By now, all players in the protein industry are aware that change is needed. This results in a shifting playing field, in which both incumbents and new, disruptive players are trying to seize this opportunity.

Incumbents tend to innovate by optimising existing processes, like limiting waste and creating a more efficient supply chain. Because of the scale of these companies, incremental changes can have an enormous impact. However, large companies risk being outpaced by more agile and innovative start-ups. 

Start-ups, on the other hand, typically challenge the protein industry with more radical innovations. They create new products, such as plant-based alternatives, cultured meat, meal replacements and food supplements. They think of new approaches to food production and distribution, like precision agriculture or blockchain-based solutions. Start-ups tend to be fast and flexible, but it can be a challenge for them to scale and turn their innovations into a profitable business.

Partnerships between large protein companies and start-ups
To prepare for the future, protein start-ups and established protein companies are increasingly teaming up. Acquisitions, for instance, allow incumbents to profit from the innovative power of start-ups, whereas incumbents can enable start-ups to scale by helping them with funding, connections and access to distribution networks. A recent example is the acquisition of the Dutch brand of meat substitutes The Vegetarian Butcher by Unilever.

Large protein companies can also create their own incubator and accelerator programmes to bring entrepreneurs into their company. Examples include the incubator programmes of the global leader in meat production Tyson Foods and the Dairy Accelerator of the American agricultural cooperative Land O’Lakes.

Last but not least, a growing number of food companies have created their own venture funds for investments in start-ups, including Kraft Heinz and General Mills. These funds can be structured in various ways, but all aim to have a stake in innovative brands.

Venture capital firms and technology giants as new players 
Venture capital firms and technology giants have emerged as new players on the protein market. They typically invest in start-ups with disruptive business models, from which they expect exponential growth. Following these investment deals can, therefore, give an idea of the future of protein. Start-ups have a large chance to fail, and not all investments by venture capital firms or large technology companies will result in high returns or disruptive impact. But some venture-backed start-ups do succeed. 

How can new technologies help to shape the future of protein? Read all about the possibilities of biotechnology, artificial intelligence, data analytics and blockchain in the next blog post.

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