4.2 Elevating alternative proteins as a national priority for sustainable growth Prioritizing R&D: To harness and maximize innovation in the alternative protein sector, the Israeli government, following a recommendation by the Israeli National Council for Research and Development, has designated alternative proteins among the nation’s top five priority R&D areas.27 The selection criteria, determined by the council, evaluated factors such as Israel’s comparative advantages in certain sectors, its strategic needs as a country, its strength in R&D and its position as a global innovation hub, and whether the specific sector needs government support and has a scientific component. Additional criteria include the potential national security element, the diversity of human capital and talent development, and the possibilities for cross-sector collaboration. Embedding economic levers: Strategic research, recently begun by the Israel Innovation Authority with the Good Food Institute Israel (GFI Israel) and Shaldor strategy consulting firm, has recognized that implementing a well-structured national support strategy could enable the local alternative protein sector to play a pivotal role in shaping the domestic business ecosystem by 2030. There could be significant growth in the number of companies, resulting in more than 200 companies and more than a dozen manufacturing facilities being established in Israel. Job opportunities would flourish, with an estimated 10,000 positions, including one-third in manufacturing roles. From an economic perspective, a substantial contribution of about $2.5 billion to the local economy is anticipated, encompassing exports, local wages, corporate taxes and more. Mapping the alternative protein value chain: Israel’s prominence in alternative proteins, the potential economic benefits, its international positioning (i.e. its perception and reputation on the world stage, especially in relation to its leadership in technology and innovation) and the opportunities for global collaboration have served as the foundation for the government to adopt a proactive and holistic perspective on the alternative protein business environment. Companies in different industries require tailored support to meet varying challenges throughout their journey. Therefore, viewing the business environment specific to the alternative protein value chain allows a more exhaustive and coherent study of conditions, existing unmet needs, potential support and the roles of the private sector and government. The strategic research mentioned above mapped the seven main stages in the alternative protein value chain that companies in the alternative proteins industry go through from R&D to scale, and studied the current state of companies and researchers, their unmet market needs, areas that could be further amplified and the potential courses of action to address each. Stages in the development, manufacturing and marketing of an alternative proteins food productFIGURE 4 R&D Basic researchApplied researchInitial venturePilot stageInitial productionCommercial productionMarketing and distribution Source: Shaldor Strategic Consulting Creating a Vibrant Food Innovation Ecosystem 14

Protein Diversification 2024