Alternative Proteins
Why alternative proteins matters
The 60 global companies in the Index are among the world’s largest producers and sellers of meat, fish and dairy. Their growth ambitions remain predicated on increasing global consumption of animal proteins, especially in emerging markets. Yet the most advanced scientific consensus, including from the IPCC, is that even current levels of animal protein consumption pose a profound threat to human and planetary health – a threat compounded by the sector’s vulnerability to the impacts of climate change.[1]
Alternative proteins have considerable carbon-abatement potential and generate lower environmental impacts than animal proteins. This means they contribute to long-term emissions-reduction targets and wider environmental goals.
Alternative proteins – products produced from plant-based and/or novel protein sources such as fermentation-enabled and cultivated technologies – provide a pathway to decarbonising the protein production system and mitigating environmental impacts while meeting the growing global demand for protein.[2] Diversifying product portfolios to include both animal and alternative protein sources presents a significant opportunity for companies in the livestock and fish sectors to mitigate operational risks while building agility to respond to market and technological disruptions.
Due in part to recent challenges associated with the cost of living crisis, and the need to continue to improve the taste and texture of alternative protein products,[3] alternative protein investment has decreased in 2022. However, the alternative protein market is still predicted to grow.[4] FAIRR’s latest collaborative engagement in this area, Protein Diversification, asks companies to quantify the climate mitigation potential of protein diversification in order to set board-endorsed targets to grow the share of nutritious alternative protein sources in their portfolio. This engagement builds on six successful years of engaging companies on the need to diversify their protein portfolio, through its Sustainable Proteins engagement.
Exposure to alternative proteins on the rise
Animal protein producers have significantly increased their activities, with more product launches, dedicated plant-based brands and investments. 25 companies invested in the alternative protein market as of 2023, more than quadruple compared to 2019, when there were only six companies. Companies are doing this through dedicated brands, expanded product ranges and venture investments in alternative protein-related technologies.
Few companies, though, are explicitly recognising alternative proteins’ potential to mitigate risks linked to their existing business models beyond consumer demand for animal proteins as alternatives increase in popularity. Just two companies have formally disclosed time-bound targets to diversify protein sources – and even these are limited.
Type of investments by Index companies
Company | Type of Alternative Proteins Exposure | Detail |
|---|---|---|
Almarai Co JSC | A few products in the market. | It offers several plant-based milks. |
Bakkafrost P/F | A few products in the market. | Its subsidiary, Munkebo Seafood, launched a range of vegan soups in 2022. |
BRF SA | Dedicated alternative protein brand and/or products across multiple protein categories. | It launched plant-based brand “Sadia Veg&Tal” in 2020. In 2021, it expanded product offering under this brand launching 100% Vegetable Chicken line. |
Venture investments or acquisitions. | It invested US$ 2.5 million in Aleph Farms for the manufacture of cultured meat. Further, it partnered with PlantPlus Foods in 2022, a joint venture with ADM and Marfrig Global Foods SA, to bring new “Sadia Veg&Tal” items to Brazil. | |
Bell Food Group AG | Dedicated alternative protein brand and/or products across multiple protein categories. | It established “The Green Mountain” brand specialising in plant-based meat alternatives. Three new plant-based sausages and a vegan schnitzel were added to the product range in 2021. |
Venture investments or acquisitions. | In 2020, the company invested an additional EUR 5.0 million in the next financing round of cultured meat company, Mosa Meat. These financial resources were used to build an industrial pilot facility and to further develop its production technology. The plan is to start the approval process in 2023. Further investments, expected to total EUR 176 million, are planned to expand the production capacity for plant-based ranges at facilities in Schaan. | |
Beijing Sanyuan Foods Co Ltd | A few products in the market. | The product portfolio of its subsidiary, St Hubert, includes plant spreads. |
