Governments worldwide are collectively shifting towards supporting alternative proteins for one reason or another. For some, it is the promise of better health outcomes for its people, for others, it is a way to cut down on emissions and shift the dial on the climate crisis. For even more, it is the opportunity to increase food security now and in the future. For most, it is these three reasons combined and more as countries strive to be the global leader in protein and food innovation.
What is driving which countries to transition and how does Australia position itself to prosper in this growing industry?
Improving health outcomes
Driving Germany’s promotion of plant-based diets is its aim to improve the health of its populace. In 2022, the German government laid out a nutrition strategy that places increased plant-based food consumption as a central goal. Now its 2024 budget has allocated $63m towards the alternative proteins industry to promote plant-based, cultivated and fermented proteins for human nutrition, increase research funding, support farmers to transition to plant-based farming, and set up a new protein centre.
Canada has dedicated significant resources to becoming a plant protein global leader through government-backed Protein Industries Canada. The country has committed to a $28b by 2035 plant-based roadmap to become a sovereign food, feed and ingredients manufacturing powerhouse and updated its national dietary guidelines in 2019 to recommend that plant-based options are consumed the most often.
Meeting emission reduction targets
There is widespread international recognition that food systems must evolve to be more sustainable since they contribute between one-quarter and one-third of all global greenhouse gas emissions. This is driving many governments to change their approach to food.
Last year, Denmark became the first country in the world to publish a plant-based action plan as part of a 2021 climate agreement. The agreement promises to put $221m towards boosting the plant-based sector, an investment that seeks to cut down on food-based emissions through promotion, funding, and support for farmers growing plant-based protein crops for human consumption. The new national action plan focuses on chef training and plant-based diets in schools, as well as export and R&D initiatives.
The European Parliament has also indicated the greenhouse gas emissions from animal farming and deforestation linked to animal feed imports are reasons to transition to plant-based foods. In October last year, it voted in favour of boosting plant protein production and consumption and diversifying protein sources.
Food security and economic growth
Food security is a major driver for some Asian countries to invest in alternative proteins, particularly where access to land is limited. There’s a great deal of interest in cellular agriculture such as cultivated meat to provide protein with significantly less space and resources. Singapore was the first country to approve the sale of cultivated meat in 2020 and has put in place the ’30 by 30’ plan to sustainably produce 30% of their nutritional needs by 2030. Now China has included cultivated meat in the Ministry of Agriculture and Rural Affairs 5-year plan and has put funding towards research and development of the industry. And late last year, South Korea launched a national plan to boost plant-based food production and consumption and has provided a regulatory framework for the approval of cultivated meat with applications expected soon.
Elsewhere, earlier this year, the UK government committed to an investment of $3.8b into engineering biology, which includes alternative proteins, following a $29m investment in an alternative protein research hub. Likewise, the Israeli government invested $18m in alternative startups in 2022, and in the same year, the Netherlands government announced an investment of $99m to develop a domestic cellular agriculture ecosystem in what was the world’s largest government investment in cellular agriculture.
Opportunities for Australia
Australia is a unique player in the alternative proteins industry, driven by its focus on being a leader in food and agricultural production. With its strategic location as a gateway to Asia, Australia is also well-positioned to tap into the region’s burgeoning market for plant-based and cultivated proteins.
Plus, for Australian farmers and grain growers, embracing alternative proteins presents an opportunity to diversify revenue streams and adapt to changing consumer preferences. In 2022, the Victorian government invested $12m to fund a glasshouse and incubation hub to help grain crop industries expand into the plant-based protein space.
In terms of overall investment, Australia fairs well according to Alternative Proteins Global data, ranking eighth globally for total alternative protein investment from 2022 to the end of June 2023.
In the regulatory space, precision fermentation company Cauldron Ferm was recently granted approval from the Office of the Gene Technology Regulatory to produce limited-scale production trials of protein ingredients up to 10,000-litre batches, while cultivated meat company Vow is one step closer to gaining regulatory approval for its cultured products, now in its second round of public consultation.
But, to maintain pace with global advancements and the countries already establishing themselves as leaders in the plant-based and cultivated meat industries, Australia must explore more opportunities in policy, investment, infrastructure, and beyond. Food Frontier recently released a report which makes clear recommendations to governments on exactly how to advance the sector in Australia, including developing a national food plan and dedicated strategy to increase domestic food innovation. Download it here.