Where is the next wave of alternative protein growth coming from?
By Simon Middleton, Senior Writer, ProVeg International
The alternative protein industry is at a pivotal moment. With growing consumer demand, government support, and technological advancements, investors are seeking the next big opportunity. But how is theย alternative protein industry โ including plant-based, precision fermentation, cultivated meat, or fungi-based proteins โ positioned for growth over the next five to 10 years?
This article explores the most promising investment areas, focusing on emerging categories, key players, and market trends shaping the future of alternative proteins.
Why alternative proteins remain an investment priority
Despite economic challenges, investment in alternative proteins continues to grow, with governments and private investors recognizing the sectorโs potential to transform food systems.
- Consumer demand for sustainable options: Global sales of plant-based foods remain strong, reaching an estimated USD 29 billion in 2023. While retail sales declined in some markets, consumer interest and engagement with plant-based proteins continue to grow, prompting retailers and manufacturers to expand product offerings and partnerships. However, overcoming challenges related to price parity, taste, and manufacturing scale will be key to mainstream adoption.1
- Government funding and policy shifts: Governments are increasing investment in alternative protein research and regulatory support. The European Commission, for example, launched a Horizon Europe funding initiative in 2024 to support research on novel foods and alternative protein sources, reflecting a broader commitment to sustainable food systems and innovation in protein production.2
- Supply chain resilience: Climate change and global disruptions have heightened concerns about food security, underscoring the potential of alternative proteins to enhance resilience. The UK Research and Innovation’s Transforming Food Production (TFP) program, for instance, is working to strengthen the UK’s research and capabilities in the alternative protein supply chain, aiming to improve resilience, efficiency, and sustainability in the food sector.3
Key investment opportunities in alternative protein
Precision fermentation โ unlocking dairy, egg, and fat alternatives

- What it is: Uses microbes to produce dairy, egg, and fat alternatives at scale. Through precision fermentation, microorganisms such as yeast, fungi, and bacteria are engineered to produce specific proteins, fats, and enzymes identical to those found in animal products โ without the environmental and ethical issues tied to animal agriculture.
- Investment landscape: Significant investments have been made in precision fermentation companies, with firms like Perfect Day leading the way. The global precision fermentation market is projected to grow at a compound annual growth rate (CAGR) of over 40% through 2030.4 In 2023, investment in precision fermentation-focused companies reached approximately USD 1.7 billion despite broader venture capital slowdowns.5 New product categories are also emerging, including precision fermentation-derived fats for enhanced mouthfeel and animal-free collagen for use in supplements and functional foods.
- Key players: Perfect Day (US), Formo (Germany), Imagindairy (Israel), Change Foods (US/Australia), New Culture (US).
- Why investors like it: Precision fermentation is seen as a promising solution for developing animal-free dairy, egg, and fat proteins, particularly as advancements bring costs closer to parity with traditional animal products. Regulatory approvals are already underway in key markets such as Singapore and the US, with Europe expected to follow.6 However, scaling production infrastructure and securing consistent microbial strains remain key challenges for widespread adoption.
Cultivated meat โ navigating regulation and scaling production
- What it is: Laboratory-grown meat produced from animal cells without slaughter. Recent developments have also seen the expansion of cellular agriculture into cultivated seafood and dairy, using similar techniques to produce animal-free products with identical taste and nutritional profiles.
- Investment landscape: Cultivated meat companies have raised substantial funding in recent years, with leading firms like UPSIDE Foods and Mosa Meat continuing to attract investment. However, 2023 saw a decline in private investment in cultivated meat, mirroring broader downturns in venture capital funding across the food tech sector. Despite this, public funding and government support are helping to sustain innovation and infrastructure development in the cultivated meat industry. The cultivated seafood sector is also gaining momentum, with BlueNalu (US) and Shiok Meats (Singapore) securing new funding rounds to scale production capacity and drive regulatory progress.7
- Key players: UPSIDE Foods (US), Mosa Meat (Netherlands), Aleph Farms (Israel), BlueNalu (US), Shiok Meats (Singapore).
- Regulatory progress: The UK approved cultivated chicken for pet food in 2025; human food approvals are anticipated in the next 2โ3 years. The UK Food Standards Agency (FSA) has outlined regulatory reforms aimed at streamlining novel food approvals, indicating progress towards commercial availability.10 The first cultivated seafood approval in Europe could come within the next 2โ3 years, depending on regulatory timelines.
- Investor note: The UK and EU are increasing government research grants for cultivated meat, aiming to support domestic production. The UK government announced funding for a cellular agriculture research center in 2024, aimed at improving production efficiency and reducing costs. However, achieving cost reduction and infrastructure scaling remains a major challenge for widespread adoption.
Mycoprotein and fungi-based proteins โ a natural protein solution

- What it is: Fungi-based proteins such as mycoprotein offer a whole food, highly sustainable protein source.
