Globally, consumer food preferences are undergoing a significant shift. Recent years have seen exponential interest in sustainable alternative proteins – including plant-based, fermentation-enabled, and cultivated.
Across Europe, an impressive 40% of consumers now identify as flexitarian, pescetarian, vegetarian, or vegan, and are actively reducing their consumption of animal-based products.[1] In terms of industry growth, the alternative protein market is estimated to reach USD 30 billion by 2030, expanding at an impressive CAGR of 10.4% between 2024-2030.[2]
In contrast, traditional animal agriculture is facing several challenges: economic pressures from increasing intensification and consolidation,[1] climate change, and reduced consumer demand for conventional animal-based products.
Opportunities for farmers in the alternative protein industry are abundant and diverse, reflecting the growing demand for sustainable food options and innovation in this sector. Alternative proteins not only open up new markets but offer farmers a future that is more sustainable, financially viable, and resilient.
In its latest New Food Hub article, ProVeg International shares the key opportunities available to farmers in alternative proteins, considers the challenges in transitioning, and explores actionable insights for farmers and F&B businesses.
Key opportunities
Accessing new markets: Farmers can tap into the growing market for alternative proteins, both locally and globally. This includes supplying ingredients to food manufacturers, selling plant-based foods directly to consumers through farmers’ markets or online platforms, or exporting to regions with increasing demand for alternative protein ingredients or products.
“There’s a fast-growing market for people seeking a vegan or flexitarian diet, who want more plant-based proteins. There’s definitely an opportunity for farmers to get over those cultural and economic barriers because there could be a lucrative opportunity there,” said James Woodward, Sustainable Farming Officer at Sustain: the Alliance for Better Food and Farming.
Value-added products: Farmers can explore value-added opportunities by processing their harvested crops into ingredients for plant-based foods on-farm. This could include producing items like soya protein isolates, pea protein powders, or hemp oil, which are in high demand by food manufacturers producing plant-based meat alternatives, dairy alternatives, and other plant-based products.
Farmer-tech collaborations: Farmers could partner with buyers or cooperatives to co-invest in capital expenditure around precision-fermentation production or other alternative protein technologies, thus partly de-risking the transition.
The evolution of agriculture
The landscape of food production is evolving rapidly, with an increasing demand for sustainable alternatives to traditional animal-based products. As consumers embrace flexitarian and plant-based diets, opportunities for farmers in the alternative protein industry are burgeoning.
Head to the New Food Hub to read the full whitepaper and learn more about the opportunities for both farmers and businesses. For more support on your alternative protein strategy, get in touch with our experts at [email protected].
[1] Flesher, J. (2020): Factory farms provide abundant food, but environment suffers. PBS NewsHour. Available at: https://www.pbs.org/newshour/economy/factory-farms-provide-abundant-food-but- environment-suffers Accessed 2022-05-09
[1] Smart Protein Project (2021): ‘What consumers want: A survey on European consumer attitudes towards plant based foods. Country specific insights’ European Union’s Horizon 2020 research and innovation programme (No 862957). Available at: https://smartproteinproject.eu/consumer-attitudes-plant-based-food-report/ Accessed 2022-02-17
[2] Alternative protein market, (2023). Industry Arc. Available at: https://www.industryarc.com/Research/alternative-protein-market-research-800448. Accessed 2024-03-27.