Governments around the world remain invested in alternative proteins

We’re excited about the state of global policy. Here are the top three reasons why.
Illustration of world map showing countries that have adopted policies affecting the alternative proteins field.

2023: another year of impressive commitments and groundbreaking developments

Only five years ago, public funding for alternative protein R&D was close to zero. Fast forward to 2023 and you see governments around the world investing in alternative proteins for a variety of reasons — to meet national policy goals, make good on their climate commitments, and create good-paying, sustainable jobs to name a few.

As of 2023, all-time public support for the alternative protein ecosystem, for both R&D and commercialization incentives, reached $1.67 billion. Of 2023’s $523 million total, governments announced $190 million for research and development, $162 million for commercialization, and $170 million for initiatives that mixed elements of both.

We are optimistic about the future of government support for alternative proteins. Look closer and you’ll see why.

#1. An appetite for building circular economies and value-added agriculture is growing

Public entities across the globe are stepping up investments to develop the AP sector, including in much-needed infrastructure. The most notable new investments in 2023 came from North America and Europe, with multiple funding packages in the tens of millions of dollars for alternative protein research and commercialization.

Proof points:

  • The European Union earmarked €50 million ($54 million) to advance the development and scaling-up of food from microorganisms. This covers algae and precision fermentation capacity, with the latter aiming “to improve the sustainability, efficiency, and resilience of the European food supply chain.”
  • The Circular Bio-based Europe Joint Undertaking continued to support the industry with a €14 million ($15 million) grant to a company building an alternative protein biomass fermentation facility in France.
  • The European Innovation Council (EIC) awarded €5.5 million ($6 million) from the Pathfinder program to a consortium led by Finnish food tech company Solar Foods to produce whey protein from hydrogen via precision fermentation.
  • The United Kingdom allocated £2 billion ($2.5 billion) for a National Vision for Engineering Biology which included, among other topics, recommendations to invest in cultivated meat research, development, and infrastructure.
  • In 2022 Denmark became the first country to develop a cohesive strategy for offering subsidies to producers of plant-based proteins specifically. The country will pay 580 million kroner ($85.9 million) over five years to Danish farmers who grow protein-rich crops for human consumption, increasing the domestic supply and export capacity of the Danish market and incentivizing a shift to crops that are often better for the environment, soil health, and local ecosystems.
  • At the end of 2023, Germany announced €20 million to help farmers produce crops for plant-based and fermentation-based alternative proteins. Meat consumption is falling to record lows in the country, with more Germans adapting their diets to a changing climate. This program makes it easier for agricultural producers to take part in a growing market for plant-based foods.
  • The White House published a Bold Goals for U.S. Biotechnology and Biomanufacturing report that highlighted APs as a necessary technology. 
  • Fermentation saw a major boost in support in the United States. U.S.-based precision fermentation startup Liberation Labs received a $25 million loan guarantee from USDA to accelerate construction of a commercial-scale facility in Richmond, Indiana, which is expected to create local manufacturing jobs and a new market for the state’s corn crop.
  • The Defense Advanced Research Projects Agency (DARPA) of the Department of Defense announced that work had begun through its Cornucopia program, which seeks to “create a variety of healthy new microbial-based foods using three ingredients—air, water, and electricity—with minimal or no supplementation.” With one of the four projects funded at $10.4 million over four years, GFI estimates this DARPA funding to advance fermentation research to be around $40 million—nearly matching the United States’ prior all-time investment in APs.
  • Led by the University of Illinois Urbana-Champaign, the Illinois Fermentation and Agriculture Biomanufacturing (iFAB) Tech Hub aims to scale precision fermentation to convert underutilized corn feedstocks into alternative proteins and food ingredients. The Department of Commerce designated the iFAB Tech Hub as one of 31 Regional Innovation and Technology Hubs, with the opportunity to apply for a further grant of $50 to $75 million.
    • UPDATE: In July 2024 the Department of Commerce announced that iFAB won $51 million in support for building pilot facilities, contributing to making Illinois a leader in fermentation capacity and boosting the state’s agriculture sector!
  • With the announcement of another CAD $150 million ($112 million) for Protein Industries Canada, a public-private partnership supporting the country’s plant-based protein sector, Canada cemented its status as the world leader in known funding for APs in both 2023 and cumulatively. This brings the country’s total committed funding to CAD $353 million ($260 million) from 2018 to 2028.
  • The government of South Africa allocated what may be the first public investment in precision fermentation on the continent, with a grant of ZAR 11 million ($700,000) to South African startup De Novo Foodlabs towards their development of precision-fermented dairy proteins.

#2. Milestone moments in regulatory pathways represent industry momentum worth celebrating

Ensuring a level, fair playing field for alternative proteins in the global market is essential to delivering the economic, climate, and food security benefits they bring. Luckily, governments around the world are beginning to lean in and momentum is building.

