A few years prior to the Covid-19 outbreak, the plant-based food sector
appeared to be on an unstoppable
trajectory.
In July 2019, industry leader Beyond
Meat
reached an all-time-high stock closing
price
of $234.90; while its main competitor, Impossible
Foods, was also stirring up the market and
revolutionizing how consumers regard
“meat.”
Many were convinced it wouldn’t be long before the alternative protein
market
would rival that for conventional animal meat — which would be a big win for
the
environment,
not to mention animal welfare.
But it wouldn’t be long before the booming plant-based foods sector would
become overcrowded and lose some of its
luster,
for a variety of reasons.
“After impressive growth and optimism, we have been in a phase of consolidation
and correction in the market in the last few years,” Albrecht
Wolfmeyer, International
Director of ProVeg Incubator — a global
incubator of plant-based, fermented and cultivated food startups — told
Sustainable Brands® (SB). “This has to do with a combination of factors,
both external and internal to the industry. This development is challenging — as
many companies are currently struggling with fundraising, scaling up and
commercialization. At the same, it will make the industry stronger and more
resilient.”
Now, another development disrupting nearly every industry and virtually every
aspect of our lives today — artificial intelligence
(AI) — could be a saving grace for
plant-based food producers.
Supercharging animal-free food
As AI becomes more sophisticated, plant-based food companies are learning to
leverage the technology to innovate and thrive in the ever-competitive
alternative-protein
market.
In 2022, Santiago, Chile-based NotCo — a foodtech
startup that offers animal-free meat and dairy alternatives — raised US$70
million
for the deployment of its AI platform,
“Giuseppe,” which the company also
made available to third parties to accelerate growth of the plant-based food
industry.
NotCo gained popularity thanks to products including
NotMilk — made
from ingredients such as cabbage and pineapple, among others, to replicate the
taste of traditional dairy milk. The company has also partnered with food giant
Kraft
Heinz
and continues to roll out new products — including
NotMayo
and NotChicken, which are
sprouting up on supermarket shelves throughout North and South America.
Other plant-based companies leveraging AI to augment their growth include
Boulder, Colorado-based Meati — a producer of
mycelium-based meat
alternatives
— which recently partnered with AI leader
PIPA.
Another company poised to be a key player is Berkeley, Calif.-based Climax
Foods — a biotech company that combines data science and
machine learning to create plant-based replacements for animal-based food
products, starting with an array of cheeses. Its
Climax Blue Cheese is now
featured on restaurant menus from Michelin-starred chefs including
Dominique
Crenn
and available from grocery delivery service Good
Eggs
in Los Angeles and the San Francisco Bay Area.
Future-proofing our food system
Wolfmeyer projects the benefits of AI could reach much farther than the
development of new, plant-based foods.
“AI will bring changes across the value chain in our food systems, starting with
its primary sector — think of monitoring in agriculture, crop health or
traceability,” he said. “AI could help empower the consumer, increase food
safety and tackle food waste. It will change the way we extract and synthesize
ingredients and how we produce foods.
“As for plant-based or cultivated
foods,
I am optimistic that we will be able to optimize existing processes and
technology that help create the next generation of alternative and sustainable
foods,”
he added. “However, the alt-protein sector seems to be at a very early stage
regarding AI, compared to other industries. We have to make sure it does not
fall behind.”
Despite an apparent slowdown (or
shakedown,
if you prefer) in recent years, the plant-based food industry continues to grow,
albeit with ebbs and flows. According to a recent report by Meticulous
Research,
the market will see significant growth in the coming years — with a compound
annual growth rate (CAGR) of 12.3 percent for the forecast period 2024-2031 —
due to the “increasing intolerance for animal-derived protein amongst consumers,
the growing vegetarian [and vegan] population, the rising number of venture
investments in plant-based food companies, innovation in food technology, and
the growing focus on animal welfare and sustainability.”
If more animal-free food companies embrace and employ artificial intelligence,
industry growth may very well eclipse those projections — a big win not just for the
sector, but for planetary health as a whole.
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Roberto Guerra is a bilingual writer, editor, entrepreneur, corporate engagement and communications specialist, and US Air Force veteran with a bachelor’s degree in Journalism from Universidad de la Sabana (Bogota, Colombia) and an International Master in Sustainable Development and Corporate Responsibility from EOI Business School (Madrid, Spain). Born in New York and raised in Florida, Roberto is former managing director for the Spanish-language version of vegan business magazine "vegconomist" and is also author of three novels. He has lived, worked and studied on four different continents.
Published Dec 5, 2024 2pm EST / 11am PST / 7pm GMT / 8pm CET