Beyond Trends: Why Product Reformulation Is Becoming a Strategic Imperative 

Product reformulation is no longer just a response to fleeting consumer trends. It's a strategic necessity and an opportunity to lead. From regulatory shifts to supply volatility and rising ingredient costs, food and beverage companies are under pressure to rethink their formulations not only for performance, but for resilience. 

At Bright Green Partners, we recently hosted a webinar on this very topic. Joined by pioneering ingredient companies and regulatory experts, we explored why reformulation is moving up the corporate agenda and how businesses can do it right. 

Get access to the full webinar recording here.

The Evolving Drivers of Product Reformulation

Once dominated by health and wellness claims, reformulation is now shaped by a broader set of forces, mainly consumer demands and the industry itself: 

These converging factors are not just creating urgency. They're also creating opportunity. Both tech startups and large corporations are embracing this opportunity and reformulating in key areas like sugar reduction, natural sweetener replacements, sodium and fat cuts in recipes, as well as innovation in next generation tropical crops such as chocolate or coffee. 

Startups and corporates reformulating products

It goes without saying that emerging players are striving to replicate the functionality elements of traditional recipes and products - such as taste, nutrition, and sustainability all at once. But it’s rarely a plug-and-play solution these efforts require thoughtful reformulation across the entire product lifecycle. Both tech start-ups and corporates innovate to reformulate products 

Regulatory and Technical Realities of Product Reformulation 

One of the standout voices in our webinar was Mathilde Do Chi, a food law and regulatory expert and member of our BGP Expert Network. She unpacked three essential pillars of reformulation that often trip up companies: food safety, consumer acceptance, and technical constraints. 

Food Safety Isn't One-Size-Fits-All 

Reformulating with next generation ingredients often requires breaking with convention. For example, using traditional safety parameters for conventional foods such as pasteurization for cheese can backfire in the case of fungi-based cheese as this approach results in a product unsafe for consumption! 

Allergenicity and cross-contamination is also a factor that requires closer examination. Global regulations vary: while sesame is a mandatory allergen in the EU, passionfruit is not. More importantly, newer proteins (like pea) may trigger allergies similar to soy due to cross-reactivity, which is not always addressed in regulatory frameworks. 

Consumer Acceptance Is Local 

Reformulation doesn’t stop at the lab. It’s about consumer trust. Texture expectations, terminology, and even labeling must be adapted by market. For instance, tofu preferences vary dramatically between Europe and Asia. Likewise, calling a product "mycoprotein" may resonate in some regions but raise eyebrows in others. 

Religious and ethical considerations also matter. Third-party certifications (like halal or kosher) might be voluntary in one market but essential in another. 

Trade, Tax, and Technical Constraints 

Products that don’t fit into conventional categories can get lumped into “Other” under the HS code system, often leading to unfavorable tax rates and complicating global trade. 

Moreover, scale-up comes with its own barriers. Trying to produce next generation products using processes designed for conventional foods rarely works. Reformulation often requires new manufacturing protocols altogether. 

Regulatory Considerations 

While food is a global necessity, the regulatory frameworks governing it are anything but unified. Supranational bodies like the EU offer relatively streamlined processes to access the market of all 27 member states. In contrast, regions like ASEAN, are making progress toward harmonization but still operate largely on a case-by-case basis. While Singapore is the clear leader with innovation-friendly efforts, other countries still face regulatory gaps that make scaling reformulated products more complex. For companies reformulating for global markets, this patchwork system means regulatory strategy must be built in from day one. 

Real-World Product Reformulation in Action 

While the barriers to reformulation are real, ranging from regulatory complexity to functionality trade-offs, a growing number of innovators are showing what's possible. During our recent webinar, several companies shared how they’re turning these challenges into opportunities through smart ingredient development, technical collaboration, and market-savvy formulation strategies. 

Maia Foods, represented by Chief Innovation Officer Dr. Sean Lacoursiere, is a Canadian startup producing mycelium-based protein, developed a textured protein blend with pea that outperformed soy in both taste and functionality. Crucially, it eliminated the need for a 24-hour hydration step, reducing time and operational cost for food manufacturers. 

Amai Proteins, led by CEO Dr. Ilan Samish, has developed the world’s most stable sweet protein, enabling up to 70% sugar reduction in applications like ketchup. Their reformulation approach focused not only on sweetness, but also on maintaining bulking and mouthfeel, often using dietary fiber or natural stabilizers. 

California Cultured, represented by CEO Alan Perlstein, is pioneering cell-cultured cocoa and coffee. Their low-bitter and alkaloid-free cocoa variants are being blended into existing chocolate products to address sustainability concerns, regulatory risk, and ingredient consistency. Additionally they can unlock the pet chocolate market as their cocoa is safe for pet consumption, due to the absence of caffeine and theobromine. 

Griffith Foods, with insights from Managing Director Alternative Proteins Michael Snodgrass, is a global ingredient solutions provider, has launched an Alternative Proteins Portfolio to help food manufacturers reformulate with speed and flexibility. The portfolio includes seasonings, sauces, binders, and coatings tailored for plant-based and hybrid protein applications. Designed to be modular and customizable, these solutions reduce R&D time while maintaining taste, texture, and scalability.  

These cases all point to a broader shift: reformulation as a platform for collaboration between upstream innovators and downstream brands. 

What Success Requires

Our expert panelists shared the key considerations for companies to reformulate effectively: 

  1. Early regulatory involvement: Don’t wait until the end of product development to consult regulatory experts. From novel ingredient approval to GRAS status to allergen declarations, engaging early can prevent costly delays. 
  1. A hybrid mindset: Full replacement isn't always feasible. Many successful product reformulations start by blending conventional ingredients with next-gen inputs to gradually improve functionality, resilience, and perception. 
  1. A broader cost lens: Focus on cost-in-use, not just cost-per-kilo. Ingredients that streamline production or reduce other inputs can drive net savings even if their unit price is higher. 

