of alternative
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Photo courtesy of: DedMityay via Getty Images
Casey Laughman, Editor-in-Chief
The alternative protein market continues to grow, with companies ranging from start-ups to midsize to massive traditional protein producers all looking to get a piece of the pie.
The growth has been driven by a number of factors, but like any product, consumer demand is king. As more consumers have turned to alternative proteins in both foodservice and retail settings, the market has adapted to meet those needs.
But the factors driving those demands aren’t necessarily the same as traditional consumer priorities. While price still matters, many alternative protein products are and will remain more expensive in the near future than traditional protein. But health considerations, environmental impact and supply chain considerations are causing consumers to take a look at alternatives.
“We've seen this rapid expansion in the alternative protein category, and literally, there's a new player on the marketplace almost daily,” says Amy Shipley, managing director and partner, SRG. “What's different today than even six months ago where people's focus on the ingredient label, certainly supply chain, how things are being manufactured.”
William R. Aimutis, Ph.D., executive director of the NC Food Innovation Lab, works with start-ups and other companies to develop and pilot products. He agrees that the market is continuing to grow, with most of that growth being in meat. But the dairy market is also growing, and he points out that one developing trend is companies looking for different mixtures of proteins.
Consumer demand drives market to new heights; now processors are looking at what’s next
A lot of alternative proteins have been using or still use some kind of wheat gluten combination. But with gluten-free foods being a priority for many consumers, many alternative protein producers are looking to move away from glutens and looking at other proteins to mix with products.
“We are seeing a little bit more interest in chickpea,” says Aimutis. “We're seeing some rice protein coming into play. We're kind of anxious to see who's going to have the first real canola protein isolate get out there. And we're starting to see more in what I would call the fungal area, fungal analogy areas. Both those areas are starting to push hard, and make some inroads also.”
With the market firmly established, processors are now turning their eyes to what’s next. For a market such as alternative protein, with so many different combinations possible, that’s a very broad question. But both Shipley and Aimutis have some insights on where they expect the market to go.
“I think one of the challenges now are there are so many me-too products out there,” says Shipley. “I really want to see a lot more breadth amongst the companies, so you can really understand the differences between them, and I think that's going to be important in 2021 and 2022, is kind of carving out that unique niche. In '20 it was like, ‘OK, we all have the burger, we all have this, so what else is there? Why does yours taste better than others? Or why does yours perform better in certain cases from a cooking perspective, or whatever it might be?’”
Aimutis shares that perspective, but from a different angle, pointing out that there are certain market categories that may be primed for growth in alternative protein options.
“I think the dairy industry, and even the soy industry, to some extent, has been a little concerned about what would happen with a lot of these alternative proteins did get their supply chain proverbial act together," he says. "Would they creep into the market share that dairy and soy have enjoyed? I definitely think we're starting to see that a little bit more now in peas.”
To get insights on where the alternative protein market is now, how it’s been affected by the events of the last year and where it’s headed, I spoke to a number of people in the industry. Q&As can be found by clicking on the links below. All Q&As have been edited for length and clarity.
Managing Director and Partner, SRG
Amy Shipley is managing director and partner, SRG, a Colorado-based consulting firm. SRG works with a number of clients in the alternative protein market.
>> Go to Q&AExecutive Director, NC Food Innovation Lab
William R. Aimutis, Ph.D., is executive director of the NC Food Innovation Lab, which works extensively with alternative protein producers and start-ups.
>> Go to Q&ACEO, PURIS
Tyler Lorenzen joined the family business, which at the time was a grain- and seed-handling company. But Lorenzen’s father had long had the vision of ultimately turning PURIS into a plant-based food company, and Lorenzen joined PURIS to lead it to that stage.
>> Go to Q&APresident and Founder, Before the Butcher
Danny O’Malley is President and Founder of Before the Butcher, a manufacturer of plant-based burgers, chicken burgers, turkey burgers and breakfast sausage patties.
>> Go to Q&AJim Alderink, VP, Tech. Integration & Jonathan Jachimiec, CFO, MycoTechnology
Jim Alderink is VP, Technology Integration and Jonathan Jachimiec is CFO of MycoTechnology, a Colorado-based producer of mushroom proteins.
>> Go to Q&AVice President of Business Development
Kristie Middleton is Vice President of Business Development for Rebellyous Foods. This interview is part of the Food Engineering Podcast Series.
>> Go to Q&A