Investments in alternative proteins surged to a record-breaking $3.1 billion in 2020 – exceeding capital invested in 2019 by threefold.
The Good Food Institute (GFI) released the data today, and says it ‘signals a growing appetite for climate-friendly investments’.
Investment in alternative proteins
It found that plant-based meat, egg, and dairy companies received $2.1 billion in investments in 2020. This is the most capital raised in any single year in the industry’s history and more than three times the $667 million raised in 2019.
Cultivated meat companies received more than $360 million* in investments in 2020 – six times the amount raised in 2019.
Moreover, fermentation companies ‘devoted to alternative proteins’ received $590 million in investments in 2020. This is more than double the amount raised in 2019.
‘Radically remake our food system’
Sharyn Murray is GFI’s Senior Investor Engagement Specialist. In a statement sent to PBN, she said: “The investor community is waking up to the massive social and economic potential of food technology to radically remake our food system.
“Early trendsetters like Impossible Foods, Beyond Meat, Memphis Meats, and Mosa Meat continue to perform well. And, there are more and more entrepreneurs who see the potential of alternative proteins to succeed in the marketplace while having a positive global impact on food sustainability and global health.”
‘A large-scale shift toward alternative proteins’
Caroline Bushnell, GFI’s Director of Corporate Engagement, describes 2020 as a ‘breakout year for alternative proteins’.
She added: “This is yet another signal of the significant potential the private sector sees in this rapidly growing global industry.
“While the amount is record-breaking, more investment is needed—from both the public and the private sectors—to meet the urgency of this moment.
“A large-scale shift toward alternative proteins will be critical to mitigating the environmental impact of food production, meeting the Paris Climate Agreement, and sustainably feeding a growing global population.”
*Although animal cell culture has primarily been applied to cultivated meat production to date. This data also includes $13 million in investments in companies using similar processes to produce dairy.