6 in 10 U.S. households purchased plant-based foods in 2023[1], and alternative proteins are breaking through as an industry for private market investors to keep an eye on. With the growth of alternative proteins industry segmented into plant-based proteins and cultivated proteins, how might the existing growth and milestones reached set up the industry for future growth?
Growth of Alternative Proteins
Industry Origins
The concept of alternative proteins isn’t entirely new. For centuries, cultures worldwide have relied on plant-based foods as protein sources. However, the modern alternative protein industry began to take shape in the late 20th century, driven by advancements in food technology and an increasing awareness of the environmental impact of traditional meat production.
Now, there are companies developing products that mimic the taste, texture, and even price of traditional meat-based products, using various styles of production to achieve food alternatives not derived from animals.
Recent Growth
The alternative protein industry has been rapidly evolving in recent years, driven by growing consumer demand for more sustainable and ethical food options. This industry encompasses a wide range of plant-based, cell-cultured, and fermentation-derived protein products that aim to provide alternatives to traditional animal-based proteins.
The global meat substitutes market was valued at $18.78 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 42.4% from 2024 to 2030.[2] The trend toward meat substitutes has been accelerated by animal welfare concerns, health reasons, and environmental and sustainability concerns. Segmented into plant-based, mycelium-based, and cultivated products, the industry is branching out as people seek healthier and more sustainable alternative proteins.
Key Players Shaping the Industry
The following are MicroVentures portfolio companies that are making advances in different segments of the alternative proteins industry, helping to drive the overall growth in the industry.
Impossible Foods
A leader in the industry, Impossible Foods is developing plant-based alternatives that mimic the taste and texture of traditional beef and chicken products. Founded in 2011, Impossible Foods aims to avoid the environmental and ethical concerns with products such as the flagship Impossible Burger along with alternatives for chicken nuggets, sausage, meatballs, and more. Key ingredients within Impossible Foods products include soy protein, heme, yeast extract, coconut and sunflower oils, and a culinary binder.
Impossible released new products in October 2024 to appeal to busy families looking for plant-based meals on the go. In partnership with Disney, Impossible released Lion King themed chicken nuggets alongside new Impossible corn dogs. Back in July 2024, Impossible’s CEO Peter McGuinness stated the company has many options looking to the future, including a potential IPO, a full company sale, or a sizeable capital raise.
burger patties, ground sausage, and beef hot dogs
Rebellyous Foods
Founded in 2017, Rebellyous Foods is developing plant-based alternatives to chicken with the goal of achieving price parity to traditional chicken products. Originally targeting retail distribution, Rebellyous pivoted to large-scale food service production – serving school districts with plans to expand to correctional facilities and explore international partnerships.
Achieving notable growth, Rebellyous’ gross sales reached $2.78 million in 2023 for its Kickin’ Nuggets, Kickin’ Tenders, and Kickin’ Patties, available in spicy options as well. Its Mock 2 production system, launched in September 2024, is capable of producing up to 10-25 million pounds of plant-based meat products annually at a price comparable to traditional meat.
Meati
Founded in 2017, Meati is developing alternative proteins that use mushroom root to mimic the flavor and texture of meat without the ethical and environmental downsides associated with traditional meat production. Its products include pre-marinated classic chicken cutlets, crispy chicken cutlets, classic steaks, and carne asada steaks in addition to beef jerky.
Meati raised $100 million in May 2024 to meet growing demand for its products. At the same time, the company announced availability in 6,000 stores nationwide including Target, Whole Foods, Sprouts, Meijer, and Wegmans. The 6,000 stores milestone is an improvement from the six retail locations available in 2023. Operating in a very unique category of mycelium-based alternative proteins, Meati could be poised for growth with these new funds and existing customer demand.
