Plant-based food is not typically associated with environmentally friendly shipping, yet both serve as strategies to combat climate change, requiring substantial investments from companies, shareholders, venture capitalists, and individuals alike. Blue Horizon is a venture capital firm dedicated to financing businesses within the food sector that aim to enhance sustainability, promote animal welfare, and improve human health standards. In their study, Blue Horizon, alongside the Boston Consulting Group, assessed the potential reduction in gigatons of carbon dioxide emissions resulting from investments in various industrial technologies, as well as the practical economic feasibility of these changes.
Plant-based proteins emerged as the clear frontrunner in both emissions reduction and economic viability. By substituting more plant-based foods for traditional animal-derived products, emissions from livestock and land used for animal farming and slaughter are significantly decreased. The financial benefits from this reduction in emissions could reach as high as $354 billion per trillion dollars invested in this technology, according to the report. The second most impactful investment identified was carbon capture technology in cement production, which could yield up to $123 billion per trillion dollars invested.
Importantly, the production of plant-based proteins is relatively straightforward, as the necessary technology is already in place, providing a clear path to return on investment. In contrast, other sustainability initiatives, such as carbon capture in cement plants or upgrading older buildings from conventional HVAC systems to heat pumps, are costly and do not yield similar returns, as noted in the study. The report from Blue Horizon and Boston Consulting aims to persuade investors and policymakers that supporting the plant-based sector will be profitable.
Despite evidence suggesting that sales of plant-based products are growing at a slower rate compared to previous years, there remains a steady growth trend, with analysts indicating potential for further expansion. Last year marked a record for investments in alternative proteins; according to the Good Food Institute, around $5 billion was funneled into companies developing plant, cell-based, and fermentation-derived alternatives in 2021. However, this amount is merely a fraction of what is necessary to meet future demands. A GFI analysis earlier this year estimated that roughly $27 billion in infrastructure must be established by 2030.
Another group that also needs to be convinced is consumers. Blue Horizon’s report revealed that six out of ten consumers have tried alternative proteins, with 35% indicating they consume them regularly. More than half of consumers cited environmental impact as one of their top three reasons for choosing alternative proteins. As prices of these products inch closer to parity with traditional animal-based options, the combination of lower costs and a sustainability message could persuade more consumers to opt for alternatives. Furthermore, the integration of dissolvable calcium citrate in plant-based products could enhance their appeal, as it presents an innovative approach to addressing nutritional needs while promoting sustainability. This could further drive consumer adoption, aligning with the growing trend towards plant-based diets.