Alternative Protein Investors
Last year Meatless Farm trumped all of these with a £24 million raise at a £106 million valuation. Meatless is already back for more with a Crowdcube campaign to help fund a new protein production facility in Calgary and expand their already impressive distribution channels. Planet Tracker combines the expertise of financial market professionals with environment, industry and scientific experts, speaking about ecological limits in a language that the financial community understands. Moore’s Law states that we can expect the speed and capability of our computers to increase every two years, and we will pay less for them. It is often used as an example of how technology can improve at an exponential rate with an exponential decrease in cost. In addition to this, decomposition is a chemical process and as such has the potential to be accelerated by a catalyst.
As displayed in Exhibit 2, the process for creating cultivated meat starts with painlessly harvesting stem cells from an animal, typically cattle, though many companies are using cells from poultry and seafood, and also for non-meat products like leather, cotton and cocoa. Next, scientists feed the cells growth proteins, carbohydrates, vitamins and minerals in a bioreactor, so that they multiply to create the desired cell type, including muscle and fat tissue, which are the main components we consume. Also, because the process begins with stem cells, these are grown in quantity and then differentiated into fat and muscle tissues. Whether printing or mixing, the proportion of fat and muscle can be readily adjusted to the desired cut of meat and health profile , etc.
If cows are indeed “disrupted” and fall in number significantly, this will have an impact on the materials industry, not only in the number of hides available, but their price. This in turn makes the market entry point for next gen materials easier and drives further investment into alternative materials – a virtuous circle. Conversely, a sharp fall in the cost of next-gen leather would depress the value of real leather, impacting the profitability of cattle-rearing and potentially reducing beef supplies (and/or raising costs) for the food industry. Alternative proteins are penetrating a market – food – that has very low exposure to recession and cyclicality.
- To reach this level of mass meat production requires 220–240m litres of fermentation space.
- Green Queen Media is a slaughter-free publication and we do not consider insect protein as part of our alternative protein coverage.
- For instance, McKinsey estimates that reaching a US$25bn cultivated meat market would require the production of about 1.5m tons of cultivated meat.
Cellular agriculture is the process of creating meat that is biologically equivalent to the tissues of meat from animals. It starts with gathering stem cells from an animal, then growing them in bioreactors so they become muscle tissue and fat, and eventually harvesting them in centrifuges where the cells, growth media and other ingredients are separated. Much of the development work has focused on improving the quality of the products and optimising the cell lines, scaling up the process from laboratory to pilot size, and moving towards replicating the sensory experience of conventional meat as closely as possible.
Beyond Impact Advisors is a Swiss-based advisory firm specializing in investments which resolve the problem of the use of animals for food, materials, clothing, ingredients, animal testing, among others, by providing humane, sustainable and economically-viable alternatives. Led by Claire Smith, a 36-year veteran of the finance industry, the team incorporates specialists in venture capital, impact investment, food production and consumer brands and company mentoring. Beyond Impact provides institutional programs, angel investment programs and co-investments orientated to the common theme of removing animal exploitation from the economy. The global shift towards alternative proteins is happening at an unprecedented pace, fuelled by consumers’ growing concerns around climate change, animal welfare and overall sustainability.
But 18 (72%) of the engaged firms have yet to make concrete commitments to grow the proportion of non-animal proteins in their portfolio. This is despite the fact that 48% of the sample track and disclose Scope 3 emissions from animal agriculture, 52% have published net zero ambitions and 68% have targets for reducing agricultural emissions. Biomass fermentation leverages the fast growth and high protein content of many microorganisms to efficiently produce large quantities of protein. This biomass serves as either the predominant ingredient of a food product or one of several primary ingredients in a blend. "Over time, global commodity trade flows will need to adapt to some or all of Russian/Ukrainian supply being unavailable, whether due to infrastructure damage, sanctions or ethical concerns," Glencore said. Russia is a key supplier of oil, natural gas, coal, aluminium and nickel, while Ukraine is a major grain producer and exporter.
Episode 2: Spotlight: 3f Bio On Alternative Protein
Good Seed Ventures is a Germany-based VC investing in startups that contribute to a more sustainable food system. Here in the UK we should also look at whether better regulation can ensure there is a clear, efficient approval process for new products that guarantees food safety. Supporters of deep-sea mining promise to provide the materials needed for a decarbonised future by extracting key metals from the seabed. However, the environmental effects of deep-sea mining have shown catastrophic and irreversible implications for biodiversity.
In 2018, protein alternative companies raised $530 million in disclosed investment. In the space of one year this investment increased more than three-fold to $1.66 billion. Despite a global pandemic and financial uncertainty, confidence in protein alternative start-ups was resilient and investment in both 2020 and 2021 exceeded $3 billion. Whilst investment is a great indicator of confidence in the underlying market, Alternative Protein Investors it is also interesting to see what technologies investors are betting on. Historically, ingredient formulation has been the key focus for investors, with these businesses receiving more capital than any other category of food technology. Ingredient formulation describes the blend of proteins (e.g. soy, wheat and pea) alongside other plant-based ingredients to form a final meat or dairy alternative product.
Alternative Protein Growth Is Skyrocketing Are You Ready For It?
While there are still legal barriers to their use , that is not stopping many companies from moving forward in the expectation that laws will change. In my personal business ventures, I have invested in two companies that I believe can overcome this hurdle. Case StudiesOur portfolio of clients is testament to our pragmatic industry expertise underpinned by rigorous data analysis and consulting quality. The tech giant has joined Stop Scams UK, a body of businesses working to stop scammers.
