PLANT-BASED PROTEINS 101INTRODUCTION TO PROTEIN, PROCESSES & MARKET OPPORTUNITIES
David FielderSenior Scientist
The Bio-Industrial Opportunities SectionAlberta Agriculture and Forestry
Government of Alberta
February 20, 2020
Content
2
• The growing vegetable-based protein sector
• Marketing the need
• The national and regional scenes
• Protein 101
• Food and non-food uses
• Types of protein processing
Bio-Industrial Opportunities Section
Bio-Industrial Opportunities Section
Focus on diversification opportunities and sustainable practices:
1. Diversify economic opportunities for agricultural processing wastes, biomass (ag and forestry) and by-products
2. Adding value through fractionation for ingredients and intermediates
3. Facilitate commercialization and market access
BIOSection
Bio-product Development
From concept to scale-up:
• Compound natural fibre with (bio)polymer to make new materials
• Extrusion Assisted Extract value-added components from biomass
• Pre-treat biomass to improve efficiency of downstream processing
• Pelletization of biomass for fuel, absorbent, feed, or densify for downstream processing
6
What do we provide?
• Fee-for-service to develop new ingredients, products & processes
• Equipment & Good Manufacturing Practices (GMP) training
• Regulatory assistance• Strategies for commercial scale-up
Helping companies
• Reducing the risk entering the marketplace.• Bridging the gap to allow small scale
manufacturing to occur. • Creating economic growth
Cosmetics/Personal Care & Natural & Non-Prescription Health Products (NNHP)
Value-added Fractionation & NNHP Program
Bio-Processing Innovation Centre (BPIC)Pilot Scale Technical Capabilities:
• Dry Fractionation
• Cold press oil extraction
• Extraction, purification and modification of agrticulturalcrops and other botanicals
• Distillation
• Extrusion
• Freeze drying
• Spray drying
Bio-Industrial Innovation Lab
Bio-Lab located on 4th Floor, O.S. Longman (OSL) Building, Edmonton
Bio-Lab focuses on:• Applied research, bench top development and analytical tests• Cosmetic and Natural Health Product formulation
Capabilities:– Particle size profiling & analysis– High temp/pressure reactors– Pressurized extraction– Steam Distillation– Lab scale spray drying with solvent capacity– UHPLC, NIR, FTIR, BET, INSTRON– Thermo-combustion Protein Analyzer– Low/Medium pressure Chromatography – Molecular filtration– Injection molding
Vegetable Protein Utilization
Therapeutic agents
Personal Care
Industrial Enzymes
Functional Foods
• Protein and derived peptides as ingredients for Cosmetics and Personal Care products.
• Protein and derived peptides for Natural and Non-Prescription Health Products (NNHPs)
Protein sources investigated• Legumes (yellow/green peas, faba beans,
lentils, chickpeas)• Soy, Oats, Barley, Canola, Rice, Corn, Guar,
Lupines, Algae, and more.
• Areas of Active Interest
Moving protein up the value chain!
Why plant proteins are becoming more popular and important?
10
• The Global population is expected to rise 30% by 2050 to an estimated 10 billion
people. (Source: UN FAO)
• The global middle class is rapidly growing (1.8 billion to 3.2 billion (2016 to 2020))
• 85% of the expected middle class growth will come from Asia.
• The global food output will have to grow by 70% to feed that middle class.
Future sources of protein to feed the global population
The projected market
11
World Market – Consumer demand
12
• The plant protein market is forecasted at USD $9.5 billion in 2024 and is expected to register a CAGR of 7.0%, during the forecast period (2019-2024).
• In 2018, North America was the largest geographical segment of the market studied and accounted for a share of around 38.6% of the market.
• Americans spend $1.4B on alternate meat substitutes, about 4% what they spend on real meat.
• Compared to Europeans who spent $1.5B on alternate substitutes, about 9-12% what they spend on real meat.
Sources: Mordor Intelligence, The Economist 2019
Protein Market Growth
13
Source: Adroit Market Research
Consumer shift or trend?
14
• Consumers are more health conscious and want to eat less meat, but still want healthy diets.
• Consumers are becoming more interested in animal protein alternatives from an environmental perspective.
