Patents plummet in alt proteins: Has innovation ground to a halt?

The alternative protein sector has seen better days. Whether its plant-based, cultivated or insect protein, meat and dairy alternatives are struggling to appeal. As consumers are increasingly being drawn to foods they perceive as ‘clean label’, many are rejecting plant-based meat due to its links with ultra-processing. Meanwhile, regulation and cost is slowing down the cultivated meat sector, and insect protein is suffering from lack of consumer appeal. This trend can clearly be seen in the decline of new patents, according to a report from IP firm Appleyard. A flurry of patents means innovation, excitement and the thriving of new companies in a new industry. A decline, however, can suggest that the novelty has somewhat worn off. Is it that suppliers and manufacturers of alt meat and dairy have simply stopped innovating? Plant-based meat’s market share has been falling since as early as 2021, according to Appleyard Lees. The decline has only continued from there, with some supermarkets reducing the amount of plant-based meat on their shelves. This decline is borne out in patent filings. In 2023, patent filings in plant-based saw a sharp dip. The biggest focuses of filings in plant-based have been methods of manufacture and extrusion, production methods that produce gels ready for extrusion, improvements of fat compositions, and texture improvements. However, patent filings focusing on improving flavour and texture, despite being seen by many as key to improving consumer interest in the sector, have both declined equally. Nevertheless, patents in the sector are still higher than any year before 2020, suggesting that innovation is still continuing. Europe is by far the strongest region for patents in this sector. In contrast, patents filed in the US fell by 37% between 2022 and 2023. This difference is largely due to consumer interests, explains James Myatt, partner at Appleyard Lees, as well as regulation and public spending priorities. The biggest patent filers in this area for 2023 were Unilever and Cargill, both of which increased the number of their filings. Cargill’s focused on wheat gluten alternatives to products such as minced meat, and it also took out applications relating to advances in pea protein, lentil flour, and corn protein alternatives. By contrast, filings from Nestlé have declined sharply, and those they have filed largely relate to plant-based fish (an area prevalent among many of the top filers). A further focus of patent applications suggested a move towards a focus on clean label, with 10 filings including the term. Patents in cultivated meat peaked in 2022, following a rapid rise in innovation. Now, they have begun to decline. In contrast to plant-based meat, the US remains a top filer for patents in this sector. However, in 2023 it saw a significant drop. Bans on the technology or strict labelling laws in some US states may have discouraged investment, suggests Myatt, therefore causing patents to decline. “Where regulation is uncertain state-to-state, investors may perceive more risk, which could have discouraged new filings.” Similar backlash in Europe, although not as severe, could have driven down patents in that territory. However, there have been some positive developments on the continent, such as the regulatory approval of Meatly’s pet food in 2024 . Despite the overall decrease, patents filed in Japan and South Korea actually increased in 2023, with the latter creating a regulatory-free zone in Gyeongsangbuk-do province to boost innovation. The vast majority of the patents filed in the area of cultivated meat are in the chemical sector, focusing on food chemistry and biotech. In particular, there has been a focus on reducing production costs, improving efficiency of the cell culture media (which provides the conditions for cells to survive, grow and proliferate), genetically modified cells and cell lines, and compositions and methods aiming to improve texture, flavour, smell and nutritional value. Five companies – Upside Foods, Believer Meats, Wildtype, Aleph Farms, and Mosa Meat – accounted for 46.9% of filings in 2023. The recent merger of French start-ups Vital Meat and Gourmey into Parima suggests that the sector has begun to consolidate. While the effects of this haven’t yet been seen in patents, they may do in the future. “It is likely that we will see a shift in patent filing behaviours as a result of mergers. Post-merger, the entity can review and streamline the combined portfolio by eliminating any overlapping patents, dropping weaker filings and focusing on core technologies. This may initially cause a decrease in the new filing volume because resources shift from multiple smaller entities filing patent applications to a single larger entity with a focused strategy.” The buzz around insect protein – pun intended – has slightly cooled. Unlike in the previous two cases, the sector has been on a decline since 2020. However, while it hasn’t entirely stopped declining, the decline is not severe and in many areas, patents are actually growing. Rates of patents in Europe have stabilised following growth earlier in the decade. As a previous hub of insect protein patent activity, this has been important for the sector. Barriers such as regulatory oversight and lack of consumer acceptance remain in this region. However, several insects have been approved for consumption by the European Commission, and some analysts predict rapid growth for the insect protein sector. Meanwhile, certain regions are bucking the trend of declining patents. India and Japan actually increased patent applications in 2023, with the latter reaching a 15-year peak. Despite a slight decline, South Korea remains by far the largest filer of patents in this area. Despite these mitigating factors, the decline continues. This may be due to a lack of investment, Appleyard Lees suggests. Investment for the sector peaked in 2022, before declining in part due to growing investor caution. However, another reason could be a shift to execution, as start-ups move beyond the exploration phase. Insect patenting looks to be focused more from B2B than B2C companies, especially in pet feed. Interestingly, one of the companies that filed most patents in the space was electronics giant Panasonic. Why? The company’s experience in lighting and manufacturing technologies may be able to be transferred to insect cultivation, suggests Myatt. “Lighting is apparently important for insect farming, especially for breeding black soldier flies, while traditional manufacturing processes would likely be useful for managing the insects and processing the products.” This may be part of the company’s overall push to diversify its business, particularly into sustainability.

Patents plummet in alt proteins: Has innovation ground to a halt?

Alternative proteins have lost a lot of popularity in recent years, and this is reflected in IP activity

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