GCC has potential to clock $70B energy-to-food sales by 2050: Report
A report by Strategy& highlights the scope of the Gulf countries to adopt a sustainable food developing method and tap into the growing market of energy-to-food protein.
The Gulf Cooperation Council or GCC countries hold the potential to clock energy-to-food sales worth $56 billion to $70 billion by 2050 if they capture even 20% of the growing alternative proteins market, according to a report by Strategy&.
The Middle East has an opportunity to use 'precision fermentation'—a new technology that can convert energy and a handful of ingredients to a variety of proteins and other food ingredients (energy-to-food) without a negative environmental impact.
The report titled "An opportunity for the Middle East to feed the world sustainably" highlights the ways the Middle Eastern countries can lead an agricultural revolution and become market leaders in the alternative proteins segment.
This approach would reduce the dependency of the region on food imports, contribute to net zero goals and promote agricultural growth in a more sustainable manner, the report stated.
To tap into the emerging market of the energy-to-food sector, it mentioned that the region needs to work on six areas: research and development (R&D), infrastructure, value chain development, talent, regulation and policy, and consumer awareness.
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Precision fermentation to transform energy into food
Precision fermentation technology converts energy into food and can make a variety of food options like meat, eggs, dairy, and even oils. With the help of bioreactors, a uniform environment can be created to conduct a chemical reaction. The process involves organisms or biochemically active substances derived from such organisms.
The energy-to-food process mostly relies on gases (such as CO2 and the other gases in the air) and water as the sources of carbon and oxygen. This distinguishes it from other types of precision fermentation, which use inputs such as sugar that impose a cost on the environment, albeit a lower cost than traditional farming.
However, moving the method from lab to mass production has its own challenges, the report found. First, the economic viability of the method is dependent on the speed at which it is adopted in the market. Second, consumers need to accept such proteins, according to the report.
This requires marketing strategies that would increase acceptance among the people, especially when food habits are influenced by culture, religion, and tradition. Also, the energy-to-food needs to build scale and attract substantial investment. This is possible only when the cost of the products is affordable and there is initial customer acceptance, the report concluded.
Edited by Affirunisa Kankudti
