As global wealth and population go up, so does demand for protein. Over the past century, protein production has doubled every three decades, and it’s projected to double again in the next three. Some of that will come from conventional sources. But one third of it—a total of $1 trillion in annual revenue—is projected to come from alternative protein sources.
A wave of startups in China and across the world are now producing pure meat, egg, and dairy protein from animal cells and fermentation. These are clean, bio-identical animal proteins produced without the need for live animals. Other companies have formulated plant ingredients to reproduce the taste and functionality of animal protein—creating a 7 billion RMB plant-based meat in China growing at 14% per year, and a 120 billion RMB plant-based dairy industry. Leading investment banks including Barclays, UBS, and JP Morgan project this sector will reach up to a 1 tillion RMB global market over the next ten to fifteen years.
Alternative proteins have a serious value proposition for consumers. For one thing, the best brands are delicious and extremely convenient. Alternative proteins also have a healthy nutrition profile, with less cholesterol, fat and saturated fat. They help conserve national resources, as they require significantly less land and water than conventional animal protein. They are also extremely high in food safety, with no risk of zoonotic disease, so they can help ensure a diverse and safe protein supply for the public.
That’s why leading food companies in China such as Starbucks, KFC, Jinzi, Wagas and others are adding plant-based meat to their offerings. Leading investors like China Construction Bank, Horizons Ventures, and Temasek Holdings, as well as visionaries such as Jack Ma, Li Ka-Shing and Bill Gates, are investing in alternative protein companies. And recent years have seen a steady pace of exits in the west, with alternative protein companies acquired by major food companies or going public, and the first batch of Chinese companies receiving growth funding from domestic and international investment funds.
That’s why leading food companies in China such as Starbucks, KFC, Jinzi, Wagas and others are adding plant-based meat to their offerings. Leading investors like China Construction Bank, Horizons Ventures, and Temasek Holdings, as well as visionaries such as Jack Ma, Li Ka-Shing and Bill Gates, are investing in alternative protein companies. And recent years have seen a steady pace of exits in the west, with alternative protein companies acquired by major food companies or going public, and the first batch of Chinese companies receiving growth funding from domestic and international investment funds.
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If you are an entrepreneur or early stage company interested in applying for funding, or if you are interested in partnering with the Lever China Alternative Protein Fund to access deals and opportunities in the alternative protein space, please contact us through the form below. You can also reach us at: team (at) levervc.com