Contextual consumer insights: What works in the Netherlands may not work in China. Local taste preferences, ingredient perceptions, and labeling standards should guide reformulation efforts from the outset. 

Looking Ahead 

Reformulation is becoming a core strategy for future-fit food businesses. Not only to meet changing consumer and regulatory expectations, but to manage ingredient risk, stabilize pricing, and unlock new sources of value. 

It requires new ways of working and can be complex. But if done right, reformulation is more than a technical process - it’s a strategic opportunity to lead the next era of food innovation. 

To learn more about how Bright Green Partners helps companies with reformulation, strategy, and innovation partnerships, get in touch with our team. 

Get access to the full webinar recording here.

Work with Bright Green Partners

Whether you need help understanding the business case of your next-gen ingredient, scouting of reformulation technologies or a due diligence on emerging technologies. We are your source for trusted AgriFood Tech expert insights & consulting, so you can make informed decisions. Schedule a call with our Managing Partner, Floor Buitelaar, to discuss how we can support you with expert-driven insights

Key AgriFood Tech trends to watch in 2025

As the agrifood tech sector heads into 2025, global challenges like climate change, resource scarcity, and rising consumer expectations are pushing the boundaries of innovation. This year will see a strong focus on addressing ultra-processed food challenges, scaling precision innovation, valorizing side-streams, adopting regenerative agriculture, and capitalizing on the functional foods boom. Each of these trends presents unique opportunities for food corporates to redefine production, sustainability, and consumer engagement strategies. 

Read time: 6-8 minutes 

Introduction 

As we look towards 2025, the agrifood tech sector is positioned for transformative growth. Global challenges like population growth, resource scarcity, and climate change are accelerating the need for innovation, while evolving consumer preferences for minimally processed, transparent, and nutritious options are reshaping industry priorities. Rising food demand, stricter climate regulations like CSRD (Corporate Sustainability Reporting Directive), and the pressure to adopt sustainable practices present both challenges and opportunities for corporates to redefine how food is produced, distributed, and consumed.  

Explore how agrifood corporations are set to transform the sector in 2025 by driving change in five key areas. Leveraging insights from our BGP network of over 2,500 experts, we highlight how these businesses are harnessing emerging trends to shape a more sustainable and innovative future. 

5 Agrifood Tech Trends for 2025 

1. Tackling the Ultra-Processed Food (UPF) Challenge 

As consumer demand for healthier, more natural options intensifies, food corporates face mounting pressure to reformulate products perceived as overly processed. This trend is particularly acute in the plant-based sector, where highly processed components, such as protein isolates, are increasingly being replaced by minimally refined alternatives like native pulse flours and protein concentrates. While these alternatives may offer slightly reduced functionality, they better align with consumer priorities for simplicity and transparency. 

"Any sort of technological advances which can reduce the perception of processing in the consumer's and retailer's eyes is going to be incredibly important, especially in plant-based foods” – BGP Expert, Anthony Warner  

The shift is not merely about ingredient changes but about maintaining the delicate balance between functionality, cost, and consumer perception. Food companies are increasingly replacing ingredients like carrageenan and hydrocolloids with more natural or natural-looking alternatives, such as those developed through advanced plant protein categorization and modification to achieve gelling or structural properties. Ingredion has introduced NOVATION Indulge 2740, a clean-label starch designed to replace carrageenan in dairy-based desserts, offering similar texture and stability while allowing for simpler ingredient labeling. Similarly, the cultivated meat industry faces significant challenges related to ultra-processing, which remains integral to production. Alongside scaling and commercialization, companies will need to innovate on the positioning of end-products to gain consumer acceptance.  

The implications for corporates looking to tackle UPF challenges are significant: 

2. Continued Growth in Precision-Based Approaches  

Precision technologies, including precision fermentation and precision farming, are transforming the agrifood sector, with 2025 expected to bring a stronger focus on scaling and capacity-building to meet future demand. Precision fermentation, which has primarily focused on alternative proteins, is now expanding into broader applications like flavorings, bioactives, and functional ingredients. 

However, 2025 will mark a shift toward addressing key challenges, particularly the need for industrial-scale infrastructure to reduce costs and achieve wider adoption. Companies like Vivici are already leading the charge, investing in capacity expansion and strategic partnerships to overcome bottlenecks in scaling. 

On the farming side, precision technologies such as AI-driven monitoring, robotics, and IoT-enabled tools will see increased adoption to optimize crop yields, resource efficiency, and supply chain sustainability. Governments and private investors are expected to play a more active role in funding scalable solutions, as the sector prioritizes not just innovation, but operational efficiency and resilience for the future. 

The emphasis in 2025 will be on creating the infrastructure and partnerships needed to transition these precision technologies from niche innovations to mainstream solutions, ensuring they meet the growing global demand while driving sustainability and economic viability. 

Implications for corporates: 

3. Driving Innovation Through Side-Stream Valorization 

In 2025, the focus on valorizing side-streams—turning byproducts into valuable inputs—will intensify. Companies are increasingly investing in technologies to extract value from side-streams, such as extracting protein from brewers’ spent grain. For example, through its subsidiary EverGrain, AB InBev upcycles spent barley grains from brewing into high-quality protein ingredients for food and beverage products.  

