Don't worry, we will also say: Español (Spanish)!

ALLVP has identified three types of alternative protein start-ups in the region and three reasons why Latin America is suitable for the industry.

Don't worry, we will also say: Español (Spanish)!

Apart from Chilean salmon, Mexican turkey or fine French cheese board, how about choosing a plant-based alternative for this year’s holiday menu?

You may have thought about it. Alternative protein (or alternative protein) startups are booming globally: According to Good Food Institute data, the industry invested $3.1 billion in 2020, more than three times the amount invested in 2019. Big names include Impossible Foods, Beyond Meat, and Perfect Day, all of which are located in the United States, but how do Latin American startups win in this new industry?

The most prominent is NotCo. This Chilean plant-based protein startup has grown by about 400% in 2020, and was valued at US$1.5 billion in the C series of US$235 million financing led by Tiger Global. The first Latin American alternative protein unicorn is making plant-based milk and meat alternatives a reality. 

It is important to say "alternative protein" because plant-based alternatives are not the only food-related technology being developed in Latin America, and NotCo is not the only start-up to disrupt the food industry in the region.

At ALLVP, we are more and more interested in the field of alternative proteins. We have identified three categories in Latin America.

The first is the aforementioned plant-based startups, which are taking a place on supermarket shelves. For example, you can now see plant-based burgers from Plant Squad in Mexican grocery stores. From beetroot burgers to seitan barbecue ribs and chicken nuggets, the Mexico City-based startup has successfully developed a variety of plant-based products at an amazing speed.

When it comes to the dairy sector, Heartbest Foods has successfully used amaranth, peas and quinoa to produce alternatives to milk, cheese and cream. 

The second category is many companies that face the complex challenge of using fermentation to create healthy and delicious plant-based products. The scope of innovation is wide: from protein thickeners, preservatives, coloring agents to flavoring agents. Michroma, a biotechnology company based in Argentina, is using the fungal bio-factory to produce the next wave of natural colorants.

Done Properly comes from Chile and produces 100% natural flavor enhancers to improve the health effects of products on consumers. For example, the company succeeded in reducing the sodium content by 40% by enhancing the natural flavor of food. 

And, although still in the testing phase, we now see a third category of alternative protein start-ups, which focus on cultivating meat. Companies such as Micro Meat in Mexico directly cultivate animal cells, eliminating the need to raise and breed animals. The company has joined a team of outstanding scientists in Latin America who are racing to build the future of meat. 

Why is Latin America ready for alternative protein startups?

We have proposed three answers that can explain the recent boom well:

You may also be interested: Q&A|"Food technology in Latin America has great potential, but requires more investment"; Enrico Robles, Endeavour

Charlotte Paratre is an investment analyst at ALLVP

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