Page 29 - Food&Drink magazine April 2022

where Australia will find less competition in the next decade. Products which are value-added onshore and designed to target directly at the dietary and cultural requirements of a specific export market are game changers.
This is where plant-based proteins can land themselves squarely in the future of industry and the economy. For better or worse, plant proteins are a highly processed product. This means a relatively low-cost agricultural output is processed into a comparatively valuable ready to eat ‘meat’.
It’s exportable, it’s in demand and we’ve got a sizeable head start on other global producers.
FOLLOW THE CONSUMER, FOLLOW THE MONEY Thirty years ago, lean cuts of meat were considered cheap. These days, 500 grams of “heart smart” lean beef mince will set consumers back an extra 30 per cent at the check-out. If you can slice it, marinate it, and give it a
fancy name, you can charge a 600 per cent mark up.
The shiny new alternative proteins are also a consumer hit. Retail sales of plant-based meat alternatives have grown year on year and there has been a five-fold increase in the number of PBMAs on Australian supermarket shelves since 2015.
There’s more than 250 products for consumers to choose from. While the lean beef label adds a third to the price, PBMA averages an increase of 43 per cent.
What this illustrates is that value is subjective, and it’s set by consumers. Those who understand this consumer-set value are leaps ahead of the rest.
The flow of capital into the cultured meat industry has also grown substantially in recent years, reaching roughly US$1 billion over the past 12 months. Investments in 2020 surpassed $360 million, six times more than the year before.
Interestingly, often the influx
of money comes from existing red meat giants such as Cargill, Tyson Foods, and JBS.
Wiley client v2food has gathered significant external investment from across the globe and is looking to scale and capitalise on global demand for alternate proteins: investment
STRONGER TOGETHER
Ultimately, alternative proteins and meat are stronger together. If both parties campaigned
for a well-balanced diet that included both products, it would result in better outcomes for everyone: consumers who want choice and industry,
“ Products which are value-added onshore and designed to target directly at the dietary and cultural requirements of a specific export market are game changers.”
that is coming from the traditional meat sector.
There’s clearly plenty of economic opportunity in the PMBA space. The question is whether producers are willing to see it. When it comes to the next revenue stream, the wise choice is often to follow the money. In this case, the money is leading directly to alternative proteins.
which wants to ensure steady and sustainable growth.
While some in the traditional meat sector are railing against the shift in status quo, the smart money shows the global consumer is changing. Those prepared to change with it, bringing their own strengths to the new market reality will ultimately win out. ✷
ALTERNATIVE PROTEINS
CREATING GOOD TIMES
WITH BETTER FOOD SOLUTIONS.
HAWKINS WATTS AUSTRALIA
SALES@HAWKINSWATTS.COM.AU HAWKINS WATTS AUSTRALIA
HAWKINSWATTS.COM
✷ ABOUTTHEAUTHOR
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www.foodanddrinkbusiness.com.au | April 2022 | Food&Drink business | 29