Alternative proteins: Hybrid formats, price concerns and novel technologies shape innovation

As global food prices fluctuate and cost-of-living remains a key concern, consumers increasingly seek competitively priced products that also meet their health and sustainability demands. Alternative proteins from animal-free sources give manufacturers a route to fulfill these desires and innovate from a diverse source of proteins — from hybrid or blended protein formats to fungi-based mycoprotein.

Alternative protein use is gaining ground, with F&B launches growing by 6% from July 2019 to June 2024, as indicated by Innova Market Insights data. Bakery led with 21% of new products, while dairy, desserts and ice cream had the fastest increase in alternative protein use. Meanwhile, NPD with alt-proteins like cashew and amaranth proteins experienced the highest growth.

Food Ingredients First speaks with Planteneers, Kerry, ADM, Cargill and dsm-firmenich to navigate alt-protein advancements, challenges and emerging concepts for an in-depth look into the industry’s current state.

“The growing popularity of plant-based diets is encouraging companies to develop more diverse and sophisticated plant-based protein options that closely mimic the taste and texture of traditional animal proteins,” says Dr. Pia Meinlschmidt, team lead Product Management at Planteneers.

“They [consumers] are seeking more information about the health benefits and origins of their food. Additionally, there is a heightened focus on health and preventative measures, pushing for alternative proteins that support overall well-being.”

She also observes an increased consumer demand for cost-effective plant-based products amid rising economic challenges and the cost-of-living crisis. 

The industry is investing in scalable alternatives to meet consumer demand for natural ingredients, says McCluskey.Neil McCluskey, global product director for Kerry’s Textured Plant Protein agrees: “Initially, the market focused on ground meat alternatives, but there is now growing interest in scaling more diverse formats like chicken and beef alternative plant proteins. The challenge is making these products affordable without compromising quality.”

“Currently, innovation in this industry aims to convert non-users into consumers by improving taste, enhancing affordability, and expanding product formats of plant protein meat alternatives to widen their use in daily eating habits.”

Diversifying protein sources

While alt-protein formulators currently use traditional ingredients like soy, pea and wheat proteins due to their affordability and availability, there is a growing interest in exploring new protein sources that offer more diversification and functionality, continues McCluskey.

“These new sources are being evaluated for their ability to meet criteria such as taste, cost-effectiveness, and availability, while aligning with clean label product expectations.”

For Dr. Meinlschmidt, soy protein, mainly from Europe, is gaining popularity after a period of “reduced use due to its functionality and cost-effectiveness.” Additionally, wheat protein, mycoproteins and upcycled proteins are potential protein sources. 

Further, the functionality of botanical proteins is witnessing continuous improvement, underscores Sandy De Houwer, global marketing director for Meat & Dairy Alternative Solutions at Cargill.

Consumer demand for cost-effective plant-based products is rising amid economic challenges and the cost-of-living crisis (Image credit: ADM).“Pea protein is seeing a huge rise in popularity, having witnessed the biggest gains in familiarity of all tested protein ingredients, and big gains in health perceptions and purchase impact.”

Pea protein has a minimum of 80% protein content and offers broad functionality, from providing solubility, emulsifying and binding properties to improving texture and mouthfeel. “It is also more sustainable and highly digestible, with no allergen declarations needed.”

Jacquelyn Schuh, global senior director, product marketing, Specialty Ingredients, at ADM agrees that consumers champion “optionality and variety” in protein sources.

“Globally, 71% of consumers state they’re trying to consume more protein, which is up from 67% in 2023. Consumers understand it is not an all-or-nothing approach but many protein choices, including animal- and plant-based wholesome ingredients, to meet their needs.”

Melanie Luangrath, senior director new business development, Plant-Based Platform at dsm-firmenich, agrees: “We’re seeing an unprecedented demand for protein diversity, which isn’t just about having more options, it’s a fundamental shift in how consumers view their diets.”

“This is dramatically transforming the alternative protein landscape and catalyzing a 302% increase in plant-based product launches from 2018 to 2022.”

She also highlights the rise of “climavores” — consumers who make food choices primarily based on environmental impact.

The ‘Climate Diet’ has grown alongside increasing skepticism around greenwashing, says Luangrath.“The ‘Climate Diet’ has grown alongside increasing skepticism around greenwashing, pushing food companies to prioritize genuine sustainability efforts with concrete metrics and transparent reporting methods.”

Overcoming misconceptions

Despite rising consumer acceptance, the alt-protein sector faces some misconceptions, such as plant-based foods always tasting inferior to their animal-based counterparts, flags Luangrath.

“Another significant misconception is that plant proteins are nutritionally inferior to animal-derived proteins and that they lack the amino profile found in meat. However, this isn’t necessarily the case as the key lies in choosing the right plant protein.”

“Vertis CanolaPRO, for example, is a high-quality canola protein isolate with a Protein Digestibility Corrected Amino Acid Score (PDCAAS) of 1 – equivalent to that of animal protein.” 

Additionally, consumers mistakenly associating alt-proteins with ultra-processed foods (UPFs), is another issue, remarks Plateneers’ Dr. Meinlschmidt. 

