I wvo

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 1
Editors’ note
—
Meat production is projected to nearly double by 2050 to meet growing global demand. But the way the
world currently produces meat cannot scale to meet this demand and still achieve global climate, health,
food security, and biodiversity goals. Making meat differently via alternative proteins can help feed a
growing world safely and efficiently, and will be as essential to mitigating climate change as the global
transition to renewable energy. When compared to conventional meat production, alternative protein
production dramatically reduces emissions, requires far less land, eliminates the use of antibiotics in our
food system, and feeds more people with fewer resources.
By reimagining protein, we can produce food that people love and usher in a more sustainable, secure,
and just food future. Countries have committed to halve emissions and protect 30 percent of global land
and ocean ecosystems by 2030. With just seven years to go, investing in alternative ways of making
meat, seafood, eggs, and dairy is essential.
GFI’s annual State of the Industry Reports equip food system stakeholders with a solid, in-depth
understanding of the alternative protein market, issues, and opportunities. These reports also serve as a
global call to action:

Alternative proteins are a scalable solution that, with proper levels of public, private,
and civil society support, can help address the biggest challenges of our time and
transform our global food system for the better.
Making meat from plants offers a powerful way to tackle these challenges while also advancing
personal, public, and planetary health. Across multiple studies, data increasingly points to plant-based
meats as healthier than their animal-sourced counterparts—higher in fiber, lower in saturated fats, lower
in calories, and zero cholesterol. In the public health arena, a shift toward alternative proteins can
significantly reduce global risks including antibiotic resistance and pandemics. Plant-based meat can
also cut emissions by 90 percent, and use 99 percent less land and water than conventional
meat—actions critical for planetary health.
This report details some of the promising developments that moved the plant-based alternative protein
field forward in 2022. The sector still has miles to go, however, to reach full potential. Funding and
workforce constraints pose two of the biggest bottlenecks for scientific innovation and scaling. The
industry is still early in its development, with growth patterns similar to other emerging markets and
technologies. As companies continue to innovate, and as more talent, research funding, and investments
flow into alternative proteins, the entire sector will accelerate, offering the world a fundamentally
different and far more sustainable food future.
With gratitude and deep respect to all those on this journey, we invite you to dig deep into our 2022
State of the Industry Report, Plant-based meat, seafood, eggs, and dairy.
Best,

Caroline Bushnell Liz Specht, PhD Jessica Almy

VP of Corporate Engagement VP of Science and Technology VP of Policy

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 2
 About GFI’s State of the Industry Report series
GFI’s State of the Industry Report series serves as our annual alternative protein
sector deep-dive. The series compiles business developments, key technologies,
policy updates, and scientific breakthroughs from around the world that are
advancing the entire field. This year’s reports include:
○ Cultivated meat and seafood
○ Fermentation: Meat, seafood, eggs, and dairy
○ Plant-based meat, seafood, eggs, and dairy
○ Global policy: Public support, regulation, and labeling

The Plant-based meat, seafood, eggs, and dairy report synthesizes 2022 updates
across the global industry focused on plant-based alternatives to conventional
animal products. For a full primer on the latest science and technological
developments of plant-based alternative proteins, please visit GFI’s science of
plant-based meat deep dive page.

Symbols to look for

Throughout the 2022 State of the Industry Report series, look for symbols highlighting how
developments in the past year advanced the alternative protein sector in the areas of health
and nutrition, sustainability, and path-to-market progress. Dig deeper and opportunity icons
are calls to action for researchers, investors, and others seeking to learn more and advance
the field.

Health Sustainability Opportunity Path-to-market Dig deeper

Please note that The Good Food Institute is not a licensed investment or financial advisor, and nothing in
this report is intended or should be construed as investment advice.

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 3
About the Good Food Institute
—
As a nonprofit think tank and international network of organizations powered by philanthropy, GFI
works alongside scientists, businesses, and policymakers to make alternative proteins as delicious,
affordable, and accessible as conventional meat. In Asia Pacific, Europe, Brazil, India, Israel, and
the United States, our teams are mobilizing the international community to use markets and
technology to replace harmful practices with ones that are better for the climate and biodiversity,
for food security, and for global health.

We focus on three programmatic priorities:

Cultivating a strong Influencing policy and Supporting industry to

scientific ecosystem securing government advance alternative
investment proteins
GFI’s science and technology
teams map out the most GFI’s policy teams ensure GFI’s corporate teams are
neglected areas that will allow that alternative proteins are a replicating past market
alternative proteins to compete part of the policy discussion transformations and
on taste and price. We develop around climate change partnering with companies
open-access research and mitigation and global health. and investors across the
resources, educate and In every region where we globe to drive investment,
connect the next generation of have a presence, we advocate accelerate innovation, and
scientists and entrepreneurs, for government investment in scale the supply chain—all
and fund research that benefits alternative proteins and are faster than market forces
alternative protein paving the way for the alone would allow.
development across the sector. approval of novel proteins
such as cultivated meat.

Stay connected
○ Newsletters | GFI’s suite of expertly curated newsletters puts timely news, insights, and
opportunities right in your inbox, Check out gfi.org/newsletters to find the ones most suitable
for your interests.
○ Monthly seminar series | Each month, we host online seminars with leading experts from
around the world: The Business of Alt Protein series is geared toward a commercially focused
audience on topics related to starting and scaling a good food business. The Science of Alt
Protein series addresses a technical audience and focuses on cutting-edge research
developments that enable alternative protein innovation.

This State of the Industry Report series, as well as all of GFI’s work, is made possible by gifts and
grants from our global family of donors. If you are interested in learning more about giving to GFI,
please visit here or contact [email protected].

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 4
Table of contents
—
Editors’ note 2
Symbols to look for 3
About the Good Food Institute 4

Executive summary 13

Section 1: Commercial landscape 20

Overview 20
Plant-based ventures 21
Product launches 23
Facilities 28
Involvement by conventional meat and food companies 32
Partnerships 35
Consumer insights 38

Section 2: Sales 45
U.S. retail sales overview 45
Point-of-sale (POS) data 48
Consumer panel data 48
Categories 49
Closing the price gap 50
U.S. consumer dynamics and research 50
Global retail sales overview 52
U.S. foodservice sales overview 56

Section 3: Investments 61
Overview 61
Geographical distribution 67
Deal types and key funding rounds 69
Liquidity events 71
Other financing 72
Investors 73

Section 4: Science and technology 77

Overview 77
Research across the technology stack 78
Research for environmental and social impact 85

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 5
 Research on health and nutrition 87
Scientific ecosystem growth 89

Section 5: Government and regulation 92

Overview 92
Regulatory and labeling updates 95

Section 6: Conclusion and forecast 101

Plant-based forecasts 101
A deeper dive into alternative protein market forecasts 103
Examining the structure of alternative protein market forecasts 106
Industry drivers 109
Industry roadblocks 110
Expert predictions 113

Conclusion 116

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 6
Executive summary
Executive summary
—
In 2022, the plant-based meat and seafood retail industry generated $6.1 billion in global
sales, growing eight percent by dollars and five percent by weight. Combined plant-based milk,
cheese, and yogurt hit $21.6 billion on the global stage, up seven percent from 2021. Amid
challenging macroeconomic and market conditions, this rapidly evolving industry made major
strides across the areas of science, sustainability, and public and private sector support. As
consumer engagement with, and interest in, plant-based proteins increases around the world,
retailers and manufacturers are leaning in, introducing new products, developing strategic
partnerships, and building new production facilities. Public sector participation is also
increasing, with more governments around the world investing in plant-based proteins as a
research and commercialization priority.

Plant-based meat, seafood, eggs, and dairy, part of our 2022 State of the Industry Report
series, takes a field-wide, global view of the progress made over the past year.

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 8
Commercial landscape
New products and New partnerships.
categories. Companies continued to collaborate to
Hundreds of new plant-based alternatives develop new products and scale
to conventional animal products hit retail production: we tallied 25 new strategic
shelves in the U.S. market in 2022, partnerships in 2022.
including in emerging categories like
plant-based steak, salmon, foie gras, fish
balls, and schnitzel.

Retail and foodservice Manufacturing capacity.

trends. Six companies opened new or expanded
○ Large food companies released production facilities, and 11 new
plant-based versions of popular branded plant-based contract manufacturers were
products, including dairy-free added to GFI’s database, bringing the total
Philadelphia cream cheese and Babybel number of known plant-based contract
cheese, and Kellogg’s plant-based manufacturers to 127.
chicken waffle Eggo sandwich.

○ Burger King launched two new

Impossible burgers in the U.S. and trialed
its first fully plant-based location and
default plant-based location in Europe.

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 9
Sales

Table 1: U.S. retail plant-based food sales metrics, 2022

Sales data note: The data presented in this graph is based on custom GFI and PBFA plant-based categories that were created by
refining standard SPINS categories. Due to the custom nature of these categories, the presented data will not align with standard
SPINS categories. *Share values for the total plant-based foods category out of total edibles sales (frozen, grocery, refrigerated,
and protein powders/bars). Share values of individual plant-based categories are out of their respective total plant-based plus
animal-based category. **SPINS does not report non-UPC animal-based meat counter sales. To calculate the plant-based meat
share of the total meat category, dollar and unit volume assumptions for non-UPC animal-based meat counter sales are added to
SPINS’ UPC animal-based meat sales. Household data note: SPINS uses a separate process from the sales data to pull household
panel data which may result in minor category differences.

Source: Sales data - SPINS Natural Grocery Channel, SPINS Conventional Multi Outlet Channel (powered by Circana, formerly IRI
& NPD) | 52 Weeks Ending 1-1-2023. Household data - NCP, All Outlets, 52 weeks ending 1-1-23

Total U.S. retail plant-based food dollar sales reached $8 billion in 2022.

○ Price increases drove dollar sales up 7% ○ Plant-based milk dollar sales grew 9% to
while unit sales declined 3% for total $2.8 B while unit sales declined 2%.
plant-based foods, a trend mirrored
○ Notable categories that saw both dollar
across many plant-based categories,
and unit sales growth included
total food and beverage, and
plant-based eggs, plant-based seafood,
animal-based food.
plant-based creamers, and plant-based
○ Plant-based meat dollar sales decreased protein liquids and powders.
1% and unit sales declined 8%.

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 10
Investments
Plant-based meat, seafood, eggs, and dairy companies raised $1.2 billion in 2022 (representing
15 percent of all-time investment*), bringing total investments to $7.8 billion. The number of
unique investors in plant-based companies grew by 17 percent to more than 1,500 investors.
*investment since 1997

Table 2: Invested capital in plant-based meat,seafood, eggs, and dairy

Category 2022 1997–2022 Highlights

Total invested 2022 invested capital represented

$1.19B $7.78B
capital 15% of all-time investment.

Invested
2022’s largest investment was $135.6
capital deal 145 935
million raised by Redefine Meat.
count

Unique 222 The number of unique investors grew

1,521
investors (new) by 17% in 2022.

Liquidity
$119MM $26.9B
event capital PlantPlus Foods, a joint venture of
ADM and Marfrig, acquired Sol Cuisine
Liquidity event for $102 million in 2022.
15 121
count

Other
financing $15MM $146MM
capital The vast majority of other financing
events are private investments in
Other public equity (PIPEs).
financing 4 20
count

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 11
Science and technology
Crop diversification and manufacturing.
Companies increased R&D efforts for ultra-high protein chickpeas, fava beans, mung beans, and
cowpeas. Diverse plant protein ingredients are gaining traction, with progress being made to
increase their production and reduce their costs.

Health and nutrition.

In 2022, a literature review of 43 studies on the healthiness and environmental sustainability of
plant-based meat alternatives compared to animal products underscored numerous personal
health benefits of plant-based meat.

Environmental and social impact.

Valorizing sidestreams for alternative proteins continued to gain momentum, including protein
extraction from leaves destined for waste and upcycling of sunflower, canola, and barley proteins.

Government and regulation

Government support.
Europe led investments in plant-based protein with commitments from Denmark, Sweden, and
Switzerland to invest more than $150 million in R&D. Canada emerged as a global leader in
public support for plant-based proteins in R&D, commercialization, and regulatory policy.
Singapore’s government launched a number of programs to support alternative protein startups
and accelerate innovation. In the U.S., support for alternative protein R&D was secured at both
the federal and state levels, with Congress allocating nearly $6 million to USDA and California
allocating $5 million to three universities.

Label censorship.
In 2022, the French legislature passed a decree banning the use of many meat terms on
plant-based labels, but the country’s highest court temporarily suspended the enactment of the
ban. In the U.S., a federal court found an Arkansas food label censorship law to be unconstitutional
and permanently blocked enforcement of the law against Tofurky when the company uses terms
like “sausage” and “burger” accompanied by words like “vegan” or “plant-based.”

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 12
 Section 1

Commercial landscape
Section 1: Commercial landscape
—
Overview
The plant-based meat, seafood, egg, and dairy industry—currently striving to create delicious,
healthier, affordable, and more sustainable alternatives to conventional animal products—is
just getting warmed up.

In 2022, according to Euromonitor data, total global retail sales of plant-based meat, seafood,
milk, yogurt, and cheese reached $28 billion. (Euromonitor does not report on plant-based
eggs.) While impressive, the global plant-based market today is a tiny fraction of the
multi-trillion-dollar market for conventional animal products. On the road ahead to mass
market adoption, advances are needed on multiple fronts—and taste and price parity are
among the biggest opportunities.

Notably, consumer interest in plant-based proteins is on the rise around the world. Retailers
and manufacturers are introducing new products, new strategic partnerships, and new
facilities. Intellectual property for plant-based meat has grown three times in the last decade.
In 2022 alone:

○ Quick-service restaurant chains including ○ Companies launched new product

Starbucks, Burger King, and KFC formats to retail, like plant-based steak,
expanded plant-based options in a foie gras, luncheon meat, and schnitzel.
number of regions. Burger King opened
○ Companies continued to collaborate to
their first fully plant-based location and a
develop new products and scale
default plant-based location.
production to lower costs: we tallied 25
○ Large food brands developed plant-based new strategic partnerships in 2022.
versions of familiar products, like
○ Eleven new plant-based contract
Philadelphia cream cheese, Kit Kat bars,
manufacturers were added to GFI’s
and Babybel cheese.
database, and six companies opened new
or expanded production facilities.

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 14
 Check out our monthly Alternative Protein Opportunity
newsletter for updates
Across the globe, plant-based products launch or expand distribution every week. GFI’s
monthly Alternative Protein Opportunity newsletter tags and categorizes notable
plant-based distribution updates, new product launches, partnerships, facility openings,
and more, helping you keep up with the fast-moving plant-based landscape. Sign up here.

Plant-based ventures
Tables 1 and 2 provide alphabetized lists of plant-based meat and milk brands by U.S. retail
dollar sales in 2022. GFI and the Plant Based Foods Association commissioned the sales data
from SPINS and refined it using custom coding. The list of 10 brands with the most dollar sales
in each of these categories did not change from 2021 to 2022.

Table 3: Brands with the most total plant-based meat dollar sales in U.S. retail (alphabetized)

Brand Parent company Country Year founded

Beyond Meat n/a United States 2009

Boca The Kraft Heinz Company United States 1979

Dr. Praeger’s n/a United States 1994

Field Roast Maple Leaf Foods Canada 1997

Gardein Conagra United States 2003

Impossible Foods n/a Canada 2011

Lightlife Maple Leaf Foods United States 1979

MorningStar Farms Kellogg’s United States 1975

Quorn Monde Nissin United Kingdom 1985

Tofurky Morinaga United States 1980

Source: GFI analysis of SPINS Natural Grocery Channel, SPINS Conventional Multi Outlet Channel (powered by Circana, formerly IRI
& NPD) | 52 Weeks Ending 1-1-2023. © 2022 The Good Food Institute, Inc.

Sales data note: The data presented in this table is based on custom GFI and PBFA plant-based categories that were created by
refining standard SPINS categories. Due to the custom nature of these categories, the presented data will not align with standard
SPINS categories.

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 15
Table 4: Brands with the most total plant-based milk dollar sales in U.S. retail
(alphabetized)

Brand Parent company Country Year founded

Blue Diamond Blue Diamond United States 1910

Growers

Califia Farms n/a United States 2010

Chobani n/a United States 2005

Dream Brands SunOpta Canada 1982

Oatly n/a Sweden 1994

Planet Oat HP Hood LLC United States 2018

Ripple n/a United States 2014

Silk Danone United States 1977₹

Simply Coca-Cola United States 2001

So Delicious Danone United States 1987

Source: GFI analysis of SPINS Natural Grocery Channel, SPINS Conventional Multi Outlet Channel (powered by Circana, formerly IRI
& NPD) | 52 Weeks Ending 1-1-2023. © 2022 The Good Food Institute, Inc.

Sales data note: The data presented in this table is based on custom GFI and PBFA plant-based categories that were created by
refining standard SPINS categories. Due to the custom nature of these categories, the presented data will not align with standard
SPINS categories.

More information on these and other companies is available in GFI’s company database.

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 16
Product launches
Around the world, new plant-based products launch or gain distribution across retail, food
service, and e-commerce channels regularly. While not a comprehensive list of every launch in
2022, the following are notable product introductions that illustrate how this sector is growing,
diversifying, and innovating.

Retail
One significant retail trend in 2022 was large food companies releasing plant-based versions of
longstanding, popular, branded products. This is exciting news for consumers who want more
sustainable versions of their favorite foods, and a signal that companies are betting on
plant-based alternatives by lending valuable household brand names to plant-based products.

○ Kraft-Heinz’s cream cheese brand ○ Large CPG brand Bel Group launched a
Philadelphia launched their first plant-based version of the company’s
dairy-free cream cheese in the United popular Babybel wax-covered cheeses
Kingdom and the United States. into retail stores in Canada, the United
States, and the United Kingdom. The
○ Kellogg’s released their first plant-based
company stated that the launch was part
Eggo waffle in a plant-based chicken
of a strategy to make half their offerings
waffle sandwich product made with
plant-based by 2030.
MorningStar Farms’ chicken.
○ Nestlé rolled out a plant-based Kit Kat
across 15 European countries.

Private label retail and convenience stores offer an opportunity to make plant-based products
more accessible to consumers at lower price points. Private label innovation and convenience
store distribution in plant-based foods continued in 2022:

○ Trader Joe’s launched a private label ○ Chinese convenience store Lawson added
liquid plant-based egg. two plant-based meat brands—Haofood
and Beyond Meat—to their stores in more
○ UK retailer Asda launched a range of
than 2,000 locations across China. plant-
private label plant-based barbecue
products that included plant-based
burgers, chicken wings, lamb, sausages,
and seafood.