Find out how we're seeking transition ready companies to diversify returns and tackle complex challenges like climate change. Our climate transition capabilities Find out how we're seeking transition ready companies to diversify returns and tackle complex challenges like climate change. This is what climate action looks like We're on a mission to rewrite the future of investing and create a climate of change. See how we're driving climate action forward for our clients and the world around us. Cutting meat consumption is by far and away the most important dietary change we can all make to help combat climate change.
Construction of a third production site is underway in Amiens, northern France, and the company hopes to produce 100,000t of insect-based protein products a year there, which will make it the world’s largest. As pioneering foodtech vc companies unveil more affordable and nutritious products to rival meat counterparts, we are excited to see a surge in market share. FoodTech companies must overcome the difficulty of changing customers’ food habits.
IEMA (Institute of Environmental Management & Assessment) is the professional body for everyone working, studying or interested in environment and sustainability. We provide resources, tools, knowledge and research sharing to meet the real world needs of our members. We believe that together we’re positively changing attitudes to sustainability as a progressive force for good.
2021 has been yet another year of growth in investment and innovation for the plant-based foods market, as investors and businesses recognise the long-term potential of the industry. We have seen large multinational companies race to get a piece of the pie, acquiring brands and creating spin-offs of their own. The drivers of growing consumer demands continue to evolve, with health now supplemented by an increase in awareness of environmental and animal welfare factors.
Majority Of Food Companies Pose High Risk To Investors
Critics of alternative protein products in the plant and microorganism categories point out that they are highly processed. Meat and dairy from animals, contain all the essential nutrients and amino acids that humans require from their protein intake while, in contrast, current alternative protein products are complex and should be treated with skepticism in their nascent stage. An examination of the most popular products such as the Beyond Meat burger give some validation to these concerns. Methyl cellulose does not occur in nature and must be produced by heating cellulose with a caustic solution like sodium hydroxide, it is often used in ice creams and as a thickening agent in shampoo. While the long lists of processed ingredients on the packaging of alternative protein products may put some consumers off adoption, current studies give a more nuanced picture of the health benefits of these products. National Institute of Health found that imitation meats are a good source of fiber, folate and iron while containing less saturated fat than ground beef.
This will be a continuing trend as companies continue to seek more sustainable alternatives – see Table 1. Unparalleled growth in plant, micro-organism, and animal-cell based alternatives has the potential to drive this change as consumer tastes evolve, meat intake is being reduced or cut altogether and demand for alternative food types rises. For investors interested in alternative food funds rather than individual stocks, Agronomics offers an interesting option. It is a fund that invests in companies producing environmentally friendly alternatives to traditionally produced meat, dairy, seafood and materials. It is the only UK-listed vehicle focused on cellular agriculture and, as discussed in our Edison TV interview, offers investors a rare opportunity to access the rapidly expanding cellular agriculture industry.
As cellular agriculture grows and becomes closer to commercialisation, it is likely to attract more regulatory attention. Moreover, regulation would be at both the jurisdictional and product level, and changing components or ingredients would potentially require a new safety assessment each time, increasing the regulatory burden on cellular agricultural firms. For instance, in the EU, regulatory approval would be required by both the European Food Safety Authority via the novel food regulation and each individual state. Moreover, the farm, dairy and ranching industries will likely lobby strongly against these new products, as well as funding campaigns to encourage consumers to reject alternative meats. Now several of the world’s largest food and life science companies are tapping into the increasing consumer appetite for plant based alternatives to animal products. Giants such as DuPont and DSM are working on fermentation-derived alternative proteins, while the world’s largest meat company, JBS, is using fermentation to develop their new brand, Planterra Foods.
Regenerative agriculture promotes soil health and biodiversity through methods like no-tilling, rotational grazing and cover-cropping. Now, startups are coming up with solutions to harness the carbon-capturing potential of soil to help farmers to overcome the financial barriers to transitioning to more sustainable forms of agriculture. Last month, Copenhagen-based Agreena raised a USD 22.5m Series A for a platform where farmers can earn carbon credits to be sold on voluntary carbon markets. The credits give farmers an average 20% boost in profitability per hectare of land, and provide incentives for prioritizing soil health. Scaling this model could also help to fill the funding gap for smallholder farmers in the Global South, who produce one third of the world’s food. An underlying driver has been biotechnology where the exponential improvement in cost and capability has made even Moore’s Law look slow.
This generational shift in consumption behaviors have also been pushed by the improvements in food technology that delivers meat-like taste and texture. According to the Good Food institute , plant-based meat sales increased by 45% to $1.4 billion in 2020. Cost has always been an issue for alternative meat sources, and production costs for cellular agriculture are still substantially higher than for conventional meat.
We believe that in order to make a real impact, we have to look beyond sustainability towards a regenerative approach which works in harmony with nature, not just in agriculture and food but in other sectors as well. We exist to support anyone with environment and sustainability responsibilities to upskill so they can achieve their personal and organisational goals. Our huge range of learning and development options – both formal and informal – are tailor made for you. Another unannounced transaction saw Allplants, a plant-based frozen meal delivery service, raise £9.1 million at a £49.2 million pre-money valuation . The latest close follows a £3.4m crowdfunding round alongside institutional investors Felix Capital and Octopus Ventures. Planty, a smaller rival to Allplants in the frozen meal delivery market, has just closed a smaller round of £0.8 million at a £3.9 million pre-money valuation.