• Weight loss and maintenance have been identified as being important as well as muscle building and maintenance.
• In the USA, meat consumption peaked in 2016 and has decreased since then.
• In recent Canadian surveys, >40% of Canadians have tried plant-based protein products and 23% are repeat customers.
• It’s estimated that up to 60 per cent of “meat” may come from non-animal sources by the year 2040 (Global consultancy AT Kearney)
PLANT PROTEINBURGER
The Global Protein story
15
• In 2013, the main three plant protein ingredients came from Soy, Wheat and Pea. • Rice, potato and canola proteins were on the horizon.
• Soy protein ingredients dominated:– Soy Protein Isolate (SPI)– Soy Protein Concentrate (SPC)– Textured Soy Protein (TSP)
• Meanwhile, animal based protein ingredients mainly included:– Milk Protein Concentrate (MPC)– Whey Protein Isolate (WPI)– Whey Protein Concentrates (WPC)– Whey Protein Hydrolysates (WPH)– Casein/Caseinates
Global plant protein ingredients (2012-2018)
16
% Market share, by product
• Soy protein ingredients still dominant the global market but other ingredients are starting to grow.
• Wheat ingredients have declined during this period.
• Pulses and other plant-based proteins are gaining increased market share.
• 2019: Pea protein (50,000 tonnes), vs. 700,000 tonnes for soy protein)
Sources of pulse proteins
17
Source % proteinKidney bean 23Cowpeas 24White beans 24Chickpea 19Lentils 26Mung bean 26Peas 25Pigeon peas 22Faba beans 30Adzuki beans 22
Pulses (Beans, Lentils, peas & chickpeas)
18
Value-added example! 1 metric tonne (MT) of peas
19
40%
10%
22%
16% 12%
Starch
Fiber
Protein
Other components
Hulls
Based on (estimated):
$100/MT fiber$400/ MT starch$1000/MT fiber (dietary)$5000/MT protein
12%
7%80%
0%
1%
% Pea composition % Value of each pea fraction
Example: 1MT peas worth ~$340 Estimated value of components from 1MT: $1400 80% of the value of peas is in the protein.
All values in USD$: All values are best estimates
Pulse Proteins
20
Global food security
• Animal protein sources will
not keep up with the
demand for protein
Agriculture
•GMO-free
•Sustainable
•Lower Energy requirement
•Increased water use efficiency
•Soil Improvement
•Low cost
Climate Change
•Conserves natural resources
•Lower greenhouse emissions
•Can be used in biodiesel and ethanol production.
Healthcare
•Nutrition benefits
•Non-Gluten
•Lactose-free
•Low allergen risk
•Excellent digestibility
•Chronic disease prevention
Top 10 exporters and importers of pulses (2018)
21
Exporters• Canada• Russia• Australia• Myanmar• USA• Ukraine• Argentina• Lithuania• China • Mexico
Importers• India• China• Pakistan• USA• Egypt• Turkey• Spain• UAE• Italy• Mexico
Source:
Complied from United Nations COMTRADE data
0
500000
1000000
1500000
2000000
2500000
Qua
ntity
in M
T
2018 Importers
0
500000
1000000
1500000
2000000
2500000
3000000
3500000
4000000
4500000
Qua
ntity
in M
T
2018 Exporters
Pulse growth
22
• Peas are non-GMO, which allow increased use in different regions (e.g. Europe)
• Peas have increased in popularity at the expense of soy and wheat due to their relative low allergenicity.
• Global pea protein industry is anticipated to grow from C$319M in 2017 to C$465M in 2022 (Source: Food and Beverage In Canada: Market Update; www.bdo.ca/foodandbeverage)
• New pea ingredients and products have successfully entered the marketplace and are now main stream.
Alternative “Meats”
23
Company Protein source(s) Notes
Beyond Meat Soy and Pea extruded protein • Went public in May 2019• Valuation quintupled to $8.4B• In 20,000 US stores and food
chains.
Impossible Foods Wheat and Potato protein plus heme.
• $300 million funding; facility currently produces 1M lb of minced “meat” per month.
Memphis Meats Cell cultured “Meat” • Scaling up with market launch in 2021.