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 17
While plant-based offerings have greatly expanded over the past four years, there is still
significant room for innovation. While plant-based burgers are widely available across many
geographies, a number of animal products still lack any plant-based alternative at retail. These
are among the noteworthy new plant-based product offerings in 2022:

○ Beyond Meat launched a sliced ○ Leading conventional seafood company

plant-based steak—the company’s first Thai Union launched plant-based shrimp
whole-cut product and one of the first dumplings and expanded the distribution
plant-based steaks available in U.S. retail. of their plant-based tuna.

○ Vivera, a plant-based meat brand ○ Century Pacific, the largest branded food
acquired last year by JBS, launched a company in the Philippines, launched
plant-based salmon in grocery chains in plant-based canned ham in select grocery
the Netherlands. stores in the Midwest, East Coast, and
Texas, before launching to Walmart stores
○ Garden Gourmet, Nestle’s plant-based
across the U.S. in 2023.
brand, announced the launch of Voie
Gras, the brand’s plant-based alternative ○ v2food launched new plant-based
to foie gras, in supermarkets in chicken products in Woolworths stores
Switzerland and Spain. across Australia, including a breaded
chicken schnitzel.

“In an effort to reduce the impact of our ice cream and food products
on the environment, we are moving to more plant-based products and
are exploring other alternative proteins as ingredients. Fermentation
may become an important technology in the production of alternative
proteins to build a more resilient supply chain and to reduce
greenhouse gas emissions in our journey to net zero.”

– Manfred Aben, Nutrition & Ice Cream R&D Head of Science and
Technology at Unilever

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 18
Foodservice
After an unprecedented contraction in 2020, foodservice has returned as an attractive
go-to-market strategy for plant-based companies. Launching into foodservice allows companies
greater control over how their product is prepared, and it also plays an important role in
ensuring plant-based products continue to become more accessible and familiar to consumers
across regions. In 2022, plant-based products expanded into every level of foodservice, from
fast food chains to upscale restaurants to settings like airlines and schools:

○ Starbucks added plant-based meat to menus in several geographies, including an

OmniFoods plant-based fish sandwich in Hong Kong, a plant-based sausage croissant roll in
collaboration with Imagine Meats in India, a plant-based crab cake brioche sandwich in
Thailand, and several menu items using JUST Egg and Daring Chicken in a trial in the
United States. Notably, Starbucks also dropped their plant-based milk surcharge in the
United Kingdom.

○ KFC launched several plant-based chicken options in different regions. KFC UK made the
plant-based chicken burger a permanent menu item, KFC U.S. expanded the Beyond Fried
Chicken test to every KFC location for a limited time, and KFC Canada partnered with
Lightlife to trial a plant-based chicken entree.

○ Burger King increased their commitment to plant-based offerings with new product
launches in a number of regions.

● Burger King U.S. launched two more Impossible burgers (the Impossible King and Southwest
Bacon Impossible Whopper) and trialed an Impossible plant-based chicken patty.

● Burger King UK launched plant-based chicken nuggets in partnership with The

Vegetarian Butcher (owned by Unilever).

● Burger King Israel launched a plant-based Whopper and chicken nuggets in partnership
with Israeli plant-based startup Meat. The End.

● Burger King Germany began offering plant-based versions of everything on their

standard menu.

● Burger King has also taken impressive strides to place plant-based options at the heart of
their offerings: Burger King UK announced that half their menu items would be plant-based
by 2030 (reportedly in a bid to lower the chain’s carbon emissions), and the chain has
tested both entirely plant-based and default plant-based locations in Portugal, Spain, the
United Kingdom, Switzerland, and Austria.

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 19
 Making plant-based items the default can nudge consumers to choose
plant-based and lower a company’s emissions
In the past year, Burger King announced developments largely unprecedented by a major
fast-food chain. Burger King Austria ran a limited-time campaign defaulting their menu
to plant-based—consumers were given plant-based options by default unless they
specified otherwise. GFI analysis of several consumer research studies indicates that
changing the default menu option to plant-based is a powerful lever for increasing
plant-based consumption.

In addition, Burger King tested entirely plant-based locations in Spain, the United
Kingdom, Portugal, Austria, and Switzerland before permanently transitioning their menu
to plant-based in one Vienna location. Starbucks is the only other top 10 global
quick-service restaurant to have trialed an entirely plant-based location, which the
company did in Seattle in 2021.

Changing default options can also be an effective strategy for noncommercial foodservice
locations, like corporate cafeterias, school dining halls, and hospitals. In 2022, LinkedIn
corporate offices piloted a default plant-based menu strategy with the support of Greener By
Default, an organization that works with institutions to adopt plant-forward menu strategies.

While quick-service restaurant (QSR) launches help bring plant-based food to mass markets,
many new products start in upscale/specialty restaurants. This can be an attractive
go-to-market strategy because it allows companies to showcase products in specialty dishes
and earn revenue before production is scaled up enough to supply thousands of distribution
points. Select examples of restaurant launches in 2022 include:

○ Chunk Foods debuted their marbled ○ Israeli plant-based protein startup

plant-based steak, one of the first Redefine Meat announced a distribution
plant-based meat whole-cut products deal with Giraudi Meats, a distributor
commercialized in the United States, at specializing in high-end cuts in Europe’s
Coletta, an upscale Italian restaurant in foodservice sector. The company is also
New York City. launching plant-based tenderloin,
striploin, pulled beef, pulled pork, and
pulled lamb products.

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 20
○ U.S.-based startup Umaro Foods ○ Plant-based company Black Sheep Foods
launched their seaweed-based bacon at secured an agreement with specialty
restaurants in San Francisco, New York foods distributor The Chef’s Warehouse
City, and Nashville. to launch plant-based lamb at restaurants
throughout New York City.

In addition to commercial foodservice channels like QSR and specialty restaurants, plant-based
distribution made strides in noncommercial foodservice, including institutional channels like
airlines and school cafeterias:

○ Aramark, the largest foodservice provider ○ Impossible Foods launched a new

in the United States, announced a pre-cooked Impossible Burger patty for
commitment to make 44% of their distribution in K-12 cafeterias.
residential dining menu offerings
○ Rebellyous Foods, who distributes
plant-based by 2025 (up from 26 to 30%
plant-based chicken in 46 school districts,
today).
announced the development of a
○ Delta Airlines added Impossible Foods production system that the company says
meatballs and burgers and Black Sheep can produce plant-based meat at price
Foods meatballs to their menu for select parity with conventional meat.
flights.

○ Taiwan-based China Airlines debuted a

new plant-based inflight menu featuring
plant-based fish filet, plant-based meat
with cream sauce, and braised
plant-based meat with rice.

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 21
E-commerce
E-commerce is another popular go-to-market channel for plant-based companies. E-commerce
tends to attract younger consumers who are more likely to be interested in alternative proteins.
It can also give manufacturers more control over their time to market compared to retail or
foodservice channels, where brands need to work with external partners to get their products
on shelves or menus. E-commerce developments in 2022 include:

○ Plant-based seafood company Kuleana ○ Vienna-based Revo Foods (previously

rebranded as Current Foods and Legendary Vish) announced that their
launched their plant-based tuna and plant-based smoked salmon slices made
salmon direct to consumer before their with pea protein and algae extracts are
first retail launch at Berkeley Bowl market now available via UK e-commerce
in San Francisco. website GreenBay.

○ Plant-based steak company Juicy ○ Beyond Meat launched their plant-based

Marbles debuted their plant-based filet sausage on the popular Chinese
mignon steak and whole-cut loin directly e-commerce platform Pinduoduo.
to consumers in the United States and
○ Love Handle, Asia’s first plant-based
Europe.
butcher, partnered with online retailer
RedMart to offer plant-based meat
products for delivery in Singapore,
including a co-branded meatball product:
Love Handle x Impossible Butcher
Meatballs.

Facilities
Manufacturing capacity remains one of the most significant barriers to achieving price parity for
plant-based proteins. Plant-based companies typically use contract manufacturers or build
facilities to manufacture in-house (or some combination of the two), and there is an urgent need
for capital to construct additional facilities optimized for plant-based food production.

In 2022, GFI added 11 new contract manufacturers to our database of known contract
manufacturers, bringing the total to 127. The number of company-owned facilities dedicated to
producing plant-based protein in-house also modestly increased in 2022.

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 22
Facilities that opened in 2022:
○ Danish plant-based company Naturli ○ Lactalis Canada, maker of Siggi’s yogurt,
Foods opened a new manufacturing announced that they would transition
facility in Sydney, Australia. their Ontario dairy plant to a dedicated
plant-based production facility to meet
○ Purefield Ingredients, the largest
the demand for the company’s
domestic supplier of wheat protein in the
plant-based yogurts and milks.
United States, completed an expansion of
their Kansas facility. The expansion will ○ Harvest B, a plant-based food technology
increase Purefield’s annual production by company based in Sydney, opened a
50 percent. facility that will be capable of producing
up to 1,000 metric tons of plant-based
○ Ingredients company NUTRIS opened a
protein made from Australian-grown
€30 million ($32.1 million) fava bean and
grains. The company received $1 million
potato protein processing facility in Novi
in assistance from the Australian
Senkovac, Croatia.
government's Advanced Manufacturing
○ India-based BVeg Foods unveiled their Growth Centre and is Australia's first
new plant-based production facility, facility dedicated entirely to plant-based
which can currently produce 4,000 metric meat ingredients.
tons of plant-based meat a year, with
○ Cremer Sustainable Foods, a joint
plans to scale up to 12,000 metric
venture between Cremer and
tons/year.
Temasek-owned Nurasa (formerly known
as Asia Sustainable Foods Platform)
opened their first plant-based protein
contract manufacturing facility in
Singapore. The 11,000-square-foot
facility can manufacture up to 1,300 tons
of plant-based protein per year.

Facilities that broke ground in 2022:

○ California-based Eat Just broke ground on their new production facility in Singapore. The
$120 million facility will produce plant-based JUST Egg.

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 23
Facilities that were announced in 2022:
○ Nestlé announced plans for a $73 million plant-based production facility with an
production plant in Serbia. The facility will on-site R&D laboratory located in Kochi,
be used solely to produce Nestlé’s India.
plant-forward Garden Gourmet line.
○ Merit Functional Foods Corp. received
○ Plant-protein processing company funding from the Canadian government to
Australian Plant Proteins will construct construct a 94,000-square-foot plant
three new production plants for AU$378 protein processing facility in Winnipeg.
million ($285.2 million). The project is
○ Swedish agricultural cooperative
funded by the Australian federal and state
Lantmännen is investing $91 million to
governments as well as several large
construct a new pea protein facility in
meat and ingredients companies
Lidköping, Sweden that will be completed
including Thomas Foods International, a
in 2026.
major red meat producer, and the
Australian Milling Hub. ○ Thailand-based plant-based cheese
startup Swees Plant Based Foods Co.
○ Ingredients company ADM announced
will open Thailand’s first plant-based
plans for a $300 million expansion of its
cheese factory in early 2023.
Illinois-based soy protein concentrate
facility. ADM expects to double the ○ Plant-based ingredient company More
facility’s extrusion capacity and will also Than Protein Ingredients is constructing
open a new Protein Innovation Center. a new processing facility near Bowden,
Alberta, with support from Protein
○ Ingredient manufacturer BENEO will
Industries Canada. The facility is
invest $54 million to build a new pulse
scheduled to be operational by spring
processing facility in Offstein, Germany.
2023.
The facility will initially process protein
concentrate, flour, and hulls from fava ○ Improved Nature, a plant-based meat
beans, with the option to expand to other manufacturer based in North Carolina,
types of pulses in the future. announced plans to build a new facility in
Smithfield, North Carolina to produce
○ India-based food manufacturer Symega
their soy-based meat products. The
Food Ingredients is investing Rs. 100
facility is expected to employ 96 people
crore ($10.3 million) to build a dedicated
at full operation.

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 24
Notably, several facilities including those of Harvest B, Australian Plant Proteins, Merit
Functional Foods Corp, and More Than Protein Ingredients have been financially supported
by governments. Funding plant protein infrastructure—one of the biggest bottlenecks in the
sector—allows governments to contribute to climate goals while supporting local
manufacturing and job creation.

Figure 1: New plant-based facilities announced in 2022

“Exploration of opportunities across the plant-based space continues

to be an important focus area in our innovation and R&D work. This is
true for retail products, as well in the out-of-home space. Coming out
of the pandemic, restaurant operators believe plant-based meats have
the ability to drive sales and traffic through their doors. We’re seeing
this trend firsthand through our Nestle Professional Sweet Earth
business; over 2000 locations are now serving Sweet Earth’s
plant-based recipes out-of-home.”

– Mel Cash, Chief Marketing & Innovation Officer, Nestlé USA

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 25
Involvement by conventional meat
and food companies
Most of the leading global consumer packaged goods (CPG) and meat companies are involved in
the plant-based industry in some capacity. Involvement by large conventional food
companies—through investment, acquisitions, partnerships, and developing and manufacturing
products—can support the growth of the industry, as these companies already have funding,
infrastructure, and distribution partnerships that can be leveraged to improve the accessibility
of alternative protein products.

○ A number of large meat and food companies have made investments in or acquisitions of
plant-based food companies. Notable acquisitions include Nestlé’s acquisition of Sweet
Earth in 2017 and JBS’s acquisition of Vivera Foods in 2021.

○ Notable partnerships between international conventional meat and food companies and
plant-based companies include PepsiCo’s joint venture with Beyond Meat, Kraft Heinz’s
joint venture with NotCo, and Cargill’s partnership with Bflike.

○ Several large global meat and food companies manufacture their own plant-based products.
Examples of plant-based brands owned by large food companies include Garden Gourmet
and Sweet Earth, owned by Nestlé, BOCA, owned by Kraft Heinz, Morningstar Farms,
owned by Kellogg’s, and The Vegetarian Butcher, owned by Unilever.

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 26
Table 5: Conventional companies with involvement in alternative proteins

Table 6: Conventional companies with involvement in plant-based

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 27
Another opportunity for conventional meat companies to become involved in the alternative
protein industry is by incorporating plant protein and vegetables into meat products. In the
last few years, several meat companies have launched blended meat products, including
Perdue, Hormel, and Tyson. Communicating the benefits of blended products to consumers
may require nuanced product positioning, as this is a relatively new and subtle category that
requires a clear value proposition. Targeting the right consumer groups will be critical—for
example, parents who want to incorporate more vegetables into their children’s meals. Indeed,
blended products may provide value to health-focused consumers looking to increase their
consumption of vegetables and plant proteins (or reduce their consumption of meat), and have
a relatively lower environmental impact than conventional meat products, which could help
manufacturers reach their sustainability goals.

“Adding new blended vegetable and meat products to the PERDUE®

brand portfolio helps us meet the needs of consumers who are
increasingly looking to incorporate more vegetable nutrition in their
diets—without sacrificing taste or quality. We’ve blended family favorites,
like nuggets and tenders, with high-quality plant protein to meet the
evolving needs of consumers today. Our blended product line has been
extremely successful since launching in 2019, and we’ve since expanded
the line by adding new flavors and snacking options.”

– Jon Swadley, Vice President of Marketing, Perdue Premium Prepared Foods

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 28
Partnerships
Strategic partnerships are another important tool to support industry growth. Partnerships
allow companies to access one another’s expertise or infrastructure, including in product
development, manufacturing capacity, or distribution channels. Partnerships in the
plant-based industry developed rapidly in 2022. While not comprehensive of all plant-based
partnerships in 2022, the list below highlights some of the most notable partnerships
propelling the industry forward.

Product development partnerships

Product development partnerships are very common for plant-based companies. Such
partnerships allow companies to leverage one another’s ingredients, R&D capacity, and
product portfolios.

Companies/organizations Details

Above Food and Umiami Developing whole-cut, plant-based meat products

Upfield and OGGS R&D in liquid plant-based eggs

Kroger and Impossible Foods Private label product development

Developing microalgae ingredients for plant-based

Nestlé and Corbion
foods

Evo Foods and Ginkgo Bioworks Developing animal-free eggs

InnovoPro and Milkadamia Developing chickpea-based ice cream

International Flavors and Fragrances and

Developing spirulina-based smoked salmon products
SimpliiGood

Republic Polytechnic and SoiLabs Developing plant-based cheese from okara

UNLIMEAT and Bayerische Fleischerschule

Developing plant-based deli products
Landshut

Nomoo and Nestlé Developing plant-based meat product lines

Barvecue and Arbiom Developing plant-based meat products

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 29
 Companies/organizations Details

Developing hybrid plant-based and cultivated meat

Mirai Foods and Rügenwalder Mühle
products

Developing plant-based products with mycelium

Peas of Heaven and Mycorena
ingredients

Establishing a Future of Meat Innovation Center to

Meatable and Love Handle codevelop plant-based and cultivated meat hybrid
products

Next Meats, Dr. Food, and ImpacFat Codevelop plant-based products with cultivated fat

Sophie’s Bionutrients and Danish

Developing chlorella-based ice cream
Technological Institute

Joint ventures
Joint ventures allow companies to access one another’s brand equity along with manufacturing
and distribution infrastructure.

Companies/organizations Details

The Kraft Heinz Not Company distributes co-branded

Kraft Heinz and NotCo
plant-based products

Vgarden Australia Pty Ltd involves an IP exchange and

Cale & Daughters and Vgarden
joint product production

PepsiCo and Beyond Meat Distributing cobranded plant-based jerky products

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 30
Scale-up
Manufacturing capacity is one of the most significant barriers to growth in alternative proteins.
Partnerships focused on scaling up ingredients allow companies to access one another’s
infrastructure and process expertise.

Companies/organizations Details

ADM and Benson Hill Scaling production of soy protein

Planet Based Foods and Cedarlane Natural

Manufacturing partnership
Foods

Distribution
Securing product distribution is another key challenge for startups, many of whom must enter
distribution channels from scratch, using cold outreach to distributors, foodservice companies,
and retailers. Partnering with an established company can offer a shortcut to growing a
company’s distribution network.

