The Plant-Based Challenge

from AMBROSIA #12

by FORUM SA

Business Insider

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THE PLANT BASE

CHALLENGE

Will a meatless food industry featuring plant-based meat or seafood substitutes be the next step for food? Greek meat production businesses are tapping into a future where protein isn’t dominated by conventional meat sources.

What do Richard Branson, Bill Gates, and Google founder Sergey Brin have in common? They have all invested heavily in plant-based and “clean meat” startups. And no wonder. With population numbers on the rise and natural resources in decline, the F&B industry is tasked with the challenge of boosting food production on less land and with fewer greenhouse emissions. At the same time, consumers around the world are clamouring for meatless products and for good reason –they have the potential to be sustainable, ethical, and healthy. As a result, plant-based categories are growing at an incredibly fast pace. Millennials are the main drivers for the global shift away from the consumption of animalbased products, whereas countries such as China are also supporting the vegan movement. For sure, plant proteins are here to stay. However, expectations are high and consumers are looking for more diversified and indulgent options, while taste remains a major key driver in the purchase decision. According to Arizton Advisory and Intelligence, which offers cutting-edge research solutions, rise in the flexitarians coupled with healthconsciousness have led to shift from animalbased diet to plant-based diets. As a result, the huge demand from plant-based protein from vegans, fitness enthusiasts, flexitarians and the lactose intolerant population, will help the plant-based protein market grow at CAGR of more than 8% between 2020 and 2025. In addition, Europe will account for approximately 22% to 25% of the market in 2019 and 2020. In terms of protein source, soy will be the leading raw material used, accounting for 66% to 68% of the market.

1 According to data, 15% of global meat turnover will be replaced by plantbased protein by the year 2025. PLANT-BASED MEAT PROVES DRIVER FOR INVESTMENT

2 A staggering $741 million has been invested in alternative protein already in 2020, according to a new report released by nonprofit The Good Food Institute (GFI). Namely, the growth of the plant-based food market fuels investment, resulting in more R&D spending and better products, which further increases consumer demand. This virtuous cycle of plant-based food innovation will be reinforced as plant-based products move even closer to cost parity with conventional animal products due to increasing returns to scale and technological improvements. Corporate, government, and entrepreneurial prioritization of plant-based meat to address environmental goals, will further fuel improvements in production efficiency and product quality. Governments and industry increasingly recognize the importance of achieving these goals through public-private partnerships, such as the European Union’s EIT Food initiative and Israel’s The Kitchen FoodTech Hub.

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PLANT-BASED PROTEIN FEVER

GRIPS THE GREEK F&B MARKET

According to Greek industry insiders, by 2025 10% of food consumption is expected to be plant based. In fact, in Greece, the market is steadily growing with an expected 20 percent monthly average, which appears not to have been deterred by the Covid-19 crisis –by contrast, people express the belief that the pandemic has increased demand, at least in the super market and c-store front. At the same time, there is an intense activity around the launch of plantbased meat alternatives, catering to both vegan as well as flexitarian –persons whose diet is mostly vegetarian but sometimes includes meat, fish, or poultry– consumers. As a result, burgers, sausages, meat balls, even gyros, souvlaki, and frozen traditional Greek dishes, such as moussaka, are introduced in plant-based alternatives from a plethora of businesses operating in the meat production industry. And of course, international competition has boosted the efforts of the Greek companies in the R&D department. Extra emphasis is being placed not only on texture and structure but on flavor, as well. For businesses introducing plant-based meat alternatives to the market, taste is of paramount importance. Their products should be able to pass blind taste tests with flying colors, not to mention satisfy all organoleptic and quality criteria.