NEW TECH FOODS

BioCraft, a biotech company specialising in animal cell-cultured ingredients for the pet food market, has received approval from Austrian authorities to use Category 3 Animal Byproducts within the EU, enabling it to supply ingredients to EU pet food producers Its first cultured cell-based ingredient is made from mouse cells, a traditional prey for both cats and dogs. BioCraft creates an unstructured ingredient from these cultures that requires no additional downstream processing, offering a nutritional profile and consistency similar to the meat slurry commonly used by pet food producers. There is currently no pre-market approval process in the EU for animal feed ingredients, alternative, novel or otherwise. Companies wishing to sell animal-based ingredients to pet food manufacturers must meet legal requirements to ensure that the feed ingredients are safe and become a registered user of animal byproducts in the EU . BioCraft has been granted that registration by authorities in Austria for “the purpose of multiplying cells for the production of pet food”. Achieving this status requires both registration by authorities and a demonstration of the ingredient’s safety and quality. Over a three-year period, BioCraft’s products have undergone rigorous checks by a team of veterinary, food safety and food science experts, both in-house and third-party. These evaluations confirmed that BioCraft’s ingredients are made from stable, non-immortalised, non-genetically modified animal cells and are free from bacterial pathogens, viruses, biogenic amines (which can have negative health effects at high concentrations) and heavy metals. “Achieving ABP registration for an animal cell-based ingredient in the EU is a significant milestone for BioCraft and the industry as a whole,” said BioCraft founder and CEO Shannon Falconer. “This comprehensive safety analysis goes well beyond regulatory compliance and provides a meticulous breakdown of our feed safety protocols, including stringent supplier verification processes, traceability documentation, risk assessments and SOPs for every critical control point." She continued: "We’ve implemented rigorous quality control measures and transparency across our supply chain, and the result is the highest industry standards for safety and integrity in alternative protein production”.   BioCraft has fulfilled its obligations as a Feed Business Operator and has notified the EU Feed Material Register. Additional third-party profiling of over 100 nutrients revealed that BioCraft’s animal-cell cultured ingredient closely matches the nutritional profile of the standard 'meat slurry' currently used by pet food manufacturers.

The global agri-food-tech sector has seen a steep decline in investment, with funding plummeting by 73% from its 2021 peak, according to the latest FoodTech 500 report. Despite this downturn, industry players are shifting focus towards sustainable and system-wide innovations, marking the emergence of what analysts are calling 'FoodTech Wave 3.0.' The FoodTech 500, now in its sixth year, ranks the most innovative start-ups and scale-ups operating at the intersection of food, technology and sustainability. This year’s report, compiled from 1,420 applications across 52 countries, paints a stark picture of the investment landscape. Total agri-food-tech funding has dropped from $61.2 billion in 2021 to just $16.1 billion in 2024, with deal volume declining by 58% in the same period. While overall funding has contracted, a reallocation of investment suggests a shift in strategic priorities. Traditional downstream sectors, such as food delivery and alternative proteins, which once commanded 68% of total funding, now represent just 47%. Instead, investors are increasingly backing upstream innovations, including agricultural biotechnology, precision farming, protein fermentation and upcycled ingredients. The proportion of global agri-food-tech funding directed towards agricultural biotechnology, for example, has risen from 3.8% in 2021 to 6.2% in 2024. Precision farming solutions have seen a similar uptick, increasing from 2.7% to 6.6% over the same period. Meanwhile, fermentation-based protein alternatives and biotech-driven food processing methods are gaining traction as investors seek scalable, climate-friendly solutions. Domains gaining momentum Several domains have shown consistent upward momentum, including: biotech/synthetisation, ag biotech, protein fermentation, cellular agriculture and upcycled ingredients, food surplus and waste efficiency. The increasing focus on these sectors highlights a strategic pivot towards technologies that can enhance food sustainability, reduce waste and improve efficiency across the supply chain. Cellular Agriculture has seen particular growth, with companies like Upside Foods and BlueNalu developing cultivated meat and seafood products. Meanwhile, protein fermentation is driving innovation in alternative proteins, with companies such as Nature’s Fynd and Perfect Day leading the charge. The biotech/synthetisation category is also expanding rapidly, with firms like Ginkgo Bioworks working on precision fermentation and bioengineered food ingredients. Between 2019 and 2024, ag-biotech saw a CAGR of 8%, attracting over $1.13 billion in investment across more than 550 companies. Bio-tech-enabled food manufacturing, which includes cellular agriculture and fermentation, grew at a CAGR of 23%, receiving over $1.19 billion in funding across 480+ companies. Meanwhile, food-as-medicine and personalised nutrition solutions saw a 14% CAGR, attracting approximately $1 billion in investment across 645 companies. The share of global agri-food-tech funding allocated to protein fermentation increased from 2.3% in 2021 to 3.4% in 2024, biotech/synthetisation from 3.9% to 5.1% and upcycled ingredients, food surplus and waste efficiency from 1.3% to 2.5%. This shift reveals investor confidence in upstream technologies and circular approaches, even as the overall funding pool has contracted. Conversely, vertical and indoor farming has experienced a marked decline in representation among FoodTech 500 finalists, reflecting broader market challenges such as high operational costs, energy consumption concerns, and difficulties in achieving profitability. This shift suggests that investors are becoming more selective, prioritising areas that promise long-term scalability and commercial viability. Survival in a selective funding environment The contraction in venture capital has forced start-ups to diversify their financial strategies. Debt financing has grown from 3% to 7% of total sector funding, while grant funding has increased from 6% to 9%, highlighting a trend towards alternative investment models. Late-stage companies are under mounting pressure to demonstrate clear paths to profitability, prompting many to form strategic partnerships with established food manufacturers. Despite financial pressures, food-tech start-ups remain resilient and innovative. The FoodTech 500 data shows that 74% of ranked companies are revenue-generating, with a combined $8.67 billion raised to date. Notably, 