As a new wave of startups emerged touting burgers made with heme protein and stretchy cheese made by microbes, not cows, the addressable market for meat and dairy analogs looked pretty enticing at the height of the alt protein boom.
Beyond Meat and Impossible Foods were not seeking to dominate the niche, and largely uninspiring, meat alternatives market said their rockstar founders; they were going after the trillion-dollar-plus meat market.
If they can make products that can truly match the real thing without the environmental and ethical baggage of industrialized animal agriculture, went the argument, why wouldn’t consumers switch?
But will a tipping point inevitably come if alt proteins reach taste and price parity? And is parity with animal products what flexitarians—a segment of the population Beyond Meat et al have been banking on to bring home the (meatless) bacon—are really looking for?
Each category in this space is different of course, and the market drivers behind each one can vary. Plant-based protein powders are selling like hotcakes, while every coffee chain sells plant-based milks. Truly functional egg alternatives are also in high demand owing to ongoing supply and pricing challenges in the egg market meanwhile.
However, meat alternatives have struggled to make much of a dent in the market, despite hundreds of millions of dollars of investment from some of the highest-profile players, no doubt in part because there’s still room for improvement. But also, perhaps, because of the elephant in the room: the underlying consumer demand just isn’t there, at least not yet.
As for cheese, plant-based spreads and some artisanal nut products have carved a niche. But right now, the strongest argument that even the most exciting brands can make is that they will charge you more for something that’s at best “as good” as the real thing, observed Stockeld Dreamery’s CEO after closing his plant-based cheese business last week. “Which is a pretty terrible argument.”
So where does the sector go from here?
Unsurprisingly, the new CEO of alt protein advocacy group The Good Food Institute remains optimistic. There is no elephant in the room that the sector is too blind to see, insists Nigel Sizer, who took the helm at the nonprofit in late August.
Change will come, he predicts, but it takes time and money.
“The demand is there,” adds Sizer, a former president of Rainforest Alliance, global director of the Forests Program with World Resources Institute and lead advisor on climate change and energy issues in Asia to President Bill Clinton. “If products can deliver on the taste and price these consumers expect, there’s a clear path to winning a place on their plates.”
And while the food system won’t change overnight, says Sizer, “What gives me the most hope is how quickly the science is moving.”
AgFunderNews (AFN) caught up with Sizer (NS) to discuss why he took the job at the GFI, what the industry has to do next, the role of government, and why alt protein should not be a partisan issue.
AFN: The cofounder of TiNDLE recently said: “The fundamental issue is that there is no real underlying consumer demand to shift away from meat.” Is he right?
NS: There is real consumer demand for plant-based meat. A meaningful portion of consumers is already reducing or eliminating their meat consumption. GFI research shows that’s almost 1 in 5 consumers in the US and almost 1 in 2 consumers in Germany. Beyond that, a much larger group—almost 3 in 4 U.S. consumers aged 18-59—is open to incorporating plant-based options into their diets, even if they aren’t cutting back on meat yet.
If products can deliver on the taste and price these consumers expect, there’s a clear path to winning a place on their plates, while keeping the door open to eventually replacing conventional meat.
Taste and price are critical, but they’re not the whole story. Consumers also need reasons to switch, and for many, that comes down to health and nutrition. Plant-based meat is already often recognized as a healthier option—low in saturated fat and cholesterol, free of antibiotics and hormones.
Our research shows that there’s also an opportunity to build on that with broader messaging about benefits like being high in protein and containing fiber, which really set it apart from conventional meat.
With continued investment in improving taste and price—and by reinforcing the clear health advantages—plant-based meat can reach the large segment of consumers who are open, curious, and ready to try something new.
AFN: Fixing the food system and replacing environmentally destructive animal ag are not primary purchase drivers for most consumers. Have too many alt protein startups built business models that fail to align with this reality?
NS: Most companies in this space are very aware that the number one priority has to be making a product people actually want to eat and put in their shopping carts.
At the end of the day, consumers are largely driven by taste, price, and convenience, and that’s exactly why GFI’s theory of change has always been focused on helping alternative proteins compete on those terms.
Across certain regions, there are some segments of values-driven consumers who care deeply about climate and sustainability – for example, our team in Europe found that environmental concerns play an important role for many consumers in that region who are consciously reducing their meat consumption.
But the way to reach the majority of consumers around the world is by making delicious, affordable, accessible products that fit seamlessly into people’s everyday lives. That’s not a flaw in the business models—it’s just one of the primary challenges facing this sector. And it’s why continued investment in science, innovation, and scale-up is so critical: to give companies the tools they need to deliver on what consumers care about most.
AFN: With investment capital increasingly hard to come by, what is the role of government in supporting this ecosystem?
NS: There’s no question that scaling alternative proteins—especially in areas like biomanufacturing—requires substantial, long-term investment. Governments have a crucial role to play in attracting and de-risking that private capital, helping promising innovations move from the ideation to commercial scale.