• Since 2017, US consumer demand for alternative meat substitutes has grown 37%.
• Many companies scaling up and focusing on reducing input and production costs.
• Significant investor interest
Retail prices for plant-based proteins
24
Source CAD$/kgSoy protein $30-38Pea protein $34-38Hemp (50-85%) $17-50Pumpkin protein (50%) $50Whey protein $20-45Faba bean protein (50%) $12
Significant value created compared to commodity crop sales!
Key Players
25
• Cargill/Puris, USA (Pea protein)
• ADM, USA (Soy)
• Dupont/Danisco, USA (Soy, Peas)
• Kerry Group, Eire (Pea, rice)
• Glanbia PLC, Eire (Whey, Pea, Flax)
Recent production of new plant proteins and new sources
26
• Roquette Frères Le Romarin, France (Pea, Corn, Potato)
• Innovopro, Israel (Chickpea)
• Green & Gold Foods, Finland (Oats and Faba bean)
• DSM/Avril – Global/France; Merritt (Burcon), Canada
(Canola)
• Manitoba Harvest, GFR Ingredients, HempCo (now part of
Aurora Cannabis Inc.): Canada (Hemp)
• Lentils
• Chickpeas
• Flaxseed
• Mung bean
• Rice
• Quinoa
• Almonds
• Chia seed
• Pumpkin
The Canadian scene
27
• Protein Industries Canada (PIC) is investing ~USD $153 million in the next 4 years into plant protein R&D innovation and related venture capital.
• The Protein Product Alliance of Alberta (PPAA) was created in 2018 to provide support to the pulse industry in Alberta. “ PPAA facilitates the development of a diverse, profitable and sustainable plant-protein and plant-ingredient processing industry in Alberta.”
• Canada is the largest exporter of pulses in the world (peas, beans and lentils), with exports valued at CAD$ 4 billion in 2018. Major export countries include India, Pakistan, Bangladesh and China.
• Currently, there are at least three new protein fractionation plants either under construction or operating in Canada.
28
Major plant-protein crops grown in western Canada
Pulse Fraction Plants in North America
29
Verdient Foods, Vanscoy, SK
• Yellow pea fractionation plant
• 160,000 MT capacity
• In operation since late 2017• Received $ 2.145M WED’s Business Scale-
up and Productivity (BPS) stream
• Strong partnership with world’s leading food company (Ingredion)
• Entered into a JV with Ingredion (Jan 2020) to expand into lentils and faba bean protein concentrates and Nestlé (Feb 2020).
Pulse Fraction Plants in North America
30
Maple Leaf Foods (LightLife and Field Roast brands)
• Two current facilities (in
Massachusetts and Washington)
will reach full capacity in 2020.
• Constructing a USD$ 310M plant-
based protein facility in Indiana on
57 acres (food products only).
Pulse Fraction Plants in North America
31
Roquette Freres SA
• To be located in Portage Le-Prairie, MB
• C$400 million facility
• Will be the largest pea protein processing facility in world, requiring 125,000 acres per year.
• To be operational the second half of 2020
• Complete fractionation plant for starch, fibre, hulls, protein and other components.
• Has business relationship with Beyond Meat.
Pulse Fraction Plants in North America
32
Merit Functional Foods (JV between Manitoba Harvest and Burcon NutraScienceCorp.) and Consortium with Pitura Seeds and The Winning Combination.
• CAD $65M canola protein facility
• PIC invested in this project in January 2020
• 88,000 sq. ft in Winnipeg
• Phase 1: 20,000 tonne processing capacity at a new facility in Winnepeg, MB.
• Phase 3: estimated to exceed 100,000 metric tonnecapacity
• Plans to open in Q3, 2020.
• Will be the only canola protein extraction facility in the world.
