The ProVeg Incubator has released a new report to celebrate reaching the five-year mark and supporting over 100 startups. Titled Five Years, 100 Startups, and the Future of Food, the report argues that the alt protein sector is currently undergoing a “necessary correctional phase” but will ultimately come out stronger.
While acknowledging that 2024-25 will be a challenging period due to difficult economic conditions, ProVeg believes that a new wave of improved plant-based products will provide cause for optimism. These products are price-competitive and feature cleaner labels and improved taste, addressing many of the criticisms often directed at plant-based alternatives. Furthermore, new products made via fermentation — along with the gradual approval of cultivated meat in some markets — could also boost the sector.
Future outlook
Within three to five years, ProVeg believes that most alt protein products will match the price, taste, and texture of animal products, while the cultivated and precision fermentation sectors will mature significantly. Over the next eight to ten years, alternative proteins could become the default option for most people due to improved functionality and growing awareness of their sustainability benefits.
After that, ProVeg predicts that alternative protein investments could surpass $10 billion a year, doubling their 2021 value. Strategic investors, corporations, and particularly public funding will all help to transform the food system.
“We are beyond the first wave of product innovation and consumer adoption. The next wave will lead the way, and further accelerate the transformation and growth of the industry,” said Albrecht Wolfmeyer, director of the ProVeg Incubator.
“Healthy recalibration”
The ProVeg incubator is a program that supports alt protein and food-tech startups across sub-sectors such as plant-based, biomass fermentation, algae- and fungi-based, cellular agriculture, precision fermentation, plant-cell culture, and molecular farming. The program supports the goal of the incubator’s parent organization, ProVeg International, to replace 50% of animal-based products with plant-based and cultivated foods by 2040.
Last year, the incubator launched Kickstarting for Good, claimed to be the world’s first accelerator program for nonprofit organizations and impact initiatives working on transforming the food system.
“The industry is simmering down, not burning out. Like any emerging sector, this is a healthy recalibration, separating the true potential from the hype. This consolidation will help the sector build back stronger on the other side,” said Divya Murthy, co-head and Investment Lead at the ProVeg Incubator.