Annual VC funding for alt-protein startups reached $6 billion in 2021, doubling 2020's total deal value.
Investor enthusiasm appears to have slackened in H1 due to market volatility and disappointing retail sales performance of public plant-based providers. However, megadeals like Meati's $150 million Series C continue to close.
The narrowing of the IPO window and a contraction of funding opportunities will encourage consolidation in the near term.
However, alt-protein technologies are in their infancy, and the future remains bright. The challenges of climate change and global food security are only gaining in urgency, and alt-proteins will likely be an essential tool in these fights.
One of the major challenges to alt-protein adoption has been retail pricing, which is generally much higher than conventional animal proteins.
In June, ProVeg International identified that the average price of plant-based meat in the Netherlands had fallen below conventional animal meats, primarily due to elevated grain costs, which impacted the cost of animal feed.
Continued elevated grain prices
may drive a significant uptick in alt-protein sales and adoption in the near term.
In the future, we can expect to see more diverse alternative proteins available globally and beyond.
Startup Nature's Fynd recently sent a biomass fermentation bioreactor into space aboard a SpaceX rocket to explore the potential to grow alternative proteins aboard the International Space Station.
Meanwhile, startups on earth are developing new alt-proteins, including fish, lobster, and even exotic meats like zebra and elephant.
Although it seems futuristic, tomorrow's edible foodtech may be just around the corner.
For more on the evolving alternative protein category, read the full note for free:
Alt-Protein Industry Advances Despite Costs and Red Tape
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