Investment in alternative meats reaches record levels in Q1

The alternative protein segment obtained US$930 million in funding during the first quarter of 2020, 11% more than the total investments in all of 2019, according to a new report from the Good Food Institute.

Doughman Headshot3 Headshot
Mariusz Blach | Fotolia.com
Mariusz Blach | Fotolia.com

The alternative protein segment obtained US$930 million in funding during the first quarter of 2020, 11% more than the total investments in all of 2019, according to a new report from the Good Food Institute.

Most of the investments in the first three months of this year went to plant-based meat, egg and dairy alternative companies, although cell-based meat companies received 20% of the funding. Cultured meat raised US$189 million, the largest amount in the history of the segment.

Plant-based continues to grow

Plant-based proteins were one of the hottest food trends in 2019. The industry is currently valued at US$4.5 billion.

One of the best-known plant-based protein companies, Impossible Foods, closed a US$500 million funding round in March, which helped the company expand to the retail market. Previously, the company’s alternative meat product was primarily found in foodservice locations, including the popular Impossible Whopper at Burger King.

"Our mission is to replace the world’s most destructive technology -- the use of animals in food production -- by 2035,” Dr. Patrick O. Brown, MD, PhD, founder and CEO of Impossible Foods, said in a statement. “Our investors not only believe in our mission, but they also recognize an extraordinary opportunity to invest in the platform that will transform the global food system."

In April, French startup Rebellyous announced that they have raised US$6 million in Series A Funding that will be used to accelerate the development of replicable, novel equipment and standardized facilities, fast-track manufacturing, hire more employees and expand product development. The company “crafts next-generation plant-based nuggets with no birds, but all of the nostalgia,” according to their website.

Last year, several top meat companies launched plant-based protein products or invested in the segment, including Smithfield, Hormel, Cargill, JBS and Tyson.

Cell-based meat finds its footing

Several cell-based meat companies attracted large investments in the first quarter of 2020. Cultured meat products made in the laboratory aren’t on the market yet, but advances in technology mean they may be soon. Experts predict that sales of meat made in vitro could reach US$630 billion by 2040.

Memphis Meats received US$161 million in funding this quarter. The lengthy list of investors included Cargill and Tyson.

"Our continued investment in Memphis Meats underscores our inclusive approach to the future of meat. We need all options on the table to meet customer and consumer needs now and in the future," Elizabeth Gutschenritter, managing director of Cargill’s alternative protein team, said in a press release about the funding.

Like what you just read? Sign up now for free to receive the Poultry Future Newsletter.

Page 1 of 178
Next Page