Deforestation is linked to commodities such as palm oil, coffee, and cocoa. Due to the complexity of the supply chain, it is often very difficult to reduce these links and comply with certifications.
But consumers still want these products. You won't see chocolate and coffee addicts suddenly quitting.
There are alternatives to these products. These alternatives are developed by companies that aim to offer the same functionality, taste, and quality without the environmental damage associated with deforestation. These companies aim to offer consumers a more sustainable version of their favorite foods, such as plant-based alternatives.
Last week, key players in the world of alternative raw materials debated at Future Food-Tech in London whether alternatives can be developed and, more importantly, whether consumers will use them once they do.
What are the barriers to commercialization?
Before launching a product, companies have to face a number of issues.
Adam Maxwell is the CEO of Voyage Foods, a company that produces cocoa, hazelnut, peanut butter, and coffee alternative products.
Anne Mertens Hoyng, Cargill's chocolate, confectionery, and ice cream category director, says that before producing an alternative material, it must be feasible and viable. She asked, "Are the costs comparable to what customers are willing to pay?" Mertens Hoyng's department helps startups like Voyage Foods grow.
Ben Wilding, CEO of alternative palm oil start-up Sun Bear BiofutureHe also suggested that regulation is a major obstacle. The process of applying for novel foods is complex and time-consuming.
Clement Tischer is head of REWE's food tech division. Clement Tischer, head of food tech at German retail group REWE, said large companies are reluctant to provide the support startups need to successfully sell their first products.
Wilding agreed that a collaborative environment is essential, and he cited the partnership through which his company has been able to grow significantly.
Companies, scale-ups and startups
At another Future Food-Tech conference, Floor Buitelaar spoke about the importance of business-startup partnerships to foster innovation in the food technology sector.
She told us that “startups alone cannot change the world.” We met her just before the eventThey often need to leverage the infrastructure, financing, and supply chain integration that a corporate partner is willing to provide.
Businesses, on the other hand, can benefit from the innovative ideas and agility that startups can offer.
Are consumers interested in alternative raw materials?
A market for alternative raw materials, even after overcoming these obstacles, is not commercially viable.
Cargill's Mertens Hoyng said that before manufacturing a product for consumers, the company must determine whether it wants to.
According to Cargill's market research, consumers are open to the idea of eating chocolate alternatives "as long as they taste good." There's no point in offering an innovative product that tastes bad.
REWE's Tischer said consumer acceptance is uncertain in a new sector.
It's unclear how consumers will react to new ingredients. "We don't really know how consumers feel about or accept these new ingredients." Expectations, he says, are often very high.
The REWE Group replaced the cocoa in its product with ChoViva, a substitute made from sunflower oil. According to Tischer, demand for this product has not decreased. He was able to be confident he was making the right choice. However, Tischer admits that the situation could easily have been the opposite.
Maxwell, after the panel discussion, said that "accessibility for all forever" was essential for Voyage Foods. Sustainability is crucial, but being able to provide more ingredients to people is just as important.
While he acknowledged that "changing the habits of people who are viscerally attached to them" would be difficult at first, it is not new that people change what they use as raw material.
Our history is full of "alternatives to x." In the past, we used many different fuels, including bat droppings, whale oil, kerosene, and gasoline. Today, renewable energy sources are used. "There are always better options in every sector."
What's the best way to get the right taste?
At least with chocolate, the ingredients aren't the only thing that determines the taste. The final result consumers receive is also influenced by the processing methods. This makes it a great alternative to chocolate.
Tischer of the REWE Group said that cocoa "does not generally constitute the taste of the chocolate product." It is therefore easier to reproduce. He said that 80 % of chocolate comes from processing. You can create chocolate alternatives by replacing the remaining 20 %.
Maxwell of Voyage Foods told us that chocolate doesn't just grow on trees. Maxwell of Voyage Foods told us after the panel that "chocolate doesn't grow on trees."
How will raw materials be used in the future?
The future may bring a completely new environment.
Wilding said that as climate change continues to worsen, palm oil yields will begin to decline, which in turn will increase costs. This, combined with better unit economics for alternatives such as Sun Bear's Biofuture product, could affect prices.