AgriFoodTech Weekly Update: Quorn, Mara Renewables, and NZN receive new investments; Barry Callebaut investigates plant cell culturing
Plant-Based and Alternative Food Production: A Growing Market Driven by Sustainability and Innovation
The world of plant-based and alternative food production is seeing rapid growth, fueled by a focus on sustainability, health, and technological innovation. This dynamic sector is supported by strong funding, collaborations, and product launches, transforming the way we consume food.
Market Growth
The global plant-based food market is projected to nearly triple, from approximately USD 14.2 billion in 2025 to over USD 44 billion by 2035, growing at a 12% Compound Annual Growth Rate (CAGR). This growth is primarily driven by shifts towards flexitarianism and vegan lifestyles that emphasize health, ethical concerns, and environmental sustainability.
Sustainability and Innovation Focus
Startups and companies are advancing sustainable ingredients beyond meat and dairy analogues. Innovations target improving taste, texture, cost, and nutrition, aligning with consumers’ desires for clean-label, allergen-friendly, and functional foods. Examples of this can be seen in brands like Juicy Marbles, which offer whole-cut plant meats.
Consumer Demographics
Younger generations, such as Gen Z and Millennials, are key drivers in this market. They seek products that meet sustainability and health criteria while offering authentic flavor experiences. There is an increasing emphasis on "food as medicine" and functional health benefits.
Investment and Collaborations
Venture capital funding has surged, particularly in the US and UK, accelerating product development and market expansion. Collaborations between food tech startups, retailers, and foodservice providers are expanding distribution channels, including private-label launches and dedicated grocery store aisles for plant-based products.
Product Launches
Expansion is not only in plant-based meat and dairy but also in snacks, ready meals, and alternative seafood, targeting increasing consumer adoption and diversification of offerings.
Notable Developments
- Néboda secured a €1.84 million seed round to advance indoor vertical farming.
- OlsAro is taking salt-tolerant wheat closer to market with trials underway in multiple markets.
- Quorn's owner, Provectus Algae, secured £18 million ($24 million) for the company, which will use the funds to scale its seaweed growing platform for livestock methane reduction.
- Beyond Meat has debuted a whole-cut mycelium steak filet at US restaurants.
- AWAKE Chocolate, a functional chocolate brand, received a $8 Million CAD investment.
- Mara Renewables raised US$9.1 million to expand algae-based omega-3 production.
- British NZN raised €5.6 million for a biofertiliser solution benefiting farmers.
- PepsiCo has launched a prebiotic cola in the traditional cola category.
- The UK has launched an inquiry into science's role in feeding a growing global population.
- Solynta, an agritech company, landed EU-backed financing to advance disease-resistant potato varieties.
- GEA has celebrated the grand opening of a $20M tech hub for precision fermentation and cultivated foods.
In summary, the trend is toward a rapidly expanding, innovation-driven plant-based food sector characterized by substantial funding, strategic collaborations, and diversified, health- and sustainability-focused product launches that cater to evolving consumer demands and environmental imperatives.
- The focus on sustainability in the plant-based and alternative food production sector is propelling technological innovation.
- Health-concerned consumers are driving the shift towards flexitarianism and vegan lifestyles.
- Companies are developing sustainable ingredients, moving beyond traditional meat and dairy analogues, to cater to consumers who desire clean-label, allergen-friendly, and functional foods.
- Brands like Juicy Marbles offer whole-cut plant meats, aligning with consumer's desire for authentic flavor experiences.
- Gen Z and Millennials are primary drivers in the plant-based food market, seeking products that meet sustainability and health criteria.
- There is an increasing emphasis on "food as medicine" and functional health benefits among younger consumers.
- Venture capital funding has surged, especially in the US and UK, supporting product development and market expansion.
- Collaborations between food tech startups, retailers, and foodservice providers are broadening distribution channels, including private-label launches and dedicated grocery store aisles for plant-based products.
- Expansion is not limited to plant-based meat and dairy, but also includes snacks, ready meals, and alternative seafood.
- Néboda secured funding to advance indoor vertical farming.
- OlsAro is working to bring salt-tolerant wheat closer to the market with trials in multiple markets.
- Quorn's owner, Provectus Algae, secured funds to scale its seaweed growing platform for livestock methane reduction.
- Beyond Meat has debuted a whole-cut mycelium steak filet at US restaurants.
- AWAKE Chocolate, a functional chocolate brand, received investment to further develop its product.
- Mara Renewables raised funds to expand algae-based omega-3 production.
- British NZN raised funds for a biofertiliser solution to benefit farmers.
- PepsiCo has launched a prebiotic cola in the traditional cola category.
- The UK has launched an investigation into the role of science in feeding the growing global population.
- Solynta, an agritech company, received EU-backed financing to advance disease-resistant potato varieties.
- GEA celebrated the opening of a tech hub for precision fermentation and cultivated foods, signifying the growing importance of this sector.
