Food & Beverage Asia October/November 2021

MARKET INSIGHTS 15
Asia, with expertise in animal welfare,
agriculture, engineering, venture
capital and alternative proteins, who
offer our portfolio companies with
the deep knowledge and mentorship
to grow, scale and expand.”
AN ALTERNATIVE FUTURE
As a firm with both first-hand
experience and insight into the
alternative protein industry, Good
Startup anticipates the evolution
of the market into a new phase
where substantial improvements
to the quality and price of current
alternative protein products will be
offered; and products with “clean
labels” will be comprised of simpler
ingredient lists and better nutritional
profiles, amongst other development.
Citing Nowadays – one of Good
Startup’s companies which uses
just seven ingredients to create a
healthier version of chicken nuggets
as an example – the firm foresees an
advancement of the supply chain,
using much broader ingredients
and better upstream formulations
to improve manufacturing.
“Broadly, we will see products that
will reach both taste and price
parity utilising plant-, cell- and
microorganism-based technologies.
Once this occurs, we will move
from the early adopter to the
mainstream consumer, which will
significantly increase the market
size for alternative proteins. We will
then see a much broader set of
products on the market catering to
local tastes, that is also healthier
to eat,” said Gautam and Jayesh.
These changes are expected
to disrupt the largest traditional
protein markets, such as pork in
China or dairy in India. However,
before these changes happen,
alternative proteins need to
gain mainstream prominence,
which, Gautam stated, is possible
only through these products
gaining taste and price parity.
Gautam concluded: “At present,
prices of alternative proteins are
higher than conventional protein
sources, and alternative protein
companies are catering more to
niche consumers. Many consumers
are willing to tolerate a price
premium to create diversity in their
diet by eating more plants and trying
novel foods. However, as prices of
alternative proteins consistently
become lower and eventually reach
price parity, there will be a significant
increase in demand for alternative
protein options in the region.” FBA
Broadly, we will see products that
will reach both taste and price
parity utilising plant-, cell- and
microorganism-based technologies.
Once this occurs, we will move from
the early adopter to the mainstream
consumer, which will significantly
increase the market size for
alternative proteins.
Gautam Godhwani and Jayesh Parekh
Managing partners, Good Startup
FOOD & BEVERAGE ASIA OCTOBER / NOVEMBER 2021