With consumer priorities rooted in cost, taste, and functionality, corporates are strategically adopting these innovations not only to meet consumer expectations but also to achieve operational and economic advantages. The corporate focus is increasingly driven by the potential for cost reductions, margin improvements, and short-term commercial opportunities. Additionally, these strategies align with growing sustainability goals, enabling companies to discreetly integrate innovations while enhancing profitability and reducing environmental impact.  

"The general challenge with sustainability is it's got to lead with a cost number. When you can take something and turn it into a value-add product—you've monetized it and you've hit the sustainability button."​ – David Ziskind, BGP expert 

Implications for corporates: 

Read more about side-stream valorization here 

4. Accelerating Supply Chain Sustainability with Regenerative Agriculture 

Regenerative agriculture is shifting from a niche initiative to a core sustainability strategy for agrifood corporates. In 2025, the integration of advanced technologies—such as AI-driven soil analysis, precision agriculture tools, and carbon capture monitoring platforms—will accelerate the adoption of regenerative practices. This shift is further fueled by mounting regulatory and market pressures to meet 2030 sustainability targets and demonstrate progress ahead of COP30 (Read more about COP30 here).  

"Platforms that integrate technology with regenerative agriculture could help the food industry make sustainability claims more accessible to fulfill." – BGP expert

Platforms like Indigo Ag and Regrow enable farmers to track and verify soil health, carbon sequestration, and water use, providing corporates with measurable data to support sustainability claims. At the same time, predictive analytics and precision tools optimize input use, helping farmers reduce costs and increase yields, while creating premium opportunities for verified sustainable crops. 

For corporates, the implications of these advancements span multiple strategic priorities: 

5. Growing Prominence in Functional Foods 

In 2025, the demand for functional foods—products enhanced with additional nutrients to provide specific health benefits—will continue to rise. Asia-Pacific is the fastest-growing market for functional foods, driven by rising health awareness and shifting dietary preferences. Key markets like China, India, and Japan are driving this growth, reflecting a strong shift toward preventative healthcare through nutrition. Additionally, the region’s growing population and increasing disposable income is driving spending in this area. Despite its rapid expansion, the region still holds significant untapped potential compared to more mature markets like Europe and the United States, presenting a unique opportunity for growth and innovation. 

Certain segments are experiencing particularly rapid growth in the Asia-Pacific region, with gut health leading the way due to heightened consumer interest in probiotics and prebiotics for digestive wellness. Immune-boosting products are also booming, as the pandemic has solidified long-term demand for foods and beverages fortified with vitamins like C and D, as well as zinc. Additionally, products targeting cognitive health and energy—such as those containing adaptogens, nootropics, and plant-based ingredients—are gaining popularity, especially among younger, health-conscious consumers.  

Implications for corporates: 

Partner with BGP 

As you plan for 2025, the opportunities and challenges in improving sustainability while continue driving profitability and appealing consumer innovation have never been greater. Whether you’re focusing on optimizing side streams, integrating new technologies in farming, or entering new markets, having the right partner can make all the difference. 

At Bright Green Partners, we specialize in helping companies define their next opportunities and pursuits in the agrifood tech space, ensuring they stay ahead of industry trends and challenges. 

Whether you're exploring the topics above or broader agrifood tech opportunities, we're here to support your planning process. Leveraging our deep expertise across the value chain, we provide actionable insights and strategies to position your business as a leader in sustainable and resilient food systems. 

Connect with our Managing Partner, Floor Buitelaar, to discuss how we can help shape a more profitable, sustainable, and climate-conscious future for your business. 

BGP Expert talk: Future food foresights with expert Tony Hunter

BGP Expert Talk

In this BGP Expert Talk, Floor Buitelaar, Managing Partner at Bright Green Partners, speaks with Tony Hunter, a leading food futurist, scientist, and strategic foresight consultant with decades of experience. Known for his expertise in food, beverage, and agriculture, Tony provides a unique perspective on where the agri-food industry is heading. Their discussion covers foresighting, consumer trends, and major shifts anticipated in food production and development.

What does foresighting mean for food systems?

Tony opens by emphasizing that foresighting is less about predicting the future and more about identifying “signals of change” that reveal potential shifts in the food system’s trajectory. These signals suggest that the global food system of 2050 will be vastly different from today’s. With “alternative futures” as possibilities, foresighting allows companies to anticipate and prepare for multiple outcomes. This approach equips companies to handle disruptions, helping them develop strategies that keep them competitive regardless of how the future unfolds.

How can companies use future exploration to guide today’s decisions?

Exploring future scenarios helps companies make strategic decisions today, even if these futures seem distant. Tony explains that “backcasting”, working backward from a potential future vision, reveals the steps, resources, and strategies necessary to reach it. By establishing adaptable core strategies, companies can respond to evolving industry trends and make timely decisions, staying ahead of competitors.

What are some major consumer trends in agri-food tech?

Tony identifies two transformative trends shaping agri-food tech: personalization and the rise of Generation Alpha. Personalization is now integral to our lives, from Netflix recommendations to loyalty programs, and soon, consumers will demand the same tailored experience in their food choices. He anticipates that personalization in food will become essential to meet consumer expectations around health and wellness.

Generation Alpha, born between 2010 and 2024, represents another significant trend. Expected to number 2 billion by the end of the year, they are not only digital natives but also “technology natives.” Growing up with innovations like robotics, mRNA vaccines, and generative artificial intelligence, this generation will likely embrace food technology seamlessly, profoundly influencing the future food system.

How will the product development cycle change in the future?

Tony foresees a major transformation in the product development cycle for food companies. Traditionally, bringing a new product from concept to market could take 18 months or longer. However, as technology accelerates, this timeline could shrink to as little as 18 weeks. This accelerated cycle will require companies to become more agile, with faster decision-making, leaner development processes, and rapid testing to keep pace.

