2022 Marks Record Funding Year for APAC's Alternative Protein Sector

The statistics for APAC in 2022 (in USD) are as follows:

• Investment in plant-based foods rose by 30%, climbing from $287 million to $372 million.
• Funding for fermentation technologies saw a 67% increase, moving from $57 million to $95 million.
• Cultivated protein investments grew by 96%, rising from $48 million to $95 million.
• Overall, total investments in alternative proteins within APAC increased by 43%, going from $392 million to $562 million.

Majority of Restaurant Operators Anticipate Long-Term Plant-Based Trends

• Almost 50% of restaurants in the U.S. currently feature plant-based alternatives, with trend-conscious eateries leading the charge.
• Price and flavor remain significant concerns for consumers of plant-based meats, with 40% expressing doubts about taste satisfaction.
• There is a notable surge in plant-based dairy products, with dairy-free offerings increasing by over 20% across all restaurant categories.

Alternative Proteins: A Key Investment for Climate Change Mitigation

• Investing in alternative meat and dairy could yield three times the greenhouse gas reductions compared to investments in green cement, seven times more than green buildings, and eleven times that of zero-emission vehicles.
• By 2035, alternative proteins are projected to account for 11% of total protein consumption, a figure that could rise to 22% with appropriate technological, financial, and regulatory support.
• Achieving an 11% market share by 2035 could lead to a reduction of 0.85 gigatons of CO2 equivalent globally, equivalent to nearly eliminating emissions from the aviation sector.

China Launches First Cultivated Meat Pilot Facility

• CellX has partnered with Tofflon to establish the first cultivated meat pilot facility in mainland China.
• Tofflon is designing custom bioreactors tailored to CellX’s processes, enabling serum-free media suspension lines at a scale of one thousand liters.
• The facility will include a space for consumer tasting and feature multiple 1000L bioreactors.

Shortage of Fermentation Facilities Hinders Bioeconomy Growth

• Although substantial investments have flowed into precision and biomass fermentation companies recently, commercial viability hinges on a robust infrastructure network.
• Most fermentation facilities available today are either at bench-scale or pilot-scale, with a significant lack of demo-scale and commercial-scale options.
• While APAC has less capacity compared to Europe and the Americas, growth in biomanufacturing is anticipated as the sector matures.

ESG Faces Challenges in 2023, Yet Sustainability Remains Key

• The ESG investment community is experiencing two primary backlashes: the "anti-woke" movement and skepticism regarding the performance of ESG funds.
• An increasing number of S&P 500 companies are incorporating ESG criteria into their compensation frameworks.
• Sustainability is crucial for business success, necessitating companies to go beyond mere ESG questionnaires.
• Focus areas should include achieving zero carbon emissions, ensuring human rights in supply chains, and developing sustainable products.
• Engagement with employees and stakeholders, along with collaboration with industry peers, will be essential for a successful sustainability strategy.

SCROLL FEAST

The Reality of Sustainable Dairy

• U.S. dairy consumption per capita is on the rise, largely due to cheese and yogurt, while fluid milk consumption declines.
• Dairy farming has considerable environmental consequences, including carbon and methane emissions, loss of biodiversity, deforestation, soil degradation, and antibiotic resistance.
• Dairy production demands extensive water and pesticide/fertilizer use, often resulting in unintended hormone exposure.

The Myth of Sustainable Beef

• Beef production requires vast land resources, utilizing a third of the planet's ice-free landmass for grazing and livestock feed.
• It consumes significant freshwater resources, with agriculture accounting for 70% of global freshwater use, and cattle being one of the largest freshwater consumers.
• Beef is a major source of greenhouse gas emissions, especially methane, which is 84 times more effective at trapping heat than CO2 over a 20-year period.
• The beef industry is a leading contributor to nutrient pollution and is a primary driver of deforestation in the Amazon.

Israel Embraces Alternative Proteins

Europe Must Improve in Cultivated Meat Development

• European companies are falling behind in the cultivated meat sector, with the exception of the Netherlands.
• Many firms in this space are relocating to Singapore or the U.S., while talent is leaving due to unfavorable conditions for growth.
• Only three of the top ten patent-holding companies in Europe are based in Europe, putting non-European firms at an advantage in protecting their innovations and potentially dominating lab-grown meat technology.

EAR FOOD

Feeding Astronauts: The Future of Space Nutrition

• Astronauts have been consuming food produced and packaged on Earth while in space, a practice that needs to evolve.
• Ralph Fritsche and his team at NASA are investigating how to nourish astronauts during future missions on Mars, scheduled over a decade from now.

Investor Perspectives on Food Biotechnology

• The influence of venture capital in the biotech sector.
• Challenges in sharing intellectual property.
• Innovating in food technology through original research.

Is the Plant-Based Sector in Decline?

• Are media narratives misleading?
• Is there positive data to consider?
• What lies ahead for the sector?

The Turning Point for Alternative Proteins

• Why an S-Curve might better illustrate the mass adoption of plant-based foods.
• When might we see cost parity in production and a significant turning point?
• The decline of traditional animal agriculture.

VISUAL DELIGHT

Ensuring Safety in Cell-Based Food Production

• The production of cell-based food involves culturing animal cells to create food products.
• While it's a new production method, it employs similar safety protocols to traditional agriculture.
• This video explains the various food safety measures implemented in cell-based food production.

Thank you for reading! Wishing you a fantastic week ahead!