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Investment in fermented alternative protein development has outstripped other plant-based meat products in the third quarter of 2024, according to new data released by the Good Food Institute (GFI).
Read more: What Is Precision Fermentation, And Could It Replace Animal Farming?
Fermentation start-ups raised USD $174 million in Q3 compared to $56 million for plant-based and $3 million for cultivated meat. Two deals dominated the funding. German company Formo landed a $61 million investment for its fungus-based fermented cheese products. New-York based company Helaina, which makes a bioactive protein supplement, secured $45 million in Series B funding.
This brings the investment in fermentation technologies for 2024 so far to $572 million, up from $443 million in 2023. Meanwhile, cultivated meat and plant-based investments are down on 2023 investments.
The fermentation sector has been growing rapidly, with a 16 percent rise in the number of fermentation companies globally in 2023. Two new industry associations also formed in 2023, focused on regulatory approval, product labelling, and consumer messaging.
Year-on-year growth
The GFI quarterly update shows that investments in alternative proteins dropped 37 percent overall in Q3. But they have increased 25 percent year-on-year. GFI notes that this is in contrast to a 21 percent decrease of global venture capital across all sectors year-on-year.
Read more: Company Creates First Ever Vegan-Certified Precision Fermentation Dairy
Since 2020, the alt protein industry has raised $13.8 billion in investments, and $16 billion in total. But GFI warns that more investment is needed to accelerate the transition to a sustainable food system.
“Significantly more investment is needed from both the public and the private sector to mitigate the environmental and public health impacts of food production and sustainably feed a growing global population,” GFI said.
Read more: Cultivated Meat For Companion Animals Approved In The UK