Tony explains that this shift demands that companies rethink how they approach prototyping, testing, and consumer feedback, making speed a competitive advantage. Those that can quickly adapt will be better positioned to capture emerging consumer trends, meeting demands and maintaining relevance in an increasingly dynamic market.

What would you say in terms of resource efficiency?

Sustainability is a driving factor for the future of food systems, with Tony emphasizing the need to conserve fresh water and arable land. As global freshwater supplies continue to diminish, technologies that reduce water use or enable recycling will be highly valuable. Companies that prioritize resource efficiency not only support sustainable practices but also gain a competitive advantage as resource scarcity becomes more pressing.

What mindset or cultural shifts do organizations need?

“No one can predict the future. There are many possible futures, which means flexibility and agility are essential. When planning ahead, forget the usual three- or five-year approach where you just tack on another year. You have to look longer term, and ten years is a great timeframe. When you ask people what they’ll be doing in ten years, they often respond, ‘I’m not really sure.’ But ask them about next year, next month, or next week, and they’re far more certain. That ten-year view opens up the mind to new possibilities.

In line with this, it’s important to remember that people think linearly—one week is one week, one year is one year—but technology progresses exponentially. So, where people might expect steady progress—1, 2, 3, 4, 5—technology advances at a rate like 2, 4, 8, 16, 32. This makes it dangerous to plan in a linear way in an exponential world. Organizations need to adopt an exponential, rather than a linear, mindset,” Tony says.

Final reflections from Tony

Tony concludes on an optimistic note, emphasizing his belief in technology's potential to address global challenges, including feeding a growing population. “One thing to remember,” he says, “you cannot solve today’s problems with yesterday’s technologies.” For him, embracing technological innovation is key to navigating the future of food. Tony believes that this is the most exciting time in decades for the food industry, especially for those prepared to lead with forward-thinking solutions.

Are you prepared to position your business at the forefront of the sustainable food industry? Connect with Floor Buitelaar, Managing Partner at Bright Green Partners, to explore how we can craft a tailored strategy that aligns with your company’s objectives. Don’t wait for the market to evolve—take proactive steps now to lead in innovation and sustainability.

Hybrid food products: Bridging sustainable food and taste

Why you should read this
Discover how hybrid food products, combinations of animal and plant-based ingredients, are reshaping the sustainable food landscape. This article explores the potential of hybrid foods, their environmental impact, consumer acceptance, and how companies can effectively position these innovative products to capture this growing market.

READING TIME: 8-10 MINUTES

As consumer demand for sustainable food grows, an increasingly interesting option are hybrid products to cater to those seeking environmental benefits without giving up the tastes they love. But hybrids are more than just a compromise. Done right, they offer enhanced flavor, better nutrition, and a lower carbon footprint, making them a unique solution for flexitarians and environmentally-conscious eaters alike. This article dives into why hybrids are gaining traction, the challenges they face, and how companies can leverage innovation to get the right flavor, nutrition, and positioning mix to capture this growing market segment. If you want to understand the future of hybrid foods and how to capitalize on their potential, keep reading to learn about this.

Environmental potential

One of the main reasons to consider hybrids is their potential to reduce the GHG emissions per kg or per nutritional value of a food product. For example, a recent study in Nature, found that if 50% of the main animal products (pork, chicken, beef and milk) are substituted—net reduction of forest and natural land is almost fully halted and agriculture and land use GHG emissions decline by 31% in 2050 compared to 2020. The reduction in animal product consumption can also come in a way of a partial substation with plant-based ingredients in food items such as processed meats and dairy products. These plant-based ingredients have a significantly smaller carbon footprint than their animal counterparts and can drastically reduce the footprint of the blended hybrid product. 

Hybrid product taste 

Whether this environmental potential will be realized and at what pace, depends on consumers’ acceptance of these hybrid products. Several recent studies (Caputo et al. 2022, Chandler & McSweeney 2022) have tried to estimate consumer acceptance and willingness to pay at different levels of plant-based substitution and in both blind and informed tastings. A common finding is that while all else equal 100% beef burgers are still the first choice, consumers prefer 25-50% plant-substitute over fully plant-based burgers. However, more research is needed to fully understand consumer preferences in relation to substitution share and price. For example, Hormel’s Burke brand research started with a 50/50 mix, but after a lot of trial and error, a 70/30 combination worked best. 

Non-environmental benefits

In addition to the lower GHG emissions, hybrids offer plenty of other benefits compared to pure animal, plant-based or cultivated products. First and foremost is the cost. Plant-based ingredients can significantly lower the cost of meat products, which is especially important in settings like quick service restaurants (QSR), where consumers are less demanding and low costs are paramount. They can also be used to blend in cultivated products to bridge the gap to the time when cultivated products are affordable enough to be sold in a pure form. For example, GOOD Meat’s cultivated chicken nuggets, launched in Singapore in 2020, were a hybrid of plant-based and cultivated ingredients. Compared to fully plant-based products, on the other hand, hybrids offer more product development flexibility by adjusting the share of cultivated/animal component in the final product to achieve the desired texture, taste, juiciness, etc. The animal component also masks certain off-putting flavors such as bitter or ‘green’ notes coming from soy or peas and thus enhances the overall sensory experience.  

Furthermore, hybrid products can be used to cater to consumers with animal welfare or environmental concerns but who are hesitant to completely eliminate traditional meat and dairy from their diets. By blending plant-based with cultivated components or conventional animal proteins, hybrid products offer a middle ground that allows these consumers to make a positive impact while still enjoying the flavors and textures they’re accustomed to. This approach can cater to those who are open to change but prefer a more gradual shift in their eating habits. 

