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Could AI Revive the Plant-Based Foods Industry?

As AI becomes more sophisticated, plant-based food innovators are leveraging the technology to innovate and thrive in the ever-competitive alternative-protein market.

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.