99% of this year’s ranked companies have secured external investment, underscoring sustained investor interest in long-term food system transformation. The rise of 'FoodTech Wave 3.0' The report identifies 'FoodTech Wave 3.0' as a defining industry trend, characterised by a holistic and systemic approach to innovation. Unlike previous waves driven by consumer-facing trends, this shift emphasises circular economy principles, waste reduction and integration of advanced biotechnology. For example, investment in sustainable ingredients and circular economy solutions, such as upcycled food waste and carbon-sequestering agricultural inputs, has surged. Meanwhile, artificial intelligence (AI)-powered food processing and personalised nutrition technologies are gaining prominence as companies look to optimise production efficiencies and enhance consumer health. A spotlight on cell-ag One of the most closely watched areas in FoodTech is cellular agriculture, which is poised to transform protein production. The sector has made significant strides, with investments funnelling into lab-grown meat, seafood and dairy alternatives. Despite funding challenges, cellular agriculture companies continue to innovate, driven by advancements in tissue engineering, bioreactors and cost reduction strategies. 32 cell-ag companies made it to FoodTech 500's list, up from 23 in 2023. The FoodTech 500 highlights a growing presence of cellular agriculture firms among this year’s finalists, reflecting industry confidence in the potential of cultivated protein. However, commercialisation remains a key hurdle. Scaling production to match conventional meat costs and navigating regulatory approvals are among the primary challenges faced by start-ups in this space. Several FoodTech 500 finalists are pioneering advancements in cellular agriculture. Upside Foods, a leader in cultivated meat working on scaling its lab-grown chicken production, made it into the top ten. BlueNalu is focusing on cultivated seafood, aiming to address supply chain challenges in the traditional fishing industry. Meanwhile, Gourmey and Aleph Farms are developing high-end cultivated meat products, such as foie gras and steak, using cell-based techniques. Companies like Mosa Meat, Vow and Future Meat Technologies are also making significant progress in reducing production costs to enable commercial viability. Other cell-ag companies that made the FoodTech 500 finalists include: Umami Bioworks, Galy Co (cultivated cotton), Cellmeat, Cellva Ingredients, Simple Planet, Forsea Foods, Nūmi, Hoxton Farms, Mewery, Multus, Ivy Farm Technologies, Biftek, UnReal Milk (fka Brown Foods), Steakholder Foods, Cellivate Technologies, Ever After Foods, ClearMeat, Meatly, BLUU, Upstream Foods, Bene Meat Technologies, Accellta, Opalia, Senara, Cellular Agriculture, Re:meat, Oppo Bio and E-FISHient Protein. Nonetheless, industry leaders predict that as technological efficiencies improve and regulatory frameworks evolve, cellular agriculture could become a mainstream protein source within the next decade. Several countries, including the US and Singapore, have already granted approvals for cultivated meat products, signalling a shift towards market acceptance. Looking ahead: A stabilising market? Despite continued economic uncertainty, the food-tech sector is showing signs of stabilisation. While early-stage funding has become more difficult to secure, a growing number of companies are securing Series A investment. The report suggests that 2025 could see a gradual recovery, particularly for startups aligned with sustainability and resilience-focused strategies. However, analysts caution that entrepreneurs must adapt to new funding realities, focusing on realistic valuations and strategic capital allocation. Policymakers, meanwhile, are urged to introduce regulatory frameworks that support circular economy initiatives and accelerate the adoption of sustainable food technologies.

Israeli start-up Aleph Farms has successfully raised $29 million in funding aimed at advancing its production capabilities for whole-cut cultivated steak. This financing round, which includes $22 million raised through a SAFE (Simple Agreement for Future Equity) and an additional $7 million from existing investors, positions Aleph Farms to enhance its operational efficiency and reduce costs in a challenging market environment. Aleph Farms plans to use the newly acquired capital to expand its pilot facility in Rehovot, Israel, and establish intermediate-scale production sites in Europe and Asia. Co-founder and CEO Didier Toubia noted the importance of this funding in scaling the company’s operations, telling AgFunderNews : “The funding will be used to scale up our pilot facility and launch the first Aleph Cut through an optimised production process designed for profitability”. As the cultivated meat industry faces a contraction in funding, Toubia noted that the adjustments in fundraising terms reflect current market conditions, offering a potential entry point for new investors. “Aleph Farms has successfully overcome major challenges associated with cultivated meat, including regulation, product-market fit, profitability and scalability,” he added. Aleph Farms has made significant strides in reducing production costs, reporting a 97% decrease since 2020. The company aims to achieve production costs of $14 per pound at a medium scale and between $6 to $7 per pound at larger scales. This reduction is facilitated by modifications to its biomanufacturing process, which now allows for the production of thicker steaks without the need for a secondary tissue bioreactor. The new '1.2' production method eliminates the second step in the cell differentiation process, allowing for a streamlined operation that combines cell proliferation and differentiation in a single bioreactor. This innovative approach not only enhances efficiency but also preserves the nutritional and sensory qualities of the final product. Aleph Farms has recently secured regulatory approval to launch its cultivated beef products in Israel, although it must amend its submission to accommodate its revised production process. The company is also pursuing regulatory approvals in Switzerland, the UK and Thailand, with plans to launch in Israel within the next six months. Looking ahead, Aleph Farms intends to produce for the domestic market from its pilot facility while scaling up operations in Europe and Asia. Toubia indicated that collaborations with local partners would facilitate this expansion, aiming for breakeven and profitability through a strategically asset-light approach. The cultivated meat sector is currently navigating a turbulent landscape, with private funding experiencing a notable decline in 2024. According to AgFunder data, investments in cultivated meat startups plummeted from a peak of $989 million in 2021 to just $177 million in 2023, raising concerns about the long-term viability of many players in the space. Political opposition in certain US states further complicates the regulatory environment, with some regions moving to restrict the sale of cultivated meat products.