Locally….Applied Research & Development
33
• Pea flour in snack chips
• Red lentil flour in beef burgers
• Faba bean flour in chocolate cake
• Pea flour in frozen dessert
• Yellow lentil flour in licorice candy
• Faba bean flour in fresh sausage
• Aquafaba (chickpea brine) in cookies
The Food Processing Development CentreLeduc, AB
Applied Research and Product Development
Advancement through Innovation
34
Extruded snacks Pulse based pasta Pulse based tofu
Pulse based yogurt High moisture pea protein meat analogue
Locally…. Botaneco
35
• Protein ingredients for:
– Food
– Animal Feed/Aquaculture Feed
– Cosmetics/Personal Care
Growth Areas
36
• Pea, rice, lentils, peanut and chickpea protein ingredients food applications are growing.
• New sources of plant-based proteins are being developed and commercialized.
• Canola protein for animal feed.
• Plant protein beverage category (non-milk alternatives) is growing. Sales have doubled
between 2009-2015 to $21 billion.
• Non-food sectors such as aquaculture, cosmetics and natural health products
Conclusions
37
• World demand for pulses out ways future supply.
• Canada is in a ideal position to become a leader in pulse production and pulse ingredients due to:
– A strong agricultural sector
– A proven tract record for producing high quality pulses
– Transportation to market infrastructure
– Strong R&D sector for stimulating new plant-based protein ingredient/food development
• Alberta should be as competitive as the other provinces regarding plant-based protein
processing.
Plant Protein Processing
38
Protein 101
39
Amino acids Peptides Protein
• Protein serves the function as a structural component in plant material.
• They are important in produces enzymes, hormones, energy and transportation systems within a plant.
• Amino acids are the building blocks in the formation of peptides and eventual formation proteins.
• Essentially, the smaller the molecule, the more water soluble it is.
Plant protein uses
40
• Noodles, Pastas, Cereals and Snacks• Sauces, soups, meat alternative products• Desserts, Dairy alternatives, beverages
Food
• Nutrition and Health supplements• Sports Drinks• Natural Health Products• Pharmaceuticals (Gastric/Digestive disorders, Bone Diseases, Diabetes,
Hormonal disorders)
Health Products
• Animal/pet and aquaculture foods• Personal Care products• Bio-products
Non-Food
Protein functionality for food applications
41
• Neutral taste
• Water and fat binding properties
• Emulsifiers
• Texturizer
• Foaming agents
• Gels
• Good range of solubility
Cosmetics / Personal Care/ Natural Health products
42
• Proteins
– Milk
– Silk
• Hydrolyzed Proteins
– Wheat
– Oats
• Peptides
• Amino acids
Processing for protein
43
Crop
Soy
Wheat
Pea
Primary Product
Soybean oil
Wheat gluten
Pea starch
By Product
Protein
Source: Good Food Institute 2019
• Traditionally, protein has been a by-product of an extraction or fractionation process.
• Companies are now designing facilities that focus on protein, while affording secondary products such as oil and starch.
Protein extraction
44
Essentially, there are two conventional methods for producing plant-based protein ingredients:
• Dry Fractionation
• Enriches the protein concentration in flour using air classification technology.• Will produce up to 55% protein ingredients called protein concentrates.• Electrostatic protein fractionation may be a future commercial option?
• Wet Extraction
• Extracts protein with water, and then purifies and dries powder.• Can produce protein isolates from 55-90%
Dry Fractionation – Basic process
45
• Relatively inexpensive compared to wet extraction processes.
• Protein concentrate ready for market
• Need to find a market for the fiber/starch by-product
Seeds
Milling
Air Classification
Light Stream(Protein enriched)
Heavy Stream(Starch enriched)
Wet Fractionation – Basic process
46
• Uses water and pH modification to extract and purify the protein.
• Proteins can be modified with this process to suit the end-use application.
• Handling of side-streams/ by-products and waste water needs to be considered.
Seeds
Milling
Protein Extraction
Protein purification
Protein Concentration
Protein Drying
Dry vs. Wet Protein Fractionation
47
Dry
Relatively inexpensive compared to wet extraction
Lower energy consumption
High protein concentrates not feasible with this technology
Limited applications
Wet
Chemically extracted proteins may have their functionality altered
More process equipment intensive
Isolates >90% purity is possible
Market driven process with application-specific ingredients
Questions?
Bio-Industrial Opportunities Section
Thank you!
alberta.ca/bio-industrial
David FielderSenior ScientistProgram Lead, Value-added Fractionation and Natural Health Products Program