Alternative Proteins as Food for the Future

soya patties

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Alternative Proteins as Food for the Future
SectorMost major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Food and Beverage
Food and Agriculture
Business Model Description

Through B2B and B2C models, companies can buy raw materials from local farmers to process them into alternative protein products, such as plant-based meat, meat substitutes, edible insects, etc.) that they can sell as final products to consumers or as ingredients to other businesses. Alternative proteins can include plant-based meat, meat substitutes, and edible insects. This IOA will help increase income for local farmers that grow the raw materials used to make alternative protein products, help the planet by reducing greenhouse gas emissions and negative environmental impact of livestock production, and help reduce health risks involved with consuming meat for consumers. Investors can invest money in machines and production facility, and product R&D for companies producing alternative protein products. Companies active in this space are:

Malang Ruay is a limited company in Udon Thani province that operates a processing facility that produces various insect food products including cricket powder, cricket active protein, fried or frozen insect products, and other insect-based food supplements. It serves both the domestic and international market, market cap (global) USD 400 million in 2021/Export value USD 76,500 in first half of 2020.

Swees Cheese is a local SME that produces cheese products made from plant-based substitutes, launch first samples in Thaifex food fair 2020, and started incorporation under Swees Plant Based Foods Co.,Ltd at the end of that year (15).

Expected Impact

Alternative proteins provide a sustainable food source alternative to the traditional meat industry, it can also benefit upstream farmers from adding value to byproducts.

Indicative ReturnDescribes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
> 25% (in GPM)
Investment TimeframeDescribes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Short Term (0–5 years)
Market SizeDescribes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
> USD 1 billion
Average Ticket Size (USD)Describes the USD amount for a typical investment required in the IOA.
USD 1 million - USD 10 million
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
Climate Action (SDG 13) Zero Hunger (SDG 2) Zero Hunger (SDG 2)
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
No Poverty (SDG 1) Good health and well-being (SDG 3) Responsible Consumption and Production (SDG 12)
Sector Sources
  • 1) https://www.depa.or.th/storage/app/media/file/investment-bulletin.pdf 2) https://www.boi.go.th/upload/content/Thailand,%20Taking%20off%20to%20new%20heights%20@%20belgium_5ab4e8042850e.pdf 3) https://unfccc.int/sites/default/files/resource/BUR3_Thailand_251220%20.pdf 4) https://unfccc.int/sites/default/files/resource/BUR3_Thailand_251220%20.pdf 5) https://www.ldd.go.th/PDF/DevelopmentPlanNo.13.pdf 6) http://stiic.sti.or.th/wp-content/uploads/2018/10/BCG_Final1.pdf 7) https://thailand.un.org/th/node/103307 8) https://data.worldbank.org/indicator/NV.AGR.TOTL.ZS?locations=TH 9) https://www.boi.go.th/upload/content/TIR7_Aw_Smart%20farming_5e5dc88fa8284.pdf 10) https://kasikornresearch.com/en/analysis/k-econ/business/Pages/Food--Tech-z3254.aspx 11) https://thaiembdc.org/2022/01/31/thailands-plant-based-protein-exports-on-the-rise/ 12) https://www.moac.go.th/moaceng-magazine-files-422991791792 13) https://data.worldbank.org/indicator/SL.AGR.EMPL.ZS?locations=TH
IOA Sources
  • 1) https://kasikornresearch.com/en/analysis/k-econ/business/Pages/Food--Tech-z3254.aspx 2) https://unfccc.int/sites/default/files/resource/BUR3_Thailand_251220%20.pdf 3) https://www.researchgate.net/publication/310443378_Gender_Wage_Inequality_in_Thailand_A_Sectoral_Perspective 4) https://apps.fas.usda.gov/newgainapi/api/Report/DownloadReportByFileName?fileName=Thailand%27s%20Food%20Trends%20in%202021_Bangkok_Thailand_01-25-2021 5) https://ourworldindata.org/greenhouse-gas-emissions#annual-greenhouse-gas-emissions-how-much-do-we-emit-each-year 6) https://ourworldindata.org/co2/country/thailand 7) https://sustainabledevelopment.un.org/content/documents/279482021_VNR_Report_Thailand.pdf 8) https://www.ldd.go.th/PDF/DevelopmentPlanNo.13.pdf 9) https://www.thansettakij.com/economy/500790 10) https://www.weforum.org/agenda/2021/03/alternative-proteins-will-transform-food-mitigate-climate-change-and-drive-profits/ 11) https://www.oecd.org/env/GFE-Gender-Issues-Note-Session-5.pdf 12) http://www.boi.go.th/upload/content/Food%20industry_5aa7b40bd758b.pdf 13) https://www.moac.go.th/moaceng-magazine-files-422991791792 14) https://www.boi.go.th/upload/content/BOI-A%20Guide_EN.pdf 15) https://sweescheese.com/our-story/ 16) https://data.worldbank.org/indicator/NV.AGR.TOTL.ZS?locations=TH 17) https://www.pier.or.th/abridged/2020/11/#fnref-1 18) https://www.doae.go.th/upload/files/DOAE_FARMER_REGISTER.pdf 19) https://thailand.un.org/th/node/103307 20) https://foodinnopolis.or.th/th/home/service/ 21) https://www.acfs.go.th/standard/download/eng/GAP_Food_Crop.pdf 22) https://ap.fftc.org.tw/article/2842 23) https://theconversation.com/five-ways-the-meat-on-your-plate-is-killing-the-planet-76128#:~:text=Livestock%20farming%20has%20a%20vast,produced%20greenhouse%20gas%20emissions%20worldwide 24) https://www.kkpfg.com/th/news/2021041253637