Global investors are showing greater interest in alternative proteins, as the climate impact
of agriculture and food production comes under the spotlight.
The world’s food system, including agriculture and land use, accounted for 25 to 30 per cent
of emissions from 2007 to 2016.
Demand for food protein is also being driven by population growth. By 2050 the world’s
population is expected to be close to 10 billion.
Alternative protein comes from a variety of sources including plant protein, cultured
meat and insects.
Start-ups are also turning to high-tech fermentation to transform micro-organisms into proteins.
But despite its potential, alternative proteins are by no means a sure-fire investment success.
Beyond Meat, the company behind plant-based burgers, launched one of the most successful
public offerings in the US this year.
However, the stock has been on a roller coaster with market sentiment affected by low barriers
to entry and large food and meat companies moving into the sector.
Last year investment in plant-based start-ups totalled around $315m and the increasing competition
has led to concerns among some market-watchers.
Also, alternative meat products may not be as healthy as claimed thanks to additives
designed to appeal to consumer tastes.
Potential regulatory restrictions on labelling and branding could also constrain marketing
strategy.
But despite these concerns, some forecasters predict that substitutes will account for
10 per cent of the $1.4tn global meat industry over the next decade.