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Smart Proteins
Context:
August marked significant milestones for alternative proteins, or “smart proteins.”
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- India launched its Biotechnology for Economy, Environment, and Employment (Bioe3) policy, focusing on smart protein production.
- Singapore approved eight new insect species as edible protein sources, while in the US, Burger King’s Impossible Whopper celebrated five years.
Smart Proteins
- Alternative or smart proteins, also known as alt proteins, include proteins derived from unconventional sources like algae, fungi, or insects, as well as those produced through innovative methods like fermentation or lab-cultivated cells.
- This category also encompasses plant-based proteins, which have been available for decades.
- Alt proteins provide an alternative to animal-based sources like dairy, meat, and seafood.
- They are more sustainable, with plant-based meat production using 72-99% less water and 47-99% less land, according to data from the Good Food Institute (GFI) India.
Growing Demand
- As incomes rise, people tend to consume more protein, and India has seen an increase in protein’s share of total calorie consumption, rising from 9.7% in 1991 to 11% in 2021.
- Alt proteins present a sustainable solution to meet this demand.
- They also offer food safety benefits and are considered a more humane and ethical source of protein.
- Familiar plant-based products such as soya chaap, nuggets, and soy milk are already present in India, though the domestic market remains small, valued at $45 million in 2022 according to a GFI-Deloitte report.
- However, rapid growth is projected, with estimates placing the market’s value between $946 million and $2.4 billion by 2030.
- The COVID-19 pandemic accelerated the popularity of non-animal proteins, with GFI India recording 377 alt protein products across 41 formats from 73 brands in 2023.
- A GFI-Kantar survey revealed that awareness of plant-based dairy and meat is higher in urban areas, especially among younger, wealthier consumers and non-vegetarians.
Barriers
Barriers to wider adoption remain, including challenges around taste, texture, and price.
- Diversity: Unlike the West, where plant-based burgers dominate the alt protein market, Indian consumers prefer a variety of products, from unflavored protein powders to flavorful tikkas, biryani, and kebabs.
- Dairy: It remains popular, with many choosing regular cheese over vegan options in plant-protein burgers.
- Texture: It is another challenge, as alt-meat products may not feel “meaty” enough for non-vegetarians or may be too similar to meat for vegetarians.
- Companies are addressing this with diverse ingredients such as jackfruit (Wakao), soy (Shaka Harry), and pea and quinoa (GoodDot).
- Surveys show that soy and almond milk are the most familiar products in the alt protein category, while mock-chicken is a top choice in plant-based meat trials, indicating these may serve as effective entry points for consumers.
- Price: It is a major concern, especially for budget-conscious buyers, who may find traditional options like paneer or chicken better value for money than mock-chicken nuggets.
India’s Chance
Expanding Global Market:
- It offers India significant export opportunities.
- As a leading producer of crops like chickpeas, lentils, millets, peas, rice, and soybeans, India is well-positioned to become a key supplier of plant-based protein ingredients.
- The market for protein-rich additives like concentrates, isolates, and flours also holds great potential.
- Indian companies are already making inroads internationally, with Shaka Harry’s plant-based meat products entering Singapore’s Mustafa supermarket and GoodDot partnering with ADF Foods to reach the US market.
Agriculture Sector:
- India’s large agricultural sector, ample labour force, and unique flavours provide a strong foundation for developing an alternative protein ecosystem.
- However, changing consumer habits will take time.
- Indian manufacturers could benefit from partnerships with alt protein innovators in hubs like Singapore to refine product taste and reduce costs.
- Recognising the potential of alternative proteins, the Indian government may consider launching an awareness campaign to boost public interest, especially among Gen Z. To succeed, alt proteins will need to be marketed as trendy, not just healthy—similar to how the National Dairy Development Board promoted eggs in the 1980s with its “roz khao ande” campaign or Amul’s “Piyo glass full doodh” campaign for milk in the 1990s.
