Food & Beverage Asia April/May 2022

18
MARKET INSIGHTS
An alternative price for
protein
Despite its growing popularity, the alternative protein scene
still faces many challenges with cost and production.
Agatha Wong speaks with Gautam Godhwani, managing
partner of Good Startup, to find out how the production
of alternative proteins can be optimised to attract more
consumers.
Alternative protein, despite
having entered the mainstream,
is still commonly associated and
perceived as a “niche product”. In
your opinion, how can alternative
protein break away from this
“niche product” label, and what
are your recommendations to
alternative protein producers to
appeal to wider consumers?
Gautam Godhwani: Consumers
purchase products based on two
primary factors – taste and price.
As “alternative proteins” come
closer to achieving these objectives
across animal product categories
such as meat, seafood, dairy and
eggs, consumers will adopt them in
increasing numbers, and over time
will drop the label “alternative” and
simply refer to them as “proteins”.
To reach this point, we will not only
utilise plant-based technologies
like those available today but
microorganism- and cell-based
technologies, which can produce
specific proteins and achieve the taste
and texture of meat as animal cells are
grown outside the animal. Ultimately, a
combination of plant-, microorganismand
cell-based technologies will create
products indistinguishable from meat,
available at a reasonable price, yet
healthier for consumers and the planet.
Despite growing demand, plantbased
alternatives still cost
more than animal products. Is
there a reason why this is so,
and how can plant-based meat
producers innovate to better
scale production costs?
Godhwani: Plant-based meats are
still early in their development so the
ingredients and processes utilised
to create them are also in a nascent
stage. As we attain a greater variety
of ingredients, improve processes and
increase scale, plant-based meats
will reach price points that are much
more attractive for consumers.
The animal agriculture industry
also receives subsidies of various
kinds from governments across
the world. Without them, their price
would be comparably higher as well.
As governments recognise that
alternative proteins are better for
both consumers and the planet, it is
likely they will also provide incentives
to adopt alternative proteins, similar
to the subsidies available for clean
energy today. This will raise awareness
and accelerate adoption as well.
A Good Food Institute article,
When will the price be right?,
projected that plant-based meat
might achieve price parity with
conventional animal-based protein
by 2023. Can you share with
us your views on this, and how
might producers of other types
of alternative proteins achieve
price parity sooner as well?
Godhwani: Plant-based meat is
a broad category. It encompasses
various foods like beef, pork, chicken
and more, and different offerings such
as ground meat and whole cuts. As
technologies and processes improve,
we will increasingly see prices of
plant-based meats match animal
products, category by category. While
it is difficult to predict when this may
happen due to the volatility of supply
chains and macroeconomic conditions
today, we can be confident that an
increasing number of meat categories
will match animal products over time.
The other factor here is government
subsidies, which are available
for animal products in many
countries and food categories,
but not for alternative proteins.
This will shift over time as well.
Do you agree that the plantbased
meat supply chain is less
complex than traditional livestock
agriculture? Even so, what are
some of the opportunities and
challenges plant-based foods
have brought forth to the supply
FOOD & BEVERAGE ASIA APRIL / MAY 2022