Alternative protein funding down by 50% in the first half of 2025 – Good Food Institute
Funding for plant-based, fermentation-derived and cultivated proteins drops by nearly half in first six months of the year
WORLD – Investment in alternative proteins has continued to slide in 2025, with funding for plant-based, fermentation-derived and cultivated protein companies down 49% in the first half of the year compared to the same period in 2024, according to Good Food Institute (GFI) analysis of Net Zero Insights data.
The sector attracted US$364M in the first six months, with just US$129.5M in the second quarter, representing a 45% drop from the previous quarter.
Fermentation companies, which in past quarters had managed to offset declines elsewhere, raised only US$2.6M in Q2, far below the US$146M they secured in Q1.
Plant-based food makers received US$127M between April and June, but most of this came from Beyond Meat’s US$100M debt financing, meaning the category would otherwise have seen funding cut by half compared to the previous quarter.
Cultivated meat saw three announced investments in Q2, though none disclosed financial details.
Broader slowdown across food and climate tech
The decline reflects a wider pullback in venture capital, with agrifood tech investment down 37% year-on-year, biotech down 35% and climate tech down 19%.
For alternative proteins specifically, analysts point to geopolitical uncertainty, tariffs under President Donald Trump, policy shifts under Robert F. Kennedy Jr, opposition to ultra-processed food, legal restrictions on cultivated meat, and falling sales of plant-based products in some markets as key factors dampening investor appetite.
GFI lead economic and industry analyst Daniel Gertner said the slowdown also relates to the redirection of capital into artificial intelligence, which claimed 53% of all venture funding in the first half of 2025.
While AI is competing for investment dollars, it is also being applied within the sector to improve ingredient discovery, streamline production and create better products.
Analysts suggest that demonstrating practical AI applications in manufacturing and R&D may help keep investor attention on alternative proteins.
Signs of activity amid declines
Despite the fall in funding, GFI reported five mergers or acquisitions in Q2, alongside steady partnership announcements aimed at sharing costs, expanding distribution and speeding regulatory processes.
Regulatory approvals have advanced in 2025, with Mission Barns and Wildtype gaining US FDA clearance, Australia’s Vow authorised in Australia and New Zealand, and Singapore approving cultivated chicken for pets from Friends & Family Pet Food Company.
Mission Barns has since received US Department of Agriculture approval for its cultivated pork, while Israel’s Believer Meats gained FDA clearance for its cultivated chicken.
Public funding has also emerged, with the European Union committing US$381.7M (€350M) to scale up biomanufacturing, though industry reports suggest fermentation will require around US$545B to reach its potential.
Gertner noted that strategic deals and regulatory progress could help create conditions for a recovery, but sustained investment growth will likely depend on companies delivering market-ready technologies and profitable exits.
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