LIGHT BULB
Survey and Analysis of Improvements in Alternative Proteins
Explore our market research findings to discover the key challenges facing the Brazilian plant-based meat market — at every stage of the value chain.
Credit: Quorn
A brief context
Since their launch on the Brazilian market in 2019, meat-based products have shown significant growth in the national scenario. This reflects a transformation in consumers' food preferences, especially in aspects such as health, flavor, price, and convenience. In 2023, the Brazilian market for plant-based meat and seafood substitutes reached R$1,1 billion in retail sales, 38% more than in 2022, maintaining the level of annual growth that had already been recorded in previous years (42% in 2022 and 36% in 2021, always compared to the previous year).
Previous research has identified several areas of concern that limit the full development of the plant-based meat market, both in Brazil and abroad. Regulatory challenges and a lack of standardization in production processes are frequently cited barriers, along with inadequate infrastructure for the production and distribution of plant-based meat products and the difficulty in accessing quality raw materials at competitive prices.
Against this backdrop, the Study Lamp This study was created to shed light on the main challenges and opportunities for the advancement of plant-based meat analogs in Brazil. Based on interviews with dozens of experts from industry, academia, and investment, the survey offers an in-depth view of the value chain and indicates concrete paths to unlock innovation, competitiveness, and sustainability in the sector.
Inside our research
This research adopted a qualitative approach, aiming to deepen the understanding of the challenges faced by the Brazilian meat-based products industry. This method was chosen for its ability to explore, in detail, the perceptions, experiences and knowledge of the actors involved in this constantly changing market.
Data collect
To achieve the proposed objectives, semi-structured interviews were conducted with 40 experts from 37 organizations operating in the food sector. plant based. The choice of semi-structured interviews allowed greater flexibility in conducting conversations, making it possible to delve deeper into relevant topics that emerged during the interview.
2.1 Price bottlenecks
The production of plant-based meat analogues faces several challenges related to costs, ingredient availability and formulation.
Most ingredients, such as pea and soy proteins, are imported, increasing costs and vulnerability to global market fluctuations.
Innovative flavorings, texturizers and functional ingredients such as canola protein are expensive, limiting their widespread adoption.
Despite the search for national alternatives, the offer is still limited in terms of quality.
The need to purchase large quantities of ingredients, combined with low demand, generates losses due to expiration.
Low demand limits purchasing in large volumes, making it difficult to negotiate better prices with suppliers.
The collective purchasing proposal faces challenges regarding the protection of confidential information between companies.
The search for authentic and innovative flavors increases costs and makes price competitiveness difficult.
The need to reduce costs prevents the adoption of new technologies and ingredients, “shelving” innovations.
Protein isolates and concentrates represent the largest share of ingredient costs, between 15% and 18% of the total.
Ingredients like liquid smoke flavoring are important to mimic the flavor of meat, but they are expensive.
Substances such as methyl cellulose contribute to the texture of the product and also impact costs.
The need for transportation in frozen chambers significantly increases logistics costs.
Supermarkets raise the price of products due to low demand in the category.
Shared production lines, designed for other types of food, are not efficient for the smaller volumes in the category, which increases costs per unit produced.
- Packaging can represent up to 30% of the final cost of products.
High taxation and the absence of tax subsidies limit the competitiveness of the category and make the entire production chain more expensive.
The lack of regulation for hybrid products, which combine plant-based proteins and animal-based ingredients, limits innovation and prevents the development of cheaper and more scalable options.
2.2 Bottlenecks in the sensory similarity of analogous foods
The industry faces significant challenges in terms of flavor and texture, particularly in relation to the authentic taste and consistent texture of the meat.
The presence of aftertaste in some plant-based protein products affects the consumer experience.
The industry has difficulty reproducing the authentic, neutral flavor of meat and maintaining a consistent texture throughout cooking.
- Texture is still the main barrier to sensory similarity and the wet extrusion technique is one of the promising solutions, although it has scale and development challenges.
Brands should include clearer instructions on packaging regarding the ideal preparation method.
Collaboration between the ingredients and manufacturing industries drives innovation.
Investments in research and development improve existing technologies.
2.3 Bottlenecks in distribution channels
The expansion of the market for plant-based meats in Brazil depends on overcoming several challenges in both retail and food service.
