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

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• 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

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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?

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• 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

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World Market – Consumer demand

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• 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

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Source: Adroit Market Research

Consumer shift or trend?

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• 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

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• 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)

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% 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

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Source % proteinKidney bean 23Cowpeas 24White beans 24Chickpea 19Lentils 26Mung bean 26Peas 25Pigeon peas 22Faba beans 30Adzuki beans 22

Pulses (Beans, Lentils, peas & chickpeas)

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Value-added example! 1 metric tonne (MT) of peas

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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

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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)

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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

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• 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”

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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

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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

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• 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

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• 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

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• 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.

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Major plant-protein crops grown in western Canada

Pulse Fraction Plants in North America

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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

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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

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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

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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

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• 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

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Extruded snacks Pulse based pasta Pulse based tofu

Pulse based yogurt High moisture pea protein meat analogue

Locally…. Botaneco

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• Protein ingredients for:

– Food

– Animal Feed/Aquaculture Feed

– Cosmetics/Personal Care

Growth Areas

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• 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

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• 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

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Protein 101

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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

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• 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

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• Neutral taste

• Water and fat binding properties

• Emulsifiers

• Texturizer

• Foaming agents

• Gels

• Good range of solubility

Cosmetics / Personal Care/ Natural Health products

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• Proteins

– Milk

– Silk

• Hydrolyzed Proteins

– Wheat

– Oats

• Peptides

• Amino acids

Processing for protein

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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

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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

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• 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

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• 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

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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