Challenging positioning hybrid products

One of the primary challenges for hybrid products is their complex market positioning, which heavily influences consumer perception and acceptance. For traditional meat consumers, blending animal proteins with plant-based ingredients can be seen as compromising on quality, similar to "watering down" a premium product. This perception of diluted value often leads to resistance, as pure meat is viewed as a higher-quality option. This dynamic is reminiscent of past backlash, such as when rumors spread about fast food chains using soy fillers in their beef patties, causing consumer outrage and forcing companies to emphasize the “100% pure” nature of their products to restore trust. For plant-based consumers, on the other hand, the addition of animal-based components contradicts their motivations for choosing plant-based products, which are often driven by health, ethics, or environmental concerns. This dual challenge can create a scenario where hybrid products fail to resonate with either target group, making it difficult to establish a clear value proposition in the market. Indeed, previous attempts at hybrids such as almond-dairy milk blend Live Real Farms or Tyson’s Raised and Rooted hybrid meat and plant-based burgers underperformed in the markets. However, some products like Perdue’s Chicken Plus are still performing well and indicate that blended products have a place on the shelves in the future. 

New opportunities

Despite challenges with consumer perception and positioning, the hybrid food sector shows strong potential, particularly as new entries and innovations continue to shape the category. Companies are increasingly leveraging hybrid products to cater to flexitarian consumers looking for a balance between taste, nutrition, and sustainability. 

Several recent product launches and R&D efforts illustrate the evolving landscape. For example, Lidl Netherlands introduced a hybrid minced meat product that substitutes 40% of the beef content with pea protein, resulting in a 37% reduction in emissions. This product, which is priced 33% lower than traditional ground beef, reflects how strategic ingredient substitution can enhance environmental benefits without sacrificing consumer appeal. 

In the hybrid dairy segment, innovations are emerging with combinations of hybrid cheese with dairy, fava beans and mealworms. Similarly, Israel-based food tech company Wilk has developed a hybrid yogurt product that blends plant-based ingredients with cultivated milk fat, aiming to address cost and sensory challenges in the alternative dairy market. 

Meanwhile start-ups Meatable and Love Handle plan to release a range of hybrid meat products including dumplings, patties, and cold cuts, which combine plant-based ingredients with cultivated meat to offer a closer match to traditional meat flavors and textures. This approach allows companies to introduce cultivated ingredients more cost-effectively while gradually building consumer acceptance. 

Outlook: Getting positioning, flavor, and nutrition for hybrids right

For hybrid food products to gain wider acceptance, innovators and investors need to focus on a multi-pronged strategy that addresses consumer expectations around flavor, nutrition, and positioning. Successful hybrid products should prioritize delivering enhanced flavor experiences while offering nutritional benefits without compromising on taste. This is particularly important as research shows that consumers still choose traditional meat primarily for its flavor and texture, making it crucial for hybrid products to maintain these sensory qualities while integrating plant-based or cultivated components. 

Positioning strategies should emphasize the unique selling points of hybrids rather than framing them as a compromise. For example, leading with flavor by incorporating ingredients like roasted vegetables, herbs, or spices into blended meats can create a more appealing profile. Highlighting these enhanced taste experiences will attract not just health-conscious flexitarians but also conventional meat-eaters looking for variety. 

From a nutritional standpoint, hybrid products have the potential to offer better nutrition without compromise. By blending animal proteins with high-quality plant-based ingredients, hybrids can achieve a balanced nutritional profile—providing benefits like higher fiber content, reduced saturated fats, and added vitamins or minerals. Innovators should explore combinations that optimize both sensory and nutritional attributes, making hybrid products a truly better-for-you option that doesn’t sacrifice taste. 

Summary

Hybrid food products offer a practical solution for consumers seeking both sustainability and familiar eating experiences. By blending animal, plant-based, and even cultivated ingredients, they promise lower environmental impact, improved nutrition, and flexible product development opportunities. However, to succeed in this market, brands must get the balance of taste, nutrition, and messaging right. Positioning should focus on unique sensory experiences and nutritional enhancements rather than framing hybrids as a halfway measure. Innovators who lead with flavor and ensure hybrids offer tangible health benefits, without sacrificing on taste, are more likely to capture the attention of a growing flexitarian consumer base. As more companies enter the space, hybrid products could evolve from a niche offering into a mainstay of the modern food industry. 

Partner with Bright Green Partners

Corporates in the food and beverage sector are increasingly exploring hybrid food products as a response to shifting consumer preferences towards sustainable and ethical choices. Embracing these innovations can enhance market positioning and address reputational considerations in a competitive landscape.

Bright Green Partners offers expertise in navigating the complexities of the hybrid food market. Whether you require strategic insights on consumer trends, due diligence on emerging hybrid technologies, or support in developing a compelling product line, our team is equipped to assist. With a strong background in sustainable food innovations, we can help your business leverage the opportunities presented by this evolving sector.

Schedule a call with our Managing Partner, Floor Buitelaar, to discuss how we can support your exploration of hybrid products and enhance your competitive advantage.

Alternative coffee: Supply chain risk mitigation and beverage growth opportunities

Discover how alternative coffee can address supply concerns and offer growth opportunities for investors.

READING TIME: 8-10 MINUTES

Summary

Coffee, the drink that brings people together—whether in homes, cafés, or offices—is woven into the fabric of daily life worldwide. It is the flavor people wake up to, a ritual that fuels connection. Yet, the future of this beloved beverage is at risk as climate change, rising costs, and labor challenges threaten its supply. Businesses may struggle to sustain supply and control rising costs, which could lead to shortages of consumers' daily cup. This article explores how innovative alternative coffee technologies can not only preserve the availability of coffee but also offer businesses and investors critical opportunities to navigate these disruptions and secure sustainable growth.

