The Protein Transformation: A Critical Driver of the Net-Zero Economy (Blue Horizon)

Summary

• Animal-protein production contributes about 14.5% of total global greenhouse gas emissions.p.3
• Almost 46% of companies (224 out of the 485-company universe) were involved in the traditional plant-based and alternative-proteins space.p.4
• The shift of all companies to mostly plant-based and alternative proteins was estimated to avoid USD 295 billion in market-cap loss.p.4
• Companies generating more than 50% of revenue from these proteins (n=6) showed on average 95% lower value-chain climate transition risk.p.4
• Blue Horizon research projects the alternative-protein market could multiply by a factor of seven by 2035, taking at least 11% of the overall protein market.p.7
• Less than 10% of companies involved in alternative proteins disclosed their exact percentage of revenue from such products.p.16
• A potential market-cap loss of USD 295 billion equates to only 7% of all market cap in the 485-company universe.p.25

Key insights

1. Corporate disclosure on traditional plant-based and alternative proteins was limited and non-standardized.p.4
2. Among those involved in the space, less than 10% generated more than 5% of their total sales from such products.p.4
3. Plant-based alternative proteins were the most frequently mentioned category of alternative proteins in news and company documents.p.27
4. Climate VaR results showed a potential avoided market-cap loss of USD 97 billion under the 2°C scenario.p.24
5. Nestlé SA owned the highest number of patents in traditional plant-based and alternative proteins.p.24
6. European and North American companies appeared best prepared to tap into growing demand for plant-based and alternative proteins.p.15
7. The report was written for investors, companies and regulators.p.5
8. Of the six companies with the largest revenue share from these proteins, Beyond Meat Inc. and Select Harvests Ltd each derive 100% of revenue from them.p.21