The high cost of the products compared to traditional meats makes it difficult for consumers to adopt them.
Brands do not have packaging suitable for the profile of lower class consumers.
Products distributed in different sections create confusion for consumers.
In general, brands do not have a consistent merchandising strategy.
Brands, especially smaller ones, have difficulty competing for shelf space with higher turnover products.
The high profit margin applied by retailers increases the final price of products.
Independent restaurants avoid purchasing plant-based meat analogues due to low turnover and logistical costs.
Basic options predominate in the sector and there is little supply of more elaborate dishes.
A more lasting relationship between suppliers and restaurants and constant innovation on the menu are good strategies for consolidating the plant-based analogue food category.
2.4 Food safety bottlenecks
The safety of plant-based foods is a challenge that requires constant attention and the implementation of measures that guarantee the quality and safety of these products throughout the entire production chain.
The category has highly specialized ingredient suppliers, contributing to the quality of the products.
The use of freezing during transport and marketing controls microbial activity, ensuring greater safety.
Anvisa's RDC 719 establishes sanitary parameters for frozen products, although it is not specific to plant-based foods.
The presence of pesticide residues in plant-based ingredients is a concern, as in other plant-based food products.
The need for continuous training and the implementation of good manufacturing practices are essential to ensure the microbiological safety of products.
The lack of specific regulations for plant-based foods in Brazil represents a gap in ensuring the quality and safety of these products.
The lack of specific parameters for microbiological and quality analyses makes quality control difficult throughout the production chain.
2.5 Bottlenecks in the interface between academia and industry
Collaboration between industry and academia is crucial to accelerate the search for innovative and sustainable solutions, but it still faces several challenges in Brazil.
Industry seeks quick, market-oriented solutions, while academia works with longer timeframes and focuses on basic research.
Bureaucratic processes and patent disputes make it difficult to formalize partnerships.
Academic research does not meet the needs of industry while industrial products do not reflect consumer desires.
Outdated equipment in academia and a lack of investment make it difficult to conduct cutting-edge research.
Solutions that work in the laboratory are not always viable on an industrial scale.
2.6 Human resource bottlenecks
The plant-based meat sector faces challenges in talent management and development. The lack of qualified professionals with innovative profiles, the absence of specific training and the difficulty in attracting experienced talent are some of the main challenges for companies in the sector.
The need for professionals with the skills to develop innovative and disruptive products is critical.
Creating specific training and development programs to foster innovation is essential.
The emerging nature of the alternative protein market alienates senior professionals accustomed to large corporations.
Offering attractive benefits packages and building a strong organizational culture can be differentiators in attracting and retaining talent.
The lack of undergraduate and postgraduate courses focused on the development of plant-based products limits the number of specialized professionals.
The industry must engage with educational institutions to promote the creation of training programs in this area.
Current academic training, although solid, needs to incorporate a more holistic view of product development, covering aspects such as texture, flavor and product behavior during preparation.
2.7 Bottlenecks in innovation environments
The development of the plant-based alternative protein market depends on a robust and efficient innovation ecosystem. Despite the advances, several challenges prevent the full development of the sector.
The terminology and concepts related to alternative proteins are still little known by many actors in the innovation ecosystem.
The absence of specific scholarship and funding programs for the sector limits the participation of researchers and entrepreneurs.
The difficulty in obtaining initial resources prevents the creation of new startups and the development of long-term projects.
Many entrepreneurs are unaware of the opportunities offered by hubs, incubators and accelerators, which makes it difficult to access resources and mentoring.
The absence of a solid collaboration network between academia, startups and companies makes it difficult to disseminate knowledge and create innovative projects.
2.8 Bottlenecks in regulatory product approval
Regulation is a fundamental pillar for the sustainable growth of the alternative protein industry. In Brazil, the lack of a specific regulatory framework for plant-based analogue products has generated uncertainty and challenges for the sector.
The lack of clear and defined standards makes it difficult to standardize processes, guarantee quality and product safety, in addition to creating insecurity for manufacturers and consumers.
The lack of harmonization between Brazilian standards and those of other countries creates significant barriers to the export of similar plant products, reducing the competitiveness of Brazilian companies in the international market.
The lack of clear guidelines on how inspections should be conducted creates uncertainty regarding product nomenclature, labeling and safety.