Coffee in our society

Coffee has been consumed for centuries, not only as a beloved beverage but also as a ritual stimulant and a vital social lubricant. Historically, during periods when coffee was scarce or too expensive, people turned to various alternatives. These alternatives, often devoid of caffeine, served as makeshift replacements during economic downturns or supply shortages. For example, during World War II and its aftermath, when coffee supplies were limited, products like Caro in Germany and Postum in the United States gained popularity. These beverages, made from ingredients like chicory, barley, and other grains, offered a comforting semblance of coffee's warmth and aroma without the caffeine.

The tradition of brewing coffee-like drinks from other plants dates back even further. In the Middle East, date seeds have been used for centuries to create a rich, dark brew. Similarly, in pre-Columbian Central America, the Mayans utilized ramón tree seeds for their ritualistic beverages. Across Europe and Western Asia, a variety of plants such as dandelion root, chickpeas, and figs have been employed to produce coffee substitutes, often also touted for their health benefits.

These creative solutions were not merely byproducts of necessity but reflected a deep-rooted adaptation to coffee's intermittent availability. By the mid-19th century, as coffee became more widely consumed, the development of these substitutes mirrored the burgeoning coffee culture, providing alternatives that prioritized flavor over caffeine content, and marking an enduring legacy of resourcefulness in human dietary history.

The need for alternatives

The cultivation of Arabica and Robusta, the primary species grown for the coffee consumed worldwide, faces challenges due to its delicate nature and specific environmental requirements. Thriving in the rare stable, moderate climates of highland tropical regions such as Brazil, Ethiopia, and Indonesia, coffee requires shaded conditions, consistent rainfall, and temperatures close to 20°C (70°F). However, the escalating impact of climate change is threatening these ideal growing conditions. Rising global temperatures, erratic weather patterns including severe droughts and floods, and the increasing prevalence of pests and diseases such as coffee rust are reducing yields, and pushing cultivation into new areas, leading to further deforestation and biodiversity loss. This is even further exacerbated by the rising global demand for coffee, especially in developing countries.

Recent extreme weather events in major coffee-producing countries like Brazil have already driven Arabica coffee prices to a 13-year high and Robusta to a 45-year high, illustrating the volatility of the market and underscoring the urgent need for sustainable alternatives. In fact, Lavazza, one of Italy’s largest coffee roasters, has warned that coffee prices are unlikely to decrease anytime soon, signaling long-term financial instability for producers. This financial strain is compounded by fluctuating market prices and the increasing costs of combating climate-related challenges, making the coffee industry economically unsustainable for many farmers as well.

The environmental impact of coffee cultivation extends beyond deforestation. Coffee is also one of the most carbon intensive agricultural products. According to Our World in Data the carbon opportunity cost (carbon lost from native vegetation and soils in favor of agriculture) of coffee beans is only superseded by ruminant meats and cocoa beans. This environmental toll necessitates the exploration and adoption of coffee alternatives that require less resource-intensive farming practices and offer greater resilience to climate impacts.

Moreover, the coffee industry also faces labor exploitation, with many workers receiving inadequate compensation. These issues further emphasize the need for more sustainable and equitable practices.

Consumer trends

While the major coffee issues are supply-related, it is important to also consider the evolving consumer preferences as more people align their choices with health, sustainability, and ethics.

Health-conscious consumers are driving the demand for products that go beyond just delivering a caffeine boost. Options like protein-infused "proffee" and functional coffees with added antioxidants, vitamins, or adaptogens are growing in popularity. These offer added benefits, such as improved focus, energy regulation, and stress relief, catering to those seeking nutrient-rich, wellness-oriented alternatives.

Alongside health trends, there’s a growing interest in exploration and variety. Many consumers are experimenting with different global coffee origins, alternative brewing methods, and varying caffeine levels, including caffeine-free options that still offer the coffee experience. This desire for exploration stems from curiosity and a demand for personalized experiences tailored to individual tastes and dietary needs, which also includes non-coffee drinks such as matcha.

Consumers are also becoming increasingly mindful of the environmental and social impact of their coffee purchases, favoring brands that adopt sustainable farming methods, reduce carbon footprints, and engage in fair trade practices. This sentiment is also reflected in a statement from Suntory, following an investment in alt coffee maker Atomo: “As consumer awareness of environmental considerations increases worldwide, demand for more ethical products is expected to increase in the field of beverages as well.”

Alternative coffee technology

In a broader sense of coffee alternatives, we have two types: replacers and non-replacers. The replacers, which are the focus of this article, look and taste like coffee, while the non-replacers such as chai or matcha offer a similar drink experience but do not taste like coffee.

These replacer alternatives are designed to reduce the environmental impact of traditional coffee cultivation and provide new options for consumers. Here’s a look at the three key technologies: molecular coffee, cellular coffee, and climate resistant coffee.

Alternative coffee types Bright Green Partners

Molecular coffee

Molecular coffee could be seen as the continuation of the centuries old practice of using different agricultural products that recreate the primary flavor profile of coffee. The difference is the use of modern approaches such as fermentation that achieve a level of precision previously unattainable. One of the leading companies in this space is Atomo Coffee, who has innovated by converting compounds from plant waste, such as date seed extracts, chicory root, and grape skins, into flavors typical of green coffee. This method results in a dramatic reduction in environmental impacts, boasting 83% lower carbon emissions and 70% less farmland usage than conventional coffee production, along with eliminating the need for deforestation. Atomo Coffee's product represents a significant step forward in sustainable coffee production.

