Investment in the alternative-protein sector in Europe remains “immature,” according to a report from the Good Food Institute (GFI) Europe. The analysis suggests that fundraising by individual companies continues to have a significant impact on overall investment figures. In the first half of 2024, plant-based companies in Europe raised €79m ($86.2m), a decrease from 2023’s €553m, excluding Sweden-based Oatly’s deals.
The report highlights that Oatly’s significant investments in 2023 skewed the total investment numbers for the alternative-protein sector. While the sector is not attracting large funding rounds as seen in previous years, successful companies like Spain’s Heura and the UK’s This are still receiving substantial investments.
GFI also noted an increase in investment in cell-based meat companies, with Europe’s cultivated-meat companies raising €45m in the first half of 2024, nearly half of 2023’s total. One notable investment was Mosa Meat’s €40m funding aimed at scaling up the sector for market entry.
Despite the positive trends in alternative-protein investments, the international investment landscape has become more cautious in recent years due to economic uncertainty and increased inflation. Global start-up funding fell by 38% in 2023, with food tech start-ups experiencing a 61% decline. Sustainability-focused investments also dipped in the first half of 2024.
GFI Europe called for more strategic partnerships within the food industry to drive innovation and growth. Examples include Leprino Foods’ collaboration with Fooditive Group to produce non-animal casein and Spain’s Palacios partnership with The Every Company to incorporate animal-free egg in its products.
In conclusion, while the alternative-protein sector shows promise, strategic collaborations and continued investment are crucial for its growth and success in the evolving food and beverage industry landscape.
