It has to be green, healthy and tasty

Together for 'a big difference'

Agung Prabowo says that a growing number of Hong Kong bars and restaurants have resorted to sustainable practices, such as avoiding the use of plastic or paper straws. "We are encouraging others in the food-and-beverage sector to adopt sustainable practices. They should think twice before throwing waste into the bin."

Sustainability is what every bar and restaurant should consider in the next three to five years, according to Penicillin. "We want to make a very good start, so people can see how we do it. If they feel we are doing it in a good way, they will join us and that could be the trend," says Katy Ghale, a Penicillin co-founder and managing director.

Apart from fresh sustainable practices in the food-and-beverage business, Wang Dequan, CEO of Governance Solutions Group - a company that provides environmental, social and corporate governance-related services and sustainable investment advisory services - says investments in the mainland's food-and-beverage industry have picked up in recent years.

"Data shows that the number of financing activities in the food-and-beverage business had reached 278 in 2021. Investing in alternative protein products is among the hottest subsectors," he says.

After Beyond Meat - one of the world's largest plant-based meat companies - made its debut and put up a strong performance in the Nasdaq Stock Market in 2019, global investors have begun showing interest in the plant-based concept and other alternative protein products, Avant Meats' CEO Chan recalls.

Compared with Western countries, the low-carbon, food-and-beverage industry in Asia, especially China, is still in its infancy, but the market has huge potential, says Wang.

He says the Greater Bay Area has advantages in developing and investing in sustainable food and beverage due to the high demand from young consumer groups, the advent of technology and the region's talent pool.

The Greater Bay Area, which embraces the Hong Kong and Macao special administrative regions and nine cities in Guangdong province, is one of the world's largest city clusters with young people and high purchasing power. It's a place that is conducive to embracing and developing the sustainable food industry, where investors are also eyeing the potential opportunities on offer, Governance Solutions Group says.

Hong Kong-based alternative protein food companies also plan to expand operations on the Chinese mainland. Green Monday has set up bases in Guangdong province, while Chan sees the Greater Bay Area as a launchpad for companies to strengthen their customer pool. "The Greater Bay Area has a large population with high purchasing power and is leading in the biotechnology field," says Yeung from Green Monday.

However, there are challenges that can't be ignored. Wang calls for food safety standards to be strengthened, along with a comprehensive system for evaluating carbon emission reductions in the food industry.

Chan also called for a more comprehensive ESG evaluation system for new technology companies like Avant Meats. "Our products can reduce the consumption of certain types of endangered fish to some extent, but it would not be captured in the evaluation system."

Penicillin would like to see greater government support for the food-and-beverage industry in sustainable development. "The government can provide more training programs concerning food recycling for food-and-beverage players, or they themselves can initiate a more complete system for separating and disposing food waste," it says.

The answer to further sustainable development in the food-and-beverage business is for "everyone to take one little step", says Roman Ghale, another co-founder of Penicillin.

"Think twice before you discard the waste. It could make a big difference."