Savor, a pioneering food company that creates pure, versatile and sustainable fats from carbon without the need for conventional agriculture, has announced the commercial launch of an animal and plant-free butter. The achievement was celebrated with special dinners in San Francisco and New York, where guests were among the first to taste the butter replacement. Made from carbon dioxide, green hydrogen and methane, it has received GRAS designation from the FDA, permitting legal sales in the US. Savor’s proprietary technology has gained the interest of chefs, food manufacturers and consumer packaged goods companies, all collaborating on innovation projects to leverage its unique ability to create customisable fats and oils. Ove the past year, Savor has partnered with select restaurants and bakeries in the San Francisco Bay area and beyond, eager to incorporate its butter into their menus and products. The technology has also caught the attention of multinational consumer goods companies, with several joint development agreements currently being negotiated to expand Savor's customer base. Kathleen Alexander, co-founder and CEO of Savor, said: “Savor was founded to find the most sustainable way to feed humanity. Truly sustainable solutions can’t just reduce our environmental footprint, they have to be affordable, approachable and craveable.” She continued: “As the only technology to replace palm oil and other widely used fats with a very low carbon equivalent within the next decade, Savor is positioned to make a substantial impact on global sustainability efforts in the food industry. Savor’s method of producing fats and oils offers differentiated scalability and versatility, allowing us to create, rich, delicious ingredients while reaching price parity with conventional fats more rapidly.” The commercial launch of the of the animal-and-plant-free butter follows the expansion of Savor’s R&D capabilities and the opening of its first pilot production facility in Illinois, which has the capacity to produce metric tons of fat starting this year. Chiara Cecchini, VP of commercialisation at Savor, commented: “Our expanding pipeline of partners reflects a deep industry-wide status: the food sector urgently needs solutions to mitigate supply chain instability, which continues to impact revenues and margins across the board.” Carmichael Roberts of Breakthrough Energy Ventures, one of Savor’s investors, added: “The global demand for fats and oils continues to grow and innovations like Savor’s proprietary fats offer a breakthrough opportunity for the industry and the planet.” Costa Yiannoulis, co-founder and managing partner of Synthesis Capital, another of the company’s investors, agreed: “Following a decade of experience investing the food tech space, it is clear that fats are a crucially important part of delivering incredible, animal-equivalent taste and texture to alternatives.”

As Mississippi becomes the third US state to ban the production and sale of cultivated meat, the debate over its future intensifies. While supporters champion it as a sustainable and ethical alternative to traditional livestock farming, opponents argue it threatens agriculture and food heritage. Will cultivated meat find its place on consumers’ plates, or is the industry facing an uphill battle? The Cell base explores. As Mississippi becomes the third state in the US to introduce a ban on the manufacturing, sale or distribution of lab-grown meat, the sector's future becomes even more uncertain. State governor Tate Reeves, while declining to sign House Bill 1006, did not veto it, meaning the bill will automatically become law. The bill, which passed unanimously through both the Mississippi House of Representatives and Senate, is now set to take effect on July 1 2025. Suzi Gerber , executive director of the Association for Meat, Poultry, and Seafood Innovation (AMPS), a trade group representing the cultivated meat sector, dismissed the legislative action as "political theatre," arguing that it would have minimal practical impact. In recent years, the emergence of cultivated meat has sparked both enthusiasm and controversy across the globe. While some hail it as a sustainable and ethical alternative to traditional livestock farming, helping in areas where affordability and famine are issues, others have a more skeptical approach. This divide has led to several legislative actions, particularly across the US in states like Florida , Alabama and now Mississippi, as well as in Europe, where movements are underway to restrict or ban the production and sale of cultivated meat in Italy and France. While some places have taken a hard stance on cultivated meat with outright bans, others, like California and New York, seem to be ok with the concept of cultivated meat being in stores; the debate is how to market it.   To ban or not to ban? In Florida, a legal battle is being waged between the state, which has made it illegal to manufacture and sell cultivated meat and Upside Foods, which is just one of the US’ cultivated meat producers. Florida governor, Ron DeSantis, signed the bill, making it a criminal offense to manufacture and sell cultivated meat anywhere in the state, using the phrase “we will save our beef” and highlighting issues that lab-grown meat causes to farmers. Upside Foods , however, claims that the ban is unconstitutional and violates the Supremacy and Commerce clauses of the US Constitution. Cult Food Science also penned an open letter to the Florida government opposing its ban on the sales of cultivated meat. Currently, when it comes to food regulations in the US, the FDA and the US Department for Agriculture are the main regulators for the approval and oversight of new food and drink products, including cultivated meat. However, individual states retain the authority to regulate food that is produced and sold within their own jurisdictions. If Upside Foods is successful, its lawsuit could set a precedent, not only for the cultivated meat industry, but for food regulations across the nation. Meanwhile, the state of Alabama has also criminalised the sale of cultivated meat , citing concerns about protecting local agriculture and in March 2025, Mississippi became the third state to pass an outright ban on cultivated meats. Andy Gipson, Mississippi’s agriculture commissioner previously supported a bill that prevented cultivated meat being labelled ‘meat’ and last year, published a post on his own website that commended the bans in place in Florida and Alabama, claiming: “I want my steak to come from farm-raised beef, not a petri dish from a lab”. Nebraska is currently grappling with a proposed ban on cultivated meat, but the legislation has encountered significant pushback from ranchers and farm groups – the very stakeholders lawmakers claim to protect. In an interesting twist, the North American Meat Institute has opposed such bans, most recently challenging the Florida ban in February 2024. Its argument? Not only do the bans violate the Federal Meat Inspection Act, but they also restrict consumer choice. The Institute believes cultivated meat should be held to the same food safety and labelling standards as traditional meat but opposes outright bans. In an open letter to the USDA, alongside AMPS, the Institute called for a focus on cultivated meat labelling rather than a ban.   In Nebraska, supporters of a state-wide ban include senator Barry DeKay, who is also a rancher, but other farmers and rangers in the state and others, including those in Wyoming and South Dakota, have voted against proposals to ban cultivated meat. Legislators argue the bans would protect the already struggling meat industry, however, critics argue that bans restrict trade and threaten food safety benefits. Despite support coming from some of the farmers in South Dakota, legislators there, along with those in Texas, have raised concerns about the creation of cultivated meat and the significance of labelling, though no official bans have been passed. The debate also continues in Georgia. A threat to food heritage? For many states with strong cattle ranching and poultry acttivites, the rise of cultivated meat presents a potential threat to their livelihoods. In states where bans on cultivated meat have been successfully passed, the legislation is largely supported by local cattle ranchers and farmers who fear losing market share to this emerging technology. This apprehension is not limited to the US; similar concerns have surfaced globally. In Europe, both Italy and France are pursuing bans on cultivated meat, while Spain has engaged in debates about how the introduction of lab-grown meat might affect their heritage food industry. In this sense, the traditional meat industry’s apprehension is not entirely unfounded; substantial investments have been funnelled into the development of lab-grown meat, which does have the potential to disrupt traditional meat markets.  Though farmers and those working in the traditional meat industry have legitimate concerns about the economic impact of using cultivated meat, as AMP's Gerber mentioned, the opposition appears to be political rather than out of any significant value placed on the farmers and livestock. In more conservative circles, cultivated meat is viewed with suspicion. It is, like many things conservative America dislikes, perceived as being unnatural or threatening the traditional way of life. However, are all these fears completely unfounded? One of the biggest arguments against cultivated meat revolves around health and safety concerns – the long-term effects of consuming meat grown in a lab are not fully understood and won’t be for many years. Approvals from the US Department of Agriculture and the FDA for certain products have done little to assuage this. Florida’s ban for instance, also stated health and safety concerns. The Good Food Institute, a non-profit think tank, refutes this, saying: “Alternative proteins are safe and create new markets and side streams for corn and soybean farmers, with potential to develop new jobs and investment opportunities, but only if the legislature keeps the free market free”. It’s an age-old story, though. Scientific advancements have long been seen as interfering with natural processes. The politicisation of food technology has led to cultivated meat becoming a focal point in cultural debates, with some framing their opposition as a stand against elitist or globalist agendas. Florida isn’t the only place facing legal opposition; state-level bans have prompted legal challenges from several advocacy groups. For these groups, cultivated meat is a great way to feed the population, helping to reduce global instances of famine and making meat more affordable to lower-income consumers. The GFI continued: “Globally, meat consumption is the highest it has ever been. According to the FAO, global meat production is projected to increase by as much as 50% by 2050. With plant-based meat, cultivated meat and fermentation, we can mitigate the environmental impact of our food system, decrease the risk of zoonotic disease and ultimately, feed more people with fewer resources. By making meat from plants and cultivating meat from cells, we can modernise meat production.” What's in a name? For many lawmakers across the world and America’s Meat Institute, it is less about the issue of growing meat in a lab and more about making people aware that the meat is lab-grown. The state of Indianapolis, for instance, recently voted for labelling legislation headed by Republican Baird. His bill requires manufacturers to label their products with the phrase ‘this is an imitation meat product’ and would outlaw any product that doesn’t indicate that it is lab-grown. The labelling of any new food and drink presents a unique challenge – how do