What Do 2025’s Investment Trends So Far Tell Us About Alternative Proteins?

Alternative protein investments saw a decline in 2024, with a further 28% drop in Q1 2025 compared to the previous year. Factors such as AI, high costs, and low sales have been cited as reasons for the decrease in funding. The alternative protein industry faced challenges in 2025 due to geopolitical tensions, regulatory issues, and declining sales in several markets, leading to a tough climate for startups in the sector.

Despite the overall decline in investments, fermentation startups emerged as a bright spot, attracting half of all funding in Q1 2025. European startups also showed promise, particularly in the fermentation sector, with several companies securing significant investment. The future of alternative proteins will depend on companies' abilities to innovate, address misinformation, and secure funding through various avenues beyond just venture capital.