The emergence of independent state legislation can create an uncoordinated regulatory environment, harming companies that operate in different regions of the country.
An organized effort is essential to mobilize stakeholders in the sector and encourage greater attention from public regulators to the need for specific legislation aligned with the interests of the market and consumers.
2.9 Product health bottlenecks
The complexity of developing products that meet consumer expectations and regulatory requirements presents several challenges.
It is essential to understand the real needs and preferences of consumers in order to develop products with an appropriate and attractive nutritional profile. The industry must seek a balance between adding essential nutrients and simplifying the ingredient list.
The choice of ingredients and the optimization of formulations are crucial to guarantee the nutritional and sensory quality of products. Finding economically viable and technically efficient alternatives is a constant challenge.
The processing of plant foods can significantly affect their nutritional value. A balance must be struck between eliminating unwanted flavors and preserving nutrients.
Adding vitamins is a common practice, but high cost and uncertainty about consumer expectations limit its application.
Choosing plant-based protein sources with high biological value and good digestibility is essential to ensure an adequate supply of essential amino acids in the final product.
The lack of specific regulations for analogue plant products makes it difficult to compare different products and ensure a minimum quality standard.
The search for new sources of vegetable proteins and functional ingredients can open up new possibilities for the development of more nutritious and tasty products.
2.10 Ingredient bottlenecks
The selection and combination of ingredients plays a key role in achieving texture, flavor and appearance similar to animal meat. However, the search for innovative and effective solutions faces several technical and economic challenges.
Methylcellulose is an example of a widely used ingredient, but with low acceptance by consumers. The search for alternatives with equivalent performance is a constant challenge.
Reproducing the characteristic red color of meat, including its transition during cooking, is a complex challenge.
Adapting the functional properties of plant proteins, such as soy and pea, to mimic the characteristics of animal meat is a challenging process due to the structural differences between proteins.
Algae such as spirulina offer a broad nutritional profile and interesting functional properties, but their use is still limited in the Brazilian industry.
Continuous investment in research and development is necessary, aiming at the discovery of new ingredients, the optimization of processes and the creation of more efficient formulations.
Innovations that use by-products, such as protein-rich agribusiness waste, face difficulties in leaving the laboratory and reaching a viable industrial scale, without losing the desired functional and sensory characteristics.
Domestic production of non-GMO soy is low, limiting its availability for the plant-based food sector and leading companies to resort to more expensive and less sustainable imports.
2.11 Bottlenecks in production
The production of plant-based meats in Brazil, although promising, faces challenges that directly impact its competitiveness in the global market.
Expanding and strengthening national production of ingredients such as aromas, dyes and hydrocolloids can reduce dependence on imports and increase control over the production chain.
Replacing old equipment with more modern and efficient technologies optimizes production processes and reduces costs.
It is necessary to implement tax incentive policies for the opening of new industries and the modernization of existing ones, stimulating investment in technology and innovation.
It is crucial to develop processing technologies that preserve the nutritional and functional properties of ingredients.
Promoting the development of the alternative protein industry involves implementing public policies, such as specific lines of credit, research and development support programs and certifications that value national products.
2.12 Investment bottlenecks
The Brazilian plant-based alternative protein sector demonstrates potential for exponential growth. However, the expansion of this market faces significant challenges related to investment, infrastructure and financial planning.
The creation of spaces dedicated to research and development, through public-private partnerships, is essential to foster innovation and attract investment.
The expansion of credit lines with attractive conditions for small producers is essential for the growth of the sector.
High production, logistics and marketing costs, combined with the ease of replicating technologies, contribute to limited profit margins.
The low profit margin makes it difficult to raise venture capital resources, which seek quick returns.
The lack of financial knowledge and well-structured business plans prevents many businesses from attracting investment and growing sustainably.
Companies must have a solid structure from the beginning, with a focus on economic viability and solid development strategies.
Want to know more?
In the full publication you will find all the details about the Lamp Project: consolidation of 40 interviews, our findings, methodology used and an extensive analysis by our experts.
Make a difference, be a supporter!
All of the work that GFI does is free, so donations from our community of supporters are essential.
GFI around the world
All of the work that GFI does is free, so donations from our community of supporters are essential.