you market something in a way that allows the consumer to make an informed decision without negatively impacting the producer or manufacturer? This is not a problem that is unique to the US – governments around the world are debating how best to label cultivated meat. In the US, the FDA and USDA share oversight of cultivated meat products. The FDA regulates the initial cultivation process, while the USDA oversees the marketing and labelling of products when they are ready for human consumption. In 2023, the two approved using the term 'cell cultivated' in labelling, which does help assuage the concerns raised by the bill presented in Indianapolis. In the EU, cultivated meat falls under the Novel Food Regulation, which requires rigorous safety assessments before it can be sold. EU regulation requires that labelling is not misleading and has to supply sufficient information for consumers. Part of  Italy’s attempted ban was not only about the production of cultivated meat but also the marketing of it. Interestingly, their legislation also bans using the word ‘meaty’ when labelling plant-based food. Other countries, such as Singapore, home to the first government-approved cultivated meat product, have adopted more flexible approaches, allowing terms like “cultivated chicken” to be used in commercial sales. Whatever is decided in the way of labelling will be crucial in shaping the public’s perception of cultivated meat. For instance, using the term ‘lab grown’ has been found to elicit a negative response, while ‘cultivated’ or ‘cell based’ meat has been received more favourably. Whatever the outcome, when it comes to labelling legislation, it seems that transparency is the crucial factor. Producers want consumers to understand that cultivated meat is derived from animal cells without traditional slaughter, while lawmakers feel that using the word ‘meat’ may mislead consumers who may not understand the difference between traditionally produced meat items and cultivated ones. Cultivated meat producers argue that their products are real meat at a cellular level, though how consumers and lawmakers approach this need for transparency will continue to cause debates. In recent years, there has been a trend in consumers wanting to know not just what is in their food but also whether it is sustainable and ethically produced. Clear, standardised labelling that provides insights into cultivated meat production can help smooth over the issues between legislators in the US and elsewhere and producers and will help shape the future for other food innovations. Getting into the meat of the debate While there is a lot of debate, both in and out of lawmakers’ offices, when it comes to cultivated meat, it does have its supporters. The state of Massachusetts, for instance, is home to a biotech hub with start-ups focusing on cultivated meat, and lawmakers there have said that they support lab-grown meat research as part of its innovative economy. You will also find cultivated meat producers in California, where Upside Food, which is engaged in a legal battle with the state of Florida, has its headquarters, along with Good Meat. Currently, these are the only two producers with FDA approval to create and retail cultivated meat, though neither has products available to consumers. Yet. Historically, the state of California has supported biotech innovation in this field and continues to do so. Mission Barns, another cultivated meat company, based in San Fransisco, recently announced that they were one step closer to selling their cultivated pork fat product after it passed FDA safety checks. So, even with the debate raging, plenty of funding and support are being given at a federal level. New York has a similar story to that of California. The state has shown interest in promoting alternative proteins to its residents as part of a sustainable food policy – something that advocates of cultivated meat say is the whole reason why we should be approving more lab-grown products. Proponents of cultivated meat argue that it offers significant environmental benefits by reducing the need for livestock farming, which is associated with greenhouse gas emissions, deforestation, and high water usage. Additionally, lab-grown meat addresses ethical concerns related to animal welfare by eliminating the need for animal slaughter. However, opponents question these purported benefits, arguing that the environmental impact of large-scale lab-grown meat production is not yet fully understood. They also express skepticism about the ethical implications, suggesting that reliance on synthetic foods could further disconnect people from natural food sources and traditional farming practices. Overall, support for cultivated meat tends to align with more urban, biotech-friendly states, while opposition comes from more conservative states with larger farming communities. Raising the steaks The movement to ban cultivated meat in certain US states and other parts of the world is a complex interplay of economic protectionism, cultural values, political ideologies and regulatory challenges. As the cultivated meat industry continues to evolve, it faces the dual challenge of navigating legal obstacles and addressing public skepticism. The resolution of these issues will significantly influence the future landscape of food production and consumption globally, but the future is here. As of 2024, there have been four cultivated meat products that have been cleared for sale across multiple countries, and additional products are under review in at least nine others. According to the BBC , meat, dairy and sugar grown in a lab could be on sale for human consumption for the first time in the UK in less than two years, with the FSA looking at how it can speed up the approval process for foods of this nature. However you feel about lab-grown food, it certainly looks like the future is cultivated.

