The Untapped Climate Opportunity in Alternative Proteins

‘Give credit to the consumer.’ Thats how this press release of the Boston Consulting Group (BCG) starts. Their latest research shows that people around the world are buying into alternative proteins—and are very happy with what they find. Current forecast models indicate that alternative proteins will represent 11 percent of all protein consumption by 2035, and with some help from technology, investors, and regulators, alternative proteins could command 22 percent of the global market over this time frame.

Good news

“The food system accounts for 26 percent of current global greenhouse gas (GHG) emissions. Animal agriculture, the largest GHG emitter within the food system, is responsible for fifteen percent of global emissions, roughly matching the emissions from the transportation sector. If we remain on track for an 11 percent share for alternative proteins by 2035, we will see a reduction of 0.85 gigaton of CO₂ equivalent (CO₂e) worldwide by 2030—equal to decarbonizing 95 percent of the aviation industry. In comparison with other solutions, such as flying less or retrofitting existing housing stock, the economic and individual consumer tradeoffs involved in shifting to alternative proteins are relatively small. Our survey shows that consumers understand this: more than thirty percent of consumers consider having a major positive impact on climate to be a primary reason to switch to alternative proteins”, BCG writes.

Consumers Are Enticed

Alternative proteins have made substantial strides with consumers, who are broadly aware of this emerging food category and are favorably impressed when they try available products. A 2022 survey by BCG and Blue Horizon, encompassing more than 3,700 respondents in seven countries, reveals that consumers in most markets appreciate the product attributes of taste, nutritional value, and health the most. BCG: “We also found that improvements in three key areas—health, taste, and price—are key to boosting demand. Approximately 75 percent of respondents said that having a healthier diet is the primary motivator for them to start consuming alternative proteins. When it comes to making a purchasing decision between several products, though, taste emerges as a key criterion. Price remains a sticking point in all markets. Consumers are not prepared to pay a premium for a product that offers only taste parity with animal-based products.”

Read the full press relase here.