Companies/organizations Details

Leveraging Upfield’s distribution network and

Upfield and OGGS
Upfield Professional foodservice channel

Selling Beyond products via e-commerce in

Beyond Meat and Pinduoduo
mainland China

Leveraging Vandersterre’s distribution and

Vandersterre and Max & Bien
marketing channels

Thai Union, Chicken of the Sea, and The ISH Leveraging conventional seafood producers’
Food Company distribution channels

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 31
Consumer insights

Global trial and demand

In the United States, 40 percent of all shoppers have purchased plant-based meat or dairy in
the past six months, according to consumer research from Acosta. Yet just 10 percent of those
shoppers purchasing plant-based products report adhering to a fully plant-based diet. It’s clear
that omnivore shoppers are the largest market for plant-based proteins. Indeed, one study
analyzing household purchasing data found that 86 percent of households that purchased meat
alternatives also purchased conventional meat.

Globally, consumers report increased engagement with plant-based proteins:

○ A recent study conducted by GFI Europe surveyed consumers across four European
countries finding that between 27 and 50 percent reported eating plant-based meat at least
once a month.

○ A survey from GFI Brazil shows that the percentage of respondents who say they are
reducing their meat consumption grew from 50 percent in 2020 to 67 percent in 2022.

According to CONAB 2022, meat consumption in Brazil decreased by 4.4 percent between
2021 and 2022. Drivers of this decline could include shifting consumer behavior as well as
less availability (and thus higher prices) of conventional meat products, given the preference
of producers for exportation.

○ A survey conducted by BCG and Blue Horizon found that 60 percent of consumers surveyed
across seven countries reported at least having tried alternative proteins.

○ When we look at young consumers (ages 16–40) across 10 countries, 66 percent plan to
spend more on plant-based meat and dairy alternatives in the future.

Motivations
When it comes to what consumers are looking for, according to FMI, taste, quality, and value
rise to the top when considering all grocery purchases. This holds true when consumers are
considering their overall protein purchases as well as plant-based food consumption.

Consumer research commissioned by GFI in Singapore, Thailand, Japan, and South Korea found
that taste was the top motivator for consuming alternative seafood, but that a guaranteed lack

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 32
of mercury and other heavy metal contamination was also a driver of interest in alternative
seafood across all four countries.

In addition to these motivators, consumers continue to identify health as a top reason for
purchasing plant-based proteins, including meat alternatives.

Figure 2: Plant-based protein motivators by dietary preference

Source: Mintel Reports US, Plant-based Proteins, 2022.

Questions: What are the main reasons you eat plant-based proteins? Which of the following dietary preferences best describes you?

As discussed in a recent migration analysis released by PBFA, in partnership with Kroger,

consumers who are limiting their consumption of animal-based foods in favor of plant-based
items cite health-related factors as a top motivator.

Notably, the environmental and animal welfare benefits of plant-based foods often take a back
seat to the previously mentioned considerations. However, certain consumer groups including
flexitarians and younger cohorts tend to voice these considerations more frequently than the
general consumer. Between 60 and 90 percent of young consumers (ages 16–40) across 10
countries say they consider the environmental sustainability of their food purchases.

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 33
 “Highlighting sustainability alone will not be enough: only a small
group of consumers make food purchasing decisions based on
sustainability, and most consumers—the “mainstream”—are concerned
about sustainability in food but are not yet acting on it.

To win with mainstream consumers, alternative protein companies

must connect their products to top needs that drive consumer behavior
in food choices (typically taste and health). First, consumers want to
see innovations that improve taste, texture, and price, where gaps
relative to traditional meat remain. Second, brands need to tailor their
messaging and marketing to clearly connect existing products to
consumers’ emotional and functional needs.”

– Neeru Ravi, Principal, Boston Consulting Group

Barriers
Despite stated consumer interest in plant-based foods, key barriers remain, limiting the growth
of the industry:

○ FMI found that consumers identified taste as the top reason why consumers who have tried
meat alternatives didn’t continue to do so. Additionally, preemptive perceptions about the
taste of plant-based products may limit initial trials.

○ Mintel’s 2022 report further validates taste and flavor concerns as primary barriers. Taste,
and specifically replicating the flavor, texture, and aroma of conventional meat, is critical for
consumer adoption of plant-based meat alternatives, with 53 percent of individuals
agreeing that plant-based meat products should taste just like meat. Additionally, among
U.S. consumers not eating plant-based proteins (including beans, legumes, nuts, tofu, meat
alternatives, etc.), 49 percent state they haven’t tried them because of taste and flavor
concerns. Additional consumer perceptions and concerns include the idea that “meat is a
better source of nutrients” and that plant-based proteins are “too expensive.”

○ Notably, FMI found a possible decline in health as a motivator for plant-based food
consumption. In 2020, 50 percent of consumers stated “I think they are healthy” as a top
motivator for preparing plant-based meat alternatives compared to 38 percent in FMI’s
latest 2022 survey.

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 34
○ Beyond consumer-based preferences and perceptions, institutional factors affect the growth
of the alternative protein industry. In early 2023, an article published by Insper, one of
Brazil’s top business schools, unpacked the barriers and enablers of sustainable protein
innovation in Brazil. The study found that tax incentives, access to funding, and entrepreneur
network expansion are important external factors that drive alternative protein innovation. In
addition, the acknowledgment that alternative proteins are a pathway for the private sector
to create shared value and address public problems (e.g., climate, biodiversity, food security)
can be a driver, as ESG-driven decision making becomes the norm.

Prioritizing sensory characteristics like taste and texture, ensuring that consumer needs are
met, improving access and variety, and incentivizing innovation and partnerships will be key
to driving not only interest and trial but also sustained growth for years to come.

A note on foodservice
The foodservice industry is a critical avenue for growth within alternative proteins. Roughly one
in four consumers reports having tried a meat alternative burger at a restaurant while 15
percent of consumers say they eat plant-based meat alternatives often when dining outside of
the home.

Figure 3: Meat alternative behaviors by dietary preference

Source: Mintel Reports US, Plant-based Proteins, 2022

Questions: Which of the following statements about plant-based meat alternatives (e.g., Gardein, Impossible Burger) do you agree
with? Which of the following dietary preferences best describes you?

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 35
Notably, consumers are looking for more. Half of omnivores and 8 in 10 flexitarians agree that
more restaurants should serve plant-based meat alternatives. GFI commissioned a
plant-based meat alternative buyer analysis from Circana covering 2019 through 2022. This
analysis captures consumers’ foodservice purchases via uploaded receipts, specifically those of
consumers who purchase plant-based meat alternatives. The key insights are captured below.
For more on the methodology see box 5 below.

Key insights:

○ The percentage of U.S. consumers buying plant-based meat in commercial foodservice over
each of the last four years has remained steady at around 9 percent. However, the average
frequency of purchase has increased by 30 percent since 2019.

○ Opportunities remain to drive repeat purchases: 63 percent of alternative meat buyers

purchased these items just once in 2022 and 37 percent purchased these items two times
or more within the year.

○ Plant-based meat buyers are valuable to operators. They make 30+ more foodservice visits
and spend over $400 more annually compared to the average buyer.

○ Demographically, plant-based meat items are more likely to attract buyers aged 18–24,
male buyers, and multicultural buyers.

Foodservice environments are important avenues for driving consumers to try plant-based
proteins because taste and flavor experiences are often elevated relative to home cooking, and
price sometimes plays a lesser role as a barrier to consumption. Consumers and operators are
showing an increased interest in plant-based proteins out of the home, but opportunities
remain for industry players to drive product innovation and renovation to meet consumer
needs and preferences, bring down costs, and increase distribution to make these products
more appealing and accessible to consumers across all channels and markets.

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 36
 “What we’ve witnessed is that our consumer base is similar around the
globe, particularly in urban locations. Many of our consumers are
between 18-35 years old and are often seeking experiences with food
that are noteworthy and memorable. Our consumer base in Singapore,
for example, is not unlike our customers in New York City or London or
Munich. For some in this group, there’s a growing awareness that
there’s a connection between meat production and environmental
impacts, but it’s not completely obvious yet. It’s even more important
as a brand and young company for us to focus on education of the food
and planet connection—and partner with some of the best chefs and
restaurants in the world to help communicate that plant-based dining
can be both exciting and delicious (and not offer any compromise).”

– Andre Menezes, CEO and Co-Founder, TiNDLE

Are we missing your company? Did we get something wrong in this Commercial
Landscape section? We’d appreciate your feedback via this form.

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 37
Section 2

Sales
Section 2: Sales
—
U.S. retail sales overview
Insights released by the Good Food Institute (GFI) and the Plant Based Foods Association
(PBFA) based on retail sales data commissioned from SPINS show that the plant-based food
market in U.S. retail in 2022 is worth $8 billion, with dollar sales up seven percent from 2021,
and unit sales down three percent, mirroring total food and beverage and animal-based food.
While dollar sales are up across several categories due to price increases, notable plant-based
categories that saw unit sales growth in 2022 despite challenging market conditions include
plant-based eggs, plant-based seafood, plant-based creamers, and plant-based protein liquids
and powders. Yet, with inflation and consumer spending concerns affecting the retail market in
2022, many plant-based categories saw overall dollar sales increases and unit declines.

Key insights:

○ As with total food and beverage at ○ Plant-based meat dollar sales are down
retail in 2022, several plant-based slightly by 1% and unit sales are down
categories saw dollar volume growth 8%. This indicates an opportunity to
alongside unit volume declines. further attract and retain consumers in
However, a few notable categories grew the category by delivering great-tasting,
in both dollar and unit sales in 2022, affordable products that meet consumer
including plant-based creamers, eggs, needs.
and protein liquids and powders.
○ The smallest category, and the
○ Plant-based milk is the most developed fastest-growing, is plant-based eggs. At
of all plant-based categories. $45 million in dollar sales in 2022,
Plant-based milk dollar sales were $2.8 plant-based eggs is a modest category
billion in 2022, making up over a third of that has grown 4x its size in 2019, albeit
all plant-based sales. on a very small base. Plant-based eggs
have also seen a significant closing in the
price gap with animal-based eggs, driven
by both price increases for animal-based
eggs and price per unit decreases for
products in the plant-based egg category.

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 39
Figure 4: Plant-based foods market, U.S. retail (2019–2022)

Sales data note: The data presented in this graph is based on custom GFI and PBFA plant-based categories that were created by
refining standard SPINS categories. Due to the custom nature of these categories, the presented data will not align with standard
SPINS categories.
Source: SPINS Natural Grocery Channel, SPINS Conventional Multi Outlet Channel (powered by Circana, formerly IRI & NPD) | 52
Weeks Ending 1-1-2023
©2023 The Good Food Institute, Inc

Inflation
Inflation was a major story across the globe in 2022, particularly in the food sector. In the U.S.,
from December 2021 to December 2022, food-at-home prices rose 12 percent, which
influenced how consumers shopped. According to IRI’s December primary shopper survey as
reported by 210 Analytics, 8 in 10 consumers reported making changes to their shopping
behavior as a result of price increases. Full-year 2022 data on total edibles shows a decline in
total food and beverage consumption with unit sales down three percent and dollar sales up 11
percent versus the prior year. Notably, categories like conventional meat and plant-based meat
experienced gaps between dollar sales changes and unit sales changes, representing
significant price-per-unit increases.

In addition to price increases for a given category, inflation cuts into consumer budgets and
tends to influence consumers to trade down from existing premium categories—almost all
plant-based categories continue to sell at a price premium per pound compared to their
animal-based counterparts.

Reaching price parity with conventional meat remains a large barrier to mass adoption for the
plant-based meat category. According to Mintel, 26 percent of consumers who don’t eat

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 40
plant-based proteins today say the products are too expensive. Research from FMI shows that
cost is a major factor identified by almost a third of consumers who stop buying plant-based
meat or dairy. Overall, the premium prices of plant-based foods present a barrier to reaching
more consumers and with more frequency, particularly given that consumers are likely to be
increasingly mindful of prices in the current economic environment.

Supply chain disruptions

A major contributor to the decreased affordability and availability of food in 2022 was
continued ingredient shortages and supply chain disruptions. Events including the war in
Ukraine, extreme weather, continued pandemic impacts like labor shortages, and avian flu
outbreaks have had ripple effects across the global food network.

Neither plant-based nor animal-based foods have been entirely immune to these challenges.
Both plant- and animal-based proteins were impacted by lower-than-anticipated global pea
and soybean yields, sanctions on Russia—the world’s largest fertilizer exporter—and elevated
energy costs, all of which drove up costs of production. Rising sea and rail freight costs also
contributed to price increases for both plant and animal proteins. Yet the environmental
benefits, production efficiencies at scale, and minimized supply chain vulnerabilities compared
to the animal agriculture industry make plant-based foods a powerful tool in building a stable
food supply. The plant-based industry is still small relative to the total food industry.
Plant-based milk has a 15 percent dollar share of total milk, plant-based meat has a 1.3
percent dollar share of total meat, and the plant-based egg category has a 0.5 percent dollar
share of overall eggs in U.S. retail. Continued public and private investments are needed to
scale the industry, improve taste and price parity with conventional meat, egg, and dairy
products, and improve the industry’s ability to attract and retain consumers.

Lingering impacts of the pandemic

Looking at the retail channel alone risks missing the larger picture of plant-based food sales in
the U.S. given individual channel volatility across retail, foodservice, and e-commerce in the
past four years. In 2020, due to the pandemic, a large portion of foodservice dollars shifted to
retail. Across categories, this resulted in unprecedented retail growth—and high bars for
lapping this growth. Both 2021 and 2022 have seen the foodservice channel earn back much
of its prior volume, and retail volume has started to settle. Meanwhile, e-commerce sales have
grown rapidly, although on a very small base, stimulated by the pandemic.

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 41
Today, although restrictions have continued to lift and purchases have stabilized, the pandemic
continues to have lasting impacts on the broader food industry and consumer behavior. A brief
example of an opportunity for plant-based foods at retail is consumers buying in bulk, which is
one of the pandemic’s lasting impacts on shoppers’ habits. However, many plant-based
products are not available in bulk sizes, which can offer consumers greater efficiencies in
per-pound prices.

Box 1: U.S. retail market data collection

Point-of-sale (POS) data

To size the U.S. retail market for plant-based foods, GFI and PBFA commissioned retail sales data from the market
research firm SPINS. The firm built the dataset by first pulling in all products with the SPINS “plant-based
positioned” product attribute, followed by adding plant-based private label products. Inherently, plant-based foods,
such as chickpeas and kale, are not included. Due to the custom nature of these categories, the retail data
presented on this page may not align with standard SPINS categories. Additionally, SPINS pulled in relevant
mainstream subcategories (excluding plant-based positioned products) to create the conventional categories
discussed above. Finally, the total edibles category pulled in all grocery, frozen, and refrigerated edible items across
the retail grocery landscape as well as protein powders and bars. SPINS obtained the data over the 52-week,
104-week, 156-week, and 208-week periods ending January 1, 2023, from the SPINS Natural Grocery Channel and
Conventional Multi-Outlet Channel (powered by Circana, formerly IRI & NPD).

SPINS defines these channels as follows:

○ Conventional Multi Outlet (MULO): More than 110,000 retail locations spanning the grocery outlet, the drug
outlet, and selected retailers across mass merchandisers, including Walmart, club, dollar, and military.
○ Natural Enhanced: More than 1,900 full-format stores with $2 million+ in annual sales and 40% or more of
UPC-coded sales from natural/organic/specialty products.

This is generally considered the broadest available view of retail food sales, although not all retailers are
represented. Some companies, such as Whole Foods Market, Trader Joe’s, and Costco, do not report their scan data
to SPINS or Circana (formerly IRI & NPD). Please note that this methodology has changed compared to that used in
previous reporting by GFI. We do not recommend comparing data released in prior years to the data included here.

Consumer panel data

To understand consumer purchasing dynamics and demographics, GFI and PBFA also commissioned consumer
panel data from SPINS. The process for pulling the panel data was separate from that for the POS data, which may
result in minor category differences. SPINS acquires its panel data through the National Consumer Panel, a Nielsen
and Circana (formerly IRI & NPD) joint venture composed of roughly 100,000 households. SPINS obtained the data
over the 52-week, 104-week, 156-week, and 208-week periods ending January 1, 2023, from all U.S. outlets.

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 42
Categories
Plant-based food categories are in various stages of development. Plant-based milk is a
multi-billion-dollar category with a 15 percent market share of total milk dollar sales, while
small but emerging categories such as plant-based eggs saw continued growth in 2022.

Table 7: Plant-based food category dollar sales, dollar sales growth, unit sales, and unit
sales growth 2022

2022 1-year dollar 3-year dollar 2022 1-year unit 3-year unit
Category dollar sales sales growth sales growth unit sales sales growth sales growth
(2021–2022) (2019–2022) (2021–2022) (2019–2022)
Plant-based milk $2.8 B 9% 36% 749 MM -2% 19%

Plant-based meat $1.4 B -1% 43% 255 MM -8% 20%

Plant-based creamer $645 MM 24% 119% 137 MM 12% 77%
Plant-based meals $531 MM 1% 49% 112 MM -7% 33%
Plant-based ice cream
$437 MM -4% 25% 83 MM -9% 14%
and frozen novelty
Plant-based yogurt $425 MM 5% 39% 174 MM -5% 16%
Plant-based protein
$341 MM 14% 39% 24 MM 13% 35%
liquids and powders
Plant-based butter $311 MM 15% 55% 71 MM -11% 10%
Plant-based
ready-to-drink $239 MM 17% 76% 57 MM 11% 62%
beverages
Plant-based cheese $233 MM -2% 51% 47 MM -5% 44%
Plant-based bars $202 MM 13% -2% 47 MM -8% -30%
Tofu, tempeh, and seitan $185 MM 4% 41% 65 MM -0% 26%
Plant-based cream
cheese, sour cream, and $129 MM 7% 104% 24 MM 2% 86%
spreads
Plant-based condiments,
$89 MM 6% 47% 16 MM -3% 32%
dressings, and mayo
Plant-based eggs $45 MM 14% 348% 10 MM 21% 611%
Plant-based baked
$35 MM 13% 38% 6 MM 3% -3%
goods
TOTAL $8.0 B 7% 44% 1.9 B -3% 23%

Sales data note: The data presented in this graph is based on custom GFI and PBFA plant-based categories that were created by
refining standard SPINS categories. Due to the custom nature of these categories, the presented data will not align with standard
SPINS categories. Source: SPINS Natural Grocery Channel, SPINS Conventional Multi Outlet Channel (powered by Circana,
formerly IRI & NPD) | 52 Weeks Ending 1-1-2023
©2023 The Good Food Institute, Inc

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 43
Closing the price gap
The majority of plant-based categories and every animal-based category had positive dollar sales
growth in 2022. However, all animal-based categories and most plant-based categories experienced
unit sales declines, indicative of the trends in U.S. retail of increasing average price-per-unit.

