Food tech that’s driving the next wave of growth in alternative proteins

We look into exciting food tech, innovative product solutions, and how they’ll drive the alternative protein industry

The alternative protein industry is evolving rapidly, with technological innovation a key element of the transformation. From game-changing developments like cellular agriculture to advanced production techniques like precision agriculture and 3D printing, new technologies are reshaping how food is grown, distributed, and consumed.

As governments and private investors increasingly back sustainable food solutions, the latest technological breakthroughs offer enormous potential for scaling production, reducing environmental impact, and meeting growing consumer demand for ethical and sustainable protein sources.

This article explores some of the key food technologies driving the next wave of growth in alternative proteins, divided into two major areas: meta technologies that could fundamentally reshape the food system, and processing innovations that improve efficiency and scalability.

Meta technologies

Innovation in alternative protein is being driven by foundational ‘meta technologies’ that have the potential to reshape the global food system. These technologies — spanning cellular agriculture, precision fermentation, mycoprotein, hybrid products, and seafood analogs – represent a shift toward more sustainable, scalable, and resource-efficient food production. Here’s how each technology is developing and why it matters for the future of alternative proteins.

Cultivated products – meat and dairy without animals

What it is:
Cultivated products are produced through the cultivation of animal cells to produce meat, dairy, and other animal products without traditional farming. Cells are collected from living animals without harm and are grown and multiplied in bioreactors using nutrients and growth factors, mimicking the biological processes that occur in animals.

Investment landscape:
External forecasts of cultivated food markets vary widely in their estimates of the industry’s future size, but they all project strong growth. According to GFI, forecasts for 2030 range from estimates of USD 5 billion to USD 140 billion. Investments, however, are much easier to track and are promising. Cultivated meat and seafood companies raised USD 225.9 million globally in 2023, bringing the total for the industry (since 2013) to USD 3.1 billion.¹

Companies like UPSIDE Foods and Aleph Farms are expanding pilot production of cultivated meat, while cultivated seafood companies such as BlueNalu and Shiok Meats are making significant strides. Singapore became the first country to approve cultivated meat in 2020, and the US followed with approvals for UPSIDE Foods and GOOD Meat in 2023.​²

The UK recently made a breakthrough by joining this list, following the approval and launch of its first cultivated meat product, specifically chicken, for use in dog treats made by Meatly and The Pack.

Key players:
UPSIDE Foods (US), Mosa Meat (Netherlands), Aleph Farms (Israel), BlueNalu (US), Shiok Meats (Singapore), Meatly (UK).

Why investors like it:
Cultivated meat aims to reduce environmental impact by lowering land and water use while eliminating the need for livestock farming. Scaling production, reducing costs, and media skepticism remain key challenges, but regulatory support and gradually increasing consumer acceptance are driving momentum.

Investor note:
Following the UK approval of cultivated chicken for pet food in 2025, human food approvals are anticipated in the next 2-3 years. The UK and EU are also increasing research grants for cellular agriculture, signaling growing government support. The FEASTS (Fermentation, Engineering, and Sustainability for Alternative proteins and Technology Scaling) initiative, which involves 36 institutions from 17 countries, is one of the key research programs exploring the future of cultivated meat and seafood. However, securing consistent funding and achieving production scale remain key challenges for widespread adoption.³

Precision fermentation – animal-free proteins with identical structure

What it is:
Precision fermentation uses genetically engineered microbes (yeast, bacteria, fungi) to produce proteins identical to those found in animal products, including casein, whey, and egg proteins.

Investment landscape:
The global precision fermentation market size was valued at approximately USD 3.2 billion in 2024 and is projected to surpass USD 104.13 billion by 2034, representing a compound annual growth rate (CAGR) of 46%. The North American precision fermentation market is expected to grow at the fastest rate, with a projected CAGR of 46.5% over the same period.⁴ Companies like Perfect Day and Formo are already producing dairy proteins, while New Culture and Imagindairy are working on scalable mozzarella and cream cheese products. The market for precision fermentation-derived fats and animal-free collagen is also expanding.

Key players:
Perfect Day (US), Formo (Germany), Imagindairy (Israel), Change Foods (US/Australia), New Culture (US).

Why investors like it:
Precision fermentation allows the creation of animal-free proteins without the environmental and ethical issues tied to livestock farming. The challenge lies in scaling production and reducing costs to reach price parity with conventional animal proteins.

