Record $3.1 Billion Invested in Alternative Meat Proteins in 2020
Last year’s capital investment in the alternative protein industry was three times more than what was raised in 2019, as plant-protein continues to position itself as a sustainable solution to feed the world’s growing population.
Credit: Impossible Foods
A record $3.1 billion was invested in the development of alternative protein products in 2020, according to a new report released by the Good Food Institute (GFI).
Last year’s staggering level of capital investment in plant-based food was three times more than what was raised in 2019.
And to put the increase in perspective, a total of $5.9 billion has been raised by alternative protein companies since 2010, with more than half of that figure received in 2020 alone.
“The investor community is waking up to the massive social and economic potential of food technology to radically remake our food system,” says GFI senior investor engagement specialist Sharyn Murray. “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.”
Among the funds raised last year, plant-based meat, egg, and dairy companies received $2.1 billion in investments, while cultivated - or cell-based - meat companies racked up more than $360 million. Fermentation companies devoted to alternative proteins saw $590 million in investments.
And as the wider seafood industry races to move towards more sustainable solutions, alternative seafood companies also saw unprecedented growth in 2020, raising more than $80 million in invested capital - four times the amount raised in 2019.
To underpin why sustainable protein alternatives are urgently needed, the report highlights how alt-proteins play a critical role in enabling agriculture to meet global climate goals, improve global health, and feed a growing population.
With livestock accounting for 14.5 percent of all anthropogenic greenhouse gas emissions, current food processing practises will not be enough to sustain 10 billion people while still reaching net-zero emissions by 2050.
Although 2020 was a record year of investment for the rapidly growing alternative protein industry, the GFI’s director of corporate engagement Caroline Bushnell, says additional investment and a global shift away from animal-based proteins is crucial:
“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.”
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