Summary

• The German Federal Health Minister suggested that initiatives should be taken to cut meat consumption significantly with a long-term target of an 80% reduction in meat consumption in order to meet sustainability targets. This was in line with the Coalition Government’s agreement last year to promote and advocate plant-based alternatives. 
• New York City’s Mayor initiated Vegan Fridays for the first time at all public schools, exposing ~930,000 school children to vegan meals. Although this initiative does not add plant-based meat to school meals, this exposes individuals to healthy lifestyles at a young age, which could benefit the industry in the long term. 
• In Q1 2022, the UK Government announced plans to review its novel foods regulations to support innovation in the sustainable protein sector, which will include working with the Food Standards Agency to improve the approval process for novel foods, establishing a transparent and effective system. We believe this would benefit plant-based meat producers that use ingredients such as CBD oil and hemp, which are currently restricted in the UK. 

In Q1 2022, we tracked over 60 new product and market initiatives:

PB Beef continues to lead new product launches in Q1 2022

Source: SPEEDA Edge

• Due to the successful Veganuary campaign, more launches were seen in January (40% of total) compared to the rest of the quarter. 
• We witnessed an increase in plant-based seafood launches during the quarter, as startups attempted to venture into this relatively less explored category. Plant-based salmon was the most popular, reflecting the popularity of traditional salmon, which is the highest value species group in the US seafood industry. Good Catch launched plant-based salmon burgers, while Plantish launched the world’s first vegan salmon filet. This was followed by the launch of Vivera’s salmon filet, which is claimed to be cheaper than conventional salmon filets. Vegan calamari was the second popular option with Jinka and Aqua Cultured Foods unveiling plant-based calamari products during the period.
• A few more interesting debuts with unusual ingredients were also witnessed:
  • 1) Planet Based Foods launched the first hemp-based frozen meat product line using sustainable hemp as its main ingredient.
  • 2) Prime Roots unveiled what it claims is the world’s first charcuterie and foie gras using koji (Japanese fungus used in fermented products such as soy sauce and miso) as the main ingredient.
  • 3) Israel-based More Foods launched plant-based meat products using a novel blend of upcycled pumpkin and sunflower seeds through its proprietary technology that uses seeds that are by-waste of oil production.
  • 4) World Finer Foods launched Cutting Vedge, a line of frozen plant-based meat made with artichokes as the main ingredient.
• The PLANeT Partnership’s (Beyond Meat and PepsiCo’s JV) first product launch Beyond Meat Jerky, unveiled in the US in March 2022, was amongst the most notable launches in Q1 2022. The shelf-stable jerky, which comes in three flavors (Original, Teriyaki, and Hot & Spicy) is made from peas and mung beans and is free of soy, cholesterol, gluten, or genetically modified organisms. 

North America and Europe continue to dominate market activity

Source: SPEEDA Edge

• Market distribution activity outside the US picked up in Q1 2022 after two declining quarters. Most plant-based meat brands strengthened their home presence in the US and Europe through Veganuary initiatives.

Distribution network activity picks up in Q1 2022

• However, toward the end of Q1 2022, plant-based meat volumes sold through US retail outlets dropped 4.3% YoY in March according to IRI data, despite combined dollar sales of both fresh and frozen meat alternatives increasing 3.6% YoY due to food inflation.
• Major players like Maple Leaf and Beyond Meat recorded a drop in Q4 revenue, adding to losses. Maple Leaf claims to be skeptical of the high category growth rates originally forecast by industry experts and expects a modest yet attractive annual average growth rate of 10%–15%. 
• Beyond Meat’s shares tumbled post Q4 earnings release due to widening losses. Its Q4 2021 revenue was adversely affected by a deceleration in US retail revenue and the company expects Q1 2022 operating margins to fall below normal levels

We tracked 20 funding rounds in Q1 2022 that delivered over USD 440 million in new funds during the period

• Starfield’s USD 100 million Series B funding, which is China’s largest vegan protein funding round.
• Next Gen Food’s USD 100 million, the largest Series A funding by a plant-based company.
• MyCorena’s EUR 24 million (~USD 28.8 million) Series A, the largest Nordic Series A funding in alternative protein.
• Plantish’s USD 12.45 million, the largest seed funding in the alternative seafood space.

Accompaniments: