Alternative proteins are critical for reducing both the animal welfare and environmental impacts of animal agriculture, which accounts for more than all greenhouse gas emissions from cars, motorcycles, and other light passenger vehicles combined.

However, plant-based meat alternatives constitute just 1% of U.S. meat sales. And, as this report highlights, they also fall behind compared to electric vehicles (EVs). In 2022, alternative proteins gained only $635 million in total government support compared with $40 billion in purchase subsidies for EVs, and between 2017 and 2023, private investment in alternative proteins amounted to $13 billion against $106 billion for EVs. Thus, the authors recommend the alternative protein industry follows the successes of the EV industry.

There are strong parallels between the two industries. Both are disruptive technologies with products that challenge consumer cultures and identities, not to mention industries responsible for massive volumes of global greenhouse gas emissions. Both also need substantial capital for research and production at scale. Yet, following strategic changes, the percentage of EVs purchased from all international new car sales rose from 0.2% in 2012 to 18% in 2023. With adjustments, the authors argue, alternative proteins could follow a similar trajectory.

Alternative proteins can apply three major lessons from EV adoption:

1. Narrow the gap in quality and price with conventional options;
2. Gain government and consumer support through subsidies and policies; and
3. Increase investor funding across the entire value chain.

Lesson One

EVs matched traditional vehicles on price, range, and model selection, but also offered additional features like superior acceleration. Alternative proteins should deliver on consumer needs like taste, texture, price, and convenience, but also innovate to make sustainability and animal ethics a bonus rather than a compromise for consumers. For example, alternative proteins could have enhanced nutritional qualities, novel flavors, or even be customized to address dietary needs and preferences, including allergies.

Lesson Two

Policies like the Infrastructure Investment and Jobs Act in the U.S. and the E.U.’s Green Deal accelerated EV adoption. Alternative proteins should look to the four-step frameworks found in these policies to gain strong public sector and consumer support.

1. Set ambitious targets for alternative protein adoption and sales, similar to zero emissions targets set for climate change mitigation. For instance, Singapore set a “30 by 30” goal to produce at least 30% of its nutritional needs domestically by 2030, which alternative proteins could help achieve.
2. Stimulate supply through open-access research. In 2022, governments invested around $180 million in alternative protein research and development, but more is needed, especially to ensure that information is publicly available rather than proprietary.
3. Drive demand via government purchase subsidies and additional research. For example, the E.U. funds research to improve the availability, variety, sensory properties, and nutritional benefits of alternative proteins.
4. Address the scale-up challenges in production, similar to the U.S. authorizing $7.5 billion for additional EV charging stations in 2023. For instance, the E.U. funds Bio Base Europe, a pilot manufacturing facility in Belgium for innovating bio-based products and processes.

The authors point to Singapore as a key case study for alternative protein advancements. The country dedicated $107 million to fund research and development, while building production capacity by helping startups fund construction of shared laboratories and production spaces. Plus, academic institutions collaborate with industry partners to develop job training in the alternative protein industry, and the Singapore Food Agency created a regulatory framework for cultivated and microorganism-based proteins meant to build consumer confidence in alternative proteins.

Lesson Three

Like the EV sector, alternative proteins should increase investment from both the public and private sectors. This investment needs to cover the entire alternative protein value chain. Unlike EVs, there are funding allocation gaps. Research and development is covered, as is production, but not procurement of ingredients, packaging and distribution, or marketing and sales. Gaps in funding streams exist too. Venture capital funding is available, but there’s none from industry, capital markets, or government grants and subsidies.

A combination of private and public funding is also needed to build market confidence, like government-backed research institutions collaborating with startups on research projects or public-private partnerships to fund infrastructure.

The Road Ahead

There are challenges involved in alternative protein production, including scaling up to compete with animal proteins, anticipating supply shortages of key ingredients like coconut oil and pea protein, and managing consumer expectations. Plus, unlike EV purchases, food choices aren’t necessarily long-term. However, a combination of technological breakthroughs, diverse funding sources to stimulate research, and the buildout of infrastructure helped boost the EV industry. The authors suggest the alternative protein industry can benefit from the same.

Alternative proteins are crucial for lowering carbon emissions, reducing threats to biodiversity, preventing pandemics, increasing global food security, and providing an ethical substitute for industrial animal farming. Lessons from the EV industry can drive success for alternative protein production and adoption, leading to a happier, healthier planet.