Protein Diversification 2024

Executive summary Nations around the world are becoming aware of the benefits of prioritizing alternative proteins to meet their climate, biodiversity, food security and public health goals. This paper demonstrates the Israeli example of how government initiatives tailored to the ecosystem’s needs and challenges, and the country’s fundamental assets, form a resilient, cross-sector alternative protein ecosystem. By examining Israel as a case study, broader takeaways can be identified for other countries to follow, using local resources and highlighting the importance of international collaboration in this sector to shape the future of food. In recent years, there has been an unprecedented surge in public investment and commitment to alternative protein research and development. Countries such as Australia, Brazil, Canada, China, Germany, India, Israel, Japan, the Netherlands, Singapore, the United Kingdom and the United States are recognizing the essential role that alternative proteins can play in future food technology, innovation and progress, complementing traditional production methods while bolstering the bioeconomy and highlighting the potential benefits for the environment and public health. There is a growing acknowledgement that, despite the industry being in its infancy, alternative proteins – meat made from plants, cultivated from animal cells or fermentation-derived meat – have transformative potential, particularly for farmers, who can benefit from and lead the transition towards a thriving alt-protein economy. Looking ahead to 2030, using agricultural side streams for alternative protein production presents a significant opportunity to enhance sustainability and circularity within the food supply chain. In light of the escalating challenges posed by climate change and the need to ensure food security, nations are called on to undertake a collective effort to elevate alternative proteins as a solution. Crafting a vision for this ecosystem requires a nuanced understanding of each country’s distinct attributes – bilateral and multinational collaborations can play a crucial role in pooling strengths and overcoming shared challenges. Alternative proteins, due to their deep-tech nature, high capital expenditures (CAPEX) requirement and longer return on investment timelines, may pose investment challenges for some parts of the private sector. Governments – which already allot billions of dollars each year to renewable energy and global health research and are also beginning to invest in better, safer, more efficient ways of producing meat – can help alleviate this burden. They can do so by providing financial support, grants or incentives to facilitate scale-up efforts and attract institutional investors comfortable with long-term returns. In addition, proactive engagement in formulating clear regulations to ensure product safety while encouraging innovation, drawing from the experiences of other nations, is essential. These interventions are effective in stimulating the sustainable growth of alternative proteins, positioning them as integral components of the future food landscape. External forecasts of the alternative protein market size by 2030 vary widely in their estimates – from $58 billion6 to $570 billion7 – but they all project robust growth from today’s market size. Such market growth would demand unprecedented collaboration, investment and innovation in the sector. While there is a growing consensus that the public sector must necessarily play a pivotal role8 in shaping this sector’s trajectory, the specifics – actions, funding and anticipated outcomes – often remain undefined. Innovation at the scale needed cannot thrive in isolation; it requires the removal of barriers and the formation of a robust multisector, collaborative business environment. Paving the way for this sector to become a core industry needs a stronger and more coordinated effort than any entrepreneur or company can achieve independently. This white paper makes clear the essential role that governments play in propelling progress and takes a detailed look at how one country is creating a collaborative and dynamic food-tech innovation ecosystem. It sheds light on how the Israeli government’s Innovation Authority identifies strategic intervention points as it considers its own unique national resources, the inherent challenges, its predominant status as an importer and the dynamics of the alternative protein value chain. By fostering a mutually beneficial partnership between the public sector and the rapidly evolving alternative protein business, the Israel Innovation Authority is paving the way for a smoother, quicker journey towards innovation and sustainability – a replicable approach other countries could adopt to boost the entire field and hasten global food systems transformation. Alternative proteins are game-changing agricultural innovations that, with proper levels of support, can help aid planetary and public health. There is a growing acknowledgement that alternative proteins have transformative potential, particularly for farmers. Creating a Vibrant Food Innovation Ecosystem 5