Charoen Pokphand Foods PCL | Dedicated alternative protein brand and/or products across multiple protein categories. | “Meat Zero” includes Plant-Based Crispy Pork and Plant-Based Chicken Nugget. |
Venture investments or acquisitions. | It collaborated with the leading plant-based meat companies to invent and develop the innovative technology "PLANT-TEC". It continued its investment in a joint venture, Well Well Invest S.A. plant-based businesses. | |
China Mengniu Dairy Co Ltd | A few products in the market. | “Oatist” is a plant-based beverage. It also launched Zhiqing plant-based ice cream. The company is increasing R&D intensity and will increase the proportion of plant-based milk products. |
Danone SA | Dedicated alternative protein brand and/or products across multiple protein categories. | “Alpro” and “Silk” brands offer milk, yoghurt, cheese and ice cream products in Europe and North America respectively. |
Venture investments or acquisitions. | It invested USD 2 million in cell-based breast milk startup, Wilk. It also invested in alternative milk precision fermentation startup, Imagindairy. | |
Emmi AG | Dedicated alternative protein brand and/or products across multiple protein categories. | “Beleaf” and “Begetal” produces yogurt alternatives, drinks, shakes and desserts made from almonds, oats and rice. It is investing R&D in the brands for continued expansion and launched new products in 2023. |
Fonterra Co-operative Group Ltd | In the process of investing in/developing alternative proteins. | In 2021, the company announced it is preparing to launch a new startup together with DSM that will help accelerate the development of advanced speciality ingredients using precision fermentation technology. |
Venture investments or acquisitions. | It invested in Motif, which uses biotechnology and fermentation to develop ingredients for animal-free foods. | |
GFPT PCL | In the process of investing in/developing alternative proteins. | It is investing R&D into plant-based products to meet consumer demands. |
Great Wall Enterprise Co Ltd | Dedicated alternative protein brand and/or products across multiple protein categories. | “NEOPLANT”. It has also established a food development centre to oversee the R&D of new machinery, development, production, and marketing of plant-based meats. In 2023, it plans to invest in additional production lines for plant-based meat products. |
Grupo Bafar SAB de CV | A few products in the market. | It participates in the plant-based market by offering a "Zero Meat" brand, alongside a catalog of multi-protein solutions. It also mentions it offers marinated soy proteins in strips or pieces, under the product line "Guisy". However, it does not sell such products itself but its international subsidiary produces them for other companies under their private label. |
Hormel Foods Corp | Dedicated alternative protein brand and/or products across multiple protein categories. | In 2019, it launched “Happy Little Plants”, its own plant-based meat alternative brand. Additionally, Hormel Ingredient Solutions announced the launch of a new plant-based line available to food manufacturers across the country. |
Venture investments or acquisitions. | The company's venturing company, 199 Ventures, is in an exclusive partnership with sustainable food tech start-up, The Better Meat Co., to bring new plant-based protein products to the marketplace. | |
Inghams Group Ltd | Dedicated alternative protein brand and/or products across multiple protein categories. | “Let's Eat” includes burgers, nuggets, and tenders. The company also offers plant-based nuggets in Australia. |
Inner Mongolia Yili Industrial Group Co Ltd | Dedicated alternative protein brand and/or products across multiple protein categories. | “Plants Selected”. Soy milk was its first plant-based product, and, in 2021, it announced two new products; oat-milk and plant-based yoghurt. |
Itoham Yonekyu Holdings Inc | Dedicated alternative protein brand and/or products across multiple protein categories. | It has expanded the product ranges of its meat alternative brands; "Marude Oniku!" and "AIRMEAT". It has set a goal to further expand investments from 2023. |
JBS S.A. | Dedicated alternative protein brand and/or products across multiple protein categories. | The Seara division is a market leader in frozen and plant-based foods, offering 138 products since 2021. It offers meat substitute brands “Incrível” and “OZO”, but announced the closure of US brand, “Planterra Foods”, in 2022. Its subsidiary, Pilgrim’s, also offers several plant-based products. |
