Matr Foods eyes expansion with new facility, funding boost

DENMARK – Matr Foods, a burgeoning start-up in the meat-alternative sector, plans to significantly increase its production capacity with a new facility within the next two years, targeting expansion beyond its home base in Denmark. 

CEO Randi Wahlsten, who co-founded the company with three others in 2021 after a career at Arla Foods, shared this ambitious vision. 

Currently, Matr Foods operates from a pilot factory in Denmark, producing approximately 30-40 tonnes annually.

Matr Foods utilizes a fungi-based fermentation process to create its range of products, including burgers and mince, primarily catering to Denmark’s out-of-home market. 

The company’s products are also available through the online retailer Nemling. 

Recently, Matr Foods secured funding from Novo Holdings, part of the Danish non-profit Novo Nordisk Foundation. 

While Wahlsten did not disclose the exact amount, she mentioned that the funding marks a pivotal step towards scaling up production. 

Earlier investments came from convertible loans, angel investors, grants, and the founders, who still hold the majority of shares.

“The funding is the beginning of a journey to significantly scale-up the production capacity and take it to a more industrial, automated level,” Wahlsten explained. 

“We are looking to give ourselves the ability to take a very significant step-change that is about 100 times up the volume that we’re producing right now.”

Matr Foods has been testing the market in its initial phase, receiving positive feedback from Danish restaurants, canteen operators, and retailers. 

Despite the limited production, demand has outstripped supply. 

Wahlsten expressed optimism about achieving “big volumes” by 2026 with the new facility, although planning is still in its early stages.

The alternative meat market in Denmark is experiencing substantial growth. 

In 2024, revenue in the Meat Substitutes sector is projected to reach US$60.87 million, with an annual growth rate of 8.15% expected from 2024 to 2029. 

Globally, China leads with the highest revenue in this market, estimated at US$2,371 million in 2024. 

Per capita revenue in Denmark is forecasted at US$10.25 for 2024, with the market volume anticipated to hit 4.82 million kg by 2029. 

A volume growth of 6.5% is expected in 2025, and the average volume per person is predicted to be 0.6 kg in 2024.

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