, healthy and transparent foods. There has been an acceleration, worldwide, to provide regulatory approval for fermentation and animal cell-based products. In 2015, Israel led the way by announcing that its new food safety regulatory framework would apply to alternative proteins. And in its latest five-year plan released in January 2022, China recognized the need to “expand beyond traditional crops, livestock and poultry into more abundant biological resources” and incorporated meat from animal cells and other alternative proteins in its diet. security strategy.