A new production report published by Good Food Institute And Bright green partners suggests that companies should reuse current food-industry infrastructure (buildings and equipment) to save money, increase capacity and avoid shortages in the face of future plant-based meat demand.
Industry capacity is currently coping with the market, but a moderate increase in demand could lead to shortages, the report said. Retrofitting is 80% less expensive than constructing a new building, offering a cost-efficient, quick option to increase capacity in days or months.
Flor Buiteller, Managing Partner of Bright Green Partners commented: “Limited capacity and substantial capital requirements hinder the future growth of the plant-based meat industry.”
Retrofitting can boost economic growth
The report provides recommendations for the public and private sectors seeking to expand global production capacity for plant-based meat products. Policymakers in regions interested in becoming alternative protein hotspots can encourage the recovery of existing facilities to bolster regional economic growth, it argues.
According to the authors, breakfast cereal and dry snack factories offer retrofitting opportunities to produce plant-based ingredients. Meat processing plants can pivot to integrate subsequent product production stages, such as mixing, cooking and packaging.
Additionally, the report shows the feasibility and trade-offs of updating existing facilities for additional capacity. It suggests third-party manufacturing as a solution for companies challenged by market competition or fluctuating demand.
“Additional plant-based meat production capacity will likely be utilized by 2026, making reclamation a very attractive capital-efficient option for rapid capacity expansion,” Bueteller added.
Plant-based meat power
The report measures existing global plant-based meat production capacity and estimates Facilities that produced about 2.2 million metric tons of plant-based meat globally last year – 41% in Europe, followed by 34% in North America.
GFI Europe said NielsenIQ data Between 2020 and 2022, retail sales of plant-based meat in 13 European countries will increase by 19% to more than €2 billion.
Carlo Lucas, senior corporate engagement manager at the Good Food Institute Europe, commented on the newly published report: “Europe is one of the world’s largest markets for plant-based meat, but with little growth in demand likely to exhaust production capacity, the report provides business and government with a vision for the future. Provides roadmap.
“Reusing existing buildings and equipment is a feasible and cost-effective way to ensure that companies can scale quickly, ensuring that Europe does not miss out on the huge opportunities presented by this sustainable food.”