Insights on Alternative Protein Market Growth

 COVID-19 is delivering an unexpected boost to the alternative protein market. Despite the fact that COVID-19 is unrelated to livestock, the pandemic heightened public awareness of zoonotic viral illnesses, the risk of which can also be linked to livestock. Because it contains an abundance of macronutrients, micronutrients, and antioxidants, an alternate protein-based diet can help decrease the virus's impact on at-risk persons. From a manufacturing and distribution standpoint, this business has seen extraordinary demand from manufacturers and consumers, especially for certain items like meat analogue and plant-based milk.   Alternative proteins are produced with less reliance on labour, making them less vulnerable to staffing shortages than red meat, which requires a lot of it.

Due to the pandemic, some best practise models for the alternative protein business that were previously overly restrictive during the outbreak have been temporarily relaxed. Certain governments have stated that some of the competition law restrictions for alternative proteins, namely for plant-based protein products and insect protein, have been relaxed. For example, the FDA has eased its standards for selling plant-based meat products. Earlier, due to labelling concerns, the FDA did not approve direct-to-consumer sales of Impossible uncooked plant-based beef burgers. Insects are therefore ideally positioned to offer a solution for any food shortages that may arise as a result of the coronavirus pandemic. Edible insects are extremely sustainable, requiring only a fraction of the feed, water, and resources that traditional cattle and other alternative protein sources need, reducing constraints on the global food supply chain.

Growing venture investments in alternative protein companies

Along with the rising risk profile of livestock agriculture, well-established meat and dairy industries are coming under fire from civil society organisations and new food industry actors, making plant-based goods ethical and sustainable. Because of its growth, profitability, risk exposure, and ability to compete and innovate, protein diversification has the potential to revolutionise a food company's core business and value proposition. The growing trend among millennials to adopt flexitarian and meat-free diets suggests a substantial shift in purchasing patterns from previous generations.  From farmers to retailers, companies across the food value chain are already investing in these prospects. Some businesses are hedging against or planning for the drop in demand for animal products by investing in alternative producers. Several high-profile individuals, financial investors, and companies have invested in or funded the market in recent years. Some of these investments are:

• Since 2012, Impossible Foods (US) has raised USD 1.4 billion in venture funding from notable investors, including Bill Gates.
• General Mills has invested USD 40 million in Kite Hill (a plant-based cheese company) and Beyond Meat.
• In the Series D round, MycoTechnology (US) raised USD 120.69 through June 2020.
• In the Series A round, 3F Bio (U.K.) raised USD 9.22 until April 2018.
• Merck KGaA and Bell Food Group have invested USD 8.8 million in Mosa Meat, a Dutch food technology company.
• Since 2014, Cricket Lab, a Thai insect protein manufacturer, has raised a total of USD 2.1 million in funding.

·        As a result, rising venture capital investments, which support the expansion of plant-based product companies, and leading meat manufacturers' increased focus on building a portfolio of investments in the insect, plant, and lab-grown meat protein arena, the worldwide alternative proteins market is booming.

·   To some extent, a strong predilection for animal-based products limits the rise of alternative products.

·        Livestock animals have an important role in human health and well-being. Meat production and consumption have risen dramatically in recent decades, particularly in emerging countries. Global demand for animal products is expected to rise 70% by 2050, according to the OECD-FAO, due to population expansion and increased wealth.    Animal proteins come from animal products such as eggs, milk, meat, and fish. Because they contain and offer enough levels of essential amino acids, animal-based products are sometimes referred to as higher-quality proteins.

Plant-based goods, on the other hand, have limited levels of some (but not all) amino acids. Western diets now contain a significant quantity of animal protein. Animal sources provide for around two-thirds of dietary protein, according to the National Health and Nutrition Examination Survey (NHANES) (2018).

Key Findings in the Alternative Proteins Market Study:

During the forecast period, the emerging alternatives segment is expected to increase at the fastest rate.

The global alternative proteins market is divided into three categories based on stage/type: emerging alternative proteins, teenage alternative proteins, and matured alternative proteins. In 2020, the matured alternative protein sector accounted for the majority of the alternative protein market. During the projection period, however, the emerging alternative proteins segment is predicted to increase at the fastest CAGR. Growing demand for environmentally friendly protein-rich food, more investment in new protein farming, and changing attitudes regarding insects and single-cell protein as food are all contributing to this segment's rapid rise.

Emerging Alternative Proteins

The global emerging alternative proteins market is divided into three types: insect, algae, and duckweed. In 2020, insect proteins accounted for the greatest portion of the global emerging alternative proteins market.

• Adolescent Alternative Proteins

Pea, rice, corn, potato, and other runner-up protein sources, such as sorghum, teff, quinoa, oats, and lupine, are examples of adolescent alternative proteins. In 2020, the pea proteins category held the highest share of the entire adolescent alternative protein market.

• Matured Alternative Proteins

Soy, wheat, canola, mushroom, mycoprotein, and other alternative proteins are segmented in the matured alternative proteins market. In 2020, the soy proteins category held the greatest proportion of the mature alternative protein market.

The global alternative proteins market is divided into three categories depending on the application: plant protein-based products, insect protein-based products, and microbial protein-based products. In 2020, the sector of plant protein-based products held the biggest share of the entire alternative protein market.  The market for edible insect protein-based products, on the other hand, is predicted to rise rapidly throughout the forecast period. The high nutritional value of insects, the growing desire for novel food products, the growing acceptance of insect protein consumption, and the environmental sustainability of insect production and consumption are all factors contributing to the market's rapid growth.