Venture investments or acquisitions. | It acquired BioTech Foods and Vivera in 2021. Further, it is investing in constructing Brazil's first R&D Centre for Cultured Protein and Food Biotechnology. | |
LDC SA | Dedicated alternative protein brand and/or products across multiple protein categories. | “Le Gaulois Végétal” offers meat substitute products made of pea and soy protein. |
Lerøy Seafood Group ASA | In the process of investing in/developing alternative proteins. | Looking to offer plant-based fish alternative products in the future. |
Venture investments or acquisitions. | The company has found a partner to help find suitable replacements for fish proteins in an assortment of “fish-like products” such as Vegan Maki with salmon and shrimp, Vegan Salmon burger, Key west Crab cake and more. It has ambitions to have plant-based protein products ready for market by 2024. | |
Maple Leaf Foods Inc | Dedicated alternative protein brand and/or products across multiple protein categories. | The company has a wholly-owned plant-based protein subsidiary, Greenleaf Foods, which manages the plant-based brands “Field Roast Grain Meat Co”, offering meat substitutes; and “Lightlife”, offering vegetarian and vegan foods. Further, it expanded its tempeh production capacity in 2022. |
Marfrig Global Foods SA | Dedicated alternative protein brand and/or products across multiple protein categories. | In the production and marketing of foods based on vegetable protein, the company is active through its PlantPlus Foods unit, a joint venture that it established with ADM. It launched four new plant-based items in 2022 and is investing to scale up production capacity. |
Venture investments or acquisitions. | Its joint venture with ADM saw two new acquisitions in 2022 in alternative proteins (combined deals totalling USD 140 million). | |
Mowi ASA | A few products in the market. | It offers vegan sushi options. |
Minerva SA | Venture investments or acquisitions. | It has several ongoing investments including The Every Company, a biotechnology company that develops animal-free protein foods; and Amyris, which focuses on the development of fermentation technology using genetically modified yeasts. |
NH Foods Ltd | Dedicated alternative protein brand and/or products across multiple protein categories. | In 2020, it launched plant-based brand “NatuMeat” and added Nuggets and Ham Katsu to existing alternative products made from soybeans in 2021. |
Venture investments or acquisitions. | In 2019, it commenced joint research related to cultured meat with IntegriCulture Inc., a startup company engaged in cell cultivation which NH Foods has invested in. Its R&D centre is also taking up technological issues surrounding cultivated meat. | |
New Hope Liuhe Co Ltd | A few products in the market. | It acquired Sichuan Huiji Foods in 2020, including an alternative protein brand “Plant Expectation”, offering three products that are substitutes for chicken, meatballs and sausages. |
Nissui Corporation | Dedicated alternative protein brand and/or products across multiple protein categories. | It has a few alternative protein products in the market through its European subsidiary, Cite Marine, which is expanding production capacity. It also produces plant-based yoghurt and plant-based meat in its Japanese business. In 2022, it also launched a series of products using its proprietary soybean meat, “VEGETABLE MEAT.” |
Prima Meat Packers Ltd | Dedicated alternative protein brand and/or products across multiple protein categories. | It launched plant-based brand “Try Veggie” in 2021, offering different products made of soy such as meatballs, hamburgers, katsu, soboro, and grilled plant-based meat. It is investing R&D to develop non-soy-based meat alternatives. |
RCL Foods Ltd/South Africa | Venture investments or acquisitions. | It established a joint venture with the US-based LIVEKINDLY Collective to market, sell and distribute all of LIVEKINDLY Collective’s plant-based brands – including the local “Fry Family Food Co.” and the international brands “LikeMeat” and “Oumph!” – in South and sub-Saharan Africa. |
San Miguel Food and Beverage Inc | Dedicated alternative protein brand and/or products across multiple protein categories. | Its “Veega” brand offers plant-based meat made up of mushroom, wheat and soy. |
Saputo Inc | Dedicated alternative protein brand and/or products across multiple protein categories. | It introduced plant-based alternative products in the Canadian and European markets, under the brands “Vitalite” and “Cathedral City” respectively. In Canada and the US, it has expanded its presence in the plant-based beverage category by manufacturing private-label products for major retailers. It also launched plant-based cheese under lead cheese brand “CHEER” in Australia. |
