Weekly Update in AgriFoodTech: Financial backing for Quorn, Mara Renewables, NZN; Barry Callebaut investigates plant-based cell culture technology
Headline: Robust Activity in Plant-Based and Alternative Protein Sector: Funding, M&A, Partnerships, and Product Launches Dominate 2025
In the dynamic world of plant-based and alternative protein production, 2025 has proven to be a year of significant growth and investment. Here's a roundup of some of the key developments that have taken place:
Funding
The alternative protein sector has attracted substantial investment, with 54 deals totalling $443.45 million in the first half of 2025. Plant-based and fermentation protein technologies received the largest share, while cultivated protein investment remained smaller. The funding amounted to $258.49 million in Q1 and $184.96 million in Q2 2025.
Mergers & Acquisitions
Consolidation efforts in the sector are evident, with European poultry producer Plukon Food Group acquiring the plant-based brand Vega Insiders in June 2025. Maple Leaf Foods also merged its meat and plant-based protein businesses in February 2024.
Partnerships
OSI Group, a large meat supplier, extended its partnership by producing the Impossible Burger for Impossible Foods, adding capacity to meet strong demand in 2025.
Product Launches and Market Growth
JBS's plant-based brand Ozo offers burgers in the US market, although high-growth expectations were tempered by customer feedback. The plant-based protein market in 2025 is valued at USD 20.3 billion, projected to grow to USD 46 billion by 2035 at an 8.5% CAGR. The broader alternative protein market (including plant-based, cultivated, fermentation) is even larger, valued at USD 21.5 billion in 2025 and expected to reach USD 80.4 billion by 2035 with a 14.1% CAGR.
Notable Investments
- Mara Renewables received US$9.1 million for expanding algae-based omega-3 production.
- Quorn's parent company, Provectus Algae, secured £18 million for mycoprotein production.
- Äio received $1.1M Estonian government funding for yeast-based palm oil alternative scaling.
- British NZN raised €5.6 million for a biofertiliser solution benefiting farmers.
- AWAKE Chocolate received $8 Million CAD for functional chocolate brand investment.
- Win-Win secured $4M for cocoa-free chocolate production.
- Néboda secured €1.84 million seed round for indoor vertical farming advancement.
Closures and Challenges
- Lactalis Canada is shutting down its plant-based beverage facility in Sudbury.
- Alt meat company Planetarians is shutting down and seeking a buyer for 'de-risked, market-validated technology'.
- Novonutrients, a gas fermentation startup, has ceased operations and is seeking a buyer for its assets.
Innovations and Developments
- Coca-Cola is launching Coke with cane sugar in the US.
- PepsiCo has launched the first prebiotic cola in the traditional cola category.
- The world's largest chocolate supplier is exploring cell-based cocoa production.
- GEA has celebrated the grand opening of a $20M Tech Hub for Precision Fermentation and Cultivated Foods.
- Helaina has scaled human lactoferrin production with the ability to produce 10 million servings per run.
- OlsAro is taking salt-tolerant wheat closer to market with trials underway in multiple markets.
- Walmart has appointed an Instacart executive for an AI role.
- Jan Agter, former Henkel and JBT-Marel Executive, has been appointed as CEO of ENOUGH, a mycoprotein producer.
Inquiry and Research
The UK has launched an inquiry into science's role in feeding a growing global population.
In summary, 2025 continues to see strong investment inflows, active consolidation through M&A, notable partnerships to scale production, and steady market expansion driven by consumer demand for sustainable protein alternatives.
- The alternative protein sector, which received substantial financing in 2025, is not only attracting investments but also influencing lifestyle choices, as individuals embrace plant-based and food-and-drink options for their sustainability and health benefits.
- As technology advances in the plant-based and alternative protein sector, there is a growing opportunity for finances to be invested in innovative startups working on fermentation protein technologies, cell-based cocoa production, and precision fermentation, propelling the sector into the future.