A new report from McKinsey & Company, titled 'Ingredients for the Future: Bringing the Biotech Revolution to Food,' outlines critical strategies for the alternative protein industry, particularly focusing on fermentation-derived ingredients. This analysis comes at a time when the demand for sustainable and innovative food sources is on the rise, positioning fermentation as a key player in the future of protein production. Key findings from the report The McKinsey report identifies three primary focus areas necessary for capturing the burgeoning market opportunity for fermentation-derived ingredients: Enhancing fermentation technology: Improving fermentation processes to reduce unit costs is deemed essential. The report suggests that while scaling up production can lower costs by 20-40%, process efficiencies could achieve reductions of 40-60%. Developing compelling consumer products: The ability to create appealing products that resonate with consumers is crucial for market adoption. As the report notes, novel proteins could represent approximately 4% of total protein production by 2050, translating into a market worth between $100 billion and $150 billion. Innovative partnership and funding models: New business models are essential for scaling the novel-foods industry. The report emphasises that collaboration across sectors will be vital to achieving the necessary infrastructure and investment levels. Market potential and investment needs The potential for fermented novel proteins is significant, with projections indicating they could account for a notable share of the global protein market by 2050. However, the current production costs for novel ingredients remain considerably higher than traditional protein sources, which typically range from $2 to $15 per kilogram. To bridge this gap, the report estimates that over $250 billion in cumulative investment will be required by 2050 to expand production capacity. The report highlights innovative approaches being adopted within the industry. For instance, Cauldron, an Australian precision-fermentation company, is utilising methods to convert fed-batch processes into continuous fermentation. This advancement is expected to enhance productivity, reduce costs, and improve capital efficiency, thereby addressing some of the primary challenges facing the sector. The Role of fermentation in sustainable food production Fermentation technology offers a significant opportunity to reshape the food landscape by reducing reliance on traditional animal agriculture. By using controlled bioprocessing environments, fermentation can mitigate risks associated with climate volatility and supply chain disruptions. Furthermore, the smaller land footprint required for fermentation processes aligns with global efforts to enhance food security. Challenges in scaling the novel ingredients industry Despite the promising outlook, the report underscores several challenges that must be addressed for the novel-ingredients industry to scale effectively. Current capacity to support production expansion is limited, and contract manufacturing organisations (CMOs) often have margin expectations that do not align with the food manufacturing industry. To overcome these challenges, the report suggests that improvements in bioreactor technology, formulation capabilities and enhanced understanding of consumer preferences will be essential. As companies continue to innovate, the development of high-quality offerings that meet consumer demands will be critical for market acceptance.

Brevel, a climate food-tech company specialising in microalgae protein, has successfully expanded its seed funding round to a total of $25 million. This increase includes more than $5 million raised through the exercise of investor warrants from the initial closing of the round in June 2023. The funding will support Brevel's efforts to enhance its go-to-market strategy and further develop its innovative microalgae proteins for diverse food and beverage applications. Key investors in this round include NevaTeam Partners, Siddhi Capital, the European Union’s EIC Fund, Good Protein Fund, The Food Tech Lab and PVS Investments. The successful warrant exercises reflect investor confidence in Brevel’s progress and potential within the burgeoning alternative protein market. “Our investors chose to reinvest based on Brevel's impressive advancements since our last funding round,” stated Yonatan Golan, co-founder and CEO of Brevel. Golan highlighted the company's commitment to providing nutritious, affordable protein alternatives that can effectively replace animal protein in various formulations. Brevel’s mission is to minimise its carbon footprint while delivering flavour-neutral and functional microalgae protein on a global scale. Brevel has achieved several significant milestones recently, including the completion of its first commercial factory, which has successfully scaled production to 5,000 litres. The company also secured a commercial and joint-development agreement with The Central Bottling Company (CBC Group) and made notable advancements in its protein and polar lipid ingredient developments. The recent funding will enable Brevel to accelerate its commercial activities and establish partnerships for future production lines, as well as to finalise additional offtake agreements in preparation for large-scale production. Shai Levy, partner at NevaTeam Partners and a board member at Brevel, commented on the investment: “Brevel exemplifies bold innovation in the food industry. The decision by shareholders to exercise their warrants demonstrates strong confidence in Brevel’s mission and execution. We believe their technology will significantly influence the future of alternative proteins.” Brevel’s proprietary technology uniquely combines light and sugar-based fermentation within indoor bioreactors, allowing for the efficient production of nutrient-rich microalgae without genetic modification. This approach enhances the commercial viability of microalgae by producing high-quality, nutrient-dense products at competitive costs. The company’s advanced downstream processing yields a neutral-flavoured microalgae protein isolate powder, which can be integrated into a wide range of meat and dairy alternatives. This protein boasts a complete amino acid profile, excellent emulsifying and gelling properties, and is non-allergenic and non-GMO. Brevel’s business model mirrors that of soy protein, focusing on the co-products derived from microalgae biomass. Golan explained: “Our combined light and fermentation platform allows us to capitalise on all components of the microalgae, not just the protein. This enables us to achieve price parity for our superior protein and each co-product.” As Brevel prepares for its next product roll-out this summer, Golan is set to present at the Investor Day on Climate event on April 2, part of the European Innovation Council Summit. This event will showcase 20 leading climate tech start-ups, highlighting Brevel’s innovative approach to addressing climate change and food security through advanced technologies.

