If plant-based food keeps struggling as illustrated by Beyond Meat’s underwhelming metrics in the second quarter, innovation in the alternative protein space keeps going unabated. This is hardly surprising, given that the long-term challenges of the food supply chain remain intact, namely the need to massively increase food production to meet rising demand (2 billion more people to feed by 2050) while reducing greenhouse gas emissions and water usage.
At the forefront of alternative protein production lies the nascent and innovative landscape of molecular farming, a field that looks poised to revolutionize the protein market along with the entire food industry, by defining a new avenue for sustainable and cost-effective ingredient sourcing.
Molecular farming is an ingenious method that harnesses the genetic potential of plants to produce specific proteins, replicating compounds typically found in animals or rare sweeteners. The method consists in introducing animal proteins’ gene DNA codes inside the genome of the seeds of the main plants used in food, with each protein being selected to add value in terms of targeted functionality like taste, texture, and nutritional values.
Put differently, molecular farming encapsulates the convergence of nature and innovation, where plants are genetically modified to become “biofactories”, generating vital proteins as they grow.
This innovative process currently targets the production of essential proteins like chymosin, a critical element in cheese-making, gamma-linoleic acid (GLA), a valuable nutritional oil, and bovine myoglobin, which contributes a meaty taste, color, and aroma in plant-based meat alternatives.
These biotechnological achievements have materialized thanks to plants’ property flexibility, such as engineered corn in the case of bovine myoglobin, enabling them to adeptly synthesize vital proteins. This underscores the profound importance of molecular farming as a dynamic force reshaping the alternative protein landscape, positioning it as a novel technological cornerstone for the sustainable production of high-quality ingredients.
This new trajectory to produce alternative proteins presents a marked departure from conventional precision fermentation, whereby an organism, such as yeast, undergoes modification to produce a different substance upon fermentation – a process known for its capacity limitations and elevated operational expenses and capital requirements.
Accordingly, molecular farming is gradually emerging as an efficient alternative, capable of reducing costs and enhancing accessibility in an environmentally conscious fashion. While there’s obviously a cost to extract and purify the proteins, it appears way cheaper to grow animal proteins in food crops than to set up a fermentation facility. And, importantly, there’s already a protein extraction infrastructure in place as illustrated by corn, whose starch and protein are separated by ethanol producers, and a market for the other parts of the crop (starch, oil…).
Initiatives in molecular farming are then multiplying. Private companies in the space include Elo Life Systems and IngredientWerks who have recently announced funding rounds. Both utilize molecular farming for monk fruit sweetener and animal proteins respectively. Monk fruit, a natural sweetener native to China, is garnering increased attention due to its intense flavor and health benefits, being 150 to 200 times sweeter than sugar. It is zero-calorie, does not promote tooth decay, and is suitable for diabetics. Consequently, the challenges in monk fruit production are driving Elo Life’s efforts towards a stable and affordable supply through molecular farming.
Moolec Science, a spin-off from Bioceres Crop Solutions which listed on the Nasdaq earlier this year, has developed prototypes like chymosin and GLA in safflower plants with plans for commercial launch by 2025. Besides, Moolec’s upcoming POORK+ and BEEF+ proteins target a $1.5 billion market by 2025-2029.
The molecular farming landscape is also witnessing a rise in collaborations, exemplified by IngredientWerks and Motif FoodWorks, who have joined forces for the production of innovative heme, which provides meaty and iron-like taste like in red meat. Motif’s Hemami, which emulates beef myoglobin, aims to revolutionize heme sourcing. This partnership entails modifying corn crops for Hemami production, positioning IngredientWerks as a potential key player in this transformative field.
All these initiatives are still early stage. While some are still a work-in-progress in the lab, others are seeking patents and regulatory approval. The business models will also need to be defined, with molecular farming companies having the option to either sell their proteins to food/ingredient producers or license their IP.
In conclusion, it is becoming increasingly evident that molecular farming holds significant promise in reshaping the alternative protein landscape in the years ahead, through enhanced taste, increased affordability, and improved sustainability. That being said, the number of pure players in the public equity space is extremely limited and the funding/risk profile of these companies is still not well suited to current market conditions.
