Creating a new protein sector: Part II

Part I of Creating a new protein sector in the previous issue made the point we are advancing beyond the startup stage in new proteins, and we have the opportunity to create a more sustainable food protein sector. New industry sectors go through a somewhat predictable life cycle of startup, growth, shakeout, maturity and, eventually, decline. The new protein sector is no different in that – over the past decade – we have been passing through the startup stage.

Entrepreneurs, evangelists and dreamers have been innovating and solving challenges across the sector. Some have succeeded, many have failed. And yet they have moved the whole sector forward.

Over the past decade, we’ve worked to understand the possibilities of plant-based, fermentation-enabled or cultivated protein technologies. It’s now less, ‘Can something be done?’ and more ‘Great, we can! Now, how do we do this bigger, at scale?’ And that tells us we are moving toward that second life-cycle stage of new protein – the growth stage.

It’s incredibly exciting. We are at the beginning of scaling a whole new food sector that has huge potential to deliver more sustainable protein for us all. In the past 10 years, universities and small private teams have been focused on pushing the limits of new proteins, funded by academic grants, seed stage investors and, recently, venture capital.

So, what’s next? What is the growth stage going to focus on? R&D will continue, funded by universities, governments, corporations, and venture finance. Increasingly, though, governments, corporations and investors will turn their attention to scaling and deploying proven technologies. Ideally, the overarching goal is creating protein that has all the same characteristics as traditional protein at a similar cost. Scale is the vital part of the equation for reducing costs in the new protein sector.

Food producers have an important role to play in new protein. They understand what it truly takes to consistently scale food at an achievable price point for consumers

The main theme moving forward into the growth stage needs to be collaboration. There is no one group or company with all the answers or knowledge. Collaboration between innovators, food producers, governments, and research institutions will be essential for scaling up new protein technologies. Each have a role to play.

Innovators understand the new technologies and can help solve the inevitable challenges as we scale the technologies.

Food producers – including the traditional protein supply chain – have an important role to play in new protein. They truly understand what it takes to consistently scale food at an achievable price point for consumers.  

By investing in the needed infrastructure, governments can not only foster leadership in the rapidly growing food sector, but also ensure enhanced food security for their populations. Their contribution to developing the necessary infrastructure is crucial for scaling up the new protein sector.

Governments worldwide are investing in protein R&D. Some are establishing innovation hubs, while others have plans for pilot- or large-scale production facilities. Policymakers will also play a pivotal role through supportive policies and regulations. This includes financial incentives to scale, labeling requirements to ensure transparency for consumers, and subsidies for continued R&D.

Collaboration will be critical for success. Partnerships will boost manufacturing innovation, enhancing product quality, lowering production costs, and making alternative proteins more accessible.

Let’s not forget, the USA alone produced about 40 billion pounds of pork, 30 billion pounds of beef and 10 billion chickens in 2022.  

As we scale up these new protein technologies, we will encounter new costs that we must tackle and solve together. Scale always comes with costs. So those of us at the forefront must take them into account as we aim to scale a more sustainable protein industry. Sustainable energy sources will also be a key requirement and these sources need to be truly sustainable.

Is it worth it? If we can produce the same protein sustainably and at a similar cost as traditional protein, we will have a new food industry that can benefit everyone. If we
work together, we all have much to gain.

I’m looking forward to working with innovators, corporations, food producers, and governments to create a new food sector that will help us and future generations live sustainably on earth. If you are interested in any of the above, reach out. Collaboration will be critical as we move into the growth phase of the new protein sector.

Andrew D. Ive is the Founder/Managing General Partner, at Big Idea Ventures. He is an advisory board member for Tufts Nutrition Council, is a Friedman School Entrepreneurship advisor, Harvard Business School graduate, Procter & Gamble brand management trained, and has spent a number of years as an entrepreneur growing companies. This article is republished from the Q1 2024 edition of Protein Production Technology International, the industry's leading resource for alternative proteins. To subscribe to all future editions, please click here