Cellular coffee

Another biotech method, cellular coffee uses real coffee cells cultivated in reactor. This method is similar to techniques used in lab-grown meat and involves growing coffee cells in a nutrient-rich medium, which are then processed into a powder form that can be brewed like traditional coffee. Unlike cultivated meat, plant-based cultivated products like cellular coffee and cocoa are less complex. This means the cell culture medium is also less expensive, which is one of cultivated meat’s biggest challenges. The Finish institute VTT, a leader in this technology, grows its coffee by floating cell cultures in bioreactors. This process is pesticide-free, has a significantly lower water footprint, and reduces transport emissions by allowing coffee to be produced in local markets. VTT is currently working on a life cycle analysis to quantify the environmental benefits of its method, promising a much lower impact compared to conventional coffee cultivation.

Cellular coffee progress Bright Green Partners

Climate-resistant coffee

Out of the 100+ known coffee species, nearly all global consumption comes from just two: Arabica and Robusta, which account for 56% and 43% of worldwide production, respectively. A promising alternative approach is the use of climate-resistant species such as the recently rediscovered Coffea stenophylla. This species can tolerate temperatures 6°C higher than Arabica coffee, making it highly resilient to climate change. Coffea stenophylla also boasts a flavor profile comparable to high-quality Arabica, making it a strong candidate for future coffee production in warmer climates. Another approach being pursued by Starbucks and Nestle is the development of different Arabica varieties, better resistant to heat and diseases. However, the issues with environmental and ethical impact associated with traditional Arabica and Robusta coffee farming are still applicable.

Promising startups in alternative coffee

Conclusion

The disruption of the traditional coffee value chain is imminent, driven by climate change, environmental degradation, and shifting consumer expectations. As demand for coffee surges, it is clear that traditional cultivation practices are unsustainable. For corporates in the food and beverage sector, the rise of alternative coffee technologies presents both challenges and opportunities. Embracing innovations like molecular and cellular coffee, or even investing in climate-resilient coffee species, could position companies as leaders in the future of sustainable coffee. On the other hand, failure to adapt may result in lost market share and reputational risks as consumers increasingly prioritize ethical and environmentally friendly options. The future of coffee is evolving rapidly, and forward-thinking corporates must act now to stay ahead of these transformations.

Partner with Bright Green Partners

Corporates in the food and beverage sector must adapt by embracing alternative coffee technologies, or they risk losing market share and facing reputational challenges as consumers prioritize ethical and sustainable choices.

Bright Green Partners is here to help. Whether you need strategic insights, due diligence on emerging technologies, or support in navigating the complexities of the alternative coffee market, our team of experts can guide your organization through the transformation. With deep expertise in sustainable food innovations, we will ensure your business is well-positioned to capitalize on the opportunities in this rapidly evolving landscape. Schedule a call with our Managing Partner, Floor Buitelaar, to discuss how we can assist.

Sustainable food: driving industry change – with expert Thomas Nagy

BGP Expert Talk

In our second BGP Expert Talk, Floor Buitelaar, Managing Partner at Bright Green Partners, engaged in a detailed conversation with Thomas Nagy, a renowned strategic and technical biotechnology expert. With over 30 years of senior leadership experience in biotech companies such as Novozymes, BioInnovation Institute, and Astanor Ventures, Thomas merges his extensive expertise with a passion for sustainable food solutions. The discussion focused on the current state and future potential of alternative proteins and their implications for traditional industries.

How would you describe alternative proteins, and what should we consider about the solutions in this category?

Thomas: Alternative proteins are essentially substitutes for traditional animal-based proteins. The term "alternative" signifies that these proteins are developed to provide alternatives to those derived from animal farming or husbandry. The primary advantages of alternative proteins include their potential for more sustainable production and the ability to offer unique functionalities that are not present in current market proteins. Biotech can leverage various sources for alternative proteins, such as plants, cell cultures, and fermentation processes. The most commonly discussed applications for these proteins are in feed and food products.

Floor: At Bright Green Partners, we work across various elements, and a noticeable trend is the growing recognition of the term "alternative proteins." We are now focusing on "complementary proteins" or, as we at BGP describe it, "sustainable food alternatives." This approach highlights that it is not just about proteins but also about considering the supporting ingredients required to create a new protein diet.

Will alternative proteins disrupt traditional industries, and if so, how and when?

Thomas: I hope so, and I hope we won't have to wait much longer to see this transformation. Traditional animal farming practices are incredibly resource-intensive and contribute significantly to greenhouse gas emissions, which drive climate change. Therefore, a swift shift towards more sustainable alternatives is crucial.

The technologies for alternative proteins are advancing rapidly and are ready for industrial scaling. However, many of these alternatives are currently more expensive compared to cheap animal-based proteins. Luckily, I would say that the technologies that I just spoke about and that you added to as well, there's a lot of opportunities for this to happen and to scale this industrially. Unfortunately, many of these alternatives are more expensive than the cheap animal-based proteins that we have today. One of the significant issues is that traditional proteins are priced too low when we consider their environmental and societal impacts.

The introduction of carbon taxes in Europe, including Denmark, is a positive step towards addressing this issue. Such policies help level the playing field by accounting for the true cost of traditional protein production. I anticipate a gradual transformation where alternative proteins become more competitive as we scale up production, improve technologies, and achieve economies of scale.

Initially, alternative proteins may find success in niche markets where their benefits—such as better functionality or unique taste profiles—can be highlighted. For instance, competing with whey protein, which is a byproduct of cheese manufacturing and thus very inexpensive, is challenging. Nevertheless, I see a gradual change and introduction as we scale and as we get to the economy of scale and that learning curve and pricing gets more and more comparable to what we have today.

In which categories do you foresee the most significant disruption from alternative proteins?