Plant-based products tend to be sold at a significant price premium compared to conventional

products. Closing this price gap represents an opportunity to appeal to more consumers and
position products as more feasible swap-outs for conventional products. GFI analysis of
multiple data sources indicates that, in 2022, pound for pound, the overall price premium for
plant-based meat was 67 percent, and for plant-based eggs was 122 percent. Gallon for
gallon, the overall price premium for plant-based milk was 87 percent.

The plant-based egg category made notable progress toward price parity in 2022. In 2021,
plant-based eggs cost about $5 more per pound than animal-based eggs. This gap shrank to
$3.50 in 2022, driven primarily by animal-based egg price increases and secondarily by
decreases in plant-based egg prices.

For a comprehensive overview of U.S. retail sales data, including coverage of all plant-based
categories and additional detail on the plant-based meat and plant-based milk categories, as
well as consumer purchase dynamics, check out GFI’s market data page.

U.S. consumer dynamics and research

Mainstream consumer awareness of and interest in plant-based foods is a critical factor in
growing this emerging market. Plant-based meat, eggs, and dairy continue to gain mainstream
status but improvements on key consumer drivers like taste and price will be crucial to
increasing repeat purchases and expanding household penetration.

Consumer demographics for overall plant-based foods

Plant-based food consumption over indexes among several consumer groups. Compared to the
average consumer, purchasers of plant-based products tend to be younger and from higher
income brackets and tend to have college or graduate degrees. Asian consumers are more
likely to be buyers of plant-based foods.

In addition to sales data, other key metrics including household penetration and repeat
purchase rate demonstrate growth opportunities for plant-based categories.

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 44
Table 8: Purchase dynamics of plant-based foods 2022

Household data note: SPINS uses a separate process from the sales data to pull household panel data which may result in minor
category differences.
Source: NCP, All Outlets, 52 weeks ending 1-1-23
© 2023 The Good Food Institute, Inc.

○ Six in ten households purchased plant-based foods in 2022. The majority of U.S.
households are purchasing plant-based products, similar to in 2021.

○ Plant-based milk continues to lead plant-based categories in household penetration.

41 percent of U.S. households purchased plant-based milk in 2022, the highest household
penetration among plant-based categories, followed by plant-based meat (18%) and
plant-based ice cream and frozen novelties (12%).

○ In line with overall sales trends, several plant-based categories saw slight (two points
or less) declines in the portion of households purchasing in 2022. These included
plant-based meat, milk, ice cream and frozen novelty, and yogurt. This was consistent
across the retail space, as several analogous animal-based categories had similar slight
declines in households purchasing.

○ Other plant-based categories had a relatively steady percentage of households

purchasing. Plant-based cheese, eggs, and tofu and tempeh had similar proportions of
households purchasing them in 2022 as in 2021.

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 45
○ Plant-based meat shoppers are major consumers of other plant-based categories. Of
households that purchased both plant-based and conventional meat in 2022, 65 percent
also purchased plant-based milk and 26 percent purchased plant-based ice cream and
frozen novelties. This was higher than the baseline rates of total households purchasing in
those categories, which was 41 percent for plant-based milk and 12 percent for
plant-based ice cream, demonstrating the many consumers cross-purchase across
multiple plant-based categories.

○ Dollar sales per buyer for households that purchase both plant-based meat and
animal-based meat is higher than for the average household. These households spent
19 percent more than the average household, and 21 percent more than an average
household that purchases animal-based meat but not plant-based meat.

Global retail sales overview

The plant-based food industry has established itself around the globe, with plant-based meat
and dairy products accessible to consumers on every continent. Global sales data from
Euromonitor International provide a perspective on the growth of global plant-based sales.

○ Global dollar sales of plant-based meat grew eight percent in 2022 to $6.1 billion.
Meanwhile, sales by weight grew five percent.

○ Global dollar sales of plant-based milk grew six percent to $19.1 billion. Sales by liters
grew at a slightly lower rate of three percent versus 2021.

○ Featured for the first time in Euromonitor data, plant-based yogurt grew 11 percent to $1.7
billion. Sales by weight grew six percent in 2022.

○ Also tracked for the first time, plant-based cheese grew 22 percent to $869 million. Sales
by weight grew 11 percent.

Weight sales growth trailing or slightly trailing dollar sales growth in 2022 was consistent with
the macroeconomic environment in which prices-per-pound or prices-per-liter increased
across the retail sector. Below are more details on plant-based meat and seafood, milk, yogurt,
and cheese dollar sales at the regional scale.

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 46
Box 2: Global retail market data collection
Euromonitor is one of a few providers of standardized retail sales data across global regions. The company assembles data through
a combination of desk research, store checks, trade surveys and company analysis.

Desk research relies on data and insights from a variety of sources:

○ Euromonitor ○ Company financials and annual reports

○ Governmental and official sources ○ Broker reports
○ National and international trade press ○ Online databases
○ National and international trade associations ○ Financial, business, and mainstream press
○ Industry study groups and other semiofficial sources

Store checks are used to gather data on these key factors: Trade surveys supply additional or missing data:

○ Place: products tracked in all relevant ○ Fill gaps in available published data per company
channels—selective and mass, store and non-store ○ Generate a consensus view of the size, structure, and
○ Product: innovations in products, pack sizes, and strategic direction of a category
formats ○ Access year-in-progress data where published sources
○ Price: brand price variations across channels and are out of date
comparison with private label pricing ○ Evaluate expert views on current trends and market
○ Promotion: marketing and merchandising trends, offers, developments
discounts, and tie-ins

Company analysis:

At a global level, Euromonitor’s research combines a mix of industry interaction and use of secondary sources such as annual
accounts, broker reports, financial press and databases. From a data perspective, the aim is to build “top-down” estimates of
major players’ total global and regional sales. At a country level, in line with local reporting requirements, Euromonitor accesses
annual accounts, national-specific company databases and local company websites. These are all invaluable sources in building a
view of each domestic player’s size and position within very specific categories of the industry.

Combined, these methods enable Euromonitor to assemble a rigorous dataset that provides a global perspective on sales for
various plant-based categories.

Data validation:

All data is subjected to an exhaustive review process, at country, regional and global levels.

The interpretation and review of sources and data inputs forms a central part of the collaboration between industry teams and
country researchers. Numbers are delivered to regional and global offices with an audit trail of sources and calculations to allow for
a thorough evaluation of data sense and integrity. Upon completion of the country review phase, data is then reviewed on a
comparative basis at regional and then at a global level. Comparative checks are carried out on per capita consumption and
spending levels, growth rates, patterns of category and subcategory breakdowns and distribution of sales by channel. Top-down
estimates are reviewed against bottom-up regional and global market and company sales totals. Where marked differences are
seen between proximate country markets or ones at similar developmental levels, supplementary research is conducted in the
relevant countries to confirm and/or amend those findings. This process ensures international comparability across the database,
that consistent category and subcategory definitions have been used and that all data has been correctly tested. Euromonitor
makes sure that possible discrepancies between different published sources have been reconciled and that our interpretation of
opinion and expectation from each country’s trade sources has been applied to form a coherent international pattern.

Note: Data is based on Euromonitor’s “meat and seafood substitutes” category, which includes chilled, frozen, and
shelf-stable products. Note that data may differ from previous reports. In previous reports, this Euromonitor category also
included tofu (now a standalone subcategory) and previous reports refined graphs to display only estimated plant-based
meat sales.

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 47
Figure 5: Global plant-based meat and seafood retail dollar sales and dollar sales growth
by region

Source: Euromonitor International Limited, Fresh Food 2023, retail value RSP incl sales tax, US$, fixed 2022 exchange rate, constant terms.
© 2023 The Good Food Institute, Inc.

Figure 6: Global plant-based milk retail dollar sales and dollar sales growth by region

Source: Euromonitor International Limited, Fresh Food 2023, retail value RSP incl sales tax, US$, fixed 2022 exchange rate, constant terms.
© 2023 The Good Food Institute, Inc.

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 48
Figure 7: Global plant-based cheese retail dollar sales and dollar sales growth by region

Source: Euromonitor International Limited, Fresh Food 2023, retail value RSP incl sales tax, US$, fixed 2022 exchange rate, constant terms.
© 2023 The Good Food Institute, Inc.

Figure 8: Global plant-based yogurt retail dollar sales and dollar sales growth by region

Source: Euromonitor International Limited, Fresh Food 2023, retail value RSP incl sales tax, US$, fixed 2022 exchange rate, constant terms.
© 2023 The Good Food Institute, Inc.

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 49
U.S. foodservice sales overview
Overall foodservice context
Although in-home food purchases from retail environments make up a significantly larger mass
of the total food consumed in the United States, the share of total food expenditures is
increasingly earned by food-away-from-home purchases. The year 2020 however represented
a shift when food-away-from-home reached its lowest expenditure share (51 percent) since
2012 due to consumers turning to at-home consumption during the height of the pandemic. In
2021, shares began to normalize with total food-away-from-home expenditures representing
55 percent of total expenditures, just shy of pre-pandemic levels in 2019 (56 percent).
Circana’s data on both plant-based and animal-based proteins shows that 2022 dollar volumes
have eclipsed 2019 levels, however pound sales remain below their pre-pandemic mark,
signaling more progress to be made with consumers returning to foodservice environments.

Despite foodservice sales beginning to return to pre-pandemic levels, in 2022 the foodservice
industry felt several pain points also experienced by the retail sector. Macroeconomic effects
like inflation, during which consumers tend to shift spending to more affordable choices, can
lead to overall revenue decline as well as smaller margins. In the United States, food prices
away-from-home rose eight percent from December 2021 to December 2022. While striving to
recover from the pandemic foodservice dip, operators remain challenged by labor shortages,
supply chain disruptions, and inflation.

U.S. plant-based protein foodservice sales

The year 2022 marked an important milestone in foodservice as plant-based protein dollar
sales recovered to their pre-pandemic heights. Plant-based protein sales by weight grew
three percent year-over-year to 60 million pounds, while plant-based protein dollar sales
grew eight percent year-over-year to an all-time high of $304 million in 2022. Dollar sales
outpacing sales by weight, however, is a signal of inflation. In the last year, per-pound prices
for plant-based proteins in broadline distribution increased by 21 cents per pound, or four
percent. Notably, this is significantly less than price increases for conventional meat in
foodservice, which increased by 29 cents per pound, or eight percent. Conventional meat
inflation was more comparable to average overall price increases across retail (11.4%) and
foodservice (7.7%) sectors.

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 50
Figure 9: Plant-based protein foodservice sales

Source: Circana, formerly IRI & NPD/SupplyTrack, 12 ME Dec 2022

Additional key insights:

○ In sales by weight of plant-based meat products, plant-based beef is the largest

subcategory at 33 percent of total plant-based meat sales, followed by tofu, veggie-forward
products, plant-based chicken, and then plant-based pork. Plant-based chicken (+39%) and
seafood (+40%) experienced high year-over-year growth in pound sales.

○ Similar to retail, analogs that closely mimic conventional meat are growing both by dollar
and volume sales, while non-analog product sales are declining. This is indicative of
consumers’ desire for products that have the taste and texture of conventional meat.

○ In terms of format, patties dominate the space at 43 percent of the total category volume
by weight. Tenders and nuggets are two of the fastest-growing product formats.

○ Conventional meat dollar and volume trajectories from 2019 to 2022 have a similar shape
as those for plant-based proteins. Conventional meat also saw a notable decline in both
dollar and volume sales in 2020 due to the pandemic shift away from foodservice. Similar
to plant-based proteins, conventional meat dollar sales have recovered but weight volume
was still down in 2022 compared to 2019.

○ GFI analysis of this data suggests that plant-based beef represented almost one percent of
overall beef dollar sales in U.S. foodservice in 2022. But, notably, the largest conventional
meat subcategory by dollar sales is poultry, which represents almost half of all
conventional meat sales by weight in U.S. foodservice. Compared to plant-based beef,
plant-based poultry represents an even smaller fraction of overall category sales.

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 51
Foodservice is a critical sector for plant-based category success, given the often heightened
experience of taste, a sense of novelty, and the element of expert preparation in restaurant
environments. Whether for startups entering the market or for established companies looking
to broaden their reach, the foodservice industry represents a key opportunity for plant-based
food companies to drive initial awareness, trial, and loyalty, particularly as consumers return to
eating food away from home and experimenting with new flavors. There is also notable work
being done in foodservice settings to use behavioral nudges to promote plant-based menu
items. It’s important to note that, in addition to supply-side innovations like technological
advances and product formulation, demand-side innovations like behavioral nudges can
accelerate consumer uptake of plant-based products.

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 52
 Box 5: U.S. foodservice data collection
Distributor to operator sales data
GFI commissioned foodservice sales data from Circana, formerly IRI & NPD focusing on the plant-based proteins
category. Circana collects point-of-sale data from selected broadline distributors for their SupplyTrack Tracking Service.
This data reflects itemized sales from broadline distributors shipped to foodservice operators. The SupplyTrack service
currently tracks 17 participating broadline distributors and 80+ individual subscribing manufacturers, data from 280+
categories, and collects 700k+ purchases monthly. SupplyTrack covers ~41% of the total foodservice landscape (86%
of all broadline distribution). Broadline distributor sales generally skew toward small/medium-sized chains and
non-commercial operators and away from large chains, however the data reaches both commercial and noncommercial
operators across sizes and the following segment types:

○ Commercial: QSR, FSR, Convenience Stores, Food Stores, and Other Retail
○ Noncommercial: Education, Government, Health Care, Business & Industry, Lodging/Casino, Recreation, and
other noncommercial environments.

The SupplyTrack data obtained from Circana covers plant-based protein sales across the U.S. market for the four years
2019, 2020, 2021, and 2022, all 12 months ending in December.

Plant-based protein definitions:

○ Includes: Meat alternatives or meat analogs, meat substitutes or non-meat or vegan/vegetarian protein products
that are substitutes that approximate certain aesthetic qualities (texture, flavor, appearance) and characteristics of
specific types of meat, e.g., beef and burgers, bacon slices, chicken, turkey, pork, sausage, hot dogs, crab, fish,
shrimp, jerky. These proteins are made from non-meats such as various beans, including soy, black beans,
chickpea/garbanzo beans, mushrooms, seitan*/vital wheat gluten, TVP* (textured vegetable protein), tempeh
(fermented soybeans), and other vegetable-based proteins. Some products, like those marked vegan, are made
without other animal products such as dairy.
○ Excludes: Any animal-derived meat-type proteins. Vegan or vegetarian items that are not meat substitutes.
Entrees containing alternative, non-meat proteins. Pizza containing alternative meats. All bacon bits. Vegan or
vegetarian meat-flavored gravy or sauces. Vegan or vegetarian replacements for dairy products (e.g., eggs, milk,
butter, cheese, mayo, sour cream), veggie corn dogs.

Consumer panel data

To understand consumer purchasing dynamics and demographics in foodservice, GFI also commissioned a buyer
analysis leveraging Circana’s CheckOut platform. Circana’s CheckOut consumer panel features 150K+ active panelists
uploading their receipts across retail and foodservice chains, capturing 9 million foodservice receipts annually. More
than 550 foodservice chains are captured across QSR, FSR, fast casual, and convenience stores.

This buyer analysis looks at shoppers who purchased plant-based meat alternatives, specifically analog items meant to
replicate the taste and texture of conventional meat in captured foodservice environments. This data looks at related
purchases over the latest year 2022, 12 months ending in December as well as trended purchases versus 2019, 2020,
and 2021.

Did we get something wrong in this Sales section? We’d appreciate your
feedback via this form.

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 53
 Section 3

Investments
Section 3: Investments
—
Overview
From 2010 to 2022, alternative protein companies raised $14.2 billion, nearly doubling
investments on average every year, though with high variance from year to year. This rapid
growth slowed in 2022, with funding for both alternative proteins generally and plant-based
companies specifically slowing alongside a broad global deceleration in investment across
multiple sectors.

Plant-based meat, seafood, eggs, and dairy companies raised $1.2 billion in 2022, bringing
total investments to $7.8 billion and representing a deceleration of 41 percent year-over-year
(YOY). This modestly underperformed the overall global venture funding decline of 35 percent
YOY. Funding in certain regions accelerated, rising in APAC (by 30%), Europe (15%), and the
Middle East & Africa (223%). Overall, fewer investments took place amid challenging
macroeconomic and market conditions, including falling public equity markets, steeply rising
interest rates driven by extreme inflation, the ongoing pandemic, severe climate events, and
the invasion of Ukraine. In fact, public equity markets fell by the most since the great financial
crisis of 2008. Venture-capital-backed public companies performed especially poorly, with the
PitchBook VC-backed IPO Index falling by more than 60 percent in 2022.

While this challenging market environment may continue for some time, the downturn itself
and alternative proteins’ status as an increasingly important environmental, social, and
governance (ESG) opportunity provide potential upside for investors and the industry. Deal
valuations are starting to come down, and startups are more willing to make deal term
concessions, shifting dealmaking in investors’ favor. Moreover, ESG interest remains high, and
private impact funds have $113 billion in dry powder (funds that have yet to be invested),
creating a tailwind for alternative proteins, which are increasingly being viewed as an
ESG-aligned sector.

The alternative protein industry is still nascent and is experiencing challenges that align with its
early stage. As plant-based companies continue to innovate and fill major existing white spaces
(such as whole-cut meat and seafood), as well as scale and optimize production to improve the
taste and affordability of products, sales will likely accelerate and drive additional
investment—particularly when macroeconomic and market conditions normalize. Plant-based
companies will be supported on this path by the increasing involvement of large food
companies and food service providers, such as Kraft Heinz, PepsiCo, Nestlé, ADM, Kroger,
and Pinduoduo, through launches and partnerships (see the Commercial Landscape section

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 55
for more), which also serve as de-risking events for a new set of investors who are increasingly
taking notice of the category. The number of unique investors in plant-based companies grew
by 17 percent to more than 1,500 investors in 2022.

