The Value of Taking Risk for Developing Alternative Protein by Startups

Startups are experimenting with new technology, iterating on existing production methods, and discovering new ways to make increasingly superior products that appeal to customers and benefit the food system

FREMONT, CA: While visiting any major supermarket in the United States, it is evident that conventional animal-based protein goods and their newer alternative protein counterparts coexist. There are gallons of almond milk next to gallons of cow's milk, bottles of plant-based egg products above cartons of chicken eggs, and packages of plant-based meat next to ground beef. Consumer concern regarding the health implications of ingesting high quantities of animal protein, the environmental impact of raising animals for meat, and animal welfare concerns are driving the slow proliferation of alternative protein sources. And adoption is on the rise.

Utilizing never-before-used inputs, procedures, and technologies, the technologies that produce alternative protein products are unlocking new levels of flavor and texture that match those of traditional animal meat products. These plant-based foods have the potential to significantly impact the environment through more efficient food production and overall health by avoiding cholesterol, saturated fat, and other components that contribute to heart disease and other chronic illnesses, and investors have taken notice. The amount of money invested in companies developing sustainable alternatives to conventional animal-based diets is growing.

For a greener planet, alternative proteins will overhaul the food system. The global food system profoundly influences the planet's health. The food system contributes to current global greenhouse gas emissions. Animal agriculture is the largest emitter of greenhouse gases of all worldwide emissions, similar to the global transportation sector. The environmental impact of substituting alternative proteins for animal proteins is enormous. To reduce greenhouse gas emissions, adopting alternative proteins has a favorable effect on other food system concerns, such as land shortages and the rise of antibiotic resistance induced by factory livestock farming.

Less cropland is required to produce animals for food. With fewer animals, antibiotics are less needed to prevent disease, hence reducing the number of chemicals in wastewater and food. To fundamentally modify the food system, they must enable innovators in the alternative protein market to research, develop, and introduce innovative products to meet customer demand. To accomplish this, food entrepreneurs in their infancy require funding. Many of the components of food tech startups, such as production technology, molecule and cell development, and fermentation methodologies, are challenging to evaluate at the earliest stages of a company's existence, both in terms of comprehending the significance of new processes or approaches and the viability of large-scale implementation.