Investor note:
Regulatory approvals for precision fermentation-derived products are underway in Singapore and the US, with Europe expected to follow within the next 2-3 years. In Singapore, several overseas start-ups have secured regulatory approval, although they may prioritize larger markets like the US. In the EU, companies such as Perfect Day and Remilk have submitted novel food applications for precision fermentation-derived dairy proteins, with the European Food Safety Authority’s approval process typically taking 18–36 months.⁵

Mycoprotein and mycelium – sustainable protein from fungi

What it is:
Mycoprotein is derived from the fermentation of fungi  (in Quorn’s case, Fusarium venenatum) in large bioreactors. The resulting biomass is heat-treated to remove RNA excess and shaped into meat-like products. It offers a wholefood, minimally processed, and nutritious source of protein. Mycelium proteins are grown from edible mushroom mycelium on solid or liquid substrates. The mycelium is harvested with its natural structure intact to create fibrous, wholefood-style products.

Investment landscape:
The mycoprotein market is expected to reach approximately USD 1.46 billion by 2034, with a CAGR of 6.86% from 2025 to 2034.⁶ Companies like Quorn and Mycorena are pioneering new product lines and expanding capacity. The mycelium market for alternative proteins is still young, but in January 2024, Berlin-based Infinite Roots raised USD 58 million – Europe’s largest investment yet in mycelium for food.⁷ Amidst a challenging fundraising landscape, the investment round shows the growing strength of and interest in the category.

Key players:
Quorn (UK), Mycorena (Sweden), Prime Roots (US), Infinite Roots (Germany).

Why investors like it:
Fungi’s natural, minimally processed appeal and high consumer acceptance make it attractive to health-conscious consumers. However, scale-up challenges and production efficiency remain areas for improvement.

Investor note:
New fermentation techniques are helping to improve cost efficiency and scalability.

Hybrid and blended products – combining plant and animal proteins

What they are:
Hybrid products combine plant-based ingredients with fermentation-derived fats or cultivated cells to improve texture, taste, and nutrition. Blended products, meanwhile, mix conventional meat or dairy with plant-based components, aiming to reduce environmental impact while maintaining familiarity for mainstream consumers.

Investment landscape:
Hybrid products, which combine plant-based ingredients with cultivated or fermentation-derived cells or fats, are beginning to attract attention from forward-looking food companies, particularly in Europe. While direct consumer research on these products is still limited, studies on cultivated meat show growing openness to such innovations, especially when environmental and ethical benefits are communicated clearly.⁸

Meanwhile, blended products — which mix conventional animal meat with plant-based ingredients — are already on the market and have been better studied. A cross-country survey by Grasso et al. found that consumers in England, Denmark, and Spain responded positively to blended meat products, particularly when they had input into product development through co-creation exercises.⁹ This suggests that familiarity and involvement can increase acceptance of protein alternatives. A recent analysis by Future Market Insights also showed that the blended meat industry is growing fast; it’s already worth a global market value of USD 2.5 billion and has a projected CAGR of 10% over the next decade!

Key players:
Hybrid – Mirai Foods (Switzerland), Rügenwalder Mühle (Germany), Cultimate (Germany)
Blended – SMUG (UK), Zandbergen (Netherlands), Perdue (US), Better Balance (Spain)

Why investors like it:
Blended products are easier to scale and bring to market, and tend to have high consumer acceptance when marketed in the right way. Hybrid products, while more complex, offer exciting long-term potential by combining the taste and texture benefits of animal ingredients with a lower environmental footprint. Compared to fully cultivated products, they’re likely to achieve faster regulatory approval. Both approaches create stepping stones for consumers and opportunities for brands to differentiate in a crowded protein market.

Seafood analogs – the next frontier

What it is:
Seafood analogs are plant-based, fermentation-derived, or cultivated seafood products that replicate the taste, texture, and nutritional profile of fish and shellfish.

Investment landscape:
The global plant-based seafood market was valued at USD 58.3 million in 2022 and is projected to grow at a CAGR of 30.1%, reaching USD 758.4 million by 2032.¹⁰ Companies like BlueNalu and Shiok Meats are leading the development of cultivated seafood, while companies like Good Catch are innovating in plant-based seafood.¹¹

Key players:
BlueNalu (US), Shiok Meats (Singapore), Good Catch (US).

Why investors like it:
Seafood analogs offer a scalable solution to overfishing and ocean degradation. Regulatory approvals and production scale remain barriers to widespread adoption.

Processing innovations

Beyond foundational meta technologies, advancements in food processing are enhancing the scalability, texture, and nutritional profile of alternative proteins. These innovations are helping producers improve product quality, reduce costs, and meet growing consumer demand for sustainable, ethical, and high-performance protein sources.

3D printing – custom textures and products

3D printing enables the creation of complex, customized food products using plant-based or cultivated ingredients. The technology works by layering plant-based proteins, fats, and binding agents, allowing for precise control over texture and structure.¹² Companies like Redefine Meat and Novameat use 3D printing to recreate the marbling and fibrous texture of whole cuts from plant-based materials. Steakholder Foods, by contrast, applies 3D bioprinting to cultivated cells, aiming to produce structured meat products such as steaks and fish filets from animal cell cultures.¹³

Why it matters: 3D printing allows plant-based and cultivated meat producers to replicate the complex textures and flavor profiles of animal products — a key factor in convincing flexitarian and omnivore consumers to switch to alternative proteins.

