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Areas To Watch In Alternative Protein Investments

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The market for alternative proteins has seen a significant increase in the last few years as eco-friendly food habits are now the main focus. The concerns of personal health along with climate change, the cruelty to animals have played a key role in the rise of the market.

According to UBS the market for alternative protein increased to just under $5 billion in 2018 . It is predicted to expand rapidly to $85 billion in the next 10 years. For instance the report pointed out that the price for Beyond Meat, makers of the burger patty made of plant matter that replicates the texture, taste and shape like real food, grew fivefold in just two months on Nasdaq.

Investors who are interested in this field there are five different areas to think about:

1. Plant-based Meat Alternatives

The market for alternative proteins is typically connected with meat substitutes made from plants and are made from processed plant products that mimic meat. There has been discussion about whether cheeses made from nuts are appropriate to be labeled with the same respect as the traditional dairy and meat counterparts, which has led to the terms “cheeze” as well as “mylk” being used in the marketplace. The categorizing of these foods could put them in the category of a “vegan exclusively” market, and also exclude the mainstream market and that is the place they should be in order to have an impact on the environment.

The idea of promoting meat-free alternatives alongside meat products, in which they share aisles, shelves and menus, could be the best option. The market for nondairy milk increased by 60% in just five years, and in the year 2019 was an 12.6 percent market share of dairy products, in part because of its strategic placement on shelves in supermarkets.

The biggest issues for the majority of meat replica companies is due to their taste and texture, as also the lack of product variety. A study conducted by Food and Beverage company Kerry found 70% of people prefer vegan alternatives that be akin to real meat, However, from what I’ve observed the vegan market is not a strong recommend the flavor of real meat. Customers want variety, and with a limited range of products, dominated by 61% by burgers made of plant-based patties, there’s the potential for improvement.

Investors must be aware that consumers want to know the sources and nutritional facts of their food However, they may not all would like to categorize what they eat as vegan.

Additionally the fact that plant-based meats are most commonly consumed by those who have an annual income of more than $120,000 while those who earn less than $40,000 are least likely to consume the products.

2. Raw Plant Protein

This type of alternative protein comprises raw protein that is made up from pea protein powder, or proteins-rich raw foods like beans, lentils, and nuts. This is a significant market since these are inexpensive and easy methods to consume the required nutrients.

3. Bugs And Insect Protein

The third kind of protein alternative is one that is not vegan or animal-free. Insects and bugs which are consumed all over the East and are rich in protein and relatively simple to raise sustainably as when compared to traditional meat. It was reported that the United Nations published a report which stated that insect proteins could be a significant step toward enhancing food security in the world.

4. Cell-Culture-Grown Meat

Recent developments have revealed the possibility of “grow” meat by using the technology of animal cells. A significant amount of money has been poured to this emerging trend. Dutch food technology company Mosa Meat received $8.8 million in capital from German pharmaceutical maker Merck KGaA and Bell Food Group. Other companies in the field of cultured food comprise Future Meat Technologies and Memphis Meats. (Full Disclosure: Memphis Meats is in our venture network.) Mosa Meat plans to have an operating pilot plant for its meat grown in a lab in 2021.

In the year 2019, following many years of debates about the authenticity of these products and their legitimacy, there was a breakthrough when the Food and Drug Administration (FDA) announced that it will regulate cell-culture products the same way as it regulates traditional meat products. This is a significant leap forward for the industrythat as with any other food-related industry, depends on the consumer’s acceptance that the products have been examined and approved, safe to consume and healthy.

Cell-based meat is a method to be incorporated to produce different cuts of meat such as chops and steaks. Additionally growing the market to achieve the aim of being able to supply the expanding global population with safe and safe meat requires more creativity and research. But, thanks to this latest FDA regulation, the investment in alternative proteins start up in the further development and research of cell-based meat is predicted to rise.

Investors have more confidence when it comes to bringing money into the market, as the government is working to regulate and improve products to be used in the larger market.

5. Blended Protein

Tyson One of America’s largest manufacturers of animal products, recently brought its first blends and plants-based products to the market. Although they are not aimed at the vegetarian or vegan market they are expected to witness an increase in sales to the traditional market for meat. The hybrid meat products of the company are expected to gain ground among the 75% customers who “are willing to include vegan and animal-based proteins” within their daily diet.

More Than a Fad

There are numerous investment opportunities available in the market for alternative proteins may be a trend that started out as an emerging trend, there’s no doubt that it has evolved to be more than an occasional fad.