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Are Alternative Protein Investments A Fad?

The market for alternative proteins has seen an increase as environmentally-friendly eating practices have been a major focus. Health concerns about individuals along with climate change, animal cruelty have played a major role in the development of this industry.

According to UBS the market for alternative protein has grown to just over $5 billion in the year 2018 and is predicted to expand exponentially to $85 billion over the next 10 years. For instance their report mentioned that the price for Beyond Meat, makers of the burger patty made of plant matter that mimics the texture, taste and shape like real food, rose fivefold in just two months on Nasdaq.

If you are an investor who is interested in this area Here are five alternatives to think about:

1. Plant-based Meat Alternatives

The market for alternative proteins start up is often linked to plant-based meat alternatives that are made of 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, leading to the terms “cheeze” or “mylk” that are being sold on the market. The categorizing of these foods could put them in the category of a “vegan exclusively” market, and also exclude them from the main markets in the sense that this is the only way in order to reduce their environmental impact.

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

The major issues with the majority of meat replica companies is due to their taste and texture, as also the lack of product variety. A study conducted by the Kerry, a food company Kerry discovered 70% of customers prefer vegan alternatives that have the same taste as real meat; However, from what I’ve observed the market for vegans is not a strong recommend the flavor of real meat. Customers want variety, and with a skewed selection of options, which is dominated 61% by burgers made of plant-based patties, there’s an opportunity to improve.

Investors need to be aware that consumers are keen to learn the sources and nutritional facts of the food they consume however, many of them do not prefer to describe the foods they consume as vegetarian.

Furthermore the fact that plant-based meats are mostly consumed by people with 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

The category of protein alternatives includes 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 because they are inexpensive and easy methods of consuming the essential nutrients.

3. Bugs And Insect Protein

Another type substitute protein comes from one that isn’t vegan or animal-free. Insects and bugs that are eaten all over the East and are rich in protein and relatively simple to raise sustainably as when compared to traditional meat. In the year 2000, 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 innovations have shown the possibility of “grow” meat by using the technology of animal cells. Significant investment has been put 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 information: Memphis Meats is in our network of ventures.) Mosa Meat plans to have an operational pilot plant for its meat grown in a lab in 2021.

In 2019, following several years of controversies over the authenticity of these products in the past, they were regulated by the Food and Drug Administration (FDA) declared that it would regulate cell-culture-based products in the same way it regulates meat products in the traditional way. This is a significant leap forward for the industrythat like every other food industry, is based on the consumer’s acceptance that the products are evaluated and are safe to consume and healthy.

Cell-based meat is a method to grow products into various cuts of meat such as chops and steaks. In addition growing the market to achieve the need to provide the increasing world population with healthy and safe meat requires more creativity and research. With this new FDA regulation, investments in the further development and research of cell-based meat is likely to increase.

Investors are more comfortable when it comes to bringing money into the market as the government works to regulate and improve products that are available to the general market for consumers.

5. Blended Protein

Tyson is one of America’s biggest 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 the products are expected to see significant growth in the traditional market for meat. The hybrid meat products offered by the company will likely to catch up among the 75% customers who “are ready to incorporate the protein sources of both plant and meat” within their daily diet.

More Than a Fad

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