| | NOVEMBER 2022 9The alternative proteins market is relatively young and booming. Though it is dominated by the plant based protein sources, novel sources like animal cell culture, fish cell culture, fermented proteins, insect and microbial proteins are on the rise. Roland Berger report predicts that by 2050, there will be 10 billion people: the overall food demand is expected to increase by greater than 50%. To meet this demand sustainably, sources of protein need to become more accessible, efficient and diversified. On the other hand, the income and prosperity levels are increasing by the year. Since there is a direct correlation between the two trends, protein intake is bound to scale up: leading to ease in buying alternative proteins that are currently known to be novel. In one of the research reports, conducted by Meticulous Research, alternative protein market is expected to reach USD 27.05 Billion by 2027. Since food forms a hygienic survival need for human beings, its consumption is not expected to decline. Hence, in my view, alternative proteins as an industry is not a "bubble", though it is still novel and nascent. Given the potentially expected size of the industry, it presents a very exciting opportunity to the investors: the investments in the industry are expected to keep increasing.Currently there are 60+ companies operating in the industry globally though each of them is at a very different stage. While some of theCompanies have taken a lead to have reached the commercial stage of the business, more and more companies are getting added in the sector. Given the demands of the current production process, many consumer packaged goods (CPG) and food manufacturers in the sector may not still have the necessary production capabilities to capture the market opportunity. For any company, new or current, the key to success in the current scenario is to build the capabilities in terms of R&D, technology, infrastructure, patent, legal & regulatory rights, to ensure that the final lab incubated and grown food is as safe and tastes as good as the traditional protein food. This could take anywhere from 2-3 years before commercial launch. From safety perspective, alternative proteins sector, based on research studies, has claimed that it does not have additives or preservatives. That's a top growing position for the sector. Though it is expensive to build these capabilities in the current scenario, the companies are building solutions through various patents to reduce the cost of production thereby reducing the selling price. In my view, as more and more companies would foray into this sector, with the early entrants influencing a greater shift in the consumer behaviour, scaled-up production volumes and more economical methods of production being tried successfully, the cost of production would scale down further. The capabilities being developed over the years would eventually relieve the pressure that the growing demand for proteins, has created for the ocean, sea and land habitants globally. Additionally, research studies have proven that a pound of meat emits over 20 lbs of carbon dioxide in its creation, following the traditional method. On the other hand, based on studies, cultivated meat requires only a percent of water and emits a percent of carbon dioxide. The key is to reach at a stage where the traditional or conventionally farmed meat or fish get displaced by the alternative protein options.Some of the Asian countries including South East Asian countries have made significant breakthroughs in the industry. Through its subsidiary brand, Armoured Fresh, Seoul, South Korea-based Yangyoo will bring its plant-based cheese to the U.S. market. CJ CheilJedang, licensee of Hormel's products in South Korea, had created new vegan brands. PlanTable would be featuring a range of products underpinned by soybean- based meat. South Korean tofu innovator Pulmuone revealed a new line of soy-based meat products. Upto 20 products will be released, each designed to easily replace conventional meat, especially pork. Cellmeat cultivated Dokdo shrimp. Zikooin, owner of South Korea's biggest vegan beef manufacturer Unlimeat, plans to build a new production plant with an aim of becoming one of the biggest plant-based manufacturing facilities across Asia.In my view, even though it's a novel food currently, alternative proteins, in the coming years, will no longer remain a novel food but would become the go-to-food, considering that protein intake is a very important ingredient of overall food intake, and in that sense, it is the future of food. Even though it's a novel food currently, alternative proteins, in the coming years, will no longer remain a novel food but would become the go-to-food
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