We’ve seen real progress in the past few years, with more public funding flowing into the sector than ever before–but it’s still nowhere near the level needed for alternative proteins to reach their full potential.
What’s encouraging is that more governments are beginning to connect the dots between diversifying protein production and their broader goals—strengthening food security, creating jobs, supporting farmers, and protecting public health. Alternative proteins are a natural part of the bioeconomy, and companies in this space should be able to tap into the same public incentives and programs that are driving innovation in other biomanufacturing sectors.
At GFI, we’re focused on helping policymakers and companies understand these connections and see the opportunities clearly. Investing in alternative proteins isn’t just about sustainability, it’s about building resilient supply chains and strong economies. There’s still plenty of work ahead, but I’m cautiously optimistic. The momentum is real, and the case for governments to lean in has never been stronger.
AFN: What’s at the top of your to-do list? When it comes to allocating resources, will you be looking again at what to prioritize?
NS: At the very top of my list is listening and learning—meeting with colleagues across GFI’s global network to understand what’s working, where the gaps are, and how we can build on our existing strengths. GFI is already doing really critical work across all of our core teams (science, policy and corporate engagement) as well as across all of our geographies, so my first priority is making sure we’re aligned and resourced to keep that work moving at an impactful and sustainable pace.
Looking outward, I’ll be putting real focus on mobilizing much greater public investment in open-access research and scale-up. That’s the lever history shows us is essential, whether we’re talking about renewable energy or public health breakthroughs. GFI will also continue to be laser focused on engaging policymakers and the private sector, two groups critical to the long-term success of the industry.
Ultimately, if we want alternative proteins to deliver on taste, price, and convenience, science and public funding are where many of the critical breakthroughs will come from. And alongside that, I want to make sure we’re telling a compelling story about why this work matters—not just for climate and biodiversity, but also for food security and public health. Building that broad coalition of support will be critical for the long-term success of the sector.
AFN: How do you view GFI’s role in catalyzing cross-asset class investing to de-risk and scale innovation?
NS: Entrepreneurs are driving innovation in the alternative protein sector, but funding remains one of the biggest hurdles. Capital has tightened across the board, and like many other sectors, this field is competing with massive investment in AI. This climate makes GFI’s role even more important—we’re here to help connect the dots between investors, innovators, and policymakers so the sector can continue to grow and scale.
We’re currently focused on making it easier for capital to flow by sharing data, insights, and tools that help de-risk investment. That includes maintaining an investor directory, showcasing new financing models that can help companies scale, and tracking global public investment opportunities.
The goal is to make sure investors across all asset classes—across public and private sectors—see both the opportunity and the impact in building a more sustainable, resilient protein ecosystem.
AFN: Alt proteins have become caught up in the culture wars in some markets. Does GFI have a role in countering political headwinds?
NS: At GFI, we’re committed to ensuring that alternative proteins can compete in a free and fair marketplace, just like every other food regulated by the FDA and USDA. We believe that ultimately it should be left up to American consumers—not politicians—to decide what they want to feed their families.
What’s often lost in a lot of this rhetoric is that support for alternative proteins cuts across the political spectrum. These innovations can strengthen national security, prevent food insecurity, expand consumer choice, and help the US take the lead on innovation—values that resonate in both parties.
We’ve seen lawmakers in some of the country’s most conservative states reject proposed bans, recognizing that stifling competition goes against free market principles.
So while some try to turn this into a divisive issue, the reality is that alternative proteins offer bipartisan benefits. GFI’s role is to work across the spectrum to make sure the rules are fair, consumers have choices, and companies have the chance to compete on a level playing field.
AFN: What products or tech in this space are you personally excited about?
NS: At home, we eat quite a few plant-based alternatives; they’ve really just become part of our normal routine. I also recently had the chance to try cultivated salmon, and it was amazing, definitely a highlight so far in my short time at GFI.
I’m particularly excited about what’s happening in fermentation. It’s one of the most dynamic areas of innovation right now, with so much potential to improve taste, nutrition, and sustainability all at once.
What gives me the most hope is how quickly the science is moving across all the alternative protein categories we focus on at GFI. We’re starting to see real momentum building.
AFN: You’re stepping into this role at a time when the alt protein sector is facing major headwinds. What drew you to join GFI at this time?
NS: Throughout my career—from protecting forests in the Amazon to scaling climate and public health initiatives—I’ve seen how deeply our food system drives many of the world’s biggest challenges.
What excites me about GFI is the chance to tackle a very difficult, but equally impactful task: transforming how we produce protein.
Even in a tough moment for the sector, GFI’s role—advancing the science, engaging and educating policymakers, and catalyzing the alternative protein industry—is more urgent than ever.
Joining now feels like the right culmination of my work to date, and the right time to help push this transformation forward.
Further reading:
Vivici and The Every Co explore 4m-liter alt protein facility in UAE
Plant-based cheese startup Stockeld Dreamery shutters as flexitarian dream fizzles
