ADM releases alternative protein outlook for 2022

MarketsFarm — Major U.S. agribusiness ADM released a report Tuesday identifying the seven biggest trends in the alternative protein market, ranging from creating new protein sources from fungi to making plant-based meat substitutes more affordable and palatable to the general public.

The seven trends in the report were: introduction of novel protein sources, using microbial fermentation, plant-based whole-muscle products, innovation and transparency from seed to fork, price reduction of cultivated meat products, kid-friendly product formats, and plant-based versions of traditional, authentic cuisines.

ADM also mentioned in the report there were two factors driving the trends: sustainably feeding a growing global population and growing consumer demand for health-forward solutions.

“Current projections indicate that we will need to produce more food in the next 40 years than we have in the past 8,000 years to feed the world’s population. This is going to require alternatives that extend well beyond conventional protein sources,” the report said.

“Today’s consumer is seeking protein alternatives that support their health and wellness goals. They want solutions that support their mental, emotional and physical selves as they head into year three of a global pandemic.”

With US$1.2 billion invested in cell-cultured (or lab-grown) meat and seafood substitutes, new protein sources including seaweed, insects and even volcanic ash would serve to expand the alternative protein market from only peas and soy.

Microbial fermentation is another method used to discover new sources of protein.

“With the alternative meats market expected to grow at a rate of 16 per cent through 2030, the industry will need more than today’s protein sources to meet evolving demand,” the report added.

According to a survey conducted by ADM, it was determined that alternative meat products were used in 33 per cent of family meal occasions. Creating more whole-muscle, plant-based products such as chicken breast substitute and finding new ways to reproduce the texture of meat products can grow the market.

The report also acknowledged consumers’ growing concerns about climate change and questions about the efficiency of food production.

“Seed-to-fork initiatives, as an example, leverage cutting-edge technology to improve seed breeding, and lessen the cost, time and environmental impacts associated with creating consumer-ready protein sources,” the report added.

ADM mentioned that Future Meat Technologies, a biotechnology company creating cultured meat, announced last December a pound of cultivated chicken breast was selling at US$7.70, compared to US$18 six months earlier. There was also optimism that cell-based meat will be approved for sale in the U.S. by mid-2022.

Expanding the selection of plant-based protein products for children, such as plant-based chicken nuggets, was also one of the trends identified by ADM, as well as creating plant-based versions of dishes from various cultures.

“A myriad of forces, including a persisting global pandemic, will continue to shape consumer behaviour over the coming year,” the report said. “While we don’t have a crystal ball, there are clear signals in the marketplace that indicate the seven aforementioned trends are going to have a sizeable impact on the protein alternatives marketplace as it evolves in the months ahead.”

— Adam Peleshaty reports for MarketsFarm from Stonewall, Man.