People of a certain vintage will remember the first time they tried NutraSweet, the brand name of a lab-made sweetener called aspartame which was invented by chemists in 1965. It took 16 years for the U.S. Food and Drug Administration (FDA) to approve its use in food production. In 1984, millions of NutraSweet-flavored gumballs arrived in mailboxes across the country, giving consumers their first taste of this low-calorie alternative to sugar and saccharin.
Today, aspartame is used in countless products, and a growing number of companies are producing or developing new ingredients that make food healthier, more sustainable and tastier. Much of the focus is on animal-free proteins. Consumers want healthier meal options that do less harm to the planet and reduce our reliance on livestock. With engineered foods getting better all the time, the alternative protein market is expected to increase by 7.5% annually in coming years. Dairy alternatives alone could reach $45 billion in annual sales by 2027.
Investors have taken note, pouring $1.5 billion into startups developing animal product replacements in just the first half of 2020. That’s a drop in the bucket compared to more mature tech sectors, but momentum is clearly building.
And yet there is still plenty to do to get the next generation of animal-free proteins to the market. Refining the technology is time-consuming and expensive. The industry is comparable to biotech in scientific complexity, and it draws significant regulatory scrutiny. Foods and drugs go into our bodies. New eCommerce apps do not. So, it’s extra important for food tech startups to get their products to scale up quickly to recoup the development costs and make them more affordable. And unlike conventional food products, proteins generated with technology can scale quickly without relying on agriculture — land, water, animals — once they are approved for sale.
Regulatory approval is therefore crucial. One recent example: the U.S. Food and Drug Administration (FDA) in April approved the animal-free whey protein made by startup Perfect Day, which is now sold in Graeter’s Ice Cream and Perfect Day’s own ice cream spinout Brave Robot. Singapore recently approved cultured meat — grown from cells rather than live animals — for commercial sale.
But it takes more than regulatory approval to convince consumers to try new foods — even those who care about animal welfare and sustainability. Labeling is an important outcome of the regulatory process — what exactly is in the package? Is it a meat substitute, a sweetener or a genetically modified organism (GMO)? What is involved in its production? Consumers have every right to know. But today, savvy consumers still have a lot of questions and as more consumers become aware, there will be a lot more scrutiny. And industry incumbents are creating a fuss over labeling — a fight that will likely persist for some time.
That means we will need to educate consumers (as well as investors and regulators) before we can expect them to buy newfangled foods. Many people are willing to give it a try, but they are understandably skeptical.
In sum, consumer adoption will be driven by support from investors, regulatory bodies, proper labeling and consumer education. Without any of one these factors, the food tech sector will face major headwinds as startups move from the discovery phase into commercialization. It also requires an acknowledgment that food technology is not only based on science, but on the fact the status quo is not enough. Food tech is a not fad but an answer to a range of challenges facing our food system today.
For example, at Joywell Foods we’re building healthy but tasty sweeteners derived from natural proteins harvested from exotic fruits. We think that our fermentation technology is an exciting breakthrough that will help deliver important health benefits and enables us to scale the supply of these proteins. But that won’t mean anything if the FDA disagrees, or requires some scary sounding labeling. Consumers are intrigued by something that’s healthy and eco-friendly. They are less interested in eating Franken-food.
All food tech companies are required to show that their food is safe before they can convince people to try it. And then it better taste good. Imagine the damage that NutraSweet brand would have suffered if those gumballs tasted like cardboard. The market has seen more than enough lousy engineered foods.
Fortunately, many consumers are more than willing to eat healthy, sustainable foods that taste good. Young people in particular value the environmental benefits of reducing meat consumption. Americans under 50 are about three times more likely to call themselves vegan or vegetarian than older Americans.
So, the trend toward plant-based food consumption is likely to gain steam. It’s our job not just to create the high quality, healthy new foods they want, but also to make sure they understand those new foods and have confidence that they’re safe and sustainable. And tasty.
