Alternative protein companies based in Europe raised almost $509m (£382m) last year, up 23% on 2024, according to new analysis by the Good Food Institute.
However, companies also brought in $68m (£51m) through grants from organisations such as public entities – a 137% increase from the previous year.
GFI said this marks “a significant trend as governments begin to recognise the role that protein diversification can play in contributing to food security, and as start-ups begin to shift away from relying on the venture capital that was associated with the sector’s rapid expansion earlier this decade”.
In the UK, the government has invested £75m in developing sustainable new foods – more than half the amount recommended by Henry Dimbleby’s landmark review of England’s food system.
Four major new UK research centres, backed by public and philanthropic investment, have also been created. These are: the Cellular Agriculture Manufacturing Hub; the National Alternative Protein Innovation Centre; the Microbial Food Hub; and the Bezos Centre for Sustainable Proteins.
There are also signs the UK government aspires to break free from the EU’s novel foods regime, characterised by its time-consuming and complex approvals process, and create a new, more streamlined system in order to support home-grown innovation and attract inward investment.
Helene Grosshans, infrastructure investment manager at GFI, said: “Start-ups cannot rely on venture capital to build the plants needed to scale production, and to reap the benefits that protein diversification can offer, governments and organisations such as philanthropic foundations should develop innovative finance mechanisms to support this growing ecosystem.”
Grosshans warned that large deals can “skew” the figures from one year to the next. She explained: “It’s positive to see overall growth in investment during 2024. But these figures demonstrate that the region’s alternative protein ecosystem remains immature.”