Thomas: The categories where I expect to see the most significant disruption are dairy, meat, and functional foods. I also have a dream of hybrid products, which combine plant-based proteins with functional additives. These hybrid solutions can offer improved taste and texture, potentially making them more attractive to consumers.

It is not a revolution, but we need to get in and grow the industry. I think this is happening as we speak, because many of the technologies are available. There is political pressure for change, as we discussed earlier, but there's also a growing willingness within the agricultural and food manufacturing sectors to acknowledge that our current practices are unsustainable in the long term. We need to change, and I believe the conditions are aligning for a market-driven approach to this transition.

The goal is to move beyond just offering something novel or trendy that consumers try once and then return to their usual choices. Instead, we aim to create products that are healthy, tasty, sustainable, and in harmony with society as a whole. Whether it's food, meat, or dairy, our focus is on developing solutions that meet these criteria.

For traditional organizations in the meat and dairy sectors, what opportunities do you see for them in the alternative protein market?

Thomas: For companies traditionally focused on meat and dairy, I would recommend exploring partnerships to reassess and redefine your product portfolio for the future. Consider whether you want to continue relying solely on traditional products, or if you also want to innovate by capturing new markets and attracting younger consumers. If your company lacks in-house technological capabilities, it's essential to reach out and map out the possibilities. Look for innovations, technology companies, startups, or even larger established protein companies that could be potential partners in developing new alternative products and shaping the future together.

For food companies and dairies in particular, consider whether you have byproducts that could be upcycled through fermentation processes or used as feedstock for other ingredients in these new products. It’s important to take a step back and adopt a holistic perspective: What do you want to create within your company? Where do you want to take it? And how can you re-engineer your current processes with external support? While some might argue that this approach is too complex, I believe it's a necessary step to stay competitive and forward-thinking.

It's also important to recognize the risk of doing nothing simply because you don't fully understand the changes happening around you. As you've pointed out, there’s now a carbon tax in Denmark, which is just one example of the regulatory pressures increasing globally. On a personal note, as someone nearing retirement age with grown children who have moved out, I’ve noticed that when I visit them, their refrigerators look very different from what mine did at their age. Consumer preferences are evolving rapidly, and the regulatory landscape is shifting as well.

For those entrenched in the traditional food value chain, change is essential. While I’m not suggesting that these companies are being overtaken, I strongly advocate for collaboration—especially innovative collaborations—focused on bringing new, sustainable, healthy, and tasty solutions to the market. This approach will be crucial in serving a growing consumer base not just in Europe and North America, but around the world.

What are some of the most pressing challenges facing the alternative protein industry today?

Thomas: The primary challenges include achieving price parity with traditional proteins and scaling production. To become a truly bankable industry, it's crucial to move beyond the technical and commercial risks, reaching a stage where replication and rapid growth are feasible. These would be the three key steps.

Achieving this involves various factors, including technological and commercial development, as well as leveling the playing field against traditional protein sources. We've discussed these issues before, and there are certainly parallels to other industries.

What does it take to overcome these challenges and achieve scale in the alternative protein industry?

Thomas: To achieve bankability, maturity, and the point of replication in the industry, I believe setting clear and ambitious targets is crucial. While I may be overly optimistic about the role of politicians, there have been positive steps, such as Denmark's introduction of a carbon tax on agriculture, which is a move in the right direction. However, more decisive action is needed.

What could truly drive this transformation is if we establish clear targets for what we aim to achieve, similar to the EU's targets for greenhouse gas reductions, renewable energy adoption, and electric vehicle deployment. Why not set similar targets for the inclusion of alternative proteins or the decarbonization of the food value chain? Such targets would spur innovation and reduce commercial risks, making new, sustainable technologies more commercially viable for both suppliers and consumers.

Let me provide a couple of examples where political targets have successfully driven industry development. One is the offshore wind and solar farm sectors. The mandated inclusion of renewables in the energy mix has led to significant innovation and engineering advancements. With off-take agreements in place, these industries have matured to the point where there is no longer any significant commercial or technological risk.

Today, pension funds invest in these sectors with the same risk-return profile as any other infrastructure investment.
Another example is the electric car industry in Europe. Not long ago, many major car manufacturers were slow to recognize the growing consumer demand for alternatives to fossil fuel vehicles. However, with supportive measures like bans on fossil fuel cars in certain cities and countries, and tax exemptions for electric vehicles, the industry has shifted dramatically. Today, every major car manufacturer offers a line of electric cars, and this trend is only accelerating.

If we could apply similar strategies to the food and protein sectors, setting targets and providing the right incentives, we could see rapid changes in the value chain and the range of products available to consumers. This would lead to the development of healthier, more sustainable options, benefiting everyone.

True or false: Companies can afford to wait before investing in alternative proteins.

Thomas: No one is forcing you to act immediately. However, based on everything we have discussed, it is clear that significant changes and trends are emerging in society, and it is essential to invest in them.

If you currently lack capabilities in areas like cell culture or fermentation, now is the time to reach out, form partnerships, and engage with the ecosystem of alternative proteins. This will allow you to understand the available offerings and assess how they align with your own capabilities.
While waiting might seem like an option, in the long term, it is a losing proposition. The real opportunity lies in stepping into this space, investing time in understanding it, and then deciding where to focus your development efforts. By doing so, you can shape the markets and products that will define the future, and that is a winning proposition.

Are you prepared to position your business at the forefront of the sustainable food industry? Connect with Floor Buitelaar, Managing Partner at Bright Green Partners, to explore how we can craft a tailored strategy that aligns with your company’s objectives. Don’t wait for the market to evolve—take proactive steps now to lead in innovation and sustainability.