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WhattheAlternativeProteinIndustryCan
LearnfromEVCompanies
JULY11,2024
ByElfrunvonKoeller,NeeruRavi,EmmaIgnaszewski,RosieWardle,AndreyBerdichevskiy,NathanNiese,Sara
Kopunova,andDanielGertner
READINGTIME:15MIN
Alternativeproteinsburstontothesceneadecadeago,promisingcomparabletastetoanimalproteinsand
fewergreenhousegas(GHG)emissions.Butalternativeproteinshavefacedchallengesinwinningover
consumers:today,plant-basedmeataccountsforonly1%ofmeatdollarsalesinUSretail,andmany
alternativeproteinstartupsfacetightprivatecapitalmarkets.
Andyet,achievingmassadoptionofalternativeproteinsiscriticaltoreducingtheimpactsofglobalfood
production.Animalagricultureaccountsforroughly15%to20%ofGHGemissions—greaterthanthe
combinedcarbonoutputofcars,motorcycles,andotherpassengerlightvehicles.Ifalternativeproteinscould
©2024BostonConsultingGroup1
capturehalfoftheglobalproteinmarket,includingdairy,thisswitchwouldmitigate5gigatonsofCO2
equivalentsannually.
Achievingmassadoptionofalternativeproteinsiscriticaltoreducingtheimpactsof
globalfoodproduction.
Torealizeitsfullpotential,thealternativeproteinindustryshouldtakeinspirationfromtheelectricvehicle
(EV)sector,whosesuccesshascomeinlargepartfromaddressingthehurdlestoconsumeradoptionthat
limitedpotentialexpansionearlyon.Privatecompaniestackledthesechallengesbyinnovatingtonarrowthe
gapinqualityandpricewithgas-poweredvehicles,governmentshelpedbyprovidinggeneroussubsidiesand
policies,andinvestorscontributedbyfundingthefullvaluechain.
AccordingtotheInternationalEnergyAgency,governmentsworldwideprovidedroughly$40billionindirect
purchasesubsidies
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