Fresh financing secured by Quorn, Mara Renewables, and NZN this week; Barry Callebaut delves into plant cell culture technology exploration.
In the dynamic world of alternative food production, a notable shift has emerged in investment trends. The first half of 2025 has seen a significant decline in funding for plant-based, fermentation-derived, and cultivated protein companies, marking a cooling investor enthusiasm compared to the previous boom years.
Leading the charge in the traditional cola category, PepsiCo has launched the first prebiotic cola, signalling a step towards healthier beverage options. However, on a less optimistic note, Novonutrients, a gas fermentation startup, has ceased operations and is seeking a buyer for its assets, highlighting the challenges faced by some players in the fermentation sector.
EmGenisys, a company specialising in AI-driven livestock reproduction technology, managed to secure a $1.5 million raise, demonstrating continued interest in plant-based and technology-driven solutions. Meanwhile, Mara Renewables raised US$9.1 million to expand algae-based omega-3 production, indicating a focus on sustainable sources for essential nutrients.
The Coca-Cola Company appointed a new leader for its Europe operating unit, while Coca-Cola itself is launching a product with cane sugar in the US following a post by President Trump, suggesting a shift towards natural sweeteners.
In the realm of cultivated proteins, Quorn's parent company, Provectus Algae, secured £18 million ($24 million) for mycoprotein development. Beyond Meat has debuted a whole-cut mycelium steak filet at US restaurants, indicating progress in the cultivated meat sector. Mission Barns has secured USDA green light for cultivated fat and plans Q3 launches, signalling a move towards more diverse and authentic-tasting alternatives.
The world's largest chocolate supplier is exploring cell-based cocoa, reflecting a growing interest in alternative sources for traditional ingredients. British NZN raised €5.6 million for a biofertiliser solution benefiting farmers, demonstrating the potential for innovative solutions in the agricultural sector.
The UK has launched an inquiry into science's role in feeding a growing global population, underscoring the importance of continued innovation and investment in the food industry. Despite the funding downturn, there is still some investor interest, particularly in plant-based and fermentation technologies.
However, the challenges faced by the sector are evident. The funding totals have decreased quarterly, with about $443 million invested across 54 deals in the first half of 2025. The cultivated protein segment remains smaller due to regulatory and commercialization hurdles.
As the industry navigates these challenges, companies like AWAKE Chocolate, Néboda, Äio, Win-Win, and ENOUGH continue to secure funding for their innovative solutions, offering a glimmer of hope for a sustainable and innovative future in the food industry.
[1] Source: CB Insights Q2'25 Market Intelligence Report [2] Source: PitchBook Data Inc. [3] Source: BusinessWire [4] Source: FoodNavigator-USA.com
- Science plays a significant role in the development of alternative food production, as evidenced by the continuing investment in plant-based and technology-driven solutions.
- In the health-and-wellness sector, PepsiCo introduced the first prebiotic cola, signaling a move towards healthier beverage options.
- Environmental-science startups, such as Mara Renewables, focus on sustainable sources for essential nutrients, like algae-based omega-3 production.
- The climate-change issue extends to conventional industries, with companies like the Coca-Cola Company exploring natural sweeteners and cell-based cocoa.
- Fitness-and-exercise and personal-finance enthusiasts might find investing opportunities in companies that offer innovative solutions in the food industry, like AWAKE Chocolate and Néboda.
- Data-and-cloud-computing and technology play a crucial role in the success of companies such as EmGenisys, which utilizes AI-driven livestock reproduction technology.
- Lifestyle choices, such as a growing emphasis on healthier food options and sustainable sources, influence investment trends in food and drink companies.
- The business community remains interested in the food industry, despite a decline in funding for certain segments, like cultivated proteins, due to regulatory and commercialization hurdles.
- The global travel industry can contribute to the sustainable food movement, as innovative businesses like Äio and Win-Win expand their reach and secure funding for their solutions.
