Plant‑Based Protein Manufacturing Summit spotlights growing appetite for animal and dairy-free alternatives

14 Apr 2023 --- The Plant‑Based Protein Manufacturing Summit in Amsterdam (April 12-13) highlighted that plant-based continues in an upwards trajectory, with companies needing to produce more to satiate consumer demand. The event brought F&B businesses together with co-manufacturers, innovative equipment makers and solution providers to explore the key challenges and opportunities around scaling up plant-based production.

“Despite the bad news cycle, the plant-based segment as a whole and plant-based meat in particular continues to grow steadily and across many geographies,” Miguel Angelo De Facci de Oliveira, COO at Novameat, tells FoodIngredientsFirst from the event.

Last year, there were concerns about a potential plateau in plant-based foods. Moreover, Innova Market Insights reveals that the growth in plant-based product purchases did slow down, but only in North America – with value growth predicted to decrease by 0.2% CAGR between 2021 and the end of this year. 

Nonetheless, the plant-based sector is growing in value by a forecasted 6.8% and 10.4% for West Europe (CAGR 2021-2023). 

Innova Market Insights Top Ten Trend “Plant-Based: Unlocking a New Narrative,” highlights how the rapid rise of the plant-based sector has, almost inevitably, hit some roadblocks, necessitating a refocus around consumer demands for high-quality, flavorful products. 

Not enough plant-based
According to the event organizers, consumer demand for plant-based protein has “often outpaced the industry’s supply chain capabilities.” In ten years, the industry is expected to need to operate “at least” 800 manufacturing facilities, each producing 30,000 metric tons (on average) of product per year to meet consumer demand, they explain.

According to Innova Market Insights, consumers consider plant-based foods because they deem them healthier and better for the planet.“Scaling up production will be crucial to making sure plant-based food becomes mainstream, but this phase of development is a serious challenge for all companies,” Carlotte Lucas, senior corporate engagement manager at the Good Food Institute Europe, tells FoodIngredientsFirst.

“We will need many different technologies and ingredient options to cover the enormous diversity of animal products we have today. That is the ultimate goal: to become a relevant part of everyone’s nutrition and eating pleasure, thus reducing the environmental impact of our present eating habits,” explains De Facci de Oliveira.

Emma Osborne, CEO of Citizenkind, explains that “leveraging the skills and specializations of co-manufacturers” will be a “key recommendation for start-ups to be able to reach scale quickly once products are ready to move out of the R&D stage and into mass production.”

Many companies in this novel space face similar challenges and can help each other, flag the organizers.

“Collaboration will be key to ensuring the success of the plant-based sector as it matures, and so it was inspirational to see so many successful European start-ups in the same room, describing their scale-up journey and providing invaluable advice to other companies,” adds Lucas.

“The fact an event of this kind is now possible is an encouraging sign of how rapidly the sector is maturing, and I hope younger start-ups can use this – and future events like it – as a springboard to success,” she continues.

Macroeconomic headwinds
As companies and investors lose access to cheap money with soaring interest rates across countries, it creates a challenge for businesses seeking fast growth.

“Everyone is being a lot more careful about investing in times like this, but if you have a stronger business model and a clearer path to profitability, many eager investors are wanting to participate in this industry growth,” notes De Facci de Oliveira.

In the US, where macroeconomic turbulence is paired with plateauing demand for plant-based foods, companies have decided to streamline operations, reduce their divisions, or close altogether. Notably, plant-based interest in general in the US lags behind interest and innovation in Europe. The plant-based sector is growing in value by a forecasted 6.8% and 10.4% for West Europe (CAGR 2021-2023).

JBS decided to close its plant-based business in the US in 2022, while Beyond Meat and Canadian Maple Leaf cut jobs.

“It's no secret that we are still facing challenging global economic headwinds, but there are encouraging signs that investors understand the value of the plant-based sector. Our data shows Europe's plant-based sector saw a 15% increase in venture capital deals last year, raising €284 (US$314million),” underscores Lucas. 

“Nevertheless, against a backdrop of global deceleration, we can’t rely on private investment alone to build a more sustainable food system, and there is still a need for governments to invest in the research and development and infrastructure needed to bring down prices and improve quality, ensuring these foods are available for everyone," she continues.

Plant-based keeps moving
This week saw a flurry of plant-based news stories making headlines, as the industry keeps innovating.

The ProVeg Incubator program welcomed twelve start-ups working on plant-based, fermented and cultured food products. 

The Bel Group acquired an equity stake in biotech start-up Climax Foods Inc., aiming to use AI and data science to create plant-based cheeses that are nutritious, affordable and indistinguishable from their dairy counterparts, with a low carbon footprint. 

Layn Natural Ingredients, an innovator of natural botanical extract ingredients and solutions, expanded its portfolio to provide more science-backed, plant-based solutions for preservation and shelf life.

Meanwhile, Canada-based Big Mountain Foods dramatically enhanced the flavor and nutrition of its Lion’s Mane Mushroom Burger with a tannin-rich sidestream from the wine industry while reducing food waste to boot. 

By Marc Cervera