Alternative-protein businesses worldwide experienced a downturn in investment, receiving a total of $2.3bn (£1.8bn) during the first quarter of 2023. This represents the lowest investment level since Q2 of 2018. The foodtech sector, encompassing cultivated meats, fermented proteins, plant-based proteins, and edible insects, is tracked by Pitchbook on a quarterly basis.
While the industry has encountered regulatory challenges that have hindered funding in the past, recent changes may reshape the landscape. For instance, in June 2023, the US Department of Agriculture granted approval for the sale of Upside Foods and Good Meat cultivated protein products. Additionally, the Dutch government authorized controlled tasting sessions for cultivated meat. Seth Roberts, policy manager at the Good Food Institute Europe, called the decision in the Netherlands a positive development, as it establishes a code of practice for cultivated meat and seafood tastings in controlled environments.
In contrast to the high investment levels observed in Q4 2021, which amounted to $13.8bn (£10.9bn) worldwide for foodtech businesses, each subsequent quarter witnessed a decline. The trend suggests that the investment made in 2022 was less than half that of 2021, with indications that this trend will persevere.
During the British Meat Processor’s Conference in June, Paul Wood, professor of clinical sciences at Monash University, addressed the transformative potential of cultured meat. He outlined the advancements in technology and anticipated disruptions to the market experienced by meat processors. However, despite the significant investments in the sector, Wood believes that cultured meat will remain a niche and exclusive commodity, mainly accessible in high-value markets. Consequently, the prospect of enjoying a burger made from cultivated cells in the near future seems unlikely.
In related news, Finnebrogue and Ivy Farm, a cultivated meat technology firm, have joined forces to collaborate on the development of a wagyu beef burger specifically designed for the UK market.