Alternative Protein Funding Down by 20% in 2025, Falling Below $1B for First Time in 7 Years

In 2025, funding for alternative proteins saw a 20% decrease, dropping below $1 billion for the first time since 2018. Plant-based, fermentation-derived, and cultivated food companies collectively received only $881 million in investment, with plant-based startups being the only segment to surpass their 2024 total. European companies outperformed those in North America for the second year in a row, attracting $418 million compared to North America's $347 million.

This decrease in funding has led to a gap between well-capitalized companies and struggling startups, with the largest checks going to later-stage companies with established revenue streams. The alternative protein industry is entering a phase of leaner operations and more targeted commercialization, with a focus on profitability and potential paths to acquisition or IPO. Expectations for 2026 include continued flow of capital to companies that demonstrate innovation, functionality and a credible path to success in the market.