The initial excitement surrounding alternative protein startups, fueled by names like Impossible Foods and Beyond Meat, has given way to a harsher reality in 2024. After attracting over $1.6 billion in investments, the sector is facing significant challenges, with many startups being forced to reassess their operations or even shut down.
The promised revolution in protein consumption has yet to materialize. According to TechCrunch, despite the emergence of around 200 startups globally, the annual production of plant-based meats is only 15,000 tons, compared to 500,000 tons of animal meat.
Paul Shapiro, CEO of Better Meat, highlighted that the current landscape is a “reality check” for the sector, which is still far from achieving significant market presence. He believes that any expectations of seeing cultivated meat in major supermarket chains or fast-food outlets within the next decade are unrealistic.
The challenging situation is exacerbated by the “VC winter,” which has drastically reduced available funding. Startups like New Age Eats ceased operations in early 2023 due to a lack of capital, while Upside Foods and Aleph Farms have faced layoffs and project delays.
David Kaplan, a biomedical engineering professor at Tufts University, points out that the economic environment and the pullback in investments are making the biotech market extremely cautious. According to CrunchBase data, investments in alternative proteins plummeted in 2024, from over $1.