Despite market conditions, investors are optimistic about the long-term potential of alternative proteins according to nonprofit Good Food Institute.
Is investing in alternatives to animal products still a hot commodity? While the alternative protein sector has seen some market slowdown, investors in the space are optimistic about the long-term potential of these products and technologies.
A new report compiled by nonprofit Good Food Institute (GFI) shows that the alternative protein sector has pulled in $14.2 billion in investment globally over the last decade. While variance in the industry is high, GFI reveals that investments have doubled year over year.
Its report shows that alternative proteins raised $2.9 billion in funding last year, segmented in plant-based ($1.2 billion); fermentation ($842 million); and cultivated ($896 million).
While 2022 investment totals represent a decline from the $5.1 billion raised in 2021, investments in alternative proteins last year far surpassed the total of $1.1 billion raised in 2019—which represents a time before the pandemic that is considered a breakthrough year for alternative proteins.
“As companies continue to develop new technologies, as well as scale and optimize production to improve the taste and affordability of products, sales will accelerate and spur additional investment—particularly when macroeconomic and market conditions normalize,” Sharyn Murray, GFI Investor Engagement Manager, said in a statement.
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