Venture investments or acquisitions. | In 2021, it acquired Bute Island Foods Ltd, a manufacturer, marketer, and distributor of various dairy alternative cheese products for both the retail and foodservice market segments under the vegan brand “Sheese”, alongside private label brands. | |
Scandi Standard AB | A few products in the market. | It launched plant-based products in Norway and Denmark during 2021. |
In the process of investing in/developing alternative proteins. | In 2020, it partnered with Veg of Lund AB in a two-year R&D project for a new plant-based protein that has a taste and texture similar to chicken. | |
Thai Union Group PCL | Dedicated alternative protein brand and/or products across multiple protein categories. | In 2021, it launched plant-based ambient tuna flakes, alternative shrimp pieces and whole shrimp, along with a plant-based brand, "OMG Meat", offering a range of frozen products including dim sum, crab dumplings, crab meat shumai, crab cake, hoi jor, shrimp wonton, red-pork bun, fish nuggets and chicken nuggets. In 2023, the company also launched John West Vegan Fish-Free Tuna in the Netherlands. |
Venture investments or acquisitions. | It invested CAD $10 million in Mara Renewables Corporation, a global producer of sustainably grown algae-based bio-products. It also partnered with ISH Food Company to invest in sustainable seafood and offer affordable alternative protein options. It discloses its joint venture investment in Algama, which offers large-scale industrialisation of plant-based products and expertise ranging from the selection of algae to the formulation of ingredients. | |
Thaifoods Group PCL | Dedicated alternative protein brand and/or products across multiple protein categories. | In 2021, it launched plant-based ambient tuna flakes, alternative shrimp pieces, whole shrimp, and a plant-based brand, "OMG Meat", offering a range of frozen products, including dim sum, crab dumplings, crab meat shumai, crab cake, hoi jor, shrimp wonton, red-pork bun, fish nuggets and chicken nuggets. In 2023, the company also launched John West Vegan Fish-Free Tuna in the Netherlands. |
Tyson Foods Inc | Dedicated alternative protein brand and/or products across multiple protein categories. | It has three new plant-based products under its brand: Tyson Plant-Based Nuggets, Tenders and Filets. It also has a dedicated brand of plant-based and blended products, "Raised and Rooted", launched in 2019 for the US and European markets. It offers products made of pea protein, including nuggets, crispy and grilled filets, wholegrain tenders, buffalo-style and sweet barbeque bites, bratwurst-style sausages, burgers and ground mince. It is expanding its alternative protein offering in the Asia Pacific market. In 2021, it debuted several plant-based products to Malaysian consumers under the existing household brand, "First Pride", offering frozen bites, nuggets and strips. |
Venture investments or acquisitions. | Tyson Ventures, a USD 150 million R&D fund, mentions four venture investments in emerging protein companies: Future Meat Technologies, Memphis Meats, Myco Technologies and New Wave Foods. | |
Vietnam Dairy Products JSC | Dedicated alternative protein brand and/or products across multiple protein categories. | It's "Soymilk" brand offers products including Fresh soya, Red Bean Soymilk, Almond Soymilk, Walnut Soymilk, Vinamilk Double Calcium Soymilk, and GoldSoy High Protein Soymilk. |
Want Want China Holdings Ltd | A few products in the market. | It offers several plant-based products, including one that directly substitutes animal protein, the Fix XBody Oat Milk. |
WH Group Ltd | Dedicated alternative protein brand and/or products across multiple protein categories. | In 2019, its subsidiary, Smithfield Foods, launched its dedicated alternative protein brand, "Pure Farmland", which produces a range of plant-based protein products. Its subsidiary, Shuanghui, also has a plant-based range under the brand “Vegetarian World”. |
Source: FAIRR 2023
References
[1] Mbow, C., Rosenzweig, C., Barioni, L.G., et al. (2019) ‘Food Security’ in Shukla, P.R., Skea, J., Calvo Buendia, E., et al. (eds.) Climate Change and Land: an IPCC special report on climate change, desertification, land degradation, sustainable land management, food security, and greenhouse gas fluxes in terrestrial ecosystems. In press.
[2] FAIRR & GFI (2022) Alternative Proteins ESG Reporting Technical Guide for Diversified Companies.
[3] Watrous, M. (2023). Alternative protein investments decline in line with market trends.