JUST
Founded in 2011, Eat Just is a developer of plant-based proteins that has focused its efforts in two categories: lab-grown meats through its subsidiary GOOD Meat and egg alternatives with the product JUST Egg. Its egg alternative was released in 2017 and GOOD Meat’s cultivated meat products began sales in Singapore in 2020 and received U.S. FDA approval in 2023. Using mung bean protein for its plant-based eggs and culturing animal stem cells in a lab for its cultivated meats, JUST aims to be leader in the plant-based and lab-grown segments.
JUST Egg can be found in more than 48,000 grocery stores like Walmart, Whole Foods, Kroger, Publix, Target, Wegmans, and Winn Dixie across the U.S. and Canada. It also reached selling the equivalent of 500 million eggs in February 2024. The company is on track of break even by the end of 2024[3] and plans to continue expanding, especially in foodservice like colleges and universities.
Atlantic Fish Co.
Atlantic Fish Co. is leveraging cellular agriculture to develop cultivated market-priced seafood for a more sustainable seafood experience. Beginning with more expensive market-price fish like Grouper, Flounder, Black sea bass, and Halibut, Atlantic fish uses genetic engineering to create a cell line from the target fish. The cell line can then be replicated and grown into filets, bites, fishcakes, fish n’ chips, and more.
The innovative cultivated seafood company aims to launch a product demo and put its product on the market within two to three years. Atlantic Fish Co. plans to start distributing in restaurants before exploring retail opportunities.
The Future of Alternative Proteins
As the alternative protein industry continues to grow and evolve, it is possible that we could see a number of exciting developments in the years to come. One of the key trends that is expected to shape the future of the industry is the continued development of more sophisticated and realistic plant-based and cell-cultured meat and seafood products.
Advancements in Technology
Advances in technology, such as improved fermentation processes and more efficient cell-culturing techniques, may play an important role in the future of the alternative protein industry. These advancements might lead to the development of products that are even more closely aligned with traditional animal-based proteins in terms of taste, texture, and nutritional profile.
Expansion into New Product Categories
In addition to the continued development of meat and seafood alternatives, the alternative protein industry is also expected to expand into new product categories, such as dairy alternatives, eggs, and even leather and other materials. This diversification could allow the industry to provide consumers with a wider range of sustainable and ethical food and consumer products.
Increased Mainstream Adoption
As the alternative protein industry continues to grow and evolve, it is likely to also see increased mainstream adoption. Major food companies and restaurant chains are already beginning to incorporate alternative protein products into their menus and product offerings, and this trend is likely to continue as consumers become more aware of and demand these types of products.
Sustainability and Environmental Impact
Another key factor that is likely to shape the future of the alternative protein industry is the growing focus on sustainability and environmental impact. As consumers become more aware of the environmental toll of traditional animal agriculture, they are increasingly seeking out alternative protein products that are more sustainable and environmentally friendly.
Regulatory Challenges
While the alternative protein industry is poised for continued growth and success, it is also likely to face a number of regulatory challenges in the years to come. As the industry continues to develop new and innovative products, it will need to navigate a complex web of regulations and standards, particularly around the labeling and marketing of these products.
Final Thoughts
Alternative proteins are branching out into the market, providing healthier and more sustainable protein options along with potential investment opportunities. As we move forward, it will be interesting to see how this industry evolves, what new companies are created, and what new opportunities emerge.
Want to learn more about key industries to keep an eye on? Check out the following MicroVentures blogs to learn more:
- The Sky’s the Limit: Drones and Autonomous Vehicles
- The AI Wave: The History & Growth of the Semiconductor Industry
- The Final Frontier: The History and Growth of Space
- Powering the Future: Investing in Artificial Intelligence Startups
- The Biotechnology Revolution: Driving Advancements in Precision Medicine
Are you looking to invest in alternative protein startups? Sign up for a MicroVentures account to start investing!
[1] https://gfi.org/marketresearch/
[2] https://www.grandviewresearch.com/industry-analysis/meat-substitutes-market
[3] https://agfundernews.com/eat-just-ceo-large-scale-cultivated-meat-production-requires-a-new-operating-model
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