Despite alternative proteins’ clear ESG benefits, they currently face

underinvestment as a climate, biodiversity, public health, and food security
solution. Countries have committed to halve emissions and protect 30
percent of global land and ocean ecosystems by 2030. With just seven
years to go, investing in alternative ways of making meat, seafood, eggs,
and dairy is essential. In their paper What gets measured gets financed,
the Rockefeller Foundation and Boston Consulting Group (BCG) identified
alternative proteins as a critical climate mitigation solution and estimated
that alternative proteins have an annual unmet funding need of more than
$40 billion. Plant-based meat, seafood, eggs, and dairy are some of the
most capital-efficient ways to address climate change. A report by BCG
and Blue Horizon states that “investment in plant-based proteins has the
highest [carbon dioxide equivalent] savings per dollar of invested capital of
any sector.” Both private investors and governments have a critical role to
play to ensure that alternative protein companies have the funding they
need to help alleviate multiple global crises.

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 56
 New ESG frameworks raise the bar on the
sustainability transparency of meat
In 2022, GFI and FAIRR developed a new, gap-filling set of ESG frameworks for
the alternative protein industry that equips companies to assess and report
environmental and social impacts of their business practices and their products,
helping meet demand from investors, governments, and consumers for greater
transparency.

The first-of-their-kind frameworks enable greater disclosures of the climate,

water and land use, biodiversity, labor, and food security impacts of companies
and their products, encouraging improvements in company practices and
enabling comparisons between companies involved in alternative proteins and
companies involved in animal protein products. The frameworks also enable
investors to source high-quality ESG data from companies regarding their
alternative protein offerings.

By 2025, an estimated third of global assets will be managed for ESG value. And
while ESG reporting is currently voluntary, mandatory and globally standardized
reporting is likely only a matter of time, with government-mandated climate
reporting anticipated by 2025. As ESG considerations are increasingly integrated
into risk mitigation and decision making, a greater need exists for standardized
industry-specific assessments that enable data validation and comparability. While
such frameworks exist for many other industries, the new GFI & FAIRR ESG
frameworks now play that role for the alternative protein sector.

Increased visibility of the long-term environmental and social impacts of

alternative proteins compared with conventional proteins can catalyze further
investments that meet global sustainability goals and accelerate the transition to a
more secure and equitable protein production system.

Investors and companies interested in exploring how they can adopt the GFI &
FAIRR frameworks to enhance their ESG assessment and reporting practices are
encouraged to reach out to GFI’s Corporate Engagement team for support.

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 57
 “The recent slowdown in sales of plant-based proteins reflects the common
teething problems associated with many nascent industries. On the one hand,
the early success of next-generation plant-based products demonstrates solid
consumer interest in foods that solve the challenge of feeding a larger global
population while preserving the environment. On the other hand, the
combination of higher-price points than animal meat and products that don't
yet quite deliver as craveable a taste and texture as animal products have
thus far disappointed both consumers and investors. However, these
pioneering efforts have paved the way for further technology-driven cost and
product-quality improvements. Combining this with the advent of hybrid
products that combine plant-based structures and cultivated fats and muscle,
the commercialization of a burgeoning alternative protein sector over the
coming years and decades seems ever more viable.”

– Alexia Howard, Senior Research Analyst, U.S., Bernstein

Table 9: Plant-based companies global investment (1997–2022)

2022 1997–2022 Highlights

Total invested 2022 invested capital represented

$1.19B $7.78B
capital 15% of all-time investment.
Invested capital deal 2022’s largest investment was
145 935
count $135.6MM raised by Redefine Meat.
The number of unique investors grew
Unique investors 222 new 1,521
17% in 2022 from 2021.

Liquidity event PlantPlus Foods, a joint venture of

$119MM $26.9B
capital ADM and Marfrig, acquired Sol
Liquidity event count 15 121 Cuisine for $102MM in 2022.

Other financing
$15MM $146MM
capital The vast majority of other financing
events are private investments in
Other financing public equity (PIPEs).
4 20
count
Source: GFI analysis of data from PitchBook Data, Inc.
Note: Data has not been reviewed by PitchBook analysts. See Box 5 for GFI’s data collection methodology and definitions of
“invested capital,” “investment,” “liquidity event,” and “other financing.”

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 58
Figure 10: Annual global alternative protein investment trend (2010–2022)

Source: GFI analysis of data from PitchBook Data, Inc.

Note: Data has not been reviewed by PitchBook analysts. The total deal count includes deals with undisclosed amounts.

Figure 11: Annual investment in plant-based companies (2010–2022)

Source: GFI analysis of data from PitchBook Data, Inc.

Note: Data has not been reviewed by PitchBook analysts. The total deal count includes deals with undisclosed amounts.

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 59
 Box 3: Data collection methodology
GFI conducted a global analysis of plant-based meat, egg, and dairy companies using data from PitchBook. Our
analysis uses a list we custom built in PitchBook of companies that focus primarily on plant-based meat, egg, or
dairy products or provide services to those who produce them. Our analysis excludes companies involved in
plant-based products but not as their core businesses as well as companies using plant-based ingredients other
than to create or enable alternative meat, egg, and dairy products. Some companies included in our list may also
offer products or services that apply to another protein category. For example, the $200 million that Eat Just
raised in March 2021 for use across their product lines and the $267 million raised for their GOOD Meat division in
the funding round completed in September 2021 are categorized under cultivated meat. All other Eat Just funds
raised are categorized under plant-based. Cocuus, who produces both cultivated and plant-based meat, was
included in the plant-based meat dataset. Companies focused primarily on plant molecular farming are excluded
(they are included under fermentation).

PitchBook profiled 689 plant-based companies, of which 450 have disclosed deals. Of these 450 companies, 358
have deals with publicly disclosed amounts. Because these aggregate calculations account for only companies
with deals and deal sizes disclosed to PitchBook, they are conservative estimates.

For the purposes of this report, invested capital/investment refers to accelerator and incubator funding, angel
funding, seed funding, equity and product crowdfunding, early-stage venture capital, late-stage venture capital,
private equity growth/expansion, capitalization, corporate venture, joint venture, convertible debt, and general
debt completed deals. Liquidity events refer to mergers, acquisitions, reverse mergers, buyouts, leveraged buyouts,
and IPOs, while other financing refers to subsequent public share offerings and private investment in public equity.
We do not include capital raised through a SPAC IPO until the entity has merged with or acquired a target company.

Please note that the figures published in this report may differ from prior figures published by GFI as we and
PitchBook continually improve our dataset.

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 60
Geographical distribution

Figure 12: Investments in plant-based companies by region (2010–2022)

Source: GFI analysis of data from PitchBook Data, Inc.

Note: Data has not been reviewed by PitchBook analysts. North America includes Canada and the United States only. Latin America
includes Mexico, South America, and Central America. The total deal count includes deals with undisclosed amounts.

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 61
Figure 13: Investment in plant-based companies: Top 10 countries (2010–2022)

Source: GFI analysis of data from PitchBook Data, Inc. The total deal count includes deals with undisclosed amounts.
Note: Data has not been reviewed by PitchBook analysts. The top 10 countries were selected based on 2022 invested capital. We
are aware of additional investments in these countries, including China, that are not captured by our methodology.

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 62
Deal types and key funding rounds

Table 10: Deal type summary statistics (2010–2022)

Median Median Median Maximum Deal Count

Deal type
2010–2020 2021 2022 (all years) (all years)

Angel $230K $285K $660K $6.1MM 50

Seed $1.3MM $1.8MM $2.2MM $30MM 183
Early-stage VC
$1.3MM $1.2MM $2.5MM $37.2MM 215
(uncategorized)
Series A/A1/A3 $4.3MM $7.3MM $8MM $136MM 90
Series
$12.5MM $26.4MM $30.7MM $335MM 34
B/B1/B2/B3
Series C/C1 $38.2MM $23.9MM $7MM $90MM 17
Series D $77.9MM $235MM $70MM $235MM 7
Series E/E1 $25.6MM $57.3MM N/A $300MM 7
Series F/G/H $55MM $500MM N/A $500MM 6
Late-stage VC
$2.3MM $5.6MM $11.5MM $189MM 144
(uncategorized)
PE
growth/expansion $10.7MM $14.8MM $20.2MM $200MM 41
(uncategorized)
Corporate $6.8MM $300K N/A $75MM 16
Equity and
product $30K $565K $330K $5.7MM 57
crowdfunding
General debt $3MM $1.6MM $9MM $80MM 23

Source: GFI analysis of data from PitchBook Data, Inc.

Note: Data has not been reviewed by PitchBook analysts. These figures represent summary statistics of invested capital rounds
with disclosed deal amounts. Deal count includes rounds with undisclosed amounts. Due to their limited number and/or size, this
table excludes accelerator and incubator, capitalization, convertible debt, Series 1, Series 2, and joint venture rounds. It also
excludes uncategorized rounds. The total deal count includes deals with undisclosed amounts.

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 63
Figure 14: 2022 key funding rounds

Source: GFI analysis of data from PitchBook Data, Inc.

Note: Data has not been reviewed by PitchBook analysts. “2022 key funding rounds” includes investments in the 75th percentile or
higher for each funding round category that includes more than three deals. For funding round categories that include three deals
or fewer, all deals are included.

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 64
Liquidity events
Fifteen liquidity events—also known as exits, representing the sale of an equity owner’s
interest in a company typically through a merger, acquisition, buyout, or IPO—took place in
2022, though only four deals’ values were disclosed.

The most notable event was Sol Cuisine, a Canadian plant-based food producer, being
acquired by PlantPlus Foods, a joint venture of ingredient giant ADM and major meat company
Marfrig. The $102 million acquisition took place as part of the joint venture’s strategy to gain a
“strong foothold” across the Americas and “expand aggressively” according to PlantPlus Foods
CEO John Pinto.

We expect to see an increased number of mergers and acquisitions in the coming year as
companies with stronger financial footing—incumbents and startups alike—acquire firms with
valuable technologies, manufacturing processes, and talent that are struggling to maintain a
financial runway.

Figure 15: Plant-based companies’ global liquidity events (2010–2022)

Source: GFI analysis of data from PitchBook Data, Inc.

Note: Data has not been reviewed by PitchBook analysts. The total deal count includes deals with undisclosed amounts.

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 65
Other financing
In addition to more traditional financing methods, some public companies pursue financing
paths such as subsequent public share offerings and private investment in public equity (PIPE).
Plant-based meat, seafood, egg, and dairy companies raised a disclosed $15.3 million across
four PIPE deals in 2022, bringing total other financing for the segment to $146 million across
20 deals (14 with disclosed amounts).

Table 11: Plant-based food other financing events (2019–2022)

Company Year Amount ($MM) Financing type

Burcon Nutrascience 2015 $1.7 PIPE

Else Nutrition Holdings 2019 $5.6 PIPE

Public investment
Beyond Meat* 2019 $40
second offering
The Very Good Butchers 2020 $10.1 PIPE

The Very Good Butchers 2020 $8.5 PIPE

Else Nutrition Holdings 2020 $3.8 PIPE

Else Nutrition Holdings 2020 $6 PIPE

Burcon Nutrascience 2020 $11.5 PIPE

The Very Good Butchers 2021 $30 PIPE

Else Nutrition Holdings 2021 $13.8 PIPE

The Very Good Butchers 2022 $6.5 PIPE

Plant Veda Foods 2022 $0.2 PIPE

Global Food and Ingredients 2022 $2.8 PIPE

Else Nutrition Holdings 2022 $5.8 PIPE

Source: GFI analysis of data from PitchBook Data, Inc.

Note: Data has not been reviewed by PitchBook analysts. The total deal count includes deals with undisclosed amounts.
*Of the total $520 million raised by Beyond Meat through a public investment secondary offering in 2019, the total proceeds to the
company were $40 million and to the selling shareholders $480 million. We have used only proceeds to the company in this table.

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 66
Investors

Table 12: Most active investors in plant-based by deal count (2022)

2022 deal Total deal

Investor Logo Investor type Headquarters
count count

Big Idea
Venture capital New York, USA 15 52
Ventures

SOSV / IndieBio Venture capital Princeton, USA 8 34

Unovis Asset
Venture capital New York, USA 5 41
Management

AGFunder Venture capital San Francisco, USA 4 9

Lever VC Venture capital Brooklyn, USA 4 19

Siddhi Capital Venture capital Cherry Hill, USA 4 17

Sustainable
Venture capital Raleigh, USA 4 12
Food Ventures

Trellis Road Venture capital Stockholm, Sweden 4 9

VegInvest Venture capital New York, USA 4 20

Alwyn Capital Venture capital Brooklyn, USA 3 8

Corporate
BayWa Venture Munich, Germany 3 4
venture capital

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 67
Better Bite Christchurch,
Venture capital 3 7
Ventures New Zealand

Clear Current
Venture capital Vero Beach, USA 3 20
Capital

FoodHack Corporation Lausanne, Switzerland 3 3

Good Startup Venture capital Singapore, Singapore 3 9

Green Generation
Venture capital Berlin, Germany 3 3
Fund

Kale United Venture capital Stockholm, Sweden 3 24

Stray Dog
Venture capital Leawood, USA 3 32
Capital

Temasek Sovereign
Singapore, Singapore 3 12
Holdings wealth fund

Source: GFI analysis of data from PitchBook Data, Inc.

Note: Data has not been reviewed by PitchBook analysts. “Most active investors in 2021” includes any organization that made
three or more publicly disclosed investments in a plant-based food company during the calendar year 2021. The total deal count
includes deals with undisclosed amounts.
*Indicates funders that made disclosed investments in plant-based meat, eggs, and dairy for the first time in 2021.

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 68
 “Continued growth of the plant-based category will be enabled by
innovation that results in delicious and appealing options. As consumers
increasingly seek out alternative proteins for personal health and
environmental reasons, winners will be created in the category and
generate strong returns for investors.”

– Alice Raksin, Investor, L Catterton

The Good Food Institute is not a licensed investment or financial advisor, and nothing in the
state of the industry report is intended or should be construed as investment advice.

Are we missing your company? Did we get something in this Investment

section wrong? We’d appreciate your feedback via this form.

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 69
 Section 4

Science and technology

Section 4: Science and technology
—
Overview
Strengthening both ingredient and manufacturing capacity for plant-based meat remains a top
priority for this still-emerging industry. As GFI’s “Plant-based meat: Forecasting ingredient,
infrastructure, and investment needs in 2030” report outlined, to keep pace with plant-based
meat demand in the coming decade, the plant-based protein industry will need to make
significant investments to expand manufacturing capacity and scale the ingredient supply chain.

Throughout 2022, it became clear that the plant-based food industry is employing science and
technology to help alleviate these potential bottlenecks. Specifically, advancements in protein
sourcing, ingredient and formulation optimization, and end-product manufacturing methods
and collaborations across the supply chain continued to help plant-based products aim for
taste, cost, and convenience parity with animal products. Companies focused on:

○ Enhancing downstream processing by ○ Continually adjusting ingredients and

starting at the source: Crop breeding and product formulations to enhance some of
diversity are being optimized for protein the drivers for plant-based food
content and functionality. consumption—environmental and health
benefits.
○ Improving and scaling plant proteins
while exploring other key ingredients, ○ Collaborating with governments,
such as alternative fats and binders. academia, and other industry partners,
paving the way for a robust agriculture
○ Advancing and scaling extrusion while
and food system transformation.
improving the commercial feasibility of
more novel texturization methods, such
as 3D printing and spinning.

For more detailed information about the technologies described below, refer to GFI’s science
of plant-based meat explainer, including deep dives into crop development, ingredient
optimization, and end-product formulation and manufacturing.

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 71
Research across the technology stack

Figure 16: Plant-based meat process

Crop development: Enhancing plant diversity and protein

content for optimal downstream production
To feed and fuel a rapidly growing population, many industry crop breeding programs focus on
optimizing agronomic traits associated with high overall crop yield and resistance to
environmental stresses. In addition, enhancing plant protein content and functionality can
further generate economic and nutritional value for crops. In 2022, companies that have
traditionally focused on plant protein breeding efforts furthered their strategies by:

○ Diversifying beyond soy and pea: NuCicer, with an investment from the venture arm of
Bayer AG, continued developing their non-GMO, high-protein chickpea strains. Equinom is
increasing their R&D efforts for ultra-high protein chickpeas, fava beans, mung beans, and
cowpeas, in addition to creating a non-GMO, minimally processed, 75 percent protein
content ingredient with their cross-bred pea varieties.

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 72
○ Accelerating commercialization efforts: Benson Hill focused on downstream partnerships
with large-scale ingredient manufacturer ADM and Kellogg’s plant-based product producer
MorningStar Farms. Equinom secured a partnership with seed company Peterson Farms,
while also directing their attention toward downstream commercialization by partnering
with large-scale pulse ingredient supplier AGT Food and Ingredients. Enhancing
production scale through collaborations along supply chains is a strategy that will
appreciably lower plant-based food costs.

Along with improving product affordability, these advances demonstrate the potential of
breeding techniques to significantly reduce downstream processing efforts and the
environmental footprints of plant-based food production. Accompanying the launch of their
TruVail non-GMO Ultra-High Protein soybeans in 2022, Benson Hill announced the crop’s
resulting protein ingredient requires up to 70 percent less water and emits up to 50 percent
less CO2 than traditional soy protein ingredients. For more information about environmental
metrics, see the environmental and social impact of plant-based foods section of this report.

Breeding crops to generate non-native proteins, such as animal protein casein, is a strategy
that continued to gain traction in 2022. For more updates on this strategy, see the plant
molecular farming section of GFI’s 2022 Fermentation State of the Industry report.

Beyond breeding, the industry should continue optimizing cultivation and harvesting conditions
of alternative protein crop sources. In 2022, Crop One Holdings, an indoor vertical farming
company, and Cold Spring Harbor Laboratory received a $1.5 million grant from the
Foundation for Food and Agriculture Research to efficiently grow high-quality Lemna
(duckweed) protein in controlled environmental conditions. Efforts like these explore novel
production methods for growing sustainable and protein-rich sources for plant-based foods.

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 73
Ingredient optimization: Advancing the functionality and
scalability of proteins and other plant-based ingredients
A key to unlocking the affordability of plant-based foods will be increasing the scale of
production, eventually achieving economies of scale, across the entire value chain. For
plant-based meat, dairy, and eggs, scaling plant protein production is a top priority of the
industry. Diverse plant protein ingredients are gaining traction, with progress being made to
increase their production and reduce their costs:

○ NUTRIS opened a fava bean and potato Singapore within the next two years to
ingredient processing factory in Croatia, create thousands of tons of ingredients
claiming the title of Europe’s first fava per year.
bean protein isolate manufacturing
○ Lantmännen began designing a
facility.
large-scale pea protein isolate production
○ Eat Just announced plans to build a facility in Sweden, which is expected to
mung bean protein production factory in be completed in early 2026.

