GROWTH DRIVERS FOR QUORN

CONSUMER DEMAND FOR MORE SUSTAINABLE AND HEALTHIER LIFESTYLES.

a. 72% of Americans say global warming is important to them personally

b. 27% OF Britons now cite the environment in their top three issues facing the country
c. While the global livestock industry is estimated to be responsible for a significant portion of global
cgreenhouse gas emissions (the contestable nature of this subject is such that estimates range from
around 15% to over 50%74), studies have shown meat alternatives can have a lower environmental
impact.
d. WHO suggested in 2004 that dietary factors, including consumption of red meats, were responsible for as
many as 30% of all cancers in the developed world. Since then, the WHO added processed meats such as
hot dogs, ham, bacon and sausages to its Group 1 category of carcinogens.
e. A diet rich in mycoprotein results in beneficial changes to blood cholesterol levels.
f. A mycoprotein diet can also reduce appetite and therefore food consumed and, in some studies, appeared
to help improve glycemic profiles based on a study of overweight and obese adults

EXPANSION OF PRODUCT OFFER IN GROCERY RETAIL

g. Growth has been aided by the launch of new chilled meat free products; in the UK, the chilled meat free
category is growing at an estimated 31% per annum and accounts for approximately 65% of category
growth since 2017.

ADOPTION OF MEAT ALTERNATIVES BY FOODSERVICE CHAINS

h. 45% of Americans were reported as most likely to try a meat alternative at a fast-food chain or
independent restaurant
i. UK foodservice chains have both responded to and fed the growing demand — approximately nine of the
top ten chains by sales value in 2019 have meat alternatives offered nationwide and seven of these
alternatives were added since January 2020

MYCOPROTEIN

- While it is possible for others to produce mycoprotein, management suggests that there are high barriers
to entry with a significant amount of R&D and capabilities required to produce mycoprotein at scale.
- Studies suggests that mycoprotein is versatile and may be able to be manufactured using agro-industrial
residues as its fermentation substrates. The successful utilization of agri-food waste in the future
production of mycoprotein could reduce the environmental footprint further — it is estimated that water
usage could be halved, and land usage reduced from c.2 to 0.5m2 per kg of high-quality protein food
- A comparison of Quorn Foods’ mycoprotein products with mainstream animal protein alternatives shows
that Quorn has fewer calories, total fat, saturated fat, and more fiber which does not naturally occur in
the animal products
MARKET SHARE OF QUORN