Deep Dive: What’s Driving the Consolidation Wave in Alternative Protein?

The alternative protein industry has seen a wave of consolidation over the past two years, with more than 80 startups experiencing M&As, insolvencies, or closures. This trend is driven by a combination of factors, including a funding drought, changing investor focus, and the need for companies to prove profitability and sustainability.

Investors are now prioritizing strong fundamentals like profitability, cash generation, and efficient operations, leading to a shift towards more sustainable business models. Companies in the plant-based sector have been disproportionately affected by consolidation due to the maturity and competitiveness of the market. Meanwhile, the use of artificial intelligence is seen as a key factor in driving future success and attracting capital within the alternative protein industry.