Through good facility planning and collaborations, economies of scale for plant-based
ingredients will be reached at an accelerated rate. In 2022, companies leveraged these
strategies to design more seamless supply chains and plant-based ecosystems:

○ Bunge plans to construct a fully ○ Protein Industries Canada established a

integrated soy protein concentrate and $7.3 million project with Lupin
textured soy protein facility in Indiana by Plantform Inc., Hensall Co-op, Lumi
2025, allowing them to process an Foods, and PURIS to create an
additional 4.5 million bushels of integrated ecosystem to increase the
soybeans per year. production and processing of lupin in
Canada.

While scaling plant protein production is a priority for the alternative meat, seafood, eggs, and
dairy industry, other ingredients are also being optimized to bolster the taste, texture, and
nutrition of end products. In particular, 2022 was a banner year for alternative fat research and
product development:

○ Givaudan launched PrimeLock+, a ○ Lypid is continuing to develop their

plant-based replacement for beef and PhytoFat plant-based fat ingredient, also
pork fats, made from encapsulating made by encapsulating plant oils to
coconut oil and flavors. create fat replacements.

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 74
○ Good FoodTech’s AROMAX fat ○ Paragon Pure debuted their plant-based
technology uses a konjac matrix to lock fat, OléPBM, an oleogel made from
flavors and aromas in their plant-based upcycled rice bran oil and rice bran wax.
pork fat replacement. They launched this
○ Using their new Fat 2.0 technology made
technology in a plant-based pork
from olive oil, THIS launched their first
dumpling under their brand, Plant Sifu.
plant-based beef alternatives.
○ Cargill also recognized the importance of
○ Thrilling Foods patented their
these alternative fat technologies,
fat-streaked plant-based bacon made
committing to bring Cubiq’s alternative
with protein-bound fat.
fats to market in 2023. Cubiq creates
vegetable oil emulsion, encapsulated ○ OmniFoods launched their OmniNanoTM
omega-3 fatty acid, and cell-based Vegan Fat patented product which is
omega-3 fatty acid ingredients. composed of emulsified unsaturated fats
and will be included in their 2023
plant-based beef, chicken, and pork
products.

Encapsulation, emulsion, and oleogelation technologies all reduce the separation of plant oils
from the product by protecting them so they gradually release during cooking and
consumption. This controlled release creates a flavorful, juicy, textured mouthfeel for end
products. Nutritional plant-based omega-3 fatty acid ingredients are also being developed—
the use of DSM life’sTMOMEGA algae-derived omega-3 fatty acid ingredients in meat and fish
products was approved in the European Union in 2022.

Beyond proteins and fats, other ingredients are essential to enhancing end-product
organoleptic properties. This year, several advances were made in optimizing other important
plant-based ingredients. In particular, company innovations demonstrated consumers’
appetite for a clean-label binder to replace methylcellulose:

○ Fiberstar is planning to commercialize ○ Merit Functional Foods also claimed that

their citrus fiber ingredient, Citri-Fi, with combining their Peazazz pea protein
the help of Givaudan. Citri-Fi functions as isolate ingredient with transglutaminase
a texturizer, adding juiciness and texture enzyme creates a binder capable of
to plant-based meat alternatives. replacing methylcellulose.
Moreover, Citri-Fi, in combination with
○ Meala created protein-based hydrogels
agar, native starch, and psyllium, can
that function as binding and gelling
potentially be used as a binder capable of
agents to replace methylcellulose and
replacing methylcellulose.
other gums.

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 75
In addition to the scaling and sourcing of ingredients, new ingredient processing technologies are
also being developed. While conventional ingredient and food processing typically apply chemical
strategies, such as wet extractions, precipitations, and drying, plant ingredient and food
manufacturers have begun exploring physical and biological methods to improve their products:

○ Physical treatment strategies: Above ○ Biological treatment strategies: Food

Food plans to apply hydrodynamic manufacturer Foodiq launched a
cavitation technology to create their fermented fava bean ingredient, Fabea+,
clean label oat protein concentrates—the in which fermentation reduces the beany
technology can ease processing taste and odor traditionally associated
conditions and improve protein with legumes. DSM launched their
functionality and digestibility. Black enzyme ingredient, Delvo Plant Go, which
Sheep Vegan Cheeze applied Feel Foods is marketed to improve the taste,
Ltd.’s high-pressure pasteurization sweetness, texture, and nutritional value
technique to double their cheese’s shelf of starch-based dairy alternatives.
stability.

End-product formulation and manufacturing

A substantial bottleneck in the plant-based protein industry is the lack of scalable technology
to produce thick, finely textured meat products that mimic whole-cut meat products like
chicken, salmon filet, and steak. In 2022, companies focused on ramping production scale and
efficiencies and exploring novel texturization methods.

Extrusion is the typical method used to create textured plant protein. While companies such as
Food Evolution, SIMULATE, Lus Oasis, and Planted advanced their product lines with
high-moisture extrusion this year, achieving economies of scale and structural parity with
animal meat will require extrusion advancements beyond traditional methods.
Singapore-based Growthwell Foods is leveraging automation to scale their extrusion
capabilities, while large manufacturers continue to expand their extrusion capacity in new
regions, including ADM’s expansion in Serbia and in the United States and MGP Ingredients’
new extrusion facility in the United States dedicated to their ProTerra wheat and pea protein
line of ingredients.

Extrusion technologies that expand beyond the traditional low- and high-moisture processes
have the potential to drive texture parity to conventional whole-cuts. Scientists from ETH
Zurich are revamping extrusion by including two separate extrusion attachments (i.e., dies) for

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 76
pea proteins and emulsion-based fats and then combining them to create 3D, marbled
plant-based meats. If commercially scalable, advances such as these could propel alternative
protein’s consumer acceptance due to improved sensory characteristics of plant-based meat.

3D printing is increasingly being applied to create plant-based protein products to enhance

texture and overall structure beyond the current capabilities of extrusion. Demonstrating its
increased popularity, several companies that focus on 3D-printed plant protein products
secured funding this year, including Redefine Meat, Novameat, Mooji Meats, Revo Foods, and
Cocuus. The commercial feasibility of these products is being tested as several companies are
launching their products in restaurants and supermarkets:

○ Revo Foods began selling their ○ SavorEat is collaborating with the BBB
3D-printed plant-based salmon through hamburger chain to create a robot chef
the online vegan supermarket, which designs 3D-printed burgers
GreenBay. personalized to customer nutrition
specifications. The burgers use potato,
○ Redefine Meat partnered with
pea, and chickpea protein sources as
plant-based manufacturer and
their base.
distributor, MeEat, to distribute their
3D-printed plant-based meats in ○ Plantish demonstrated a prototype of
restaurants in Finland. Michelin chef their 3D-printed plant-based salmon filet
Marco Pierre White also added Redefine and plans to launch the whole-cut
Meat’s 3D-printed lamb and beef to his product in 2024.
menus across the United Kingdom.

Another emerging technology that has the potential to create finer fibers than extrusion is plant
fiber spinning. The technology hasn’t made waves in recent years, but in 2022, Tender
announced that they plan to spin plant fibers to develop realistic plant-based meat products.
The technology was initially designed to create scaffolding for cultivated meat, but the pivot
will provide novel insight into applying spinning technology to texturize plant-based meats.

​ ther companies that have developed alternatives to extrusion include Plantagusto who has
O
developed a proprietary process using existing animal meat processing machinery to
manipulate plant textures to replicate animal fibers.

Beyond texturization methods, artificial intelligence (AI) and machine learning (ML) are being
increasingly applied to expedite research and development for plant-based end products.
Harnessing these technologies can improve supply chain management, optimize
manufacturing processes, provide ingredient and formulation recommendations, and sift
through consumer acceptance data. In 2022, companies, including Propel Foods,

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 77
Tastewise, The PlantEat, Live Green, Mars, and NotCo with Kraft Heinz, bolstered their
use of AI and ML to create better plant-based foods. NotCo is particularly focused on creating
plant-based meat, eggs, and dairy using AI and plans to create a B2B platform for other
companies to access their algorithm.

By including animal-free ingredients other than plant-based, end products are being refined
further. Hybrid products leverage the best components of plant-based, fermentation, and
cultivated technologies to improve their taste, texture, and cost. The relative affordability of
plant-based products makes them particularly suitable to combine with the functionality of
fermentation and cultivated technologies. For example, Yali Bio is creating designer
fermentation-derived fats for plant-based foods. For hybrid plant-based and cultivated
products, plant-based ingredients are being used as scaffolds or protein bases with specialty
cultivated ingredients:

○ Plant-based scaffolds for cultivated ○ Plant-based protein base for cultivated

meat: University of Lisbon spinoff, ingredients: Mission Barns continues to
Algae2Fish, aims to create cultivated innovate by mixing plant proteins with
seabass fillet using a 3D-printed scaffold their cultivated fat ingredients. With the
from algae and plants. Similarly, Seawith recent green light from the U.S. FDA for a
is planning to scaffold their cultivated cultivated meat product, UPSIDE Foods’s
steak with algae ingredients. cultivated chicken, they are even closer to
releasing their products to market. SCiFi
Foods, TissenBio Farms, and Meatable
are using plant-based ingredients to drive
down the costs of their cultivated meat.

Traditional plant-based companies, such as Maple Leaf Foods, Thai Union Group, and Revo
Foods, are also exploring how their technologies can be applied to the fermentation and
cultivated meat and seafood industries.

Multiple technical challenges remain for plant-based alternative proteins. GFI’s database of
solutions outlines current challenges, potential solutions, and anticipated impacts of
various high-impact opportunities. A few key solutions gathering momentum in the coming
year include retrofitting facilities for alternative protein manufacturing, optimizing hybrid
products, upcycling sidestreams, and building interdisciplinary research centers of
excellence at universities.

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 78
Research for environmental and social impact
Research methodologies such as life cycle analyses (LCAs) can measure the environmental
impacts of specific plant-based ingredients, processing methodologies, and manufacturing
technologies. A recent LCA comparing alternative and conventional meat from the German
Institute of Food Technologies (DIL e.V.) compared beef burgers to selected alternative burgers
available on the market in Germany, with results indicating that alternative burgers based on
plant and mycoprotein biomass would be more environmentally friendly than beef burgers. As
an indicator of increased scientific rigor in this growing field, a first-of-its-kind plant-based life
cycle review from McGill University and the National Research Council Canada pooled together
numerous LCA studies on plant-based proteins to assess the methodologies used and better
understand the sustainability potential of alternative proteins.

The efficiencies in plant-based food production will lead to environmental benefits even
without optimized raw materials, ingredient processing, and manufacturing technologies. As
research across the technology stack optimizes taste, texture, price, and scale of plant-based
foods, ongoing environmental assessments can help companies understand how the adoption
of specific innovations affects their environmental footprint. Additionally, LCAs can identify
areas across the production pipeline where additional research can maximize environmental
benefits. Examples include upcycling sidestreams as plant-based meat ingredients, minimizing
processing steps and water use, and reducing energy requirements for manufacturing textured
protein products.

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 79
 Upcycling sidestreams to further enhance
plant-based food sustainability
The current food manufacturing sector is responsible for 39 percent of food losses. As a
result, the United Nations (UN) Sustainable Development Goals (SDG) includes SDG
Target 12.3, “By 2030, halve per capita global food waste at the retail and consumer
levels and reduce food losses along production and supply chains, including
post-harvest losses.” One strategy to improve food losses during plant-based food
manufacturing is valorizing whole crops and processes for human consumption.
Upcycling sidestreams for alternative proteins continued to gain momentum in 2022,
including the following key highlights:

○ DSM launched their upcycled canola protein isolate, CanolaPRO, which boasts
excellent functionality and digestibility.

○ Gavan Technologies is developing a novel continuous extraction method to valorize

crops, which they claim utilizes 100 percent of the raw material.

○ Leaft Foods is exploring RuBisCo protein extraction from leaves, a common

agricultural residue typically destined for waste.

○ EverGrain, backed by Anheuser-Busch InBev, opened their barley protein

production facility, which is capable of producing 7,000 tons of protein isolate per
year from brewer’s spent grain that AB InBev produces.

○ Apparo Foods, who developed the barley protein used by ABinBev now, is now
looking to commercialize their upcycled sunflower protein isolate, noting that a key
to making the functional protein from the oil production sidestream involves
beginning with a more benign sunflower oil extraction process.

○ New Zealand’s Off-Piste Provisions partnered with Singapore-based food experts to

produce plant-based protein from fermented agricultural byproducts.

In addition to providing more sustainable routes toward plant-based food production,

valorizing sidestreams also has the potential to improve production revenue.

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 80
 Research on health and nutrition
While taste, cost, and convenience remain primary drivers for plant-based food consumer
demand, health and nutrition are also on consumers’ minds. (see consumer insights section).

Individual health and nutrition can be flashpoint topics that are vulnerable to
misinformation. Sharing clear, understandable nutrition data about plant-based meat is
just as critical as product reformulation efforts that improve nutrition and research
efforts that enable plant-based meat producers to use even more nutritious crops,
ingredients, and processes.

Overall, plant-based meats can be healthier than their animal-sourced counterparts.

Plant-based meat products on the market today generally have fewer calories and less
saturated fat per pound compared to animal-based meat products. Plant-based meat
products have zero cholesterol and almost always contain fiber. A Stanford medical school
study on a small group of participants published in the American Journal of Clinical
Nutrition in 2020 found that plant-based meat led to weight loss and reduced
cardiovascular risk factors relative to the consumption of organic animal-based meat,
causing statistically significant drops in overall weight and LDL cholesterol—both key
drivers of diet-related illnesses. A 2021 randomized controlled trial (also on a small
number of participants) found that replacing conventional meat with plant-based meat
about five times per week increased participants’ weekly fiber consumption by an average
of approximately 19 grams and increased fiber-metabolizing pathways in their gut
microbiota—considered key to regulating blood pressure, blood glucose, and metabolism.
And unlike processed meats (e.g., bacon or hot dogs), alternative proteins do not use
nitrites and nitrate preservatives, which produce chemicals that can lead to bowel cancer.

In 2022, the Gardner Lab from Stanford University School of Medicine continued their
exploration of the health effects of substituting conventional meat products with
plant-based meats, releasing a paper demonstrating that athletes can maintain their
performance standards on both plant-based diets and omnivorous diets. Similarly, a
study conducted by the Roschel Lab from the University of São Paulo demonstrated that
protein source does not affect muscle strength and mass accrual in resistance training.
Specifically, the study compared habitual vegans and omnivores supplementing their
diets with soy and whey proteins, respectively. Also in 2022, a literature review of 40+
studies on the healthiness and environmental sustainability of plant-based meat
alternatives compared to animal products underscored the many benefits of plant-based
meat. The in-depth review concluded that plant-based alternatives to animal products
have been found to offer a wide range of health benefits, including lower cholesterol,
improved gut health, and lower risks of cardiovascular disease.

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 81
Plant-based ingredient and food manufacturers continue to optimize their products for
nutritional benefits. For example, Roquette demonstrated that their optimized pea protein
isolate is complete, with equivalent quality and digestibility to casein protein in healthy
humans. Impossible Foods reformulated their burger patty to reduce the saturated fat content
by 25 percent and increase the protein digestibility score. More opportunity exists for
plant-based foods to improve on health and nutrition, including the incorporation of vitamin
B12 and other nutrients, omega-3 fatty acids, and optimizing alternative fats. Nutritional
modifications and improvements such as these that don’t hinder end-product taste, cost, and
convenience are critical to the industry’s long-term success as they have the potential to
unlock greater consumer interest in plant-based foods.

Scientific ecosystem growth

Collaborations across the plant-based scientific ecosystem can accelerate innovation and
progress. They can also shorten product supply chains, provide opportunities for early
innovators to enter the industry, and reduce duplicative efforts across the industry, spurring
joint research and development. In 2022, there was a surge of promising collaborations across
governments, academia, and industry:

○ Analytical instrumentation company Waters Corp. partnered with the Plant Protein
Innovation Center (PPIC), providing PPIC with technology and expertise to drive the
development of new protein sources.

○ Singapore’s FoodPlant facility opened with the intention to increase manufacturing,

research, and development capabilities for plant-based companies in Singapore. The
facility is a joint venture between the Singapore Institute of Technology, JTC Corporation,
and Enterprise Singapore.

○ Givaudan, Bühler, and Cargill are working with the FoodTech HUB Latam and the Food
Technology Institute to open a Tropical Food Innovation Lab in Campinas, Brazil. This
innovation hub will have both wet and dry extrusion systems for plant-based proteins,
along with a state-of-the-art demo kitchen.

○ Australian Plant Proteins is planning to quadruple animal-free protein manufacturing

capabilities in South Australia with funding from the government, Thomas Foods
International (a leading red meat producer), and Australian Milling Hub. The Australian
Government also sponsored Harvest B’s facility dedicated to producing plant-based meat
ingredients, the first of its kind in Australia.

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 82
○ Denmark’s Novo Nordisk Foundation launched Plant2Food, a platform that will accelerate
Denmark’s plant-based food development by strategically connecting academic and
industry partners to tackle high-impact research gaps. Earlier in 2022, the Danish
government invested $100 million to promote climate-friendly plant-based foods

More collaborations like these are necessary to accelerate plant-based meat, seafood, eggs,
and dairy innovation and production in the coming years. While significant bottlenecks still
exist for the plant-based industry, strategic collaborations and open-access research can help
address those bottlenecks, drive innovation, and elevate the industry as a whole.

Are we missing something from the Science and Technology section? Did
we get something wrong? We’d appreciate your feedback via this form.

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 83
 Section 5

Government and regulation

Section 5: Government and regulation
—
Overview
Motivated by a diverse array of policy interests, governments around the world are investing in
plant-based proteins as a research and commercialization priority.

Plant-based alternatives to animal products promise to reduce emissions from agriculture

amid a warming climate, helping governments meet their commitments to reduce emissions
and halt deforestation by 2030. Small, isolated, or densely populated nations without the
agricultural resources to become self-sufficient are turning to plants as protein sources in a
precarious global food system—but so are countries with advantages in producing the
high-value peas, lentils, beans, and other crops that serve as inputs.

