Marked by both setbacks and breakthroughs on a global scale, the Australian and New Zealand alternative proteins industry experienced a transformative year in 2024. From casting a new spotlight on sustainability and the region’s growing appetite for more climate-friendly protein alternatives, to advancements in cellular agriculture and precision fermentation, there is a lot to highlight from the year that was.
Australia slowly acknowledging food’s contribution to climate change
Food Frontier’s prediction that sustainability would emerge as a central theme in alternative proteins came to fruition in 2024, driven by a growing awareness of the link between food systems and climate change.
– Sustainability in Australia’s Dietary Guidelines: 2024 started with the recommendation to include sustainability in the country’s Guidelines. This move would be a significant step in moving towards more environmentally friendly food systems and would play a vital role in increasing consumers’ awareness of the environmental impact of their diet.
– Local government action: Darebin City Council in Victoria became the first city in Australia to endorse the Plant Based Treaty, urging alignment between food systems and the Paris Agreement.
– Alternative proteins feature in government net zero advice: Food Frontier has long championed policy recognition for alternative proteins. This year Australia’s Climate Change Authority included alternative protein technologies in its net-zero transition pathways review, commissioned to inform the federal government’s future climate change policies.
– Consumer insights: What do Australians think about their own and their pet’s diets? Our consumer survey found that 22% are cutting back on or eliminating animal meat, and 16% are doing the same with animal dairy because of climate change concerns. Almost half would consider changing their pet’s diets to address health, ethical or environmental concerns, potentially demonstrating a market for pet foods made sustainably and with alternative proteins.
– A resource for policy and business: A Food Frontier report to governments, Alternative proteins and Australian food systems transformation, became an available reference for government offices, departments and agencies, and business advisory groups. The report explains why transforming our systems of food production, consumption and distribution makes economical, public health and environmental sense. Some of the recommendations in the report have since been echoed by several organisations, including the Food and Beverage Accelerator’s white paper.
Novel food approvals and breakthroughs
The cellular agriculture and precision fermentation sector saw significant developments in 2024, with Australian companies making headlines around the world.
– Vow’s global expansion: Sydney-based cultivated meat company Vow gained approval to sell its cultured meat products derived from Japanese Quail in Singapore and Hong Kong, while progressing towards regulatory approval in Australia. With the second round of public consultation almost complete, the company could be bringing cultivated meat to the Australian market in 2025.
– Novel food tasting at AltProteins 24: Food Frontier hosted an exclusive first-of-its-kind tasting event at AltProteins 24, showcasing five innovative cultivated, precision fermentation and plant-based products not yet approved for sale in Australia. The event sparked excitement around novel proteins and highlighted its potential to reshape culinary experiences in the future.
– Nourish Ingredients and All G enter the Chinese market: Nourish Ingredients partnered with a Chinese biotech company to distribute its precision fermentation fat product in China. Meanwhile, All G achieved regulatory approval in China for its recombinant bovine lactoferrin.
– Local investments and trials: On home soil, Cauldron secured $4.3 million from the federal government’s Industry Growth Program to scale its continuous fermentation technology. The company also received approval to conduct production trials for animal protein ingredients in batches up to 10,000 litres, which could provide a pathway to market for Australia’s precision fermentation food companies who have needed access to larger facilities.
Challenges and consolidation
While 2024 led to progress, the alternative proteins sector also faced hurdles, particularly in the plant-based segment, which saw further market consolidation.
– APP entered administration: Horsham-based Australian Plant Proteins went into voluntary administration at the end of June. APP is the largest of three commercial-scale plant-protein fractionation facilities in Australia, and the only one to manufacture high-quality Australian-grown faba bean and pulse protein isolates.
– Insolvencies and acquisitions: Food manufacturer Smart Foods acquired The Aussie Plant Based Co. just over a week after it went into liquidation, resuming operations almost immediately and v2food entered the world of plant-based ready-made meals through its acquisition of Soulara in January. New Zealand’s Sunfed closed its doors, and The Sustainable Food Co and Proform entered voluntary administration.
– The state of the industry: Despite these challenges, Food Frontier’s 2023 State of the Industry report revealed that plant-based meat sales in Australia increased by 47% between 2020 and 2023 and per-capita consumption increased by 28%. Future projections for 2033 reveal a promising outlook, indicating the market size for plant-based meat in Australia is now expected to reach $1.65b, contributing over half a billion dollars in value added to the Australian economy and supporting more than 6,000 jobs.