Proof points:

  • Two companies sold cultivated meat in the United States for the first time, with regulatory green lights from both the Food and Drug Administration (FDA) and the U.S. Department of Agriculture (USDA) — opening up one of the world’s largest economies to cultivated meat.
  • In early 2024, Aleph Farms became the third company in the world to secure a regulatory greenlight for cultivated meat, for a cultivated beef product.
  • In April 2023, Remilk received the first regulatory approval of its kind in Israel to market and sell products containing the company’s precision fermentation-derived milk protein. 
  • Amid challenges, sense overwhelmingly prevailed on labeling of plant-based meats, giving consumers more choice and access. In February 2023, the United States Food and Drug Administration (FDA) released draft guidance on plant-based milk labeling. The nonbinding guidance recommends that plant-based milk labels clearly state the plant source of the milk, such as “soy milk” or “cashew milk.” The guidance acknowledges that plant-based milks are not trying to convince consumers that they are the same as dairy milk, and that consumers are not confused by the use of the word “milk” on plant-based products.
  • Since becoming the first nation to approve the sale of a cultivated meat product in 2020, the Singapore Food Agency (SFA) has approved multiple forms of cultivated chicken products from the same company, Good Meat. In early 2023 the SFA approved the use of serum-free media in the production of Good Meat’s products.

#3. APs as a solution for global food production resilience is gaining global attention—and global consensus

Large commitments and vocal support from around the world defined progress for APs in 2023. Multilateral organizations continued to invest in APs as a climate and food security solution, touting their positive environmental impacts and the necessity of adapting food systems to a changing climate.

Proof points:

  • The UN Environment Programme (UNEP) published a landmark report on alternative proteins, assessing not only their benefits to the environment, social systems, and food security but also how governments can, and should, support their development.
  • At COP28, 159 countries, including the United States, China, the European Union, and Brazil, signed the Emirates Declaration on Sustainable Agriculture and Food Systems, committing to addressing emissions from food systems in their 2025 Nationally Determined Contributions (NDCs).
  • Also at COP28, more than 200 non-state actors put forth a Call to Action outlining a collective vision of solutions that sit at the intersection of food, nature, and climate, including “transitioning to more diversified sources of protein” as a priority area.
  • Food and Agriculture Organization of the United Nations (FAO): In November 2023, the United Nations Food and Agriculture Organization (FAO) hosted the Food Safety Foresight Technical Meeting on New Food Sources and Production Systems in Rome. The main objective of the meeting was to evaluate food safety issues associated with innovative food sources, including new alternative proteins.
  • The Secretariat of the Codex Alimentarius Commission issued a circular letter seeking comments on specific topics that would require the development of a Codex standard related to new food sources and production systems (NFPS), which includes alternative proteins. At the 46th convening of the entire Commission (CAC46) in December 2023 it was decided that current Codex procedural mechanisms were sufficient to address any future NFPS issues.
  • The FAO and the World Health Organization (WHO) released a publication titled “Food Safety Aspects of Cell-Based Foods” in April 2023. The publication describes relevant issues related to the terminology, development, safety, and sustainability of alternative proteins.

Unlocking the full potential of alt proteins

Governments are increasing their financial, policy, and regulatory support for alternative proteins but have yet to approach the annual support required to realize alternative proteins’ benefits to the economy, climate, and global food system. To unlock the full potential of alternative proteins, it is estimated that $10 billion per year in global public spending on R&D and commercialization is needed. We need everyone at the table to make that happen.

To entrepreneurs: Governments are funding research and commercialization to support domestic economies, capable workforces, and future technologies. The water is warm. Dive into this emerging and promising industry.

To policymakers: Alternative proteins can create jobs at home, build stronger supply chains, and lower prices for American families. Join researchers, food scientists, and entrepreneurs in building our economy and future green jobs.

To investors: The business case is strong for alternative proteins that taste the same as or better than conventional meat, seafood, eggs, and dairy. Two-thirds of global Gen Z and Millennial consumers expect to consume more plant-based meat, seafood, and dairy products in the future. Momentum is building for delicious food with less environmental harm and now is the time to capitalize on it.

To researchers: Alternative proteins offer some of the most game-changing research opportunities with the potential for global societal impact. This movement needs scientists from a variety of disciplines to jump head-first into alternative proteins.

The next chapter for food and agriculture is being written right now. Yes, innovation can draw skeptics. But thanks to dedicated researchers and industry stakeholders, innovation continues in pursuit of the greater good. APs can reduce pressure on the planet and satisfy the growing global demand for protein at the same time. Let’s elevate this promising solution to another level in 2024 and beyond.

 

2023 state of global policy report cover

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As policymakers recognize the power of alternative proteins to protect their environments, boost their economies, and ensure their food security, governments have adopted a range of policies affecting the field. This report tracks the investment, support, and regulation enacted across the globe.

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We accelerate alternative protein innovation to make the global food system better for people and the planet. We ensure that alternative proteins are a part of the policy discussion around climate change mitigation, global health, bioeconomies, and food security. In every region where we have a presence, we advocate for public investment and incentives to transition toward alternative proteins. We are paving the way for the approval of novel proteins such as cultivated meat. To stay informed about all things alt protein policy, sign up to receive updates from our policy team directly in your inbox.

Author

Michael carter

Michael Carter POLICY SPECIALIST, DIPLOMACY

Michael supports the Policy and Government Relations team by providing original writing and analysis in support of alternative protein development and deployment. Areas of expertise: research and analysis, original writing, multilateral fora, global public investment