In 2022, more nations turned their focus to plant-based proteins as they assessed and helped
create the food economy of the future.

Global public funding

European Union
In the European Union, Denmark led investments with the 2022 announcement of 675 million
kroner ($100 million) to advance plant-based foods through 2030. This investment in its Plant
Fund comes in addition to its 2021 commitment of 1.25 billion kroner ($190 million) and
publicly stated intentions of becoming a leader in plant-based research and production.
Seeking to meet its pledge to reduce agricultural emissions by 55 percent by 2030, Denmark’s
Plant Fund will work to expand the market for plant-based products and encourage farmers to
produce more protein-rich input crops.

“There is both a market in mass development and a great climate gain to be had if
we in Denmark start to produce more plant-based foods. Never has so much money
been spent on plant-based foods as there will be with the Plant Fund.”

– Danish Minister for Food, Agriculture and Fisheries, Rasmus Prehn

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 85
Plant-based innovation momentum is building elsewhere in Europe as well. The European Union
supported two major research initiatives into the development of plant-based products in 2022.
The €11.9 million ($12.3 million) LIKE-A-PRO project will develop 16 new alternative protein
products from seven local protein sources to facilitate sustainable and healthy diets by
mainstreaming alternative proteins and products. A €13.1 million ($14.3 million) HealthFerm
project will investigate the nutritional benefits of plant-based fermented foods, with the
European Union’s Horizon Europe Framework Programme for Research and Innovation providing
€11.3 million ($12.3 million) toward the project and the government of Switzerland funding the
remaining €1.8 million ($1.9 million). Beyond research and development, the Swedish
Environmental Protection Agency partly financed a SEK $1 billion ($91 million) farmer-owned
pea protein processing facility as part of their Klimatklivet (“the climate step”) program,
increasing plant-based protein production to counter emissions from animal agriculture.

North America
In North America, Canada emerged as a global leader in public funding for plant-based foods in
2022, focusing on commercialization and market building in light of Canada’s substantial
production of protein-rich crops like yellow peas, chickpeas, and canola. In addition to running
glowing Globe & Mail advertisements about plant-based foods’ economic potential through
Invest in Canada, its foreign direct investment arm, Canada has provided the industry with
research, development, and commercialization funding on a growing scale.

Protein Industries Canada, a supercluster of nonprofits, schools, and companies, continued to

fund 45 plant-based protein R&D projects, including $1.6 million into a Regulatory Centre of
Excellence to promote evidence-based regulatory policy for plant-based foods. The group will
also create an online resource to help plant-based companies more easily navigate Canada’s
policies and access funding opportunities. The supercluster provided CAD 1.4 million ($1
million) to help a British Columbia-based plant-based food producer increase production
capacity of their 100-percent Canadian-grown chickpea tofu, and CAD 5.4 million ($4 million)
to enhance the Canadian plant-based cheese market by developing new products and testing
grocery store placement strategies.

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 86
 “Canada has the potential—and is well on our way—of being a global leader in
plant-based ingredients and finished food products… By building on our strength as
an agricultural powerhouse, with more than 28 million hectares of arable land and
a leading producer of high-protein crops such as peas and canola, we have the
opportunity to turn this global demand into a long-term, sustainable economic
driver for Canada.”

– Bill Greuel, CEO of Protein Industries Canada, in “Why alternative proteins are good
for business and the environment” by Invest in Canada

In the United States, the federal government continued to perform and fund research on
plant-based proteins through the United States Department of Agriculture’s National Institute
of Food and Agriculture (USDA-NIFA), including three new projects at the University of
Massachusetts Amherst, Virginia State University, and Washington State University. In the
FY23 Omnibus Appropriations Package, passed late in 2022, Congress directed the allocation
of an additional $1 million to alternative protein research over FY22 funding, for a new total of
nearly $6 million.

Progress toward greater uptake of plant-based proteins also continued at the state and local
levels, with the state of California allocating $5 million from its 2023 budget for alternative
protein R&D, including plant-based protein research, and $100 million to expand plant-based
and sustainable lunches in public schools. New York City also embraced plant-based food in
two major initiatives: a new Chefs Council that will develop “delicious, nutritious, culturally
relevant” plant-based meals for NYC public schools and a new New York City Health + Hospital
policy making plant-based meals the default option for hospital lunches.

Asia Pacific
The biggest Asian economies also boosted support for plant-based innovation. At the “Two
Sessions” in March 2022, China’s most important annual political conference, President Xi
Jinping explicitly called for protein diversification—including from plant-based and
microorganism sources. China’s “Greater Food Approach,” a phrase recurring in important
speeches and documents, emphasizes improving self-sufficiency, quality, and diversity of food
sources, which is where developing the plant-based industry fits into China’s food security
blueprint. South Korea, a growing hotbed of alternative protein innovation, selected Intake, a

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 87
startup specializing in plant-based pork belly, for technology commercialization support. The
two-year project will bring together researchers from three South Korean universities in search
of more exact plant-based replications of the local staple. In Australia, the government
announced AUS$113 million ($76 million) to support a project led by Australian Plant Proteins
to create the largest pulse protein ingredient manufacturing capability on the continent,
expected to generate up to AUS$4 billion ($2.6 billion) in plant-based exports by 2032.

Across the world, governments are prioritizing the development of tastier, cheaper, and more
easily scalable plant-based protein products. These products offer solutions to nations’
growing food security concerns, allowing for the production of more protein-rich foods from
existing resources while diversifying food sources, reducing pollution and emissions, and
creating higher-value markets for local farmers. Policymakers seeking to reduce greenhouse
gas emissions from food systems, especially methane and nitrous oxide, as well as those
concerned about global health, childhood nutrition, and food security, are responding by
supporting increases in market size and encouraging consumer uptake.

As publicly funded efforts to develop higher-quality products come to fruition, we expect to see
more government action focused on supporting agricultural transitions, government
procurement, and foreign direct investment.

Public funding for alternative proteins

For the same reasons governments fund renewable energy and global health research,
they should fund alternative protein research to achieve a more sustainable, secure, and
resilient food system. Learn more.

Regulatory and labeling updates

Food regulations and labeling laws worldwide affect where and how plant-based foods can be
sold. In the United States and other countries, plant-based meat and dairy producers have
faced censorship from national and local regulators. Some of these policies have been
suspended, while others have been successfully challenged in court.

GFI continues to advocate for clear, fair, and sensible regulations that put
plant-based foods on a level playing field. Learn more.

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 88
 United States

In the United States, several states have passed laws to censor using conventional meat and
dairy terms on plant-based food labels, though many have been challenged in court or were
amended to include safe harbor provisions that allow the use of meat terms along with an
appropriate qualifier (e.g., “meatless” or “plant-based”). Several state legislatures have also
introduced label censorship bills that would prohibit plant-based meat labels from including
terms such as “meat,” “burger,” or “sausage.” In 2022, Kansas was the only state to pass such
a bill. Fortunately, Kansas’s law contains a safe harbor provision that allows plant-based
product labels to use meat terms so long as they include a qualifier or disclaimer indicating
that the product is not made from conventional meat.

GFI, along with other organizations, continues to fight label censorship laws enacted in
previous years that place unfair restrictions on plant-based products:

○ In Louisiana, GFI and co-counsel the Animal Legal Defense Fund (ALDF) represented
Tofurky in a lawsuit against the state that argued that the state’s label censorship law
violates First Amendment free speech principles and the Fourteenth Amendment right to
due process. In March 2022, the court granted Tofurky’s motion for summary judgment and
enjoined Louisiana from enforcing the law, concluding that it “impermissibly restricts
commercial speech.” The state has appealed the decision, and that appeal is pending.

○ In Arkansas, a federal district court judge granted Tofurky a permanent injunction,

preventing the state from enforcing its label censorship law against the company on the
grounds that it violates Tofurky’s First Amendment right to free speech. The court also held
that one provision of the law is unconstitutionally vague on its face and may not be
enforced against any company.

○ In Oklahoma, ALDF brought a new challenge to the state’s label censorship law on behalf
of plaintiffs Tofurky and the Plant Based Foods Association after a judge had denied a
motion to prevent enforcement of the law. The new complaint argues that Oklahoma’s law
is vague, overly burdensome, and preempted by federal law. At the time of this report, the
case remains pending in federal court.

○ In Missouri, a federal district court declined to grant Tofurky and GFI a preliminary
injunction on the grounds that Missouri’s label censorship law was not likely to apply to
Tofurky’s product labels. In 2021, a federal appeals court upheld the ruling. The litigation is
continuing in federal district court.

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 89
At the federal level, the U.S. Food and Drug Administration (FDA) is considering how to label
plant-based milk and other plant-based foods. In 2022, FDA sent draft guidance on the
labeling of plant-based milk alternatives to the Office of Information and Regulatory Affairs
(OIRA), a department of the Office of Management and Budget that reviews significant
regulatory actions. OIRA completed their review, and in early 2023, FDA issued draft guidance
on plant-based milk labels. While enabling plant-based milks to keep the word milk in their
names, the agency is also urging companies that use the word on their packaging to include a
front-of-pack statement making clear the key nutritional differences between their products
and cow’s milk, even though FDA has never set nutritional requirements for cow’s milk. This
new labeling scheme burdens the use of milk-related terms on plant-based products.

“GFI supports commonsense labels that use terms consumers understand and
themselves use. The government's role is to ensure a level playing field. FDA should
not impose de facto labeling requirements on plant-based milks while giving cow's
milk a free pass.”

– GFI senior regulatory attorney Madeline Cohen

Although the draft guidance is nonbinding and does not have the force of law, it reflects FDA’s
thinking on the laws and regulations it implements. Companies often interpret guidance
similarly to binding FDA regulations. Moreover, draft guidance that sets forth a labeling scheme
provides a hook for opportunistic class action lawsuits challenging any product label that does
not comply with the scheme. Given these realities, companies are unlikely to risk
noncompliance with FDA’s draft guidance. FDA has also stated that it intends to draft guidance
on the labeling of plant-based alternatives to other animal-derived foods.

India approval of their products to be labeled as

vegan. Once approved, products must use the
In June 2022, the Food Safety and Standards government-designated vegan logo.
Authority of India (FSSAI), finalized the Vegan
FSSAI also amended their Food Safety and
Foods Regulations, which establish a separate
Standards (Approval for Non-Specified Food
regulatory framework for foods and food
and Food Ingredients) Regulations which
ingredients that are free from animal products.
apply to novel foods, including novel
Producers of plant-based foods must comply
plant-based proteins.
with the regulation and apply to FSSAI for

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 90
 Brazil European Union

Through their Department of Inspection of In May 2021, the European Parliament

Products of Vegetable Origin, the Brazilian withdrew a legislative amendment that
Ministry of Agriculture and Cattle Raising is would have severely restricted the use of
leading the regulatory agenda for dairy-related terms on plant-based products.
plant-based products in the country. In The amendment would have banned terms
2022, the regulatory studies on plant-based such as “buttery” and “creamy,” imagery that
products prepared throughout 2021 by the “evokes” dairy, and packaging forms that
Institute of Food Technology at the request resemble existing dairy packaging (such as a
of GFI Brazil were finalized and delivered to carton of milk or a tub of butter).
the responsible authorities as a basis for the Unfortunately, the European Union still
construction of regulatory text to be prohibits terms like “milk,” “cheese,” and
submitted for public consultation in 2023. “butter” on food labels unless products
This consultation should help ease the text contain animal-derived dairy.
through a new phase of discussions between
In addition, some countries within the
organized civil society and the Ministry of
European Union have unfairly targeted
Agriculture, culminating in a jointly built
plant-based proteins at the national level. In
regulatory piece.
2022, the French legislature passed a decree
banning the use of many meat terms on
plant-based labels. The ban prohibits the use
Switzerland of “terminology traditionally associated with
meat and fish,” including “sausage” and
In December 2022, Swiss-based company
“chicken.” Fortunately, the country’s highest
Planted won a legal victory after a local
court has temporarily suspended enactment
regulator instructed the company to stop
of the ban, and the future of the ban remains
using meat terms on its plant-based
unclear. Belgium has also proposed a similar
products. The Zurich Administrative Court
ban on meat terms. GFI Europe has been
held that Planted’s labels were not
working with allied organizations at both the
deceptive, despite using terms like “chicken,”
EU and national levels to counteract these
because the labels as a whole indicated
damaging proposals.
clearly that the products were meatless. In
addition, the court indicated that using
species names like “chicken” or “pork” on
plant-based labels can provide consumers
with the information they need to understand
the nature of the product.

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 91
 and national regulations, including a
regulation that sets forth a definition for
United Kingdom
cream cheese. The municipal court initially
agreed with the city, but the order was
Although the UK is no longer part of the
overturned on appeal. The appellate court
European Union, it has thus far retained the
held that the regulatory definition for “cream
EU’s novel food regulation. In December
cheese” applies to animal dairy products, but
2022, however, the UK Food Standards
does not restrict labeling of plant-based
Agency launched a review of the UK’s novel
products like those sold by Rawesome.
foods regulation, which aims to identify and
evaluate a range of potential regulatory
models for novel foods. Thus, we may see a
new system for evaluating novel plant-based South Africa
protein products in the future.
In June 2022, the South African Department
of Agriculture, Land Reform and Rural
Development announced that it would
Canada
enforce a ban against meat and egg terms on
plant-based products. In August 2022, a few
In September 2022, Canadian company
days before the ban was to go into effect, the
Rawesome Raw Vegan won a legal battle
country’s high court suspended enforcement
against the city of Montreal after being sued
until May 2023. It is unclear whether the ban
by the city for using the word “cheese” on
will be enforceable in the future.
their vegan cream cheese labels. The city
alleged that the company violated provincial

Are we missing something from the Government & Regulation section? Did
we get something wrong? We’d appreciate your feedback via this form.

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 92
 Section 6

Forecast
Section 6: Forecast
—
Plant-based forecasts
In general, the plant-based meat market forecasts released in 2022 projected slower growth
than those published in previous years. UBS cut their plant-based market compound annual
growth rate estimate for the coming years in half, lowering it from 30 percent in 2019 to 16
percent in 2022, and Fortune Business Insights predicted an 11 percent compound annual
growth rate. Both organizations cited taste parity and price parity gaps between plant-based
meat and conventional meat products as simultaneously the key challenges and opportunities
for plant-based meat market growth. A section below discusses the shared features of
alternative protein forecast models in greater detail.

Figure 17: Plant-based industry forecasts by year released

Despite the more cautious approach taken to forecasting plant-based market growth in 2022,
the long-term prospects for plant-based foods remain strong. A recently released study showed
that over 40 percent of consumers globally believe that most people will be eating plant-based
foods instead of conventional animal products in the next 10 years. Research elsewhere shows
that 66 percent of consumers aged 16 to 40 (Gen Z and Millennials) across 10 countries expect
to consume more plant-based products in the future. These two generations are estimated to

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 94
comprise 69 percent of global spending by 2040 (up from just under half today). Demography is
not destiny, but generational trends favor the rise of plant-based meat. Plus, the enthusiastic
global environment for plant-based proteins suggests market expansion, even if individual
locales experience fluctuations in support for plant-based products.

But challenges exist as well. The industry shouldn’t overly rely on demographic trends alone to
carry plant-based meats to significant market share. Companies should continue to innovate
and develop products that better meet consumer needs.

○ In Mintel’s 2022 report, consumers listed taste and flavor concerns as the top reasons why
they don’t eat plant-based proteins. And only 20 percent of survey respondents
categorized plant-based meat products as tasty, versus 61 percent for animal-based meat.
Creating tasty, delicious products that close the sensory gap with conventional meat should
be a priority for any plant-based meat company.

○ The still-significant price premium of plant-based products compared to their animal-based

counterparts also poses a threat to the industry’s ability to capture significant market
share. Consumer perceptions of plant-based products as expensive could solidify, which
could hamper sales. A consumer survey from Deloitte found that from 2021 to 2022, the
number of consumers (limited to those who sometimes purchase plant-based meat) who
said they were willing to pay a premium for plant-based meat declined by 9 percentage
points. Significant price premiums, lower willingness to pay more, and perceptions of
plant-based meat as expensive are phenomena happening within an inflationary
macroeconomic environment, which could exacerbate consumer concerns around price
and lead to low engagement.

○ Meanwhile, novelty could fade. A study conducted from 2018–2020 suggested that 40
percent of plant-based meat consumers were motivated in part by seeking novelty. This is
in line with the fact that a significantly lower percentage of households repeatedly
purchase in the plant-based meat category in U.S. retail compared to the conventional
meat category. The industry should ensure that consumers remain engaged in the category,
as new formulations and products that come to market can bring distinct, novel value
propositions to consumers.

○ Consumers also identify health aspects and nutritional value as a benefit when buying
alternative protein products. Mintel’s 2022 report showed that 34 percent of respondents
identify plant-based meat as healthy, on par with 33 percent for animal-based meat. The
Deloitte survey also found that from 2021 to 2022, the number of consumers who said
plant-based food is generally healthier for them than conventional meat fell by 8
percentage points. Limiting such erosion of health perceptions could be important to
retain consumers.

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 95
In the coming years, the brands likely to thrive are those that implement clear strategies to
meet consumer demand for tasty, affordable, nutritious, and accessible products. All of this
underscores the urgency with which companies, governments, and NGOs must continue to
invest in plant-based research and technologies to ensure a sustainable, secure, and just
protein supply.

Conventional meat consumption is vast and growing, and plant-based products still comprise
only a small segment of the meat market. Continuing on this path, with business-as-usual ways
of producing meat, will make it impossible to meet global climate goals, restore biodiversity,
improve food security, and protect public health. With just seven years until 2030, the
milestone year by which governments have agreed to cut global emissions by half, there is an
urgent need to shift toward alternative proteins. Plant-based meat can play an important role
in this shift as it provides consumers with a healthy and efficient source of protein.

So, where is the plant-based market headed? We expect 2023 to be a year of moderate growth
for the industry as consumers shake the lingering effects of inflation and global interest in the
space remains robust. Large plant-based companies will further implement their asset-light,
strategic growth strategies announced in 2022, streamlining some plant-based categories and
creating an opening for year-over-year improvement in combined retail and foodservice sales
globally. Sensory improvements will continue to be enabled by technological advancements,
and increased willingness to create hybrid plant-based, fermentation-derived, and cultivated
products will support such progress. If the global venture capital environment improves, so too
will investments in the plant-based space, and ESG considerations will remain top-of-mind for
participants in this category. Plus, the continued development of the plant-based market
outside of the U.S. and Europe—the two largest players in the space—will support the global
growth of the category.