“To counter this, we emphasize clear product differentiation and provide transparent, evidence-based information that highlights the nutritional benefits of our products. We ensure consumers understand that not all plant-based products fall into the same category and prioritize educational campaigns to inform them about our ingredients, processes, and health benefits.”

Pea protein offers solubility, emulsifying and binding properties, and improves texture and mouthfeel (Image credit: Cargill).Formulators also face sensory challenges while mimicking animal-based proteins, for which ADM’s Schuh’s advises manufacturers to consider the different characteristics of alt-protein ingredients when incorporating them into products.

“Certain plant proteins may impart beany, earthy notes or gritty textures, making the selection of quality plant-based ingredients critical.”

Alt-protein innovations

Kerry has joined forces with Ojah in the Netherlands to launch four new formats to create clean label chicken alternatives — flakes, shredded, cubed, and pulled type alternatives, for use in diverse culinary applications, McCluskey shares.

“It was paramount that these products maintain a clean label profile, with only five to six ingredients, including soy, water, oil, salt, and natural flavors.” The new products will be launched in the US and Europe in 2025.

Meanwhile, ADM is tapping soy and pea proteins in its AccelFlex Texture Systems (TS) and Functional Systems portfolio to help solve textural, structural and functional challenges in meat alternatives and bars/snacks, Schuh highlights.

“Our AccelFlex TS P80 is a 100% pea protein textured product and is ideal for meat and meat alternative solutions. We also recently introduced our new Pork Platform of Excellence, extending our flavor capabilities with innovative pork-type flavor profiles in vegan and non-vegan formats.”

Additionally, combining its clean-tasting plant proteins with the TasteSpark masking technology “neutralizes potential off-notes” and helps highlight different flavor profiles.

Mycoprotein advancements

Among alt-protein options, mycoprotein is viewed as an “emerging ingredient with a disruptive role to play due to its many benefits including a meat-like texture, protein profile, scalability and sustainability,” highlights De Houwer. 

Mycoprotein meets the demand for natural, minimally processed ingredients and delivers protein with a favorable nutritional profile, says Dr. Meinlschmidt (Image credit: Planteneers).“Cargill is working with food tech leader Enough, which uses pioneering technology that enables large-scale, more sustainable protein production of its signature Abunda mycoprotein.”

The mycoprotein has a clean, neutral flavor and a meat-like texture that can be used to create meat and seafood alternatives. “It is more sustainable and scalable, made with a patented minimal waste process that enables a lower carbon footprint and efficient raw material conversion rate than either animal or other plant-based proteins.”

Dr. Meinlschmidt concurs: “Mycoprotein not only meets the demand for natural, minimally processed ingredients but also supports brands in delivering a protein with a favorable nutritional profile, including essential amino acids, fiber, and low in fat content.”

Driving consumer acceptance with hybrids

Consumers are keen to understand how their food is formulated, and hybrids can help “bridge this gap” by coupling familiar and new plant protein sources, explains ADM’s Schuh. This can, in turn, aid in consumer acceptance and adoption.

“Our research finds that 63% of consumers across five markets (US, UK, France, Germany, and Australia) find the concept of hybrid meat options appealing. Plus, consumers cite the following benefits as key motivators for trying blends: “healthier,” “better for the environment,” “adding variety to diets,” “better dietary balance of plant and animal proteins” and “more nutritious.”

She also observes a shift toward novel territories with hybrid and blended products that combine plant and animal proteins, pushing the boundaries of traditional protein consumption.

Kerry’s McCluskey agrees that hybrid products are gaining traction, especially in European markets. Along with innovations in flavor and texture, they may expedite the adoption of a plant-based diet by current non-users.

Precision fermentation and cell cultivation can support hybrids and blended formats in future.“These products, made up of 10-50% alternative proteins, are seen as a transitional option for non-plant-based eaters, helping to reduce meat consumption and promote sustainability via a more ‘flexitarian’ diet.”

Upcoming flavors and formats

Looking ahead, McCluskey sees the US market striving to align with global trends, particularly by addressing the price disparities between plant-based and traditional meat products. 

“European retailers and manufacturers have successfully reduced this price difference, helping to drive growth in this market. However, in the US, alternative proteins still carry nearly a 40% premium over animal-based meats, which has slowed recent growth.”

For Schuh, greater use of hybrids and blended formats lies ahead. “These formats will also leverage novel technologies like precision fermentation and cell cultivation. Examining consumer perceptions and motivations in the protein space and investing in technologies, research and infrastructure will be crucial to this evolution.”

Dr. Meinlschmidt underscores that regional tastes remain important on the flavor front. She also observes a trend toward “local goes global,” where manufacturers incorporate exotic flavors into products using locally sourced ingredients. 

“This blend of the familiar and the adventurous will shape the future of alternative proteins.”

For De Houwer, the alt-protein industry must collaborate to create “the next wave of enticing alternatives.”

“The biggest opportunity really lies in the collaboration on the creation of new products, new technologies and processes to reach economies of scale,” she concludes.