Proteins
Alternative
Tracy Laughlin + Carter Sinclair + Joseph Aynide
What are “alternative proteins?”
Plant-based proteins (EX: Beyond Meat)
Derived from plants, such as legumes, pulses, soy, tempeh, grains, peas, etc.
Insect proteins (EX: Ÿnsect)
Derived from edible insects + used for animal feed
Cultured meats (EX: Upside Foods)
Meat cultivated in lab using small amount of animal tissue cells
Microbial proteins (EX: Every)
Use of edible bacteria, yeast, + fungi extracts as substitute for amino acids
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“Food will change more in the next 10 years than in the last 10,000. Demand for meat alone will surge 50%-100%.
We don’t have enough earth’s for conventional agriculture. Future of food tech will be up to 80% to 90% more efficient.”
Ryan Bethencourt
CEO of Wild Earth
demand side
The alternative protein market
Market SizE
Rise of veganism & vegetarianism
Manufacturer involvement &
product availability
Demand for wellness-focused & ethically-sourced foods
(Markets and Markets)
Market base is ~$2.2 BN, compared to global meat market of $1.7T (McKinsey)
Projected to reach $290B in 2035 (GFI)
29% of Americans consume APs ≥ once a month (Statista)
Plant proteins
Insect proteins
Microbial proteins
Cultured meats
Women, younger, and educated individuals are most likely to substitute for an AP
(Carlsson, et al.)
Draws consumers from income levels above $50K (GFI)
Market subsets
Consumer demographics
Growth drivers
Obstacles to maximum consumer adoption
Satiety concerns
35% of consumers are concerned about feeling full
28% are concerned about consuming enough protein in their diet
(Sloan)
Pricing
A study reported that 30-40% of subjects were unaware of the taste, smell, texture, and appearance of APs (Carlsson, et al.)
Taste is the most important factor in influencing a shift to AP products (Dion)
Product uncertainty
APs must be competitively priced to drive more demand (Dion)
⅓ of those who prefer meat would switch to plant-based if the price were ≥ ⅔ of the price of its meat counterpart
(Carlsson, et al.)
The most resistant demographic of consumers:
Male individuals without a university education and older than 30 years, especially those living in a small city
Supply side
Taste + Texture Technology Development
Ingredient Blending
(University of Minnesota)
Sustained Release technology + Heme
(Impossible Foods)
Most sustainable Alt Protein:
Pulses
Why pulses?
Minimal resource usage, nitrogen fixation, little processing
(Half Cup Habit)
What classifies as a pulse?
Dry, edible seeds of legume family
Pulses + Ingredient blending
Need proper ingredient blending to create pulse-based products
Greener Alternative Protein Production:
(Beyond Burger IMpact Report)
46% less energy is required for production
93% less impact on land use in production
90% less GHG emissions compared to conventional meat production
99% less impact on water scarcity
The Role of policy in Economics: through an Analytical Lense
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Meat Industry vs Alternative protein Industry:
a Policy Perspective
Iron Triangle:
Investment into Meat Industry vs Alternative Proteins
Meat: 38 Billion(Sewell)
Alternatives: 112 Million(Good food Institute)
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Quiz!
Based on demographic trends, which of the following individuals is least likely to adopt an alternative protein diet?
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Quiz!
Which of these are NOT a step in the process of producing heme?
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Quiz!
Joseph’s question
Which of these is not a major role of policy in the field of Economics?
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Discussion Questions
Which category of alternative proteins will become most competitive in the market within the next 10 years?
Does the company resources (marketing, acquisitions, etc.) or the product better determine the success of an alternative protein company?
Rank these three consumer interests in terms of their influence on a customer’s purchase of alternative food products.
Will consumer demand overrule (possibly corrupt) government interests and influence in the alternative protein space?
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Sources
Carlsson: https://doi.org/10.1016/j.ecolecon.2021.107329.
Laughlin, T. C., & Dion, M.: Understanding the plant-based and cultured meat market. personal.
Markets and Markets: https://www.marketsandmarkets.com/Market-Reports/plant-based-protein-market-14715651.html
Ahluwalia, M.S. (2015) Role of economists in policy-making. WIDER Working Paper 2015/144. Helsinki: UNU-WIDER.
Removing the Meat Subsidy: Our Cognitive Dissonance around Animal Agriculture.” JIA SIPA, Christina Sewell, 10 Feb. 2020, https://jia.sipa.columbia.edu/removing-meat-subsidy-our-cognitive-dissonance-around-animal-agriculture.
Dale, James. “Alt Proteins Can Transform Our Food System–Tracking Research Grants Can Keep Us on Target.” The Good Food Institute, 23 July 2021, https://gfi.org/blog/tracking-alt-protein-research-grants/.