However, the growth of the global plant-based industry is not inevitable. It hinges upon
advances in production processes, investments in distribution and manufacturing
infrastructure, and the development of delicious, nutritious, affordable products that win over
more and more consumers. In 2022, a number of companies, investors, researchers,
universities, and governments leaned into plant-based technologies in new and notable ways.
This growing activity, and the increased recognition of the global stakes, is making possible a
plant-based future. The next few years are critical, with giant strides needed by all
sectors—public, private, academic, and philanthropic—to create an industry capable of
transforming how meat, dairy, and eggs are made around the world.

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 96
A deeper dive into alternative protein
market forecasts
The Food and Agriculture Organization of the United Nations projects that the global meat
market will grow 26 percent from 360 million metric tons in 2022 to 455 million metric tons by
2050. Cultivated, plant-based, and fermentation-derived proteins represent an opportunity to
significantly reduce risks and improve the efficiency of meat production while offering
consumers the meat-eating experience they crave.

Over the past decade, the promise of alternative proteins spurred billions of dollars in
investment, led to rapid growth in the plant-based meat market, and increased funding and
activity in cultivated meat and fermentation-derived proteins. From 2017 to 2022, the global
plant-based meat and seafood market grew 118 percent from $2.8 billion to $6.1 billion,
according to Euromonitor data. All-time investments in cultivated, fermentation-derived, and
plant-based proteins approached $3 billion, $4 billion, and $8 billion, respectively, by the end
of 2022.

Figure 18: Cumulative and annual alternative protein invested capital, by pillar

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 97
Despite the relative newness of the alternative protein sector, industry forecasts followed the
trend of rapid growth, with estimates for a 2040 total market size ranging widely from $90
billion to $1.1 trillion. The reasons these forecasts vary are manifold, but they include large
variances in key drivers such as customer adoption rates and policy environments. What these
forecasts tend to share is mapping out growth paths built on relatively rapid compound annual
growth rates.

But in 2022, the short-term outlook for alternative proteins shifted from the rapid growth
expectations of prior years. Global overall venture funding fell in response to changing
macroeconomic conditions, and alternative protein companies were not immune to this
decline. Invested capital in plant-based proteins—the alternative protein sector with the largest
market presence—didn’t match the highs experienced in 2020 or 2021 (although 2022 was the
third-highest year ever for invested capital in plant-based proteins, representing 15 percent of
all-time funding). On average, alternative protein forecasts limited their upside relative to those
published in years prior (see figure 19), as the market landscape tempered expectations for
consistently high double-digit year-over-year growth rates. This change was most pronounced
in forecasts specific to the plant-based market, but total alternative protein projections also
took a more modest approach.

The fact that 2022 forecasts had lower ceilings than those published in earlier years—even
though multi-decade outlooks should be relatively impervious to short-term market
conditions—raises questions about the benefits of examining the specific outcomes of any
single projection. With methods, scope, and publication date varying widely by forecast, in the
next section we focus on the assumptions, growth factors, and roadblocks shaping projections
rather than the topline numbers frequently pulled for headlines.

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 98
Figure 19: Total alternative protein industry forecasts by year released

*Some forecasts projected share of the total meat market rather than the industry size in dollars. For those forecasts, we estimated
the dollar size of the alternative protein sector using EY’s forecast for the total 2030 meat market.

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 99
Examining the structure of alternative protein
market forecasts
In many cases, the assumptions and inputs of a projection can be more informative than the
output itself in navigating the potential impacts of technological developments and policy
changes in emerging industries. Often, the key question facing forecasters is less “How will this
market develop?” and more “In what type of world will this market develop?” The decisions
made on the front end of the forecasting process—about how industry participants will respond
to changes in the market, what will drive growth or impede progress, and how market
expansion will occur—are the focus of this section.

So, what are the most common assumptions found in alternative protein market forecasts?

Common forecast Nearly every forecast implies that improved product features
assumption: such as taste and price parity with conventional meat will drive
Taste and price parity the adoption of alternative proteins. Blue Horizon Ventures, for
example, affirmed that health, taste, and price are key to
are essential.
boosting demand, while Synthesis Capital discussed a tipping
point at which rational consumers switch to alternative proteins
based on product cost and quality. These assumptions are
backed by research: Multiple studies show that taste and price
are essential drivers of alternative protein demand (and food
choices generally). Achieving taste and price parity for
alternative proteins is at the heart of GFI’s theory of
change—give people the meat they love, made in far more
sustainable ways, that costs the same (or less) and tastes the
same (or better) as conventional meat. But it’s important to
remember that product improvements don’t occur in a vacuum.
In reality, taste and price improvements are likely necessary but
perhaps not sufficient on their own for market growth. Factors
like product variety, availability, and consumer acceptance are
also needed to manifest the more robust visions for the future of
alternative protein market share. To compete with conventional
meat, alternative proteins must reach taste and price parity, but
they also need to encompass the entire selection of conventional
meat products, be available wherever conventional meat is sold,
and be coveted by consumers.

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 100
Common forecast Most alternative protein market forecasts see growth as
assumption: dependent on consumers wanting and buying alternative protein
Consumer adoption is products, with market penetration naturally following. Jefferies,
for example, identifies consumer tastes and adoption as key
a limiting factor to
drivers of market growth, and Boston Consulting Group states
market growth.
that growth relies on consumers being convinced of taste,
texture, and price competitiveness in relation to conventional
meat. These views complement the commentary above on the
importance of consumer preferences. While taste parity, price
parity, and consumer adoption are all necessary, they aren’t alone
sufficient for achieving market growth—companies must also be
able to adequately meet increased market demands for the
industry to see growth. While some projections identify
manufacturing capacity as a bottleneck, consumer adoption
remains the key metric in most overall estimates. This may not be
surprising, given how large a share the plant-based category
represents in several of these models, and how, today, consumer
adoption is a central bottleneck to the plant-based industry.
Indeed, many plant-based companies with products on the
market elected to cut costs in 2022 and lower their near-term
growth expectations—as such, consumer adoption and
manufacturing capacity are fitting leading considerations in this
economic environment. The scope of manufacturing capacity
scale-up needed is sizable—$27 billion in capital expenditure by
2030—for plant-based meat to reach even a six percent share of
the global meat market.

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 101
Common forecast Alternative protein forecasts generally assume the direction of
assumption: the alternative protein market is up and to the right:
Innovation brings Investment leads to better, more affordable products and
technological breakthroughs that continue this cycle, spurring
more innovation,
growth and leading to more investment. EY identifies an
investment brings
ever-increasing need for technological innovation in protein
more investment.
production, and Kearney states that it is all but inevitable that
alternative proteins will capture substantial market share. The
common practice of using compound annual growth rates as
forecasts only adds to the sense of a predestined march
toward 100-percent market share. While the general
assumption of steady growth largely matches overall historical
precedents, the growth depicted in many models doesn’t tell
the full story. First, rapid double-digit growth rates
year-over-year can make sense for an emerging category
where bringing one or two facilities online or launching a
handful of new products can double revenue. Additionally—and
particularly in times of macroeconomic upheaval—it’s
important to understand that inconsistent growth patterns can
be common in emerging industries. When seeking to project
realistic long-term outcomes, it’s critical to acknowledge that
outcomes can take hard turns in either direction with even the
smallest of perturbations affecting a market. Take renewable
energy and electric vehicles: Just a few short years ago, these
technologies struggled to compete in the market. At the time,
both were written off as unlikely ever to compete with fossil
fuels and gas-powered cars. But as governments continued to
expand market access, prices fell faster than most experts
expected. Sales of solar energy reached one percent
penetration in 2015. Sales of electric vehicles reached that
same percent in 2017. Today, the biggest automobile
manufacturers in the world are pledging to produce 100
percent electric vehicles by 2035, and according to the
International Energy Agency, renewable energy will be the
backbone of a carbon-free energy system of the future.

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 102
Industry drivers
Next, what are the most common industry-supportive factors identified in existing forecasts?

Supportive factor identified Many consumers already recognize the climate, health,
across forecasts: and animal welfare benefits of alternative proteins, but
Consumer acceptance will for those products currently available in the marketplace,
taste and price metrics often still fall short compared to
increase as products
conventional products. Industry stakeholders recognize
improve.
additional opportunities for progress, and alternative
protein market outlooks point to product innovation as a
driver of future growth.

Supportive factor identified While investment dollars in 2022 slowed from record
across forecasts: spending in 2020 and 2021, the multiyear trajectory still
Public and private points upward. Key partners remain committed to
alternative proteins’ potential—and plant-based products
investment will help lower
specifically, as evidenced by Redefine Meat’s $136 million
costs, improve products,
Series A1 raise, Starfield Food Science and Technology’s
and raise awareness of
$100 million Series B round, and the Danish government’s
alternative proteins’ role at
675 million kroner ($100 million) commitment to
the center of the plate. advancing plant-based foods through 2030. In addition,
public support grew, with governments around the world
increasing support for alternative proteins overall in
notable ways, from an uptick in public policymaking and
R&D funding to China’s President Xi Jinping explicitly
calling for protein diversification—including from
plant-based and microorganism sources—at the “Two
Sessions” annual political conference in March 2022.
Investment and progress to date are no guarantee of
future growth, but sustained support for new technologies
and ventures bodes well for the future of the industry.

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 103
Industry roadblocks
Finally, what do alternative protein market projections frequently identify as limiting factors to
market growth?

Roadblock identified Most products on the market today are plant-based, sold
across forecasts: at a premium, and don’t fully recapitulate the experience
of eating conventional meat. Inflationary pressures only
Current price premiums add to the barriers of high prices, as many consumers look
and a general lack of taste for opportunities to cut costs in their grocery and
parity with animal restaurant budgets. Plus, complex manufacturing
products hamper processes, limited availability of key ingredients, and cost
to scale certain products exacerbate the current price
alternative protein brands’
premium and act as speed bumps to the development of
abilities to attract new
the alternative protein market. That said, a clear path
consumers to the space. remains for reducing prices and improving product quality,
and cultivated and fermentation-derived products paired
with continued technological and ingredient innovation
may ultimately play a key role in closing these gaps.

Roadblock identified Immense progress has been made on the path toward a
across forecasts: fair and open regulatory environment for alternative
proteins. In 2022, the U.S. FDA gave the “green light” to
Regulation for some UPSIDE’s cultivated chicken, paving the way for the first
alternative protein cultivated meat product to be sold in the United States. A
product categories is U.S. court ruled that Louisiana’s label censorship law
new, and it’s possible that targeting plant-based proteins was unconstitutional. But
with nearly any new product or technology, the risk of
regulatory hurdles could
challenging the status quo almost always skews toward
slow industry growth.
more reactive rules and regulations, not fewer.

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 104
Since this section largely synthesizes the findings of external forecasts, the three distinct
alternative protein pillars are occasionally grouped under the larger alternative protein
umbrella. But in reality, each pillar exists in a different stage of development and faces its own
unique set of opportunities and challenges for growth.

Plant-based meat, dairy, and egg products provide a variety of personal, environmental, and
public health benefits to consumers. And while benefits like these have spurred record activity
in the space in recent years, in 2022, inflationary pressures, price premiums, and, on average,
a lack of taste parity to conventional products contributed to a slowdown in U.S. retail
sales—though the global plant-based market still grew, according to Euromonitor estimates. In
the coming years, continued investments in R&D, product quality and affordability, and
strategic marketing and category positioning to further engage omnivore consumers will be key
to the growth of the category.

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 105
Expert predictions
We asked a group of industry experts for their predictions for the plant-based food industry.

“Three key areas that are driving consumer adoption of plant-based products are price,
taste and nutrition. A lot of progress has been made on those by startups, but there is more
to be done. The main challenge will be managing all of them at the same time, e.g. to
improve taste, new tech and extra ingredients are needed, but how to achieve it without
making products more expensive, while keeping the label “clean”? What makes me
hopeful is how many dedicated founders, investors, nonprofits and industry folks are
working every day to address these. I am confident it will lead to better products and
increased adoption.”

– Michal Klar, Founding Partner of Better Bite Ventures and Editor of Future Food Now
newsletter

“Replacing traditional meat and dairy products with alternative proteins is

one of the best tools available to combat the climate crisis. Increasing the
global market share of alternative proteins from 2% today to 8% by 2030
could yield an emissions reduction equivalent to decarbonizing 95% of the
aviation industry. To build market share quickly, alternative protein companies
must find ways to attract mainstream consumers.”

– Neeru Ravi, Principal, Boston Consulting Group

“Technology has redefined the world of gastronomy in every sense and the plant-based
sector has grown enormously over the past few years. New products such as those offered
by Redefine Meat are a prime example of how this food is able to attract a wider group of
consumers. What’s interesting is the world of food itself and how food is developing
decade after decade. Plant-based meat is a game changer—simple as that. It’s about
removing the blinkers and dissolving the boundaries. That’s the future of gastronomy.”

– Marco Pierre White, Celebrity Chef

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 106
 “As we’ve seen with many transformative technologies, whether it’s the move
from horses to automobiles or from landlines to mobile devices, it takes time
to push consumer adoption and kickstart a shift. Once it kicks into gear
though, I anticipate we’ll see swift change. I expect that over the next 10 years
or so, we’ll see a wider distribution of plant-based products, just as we’ve seen
with plant-based milk. However, the next 1-3 years may look more bumpy, as
the industry is still in the early stages of consumer adoption.”

– Andre Menezes, CEO and Co-Founder, TiNDLE

“We see a big opportunity to lead the net-positive food tech movement by accelerating the
plant-based protein transition across Europe. Our approach to this isn't just to mimic
animal products but to go beyond animal meat as a benchmark. We are focused on
creating meat successors — foods that deliver on taste but are also superior from a
nutritional and sustainability standpoint.”

– Marc Coloma, Co-founder & CEO, Huera Foods

“The attention the plant-based industry has received in the past few years is
inspiring many to take a fresh look at our food production system, and to take
into consideration the full landscape, from the farm to the consumer. The
industry needs to think more holistically at critical barriers and opportunities
of growth, and then connect to the players who are motivated to drive novel
solutions.”

– Anthony Kingsley, Sr. Director, ESG and Stakeholder Engagement,

Benson Hill

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 107
Conclusion
Conclusion
—
Exciting developments propelled the alternative protein field, including plant-based meat,
seafood, eggs, and dairy, forward in 2022. The sector still has miles to go, however, to reach
its full potential. We offer three summary reflections to take into the year ahead:

1
The alternative protein industry is still very early in its
development. At this moment in time, it’s promising to see
increasing recognition among both the public and private sectors
Keep the long of the potential of alternative proteins to meet long-term global
view in sight. goals in the areas of climate, public health, biodiversity, and food
security. Advances in plant-based, fermentation-derived, and
cultivated meat technologies are happening fast, as more
researchers and funding flow into the field. The policy and
regulatory landscape is just starting to take shape. Consumers
want sustainable options, but they don’t want to compromise on
taste, price, or convenience. Navigating and building the path to
scale and adoption will take years.

2
Companies can lead by delivering tasty, affordable alternative
protein products to mainstream consumers, representing a
significant market opportunity given growing consumer interest in
A global protein sustainable foods. The research community can lead by
transformation encouraging more scientists, from diverse disciplines and at

will require different points in their careers, to jump into the alt protein field.
The world’s governments can lead by funding critical R&D to
strong, advance alt protein science, manufacturing incentives to help
system-wide scale-up, and policies that level the playing field to allow
alternatives to compete on taste, price, and convenience. Doing so
participation.
can address the industry’s biggest technical challenges, inspire
additional research, create new opportunities for growth, and
ensure these sustainable foods can benefit everyone.

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 109
3
At GFI, we bring determination and informed optimism to our work
because we know a better food future is achievable. We see these
same traits in those who pushed the field forward this year, many
Believe change of them highlighted in this report. Across sectors and regions,
is possible. there is a growing understanding of the importance of finding
viable alternatives to industrial animal agriculture, and huge
opportunities for companies who get involved in this space. Just as
the world is changing how energy is produced, we need to change
how meat is made. Alternative proteins can satisfy growing
demand, reduce pressure on the planet, and enable a more
sustainable, secure, and just food future. Alongside other
advances and innovations, alternative proteins—including
cultivated meat and seafood—can help write the next chapter for
food and agriculture around the world.

To those who are in this work already, we hope GFI’s 2022 State of the Industry
Report: Plant-based meat, seafood, eggs, and dairy gives you a more detailed
look at this rapidly evolving sector. For those new to the field, welcome. Stay a
while, grow with us, and change the world.

State of the Industry Report | Plant-based meat, seafood, eggs, and dairy 110
Acknowledgments
—
Authors
Dr. Priera Panescu, Michael Carter, Madeline Cohen, Daniel Gertner, Emma Ignaszewski, Sharyn
Murray, Maille O’Donnell, Ben Pierce, Sheila Voss

Editors
Liz Fathman, Emma Ignaszewski, Maille O’Donnell, Sheila Voss

Additional acknowledgments
GFI would like to thank these additional colleagues for their insights and contributions.

Jessica Almy, Marika Azoff, Caroline Bushnell, Raquel Casselli, Laine Clark, Kelli Cromsigt,
Rachel Faulkner, Bruce Friedrich, Joe Gagyi, Emily Giroux, Mirte Gosker, Ann Ittoop, Carlotte
Lucas, Heather Mount, Aviv Oren, Dr. Erin Rees Clayton, Ilya Sheyman, Dr. Liz Specht

Cover image courtesy of Tofurky.

©2023 The Good Food Institute. All rights reserved.

Permission is granted, free of charge, to use this work for educational purposes.

The Good Food Institute is not a licensed investment or financial advisor, and nothing in the
state of the industry report is intended or should be construed as investment advice.

About GFI

The Good Food Institute is a nonprofit think tank working to make the global food system
better for the planet, people, and animals. Alongside scientists, businesses, and policymakers,
GFI’s teams focus on making plant-based and cultivated meat delicious, affordable, and
accessible. Powered by philanthropy, GFI is an international network of organizations
advancing alternative proteins as an essential solution needed to meet the world’s climate,
global health, food security, and biodiversity goals. To learn more, please visit www.gfi.org.

Fuel the future of food at gfi.org/donate Join GFI’s email lists at gfi.org/newsletters