Extrusion technology – improving texture and mouthfeel

High-moisture extrusion technology (HME) enhances the texture and mouthfeel of plant-based products by creating fibrous, meat-like structures. In HME, plant proteins are mixed with water and heated under pressure, causing the proteins to align and form layers similar to muscle fibers in meat.

• Beyond Meat and Heura have improved their plant-based burgers and chicken products by using HME to create a more authentic bite and juicier texture.
• Startups like Next Meats and Plantish are using HME to develop whole-cut seafood and meat alternatives.
• Improved extrusion methods are also allowing for the integration of fats and natural flavor compounds, making plant-based products more appealing to mainstream consumers.

New developments in extrusion technology are enabling producers to work with a wider range of plant proteins, including pea, mung bean, and fava bean, improving the nutritional profile and flavor complexity of products.

Why it matters: Enhanced texture and consistency are critical factors in consumer acceptance of plant-based products, particularly among flexitarians. HME helps alternative proteins closely mimic the sensory experience of meat while improving nutritional density.

Waste processing and upcycling – closing the loop

Upcycling transforms food waste and by-products into high-value ingredients for alternative protein production.

• EverGrain (owned by AB InBev) extracts protein and fiber from spent barley grain (a beer-brewing byproduct) to create nutrient-rich ingredients for plant-based foods and beverages.
• Fidesse, made by Cosun Beet Company, is an innovative upcycled food ingredient derived from sugar beet pulp. Fidesse enhances the texture and juiciness of plant-based meat alternatives – transforming a sugar production byproduct into a valuable component for alternative protein products.
• Renewal Mill uses byproducts from tofu and oat milk production to create high-protein flours and baking mixes, reducing food waste while improving nutritional value.

Upcycling not only reduces waste but also enhances the sustainability credentials of alternative protein products. Regulatory support for circular economy practices is also encouraging more companies to integrate upcycling into their supply chains.

Why it matters: Upcycling aligns with growing consumer demand for sustainability and helps brands reduce production costs while improving the environmental footprint of alternative proteins.

Precision agriculture – smart farming for better yields

Precision agriculture uses sensors, drones, artificial intelligence (AI), and automated systems to optimize crop production and resource efficiency.¹⁴

• John Deere has introduced autonomous tractors and AI-powered crop management platforms that help farmers increase yield and reduce input costs.
• AI-driven platforms like CropX analyze soil health, moisture levels, and weather patterns to provide farmers with real-time data and recommendations, reducing waste and improving harvest quality.
• Precision agriculture is also helping producers optimize protein crops like soy and peas, essential ingredients in plant-based foods.

By reducing water use, improving soil health, and minimizing fertilizer use, precision agriculture enhances the sustainability of alternative protein supply chains.

Why it matters: Sustainable, efficient crop production is crucial for meeting the growing demand for plant-based proteins. Precision agriculture improves yield while reducing environmental impact, strengthening the supply chain for alternative proteins.

Smart packaging – extending shelf life and reducing waste

Smart packaging incorporates technologies that monitor and communicate the freshness and quality of food products.¹⁵

• Mimica produces temperature-sensitive labels that change texture when food is no longer safe to consume, reducing food waste and improving consumer confidence.
• Insignia Technologies has developed time-temperature indicators that change color to signal when perishable products are approaching spoilage.
• Active packaging with antimicrobial agents is also being explored to extend the shelf life of plant-based meat and dairy products.

Smart packaging provides retailers and consumers with real-time data on food safety and freshness, allowing for better inventory management and reducing food waste.

Why it matters: Extending the shelf life of alternative proteins reduces product loss and improves profitability while enhancing the consumer experience.

Final thoughts: why food tech matters

Emerging food technologies offer scalable, sustainable solutions to the global challenges of food security and environmental impact. As consumer demand for ethical, environmentally friendly, and nutritious products grows, food tech innovations are paving the way for a more resilient and efficient global food system.

For investors, the opportunity lies in identifying the companies that can effectively scale these technologies, reduce production costs, and meet evolving consumer expectations. Companies that succeed in this space will not only drive profitability but also contribute to a more sustainable and secure food future.

For more support on your alternative protein strategy, contact our experts at [email protected] and subscribe to our newsletter and podcast.

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15. Smart packaging extends fresh produce shelf life and reduces waste FreshPlaza (2024). Available at: https://www.freshplaza.com/north-america/article/9703034/smart-packaging-extends-fresh-produce-shelf-life-and-reduces-waste/