Finnish food experience company, Fazer, has introduced a new line of protein snacks powered by Solein, a novel ingredient produced through innovative fermentation processes. Under its Taste the Future initiative, Fazer has rolled out three limited-edition snacks: the Fazer Taste the Future Snack Bar with dark chocolate and hazelnuts, the Fazer Taste the Future Oat Snack Drink Choco, and the Fazer Taste the Future Protein Drink Banoffee. These products are designed not only to provide a protein boost but also to enhance their nutritional profiles with iron and vitamin B12, which are typically lacking in plant-based alternatives. Solein is produced by Solar Foods, a company that utilises a unique bioprocess involving a single microbe that ferments carbon dioxide and electricity to create a protein source that is independent of traditional agriculture. This method offers a sustainable alternative to conventional protein sources, addressing both environmental and ethical concerns. Solar Foods is currently pursuing novel food approval for Solein in the European Union, with expectations to receive this approval by 2026. The company has already begun commercialisation efforts in the US, targeting the health and performance nutrition market. The introduction of Solein-powered products in the US aligns with a broader trend of innovation in the food industry, particularly within the cellular agriculture sector. Juan-Manuel Benitez-Garcia, chief commercial officer of Solar Foods, noted the versatility of Solein, noting its ability to replace traditional animal- and plant-based proteins while maintaining a favourable nutritional profile. "These products demonstrate how Solein can be adapted to meet various consumer needs and preferences," he stated. Fazer's introduction of Solein-powered snacks comes at a time when the demand for sustainable food options is rapidly increasing. The company's approach reflects a growing interest in alternative protein sources that can mitigate the environmental impact of food production. Competitors in the space, such as KelpEat, are also exploring Solein as a base for high-protein snacks, indicating a burgeoning market for this innovative ingredient. Fazer's previous offerings, including the Taste the Future Snack Bar launched in Singapore, have set a precedent for the expansion of Solein-based products in Europe. The company aims to leverage consumer feedback from the Future Food-Tech event to refine these products further before a wider launch. Solein is distinguished by its comprehensive amino acid profile, containing all nine essential amino acids without the cholesterol or saturated fats typically found in animal proteins. Its production process is notably efficient, yielding a protein source with a significantly lower environmental footprint compared to traditional protein sources like soy, pea or whey.

Researchers at the University of Bologna have released a systematic literature review that scrutinises the cultivated meat value chain. The article, titled 'A Systematic Literature Review of Cultured Meat Through the Conceptual Frameworks of the Entrepreneurial Ecosystem and Global Value Chain,' and published in the journal Foods , offers a detailed analysis of the socio-economic and ethical dimensions surrounding cultivated meat and seafood. Authored by Chiara Benussi and Antonella Samoggia, this comprehensive review aggregates findings from 43 studies, providing critical insights into the governance, structure, and dynamics of the cultivated meat industry. Key themes identified The review identifies several pivotal themes that shape the cultured meat industry: Regulatory landscape: The study highlights the complexities of regulatory frameworks governing pre-market approval and product labelling. The authors noted the need for clear guidelines to facilitate the commercialisation of cultured meat products, which are currently classified as novel foods. Technological advancements: The paper discusses the rapid technological progress in cultivated meat production, including innovations in bioprocessing and cell culture techniques. However, it also notes that significant advancements are needed to scale production and improve the sensory characteristics of these food products. Funding dynamics: The availability of funding is crucial for the growth of the cultivated meat sector. The review reveals that private investments, particularly from venture capital, are the primary source of financial support for start-ups. The involvement of large agrifood companies also plays a significant role, reflecting a growing interest in integrating cultivated meat into existing food systems. Stakeholder engagement: Various stakeholders, including biotechnology firms, investors, NGOs and conventional meat producers, are identified as key players in the cultivated meat value chain. The review underscores the importance of multi-stakeholder engagement in shaping the governance and operational dynamics of the sector. Methodology and findings The authors employed the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) guidelines to conduct their literature review, focusing on studies published after 2013. The analysis revealed that the majority of literature centres on four main domains of the Entrepreneurial Ecosystem (EE): support, policy, market and finance. Notably, the US and the EU emerged as central players in the cultivated meat landscape, with significant regulatory discussions occurring within these regions. Market dynamics The findings indicate that the cultivated meat market is still nascent, primarily due to the lack of large-scale production facilities and consumer reluctance. The literature suggests that while some experts foresee cultivated meat as a premium product, others anticipate its potential to significantly contribute to the protein transition in the food market. The review highlights the critical role of financial backing in advancing cultivated meat technology. It notes a trend of increasing investment from both private entities and agribusiness giants, which is essential for scaling operations and enhancing research capabilities. However, the authors point out the limited involvement of public funding, which could impede the equitable development of the sector. Governance and power dynamics The interplay between the EE and global value chain (GVC) frameworks provides a nuanced understanding of governance within the cultivated meat sector. The review identifies regulatory frameworks, technological advancements and consumer acceptance as key determinants of governance. Moreover, the concentration of power among established agrifood companies and venture capitalists raises concerns about the equitable distribution of resources and opportunities within the cultivated meat value chain. Future research directions The authors call for further exploration of several areas, including: The roles of suppliers and retailers in the cultivated meat value chain. The impact of big agrifood companies on the development and scaling of products. The influence of consumer perceptions and acceptance on market dynamics.