- 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. While solid-state fermentation and novel fungi strains are opening new opportunities, achieving large-scale, cost-efficient production remains a key challenge.11
- Key players: Quorn (UK), Mycorena (Sweden), Prime Roots (US), and Infinite Roots (Germany).
- Why investors like it: Lower production costs and strong consumer acceptance make mycoprotein and other fungi-based proteins a competitive option. However, production efficiency and consumer education on fungi-based proteins remain areas for growth.10
- Investor note: Mycoproteinโs natural, minimally processed appeal makes it attractive to health-conscious consumers, but scale-up challenges need to be addressed.
Hybrid and blended products โ bridging the gap for flexitarians

- What it is: Combining plant-based ingredients with animal-based ingredients, fermentation-derived ingredients or cultivated cells for better texture and taste.
- Investment landscape: Emerging, but attracting major industry players such as Nestlรฉ and Believer Meats. While hybrid products offer a pragmatic approach to alternative protein scaling, cost considerations and regulatory approvals for cellular ingredients remain factors to watch.12
- Key players: Mirai Foods (Switzerland), Rรผgenwalder Mรผhle (Germany), SMUG (UK), and Jan Zandbergen Group (Netherlands).
- Why investors like it: Hybrid and blended products reduce reliance on ultra-processing while improving consumer appeal. However, long-term consumer adoption will depend on regulatory acceptance (hybrid) and ingredient cost efficiencies..13
- Investor note: Blended products could drive faster adoption by offering familiar taste profiles while reducing meat consumption, but achieving price competitiveness with conventional products is still a challenge.
Plant-based proteins โ leading the alternative protein industry
- What it is: Plant-based proteins are derived from various plant sources, including legumes, grains, nuts, seeds, and vegetables. These proteins serve as alternatives to animal-based proteins, offering diverse options for consumers seeking sustainable and health-conscious food choices.
- Investment landscape: The plant-based protein market was valued at approximately USD 14.2 billion in 2024 and is projected to reach USD 20.5 billion by 2029, with a compound annual growth rate (CAGR) of 8.1%.14 This growth is driven by increasing consumer demand for plant-based foods, advancements in food technology, and heightened awareness of environmental sustainability. And the growth is not going to do anything but increase โ the global plant-based meat market was valued at approximately USD 8.54 billion in 2024 and is expected to grow at a compound annual growth rate (CAGR) of 19.8% between 2025 and 2034, reaching around USD 43.42 billion by 2034.15
- Key players: Morningstar Farms (US), Maple Leaf Foods (US), La Vie (France), Ingredion (US), This (UK), Beyond Meat (US), Impossible Foods (US), Heura (Spain), and Kerry Group (Ireland).
- Why investors like it: Strong market growth and rising consumer demand for health-focused, sustainable products make plant-based proteins a compelling investment. Technological improvements have enhanced the taste, texture, and nutritional profile of plant-based products, boosting consumer acceptance. However, achieving price parity with animal-based proteins and overcoming taste and texture challenges remain key hurdles.
- Investor note: Despite rapid growth, the plant-based protein sector faces challenges, including high production costs and consumer expectations around taste and texture. Ongoing innovation, cleaner-label products, and the development of non-mimic plant-based foods that offer unique culinary experiences are expected to drive future growth.16
Foodservice โ unlocking mass adoption

- What it is: Alternative proteins are expanding beyond retail, making significant inroads into restaurants, catering, and quick-service restaurant (QSR) chains.
- Investment landscape: Recent trends indicate a growing consumer interest in plant-based alternatives, driven by factors such as environmental concerns and health consciousness. In the UK, consumer data from Vita Mojo showed a 56% increase in vegan food orders at quick-service restaurants (QSRs) in 2024, alongside a 64% rise in demand for vegetarian options. Major chains like Leon, Subway, Gailโs, and Wenzelโs have responded by expanding their plant-based offerings to meet this growing demand.17
- Key players: Companies such as Impossible Foods (US), Heura (Spain), and TiNDLE (Singapore) are actively collaborating with foodservice providers to introduce plant-based options.
- Why investors like it: The foodservice channel offers high visibility and the potential to influence mainstream consumer habits. However, achieving competitive pricing remains a challenge. Industry leaders like Jack Cowin, a prominent businessman and Burger King franchisee, have invested in plant-based meat through companies like V2 Food Co. Despite initial challenges in profitability and consumer acceptance, there remains optimism about the long-term potential of plant-based meats in the foodservice industry.
- Investor note: Major chains such as McDonald’s and Burger King are expanding their plant-based menus, signaling strong long-term demand. For example, McDonald’s CEO, Chris Kempczinski, highlighted an increasing consumer focus on protein consumption, aligning with McDonald’s menu offerings like burgers, chicken, and fish filets. Additionally, the integration of artificial intelligence (AI) in the restaurant sector is expected to enhance both customer and crew experiences, potentially influencing the adoption of alternative proteins.18 Nonetheless, widespread adoption in foodservice will depend on achieving cost competitiveness and meeting consumer expectations. By addressing pricing and consumer acceptance challenges, alternative proteins can solidify their presence in the foodservice industry, paving the way for broader market integration.
