Alternative Proteins Could Significantly Reduce Emissions
BCG report indicates that increasing alternative proteins to half the global market could cut agricultural and land use emissions by nearly a third by 2050, equivalent to removing half of all gas-fueled cars.
Increasing the share of alternative proteins to half of the global protein market, including dairy, could reduce greenhouse gas emissions from agriculture and land use by nearly a third by 2050, according to a new report by Boston Consulting Group (BCG), The Good Food Institute (GFI), and Synthesis Capital. This reduction would mitigate approximately 5 gigatons of CO2 equivalents annually, comparable to taking 50% of all gas-fueled cars off the road.
Animal agriculture is a significant contributor to global greenhouse gas emissions, accounting for an estimated 15% to 20% of the total, surpassing passenger road transportation. However, the alternative protein market share remains small, with plant-based meat products holding only about 1% of US retail meat dollar sales.
The report draws parallels with the electric vehicle (EV) industry, which saw its share of new car sales grow from 0.2% in 2012 to 18% in 2023. In contrast, the alternative protein industry received only $635 million in government support in 2022, compared to approximately $40 billion in direct subsidies for EVs. This disparity in support has contributed to the EV sector's faster expansion.
To accelerate growth, the report suggests that the alternative protein industry can learn from the EV sector. Key strategies include innovating to match conventional animal proteins in taste, texture, price, and convenience. The study also emphasizes the need for public sector support, such as ambitious emissions reduction targets for the food system and funding for research. Increased public and private investment is also crucial to foster the industry's development and scale.