Brevel, a climate food-tech company specialising in microalgae protein, has successfully expanded its seed funding round to a total of $25 million. This increase includes more than $5 million raised through the exercise of investor warrants from the initial closing of the round in June 2023. The funding will support Brevel's efforts to enhance its go-to-market strategy and further develop its innovative microalgae proteins for diverse food and beverage applications. Key investors in this round include NevaTeam Partners, Siddhi Capital, the European Union’s EIC Fund, Good Protein Fund, The Food Tech Lab and PVS Investments. The successful warrant exercises reflect investor confidence in Brevel’s progress and potential within the burgeoning alternative protein market. “Our investors chose to reinvest based on Brevel's impressive advancements since our last funding round,” stated Yonatan Golan, co-founder and CEO of Brevel. Golan highlighted the company's commitment to providing nutritious, affordable protein alternatives that can effectively replace animal protein in various formulations. Brevel’s mission is to minimise its carbon footprint while delivering flavour-neutral and functional microalgae protein on a global scale. Brevel has achieved several significant milestones recently, including the completion of its first commercial factory, which has successfully scaled production to 5,000 litres. The company also secured a commercial and joint-development agreement with The Central Bottling Company (CBC Group) and made notable advancements in its protein and polar lipid ingredient developments. The recent funding will enable Brevel to accelerate its commercial activities and establish partnerships for future production lines, as well as to finalise additional offtake agreements in preparation for large-scale production. Shai Levy, partner at NevaTeam Partners and a board member at Brevel, commented on the investment: “Brevel exemplifies bold innovation in the food industry. The decision by shareholders to exercise their warrants demonstrates strong confidence in Brevel’s mission and execution. We believe their technology will significantly influence the future of alternative proteins.” Brevel’s proprietary technology uniquely combines light and sugar-based fermentation within indoor bioreactors, allowing for the efficient production of nutrient-rich microalgae without genetic modification. This approach enhances the commercial viability of microalgae by producing high-quality, nutrient-dense products at competitive costs. The company’s advanced downstream processing yields a neutral-flavoured microalgae protein isolate powder, which can be integrated into a wide range of meat and dairy alternatives. This protein boasts a complete amino acid profile, excellent emulsifying and gelling properties, and is non-allergenic and non-GMO. Brevel’s business model mirrors that of soy protein, focusing on the co-products derived from microalgae biomass. Golan explained: “Our combined light and fermentation platform allows us to capitalise on all components of the microalgae, not just the protein. This enables us to achieve price parity for our superior protein and each co-product.” As Brevel prepares for its next product roll-out this summer, Golan is set to present at the Investor Day on Climate event on April 2, part of the European Innovation Council Summit. This event will showcase 20 leading climate tech start-ups, highlighting Brevel’s innovative approach to addressing climate change and food security through advanced technologies.

Upside Foods has initiated another round of layoffs as part of a strategic restructuring aimed at enhancing operational efficiency. This decision comes in the wake of previous workforce reductions in February and July 2024, underscoring the ongoing challenges faced by the company and the broader industry. A spokesperson for Upside Foods confirmed the layoffs but refrained from disclosing specific numbers or detailed plans regarding the reorganisation. The restructuring is intended to streamline operations and focus on the commercialisation and scaling of its cultivated meat products. "We’ve reorganised our team and operations to stay agile and efficient to meet any challenges ahead," the spokesperson stated. This shift is particularly notable as Upside has decided to pause its plans for a large-scale production facility in Glenview, Illinois, opting instead to expand its smaller 'EPIC' site in Emeryville, California. The EPIC facility, which opened in late 2021, is viewed as a more cost-effective option for scaling up production, with the company indicating that this approach will require substantially less"investment compared to the proposed Glenview plant. Despite raising $608 million since its inception in 2015, Upside Foods has acknowledged that its whole cut technology, which has received regulatory approval in the US, is not yet ready for widespread market introduction. However, the company is optimistic about its hybrid production method, which combines animal cells grown in 2,000-litre bioreactors with plant-based components to create products like nuggets and patties. This hybrid approach has not yet secured regulatory approval, adding another layer of complexity to Upside's commercialisation efforts. As part of its expansion at the EPIC facility, Upside plans to incorporate larger cultivators, demonstrating its capability to scale operations while maintaining the quality and safety standards achieved at the smaller scale.

Cult Food Science has announced a significant development in its product pipeline. The company's subsidiary, Further Foods, has secured an R&D supply agreement with a cultivated meat producer. This partnership aims to facilitate the creation of the Noochies! line of cultivated meat pet treats, underscoring Cult's commitment to innovative, sustainable food solutions. The R&D supply agreement is a pivotal step towards the commercialisation of cultivated meat-based pet products. By partnering with a supplier already engaged in the FDA regulatory process, Further Foods can bypass the necessity of conducting separate feeding trials. This strategic move not only streamlines development but also reduces associated costs, potentially accelerating the timeline for market entry. Recognising the increasing demand for sustainable pet food in Asia, Further Foods is actively expanding its distribution network across key markets in the region. The company has already secured orders from a Southeast Asian distributor and is in discussions with additional partners. This expansion reflects Cult’s strategic approach to making cultivated meat pet treats more accessible, aligning with a global shift towards ethical and alternative pet nutrition. Further Foods will showcase the Noochies! line at the upcoming Global Pet Show in Orlando, Florida, from March 26-28, 2025. The regulatory landscape for cultivated meat in pet food is evolving. One of Further Foods' suppliers is currently navigating the FDA approval process for their cultivated meat ingredients. If successful, this would allow Noochies! to market its products in the US without the need for independent feeding trials, thereby expediting commercialisation efforts. The decision to pause internal trials demonstrates a calculated approach to resource allocation and regulatory compliance. Mitchell Scott, CEO of Cult Food Science, said: "Finding reliable partners to supply cultivated meat at a feasible price point has been a significant challenge. However, we are confident that our strategic partnerships will enable us to redefine the pet food industry with sustainable, ethical solutions." He highlighted the importance of the Global Pet Show and the Asian market expansion as critical milestones in the company’s growth trajectory. In addition to product development news, Cult Food Science has completed debt settlement agreements totaling $26,346 with two arm’s-length creditors. The company issued 573,984 shares at a deemed price of $0.0459 per share as part of this settlement. This move is intended to preserve cash for operational needs while maintaining a focus on growth and innovation.