Final thoughts: positioning for the next wave of growth
Alternative proteins are no longer a niche category โ they are rapidly evolving into a key pillar of the future food system. With innovation in precision fermentation, cultivated meat, mycoprotein, and hybrid products, the sector offers strong investment potential across multiple avenues. However, for alternative proteins to reach mainstream adoption, cost, consumer appeal, and regulatory approvals remain pivotal challenges.
For investors, now is the time to identify scalable solutions, track regulatory progress, and back companies that can deliver on taste, affordability, and accessibility. As government policies align with sustainability goals and consumer demand continues to shift, the next five to 10 years will be crucial in determining the winners in this space.
The question is: are you ready to invest in the future of food?
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References
- Good Food Institute. (2023). State of the Industry Report: Plant-Based Foods. Available at: https://gfi.org/resource/plant-based-meat-eggs-and-dairy-state-of-the-industry-report/
- European Commission. (2024). Horizon Europe Funding: Impact of the development of novel foods based on alternative sources of proteins (HORIZON-CL6-2024-FARM2FORK-01-7). Available at: https://ec.europa.eu/info/funding-tenders/opportunities/portal/screen/opportunities/topic-details/horizon-cl6-2024-farm2fork-01-7
- UK Research and Innovation. (2024). New Report Reveals Next Steps for the Alternative Protein Industry. Available at: https://www.ukri.org/news/new-report-reveals-next-steps-for-the-alternative-protein-industry/
- Good Food Institute. (2024). Fermentation: State of the Industry. Available at: https://gfi.org/resource/fermentation-state-of-the-industry-report/
- Good Food Institute. (2024). Fermentation: State of the Industry. Available at: https://gfi.org/resource/fermentation-state-of-the-industry-report/
- RethinkX. (2023). Precision Fermentation Cost Analysis. Available at: https://www.rethinkx.com/food-and-agriculture
- Good Food Institute. (2023). State of the Industry Report: Cultivated Meat and Seafood. Available at: https://gfi.org/resource/cultivated-meat-and-seafood-state-of-the-industry-report/
- UK Food Standards Agency. (2024). Novel Foods Regulatory Framework Review: Executive Summary. Available at: https://www.food.gov.uk/research/novel-and-non-traditional-foods-additives-and-processes/novel-foods-regulatory-framework-review-executive-summary8 Meanwhile, the European Food Safety Authority (EFSA) has provided guidance for novel food applications, with cultivated seafood and dairy among the next categories expected to be reviewed.9European Food Safety Authority. (2024). Guidance on the scientific requirements for an application for authorisation of a novel food in accordance with Regulation (EU) 2015/2283. Available at: https://www.efsa.europa.eu/en/efsajournal/pub/8961
- Precedence Research. (2025). Mycoprotein Market Size, Share, and Trends 2025 to 2034. Available at: https://www.precedenceresearch.com/mycoprotein-market
- ย Good Food Institute. (2023). State of the Industry Report: Cultivated Meat and Seafood. Available at: https://gfi.org/resource/cultivated-meat-and-seafood-state-of-the-industry-report/
- ย Good Food Institute. (2023). State of the Industry Report: Cultivated Meat and Seafood. Available at: https://gfi.org/resource/cultivated-meat-and-seafood-state-of-the-industry-report/
- MarketsandMarkets. (2024). Plant-based Protein Market worth $20.5 billion by 2029 – Exclusive Report by MarketsandMarketsโข. Available at: https://www.prnewswire.com/news-releases/plant-based-protein-market-worth-20-5-billion-by-2029–exclusive-report-by-marketsandmarkets-302159037.html
- Expert Market Research. (2024). Top 10 Plant-Based Meat Companies Worldwide. Available at: https://www.expertmarketresearch.com/blogs/top-plant-based-meat-companies
- SupplySide Food & Beverage Journal. (2024). Ingredient innovation shapes the future of plant-based foods & beverages. Available at: https://www.supplysidefbj.com/market-trends-analysis/ingredient-innovation-shapes-the-future-of-plant-based-foods-beverages
- Protz, A. (2024, December 29). Demand for vegan food at UK quick-service restaurants up by 56% in 2024. Plant Based News. Available at: https://plantbasednews.org/lifestyle/food/demand-vegan-food-uk-quick-service-restaurants/
- New York Post. (2025). McDonald’s CEO outlines three key predictions for the restaurant industry in 2025. Available at: https://nypost.com/2025/03/02/business/mcdonalds-ceo-gives-three-predictions-for-restaurant-biz-in-2025