Bridge2Food EcoSystem members delved into the economic challenges faced by the alternative protein industry and strategies to overcome them. The consensus among participants was that while there's optimism for the sector's future, several steps are crucial to bring alternative proteins into the mainstream effectively, potentially marking 2024 as a turning point.

Market insights revealed a global expansion of the plant-based category, with notable growth in Western Europe and Latin America. Investments are shifting towards functional ingredients, particularly in fats, fermentation strains, and cell lines for cultivated products.

Regarding the products on offer, addressing affordability and taste is key. While consumer motivations lean towards health, taste remains a significant roadblock. Some companies have succeeded by prioritising innovation to mimic real meat while ensuring nutritional profiles align with consumer expectations, as seen with a market-leading example, THIS. By achieving hyper-realistic taste, texture, and nutrition, these products stand out within the alternative protein market.

Navigating the financial hurdles, often called the "valley of death," requires a multifaceted approach involving streamlined business operations, creative capital expenditure, collaborations, strategic partnerships, and governmental and philanthropic support. Achieving the right product balance, where alternatives offer unique value without overwhelming consumers with too many options, is essential.

Collaboration emerges as a key theme when navigating the industry into maturity. Working together within the food sector, academia, and policy and regulation spheres is vital for innovation, cost reduction, and market alignment. Collaboration between businesses (B2B) and consumers (B2C) can accelerate progress by refining product success criteria and value propositions.

Expanding upon this, ongoing efforts in research and development are crucial to maintain momentum and drive innovation within the alternative protein space. This includes advancements in ingredient sourcing, processing techniques, and product formulations to enhance taste, texture, and nutritional profiles. Additionally, marketing and consumer education are pivotal in shifting perceptions and driving demand for alternative protein products. Building an established brand identity can help drive sales, by finding the right balance between having enough products to stand out, but not too many products that a company underperforms.

Furthermore, regulatory frameworks must evolve to support the growth of the alternative protein industry. Clear and consistent regulations regarding labelling, safety standards, and market access can provide certainty for businesses and consumers, fostering a conducive environment for investment and expansion. Collaboration between industry stakeholders and policymakers is essential to ensure that regulatory frameworks are pragmatic, science-based, and adaptable to the evolving nature of alternative protein technologies.

Addressing pricing concerns is critical for market penetration. Products need to be priced competitively with animal-based counterparts to increase consumer demand. Strategic partnerships with retailers can facilitate product placement and boost sales.

Looking ahead, EcoSystem members highlighted a positive forecast of continued growth in the sector, driven by shifting consumer preferences and government support. The Chinese market, in particular, shows promise in research and investment.

In summary, while economic challenges persist, the alternative protein industry is poised for continued growth and innovation. By embracing collaboration, innovation, and strategic partnerships, and by prioritising core activities and refining product offerings, the industry can advance towards mainstream adoption, contributing to global food sustainability.

Learn more about the Bridge2Food EcoSystem here and learn more about overcoming the economic challenges in the alternative protein industry at Bridge2Food Europe on 4-6 June in The Hague, The Netherlands.