Growing consumer awareness about cruelty-free products, venture capital (VC) investor interest, new business models, and novel source availability are driving the protein alternatives market globally. As these alternatives come close to conventional protein sources in terms of price, taste, and texture, we are likely to witness more demand in the future, making it an exciting sector to watch out for, says GlobalData, a leading data and analytics company.
Said Pranjali Mujumdar, Disruptive Tech Analyst, GlobalData: “The emergence of alternative proteins, which include plant proteins, dairy alternatives, meat, and seafood substitutes, is attracting VC investors’ attention. Plant-based proteins constitute around 50% of investors’ deals and is the most funded category, with a significant volume of funding going into a small group of start-ups.”
Added Manish Dixit, Practice Head of Disruptive Tech, GlobalData: “Since the protein alternatives sector is still in its infancy compared to the many established categories, any investment now will have a major knock-on effect on how the industry moves and grows in the upcoming years. VC activity in the alternative protein space is already picking up very rapidly. For instance, alternative protein companies raised $1.05 billion from VC investors in the first half of 2022, representing a staggering 173.8% growth over H1 2021’s $384.13 million.”
An analysis of GlobalData’s Disruptor Intelligence Centre reveals that organisations are penetrating the nascent alternative protein market and view this as the next growth opportunity.
Concluded Mujumdar: “Technology investors, sensing an opportunity to capitalise on the increasing globalisation and industrialisation of food, are investing heavily in start-up companies, which pitch alternative methods of growing, manufacturing, processing, and distributing food. The scale of interest and investment in alternate proteins seems to have intensified and there is a growing consensus that this trend is here to stay.” For more visit globaldata.com
