As demand for alternatives to animal-based proteins increases, more and more innovation in food technology is being created, with significant value delivered across the entire value chain. However, in the current climate of inflation and cost pressures, capturing the value of new ingredients technologies in the market is a major challenge. This article outlines the optimal approach how to set-up licensing agreements and to monetize the full potential.
In recent years, there have been substantial inflows of capital in companies creating sustainable alternatives to conventional animal-based foods. In the US, almost six billion in capital was raised by alternative protein companies in the last decade, and half of that in 2020. This trend is only expected to increase as consumers want healthier and more sustainable, climate-friendly proteins.
Innovation in food technology is often driven by companies at the front of the value chain, with the value then enhanced by their customers, or even their customers’ customers, through new and existing products. However, often left untapped is the significant monetization and growth potential for the technology company themselves.
Creative structures, such as licensing, enable innovators to capture the pools of value that they create for suppliers and end customers.
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