New report from Good Food Institute (GFI) revealed that investments in plant-based, cell-based and fermented protein businesses reached $3.1 billion in 2020, compared to $1 billion in 2019.
“2020 was a breakout year for alternative proteins, with record investment flowing into all segments of the industry,” said Caroline Bushnell, director of corporate engagement for the GFI.
“This is yet another signal of the significant potential the private sector sees in this rapidly growing global industry. While the amount is record-breaking, more investment is needed — from both the public and the private sectors — to meet the urgency of this moment. A large-scale shift toward alternative proteins will be critical to mitigating the environmental impact of food production, meeting the Paris Climate Agreement, and sustainably feeding a growing global population.”
The biggest part of the investment ($2.1 billion) was received by plant-based meat, dairy and egg companies, including $700 million funding to Impossible Foods, $335 million venture capital financing to Livekindly, Oatly’s $200 and Califia Farms’ $172 million million private equity financing.
Companies focusing cultivated meat from cells received $360 million in financing including $186 million to Memphis Meats and $75 million to Mosa Meat.
Startups focusing on fermented proteins received $590 million in investments, including $300 million to Perfect Dayin Series C funding, and Nature’s Fynd $45 million debt.
“The investor community is waking up to the massive social and economic potential of food technology to radically remake our food system,” said Sharyn Murray, senior investor engagement specialist for the GFI. “Early trendsetters like Impossible Foods, Beyond Meat, Memphis Meats, and Mosa Meat continue to perform well, and there are more and more entrepreneurs who see the potential of alternative proteins to succeed in the marketplace while having a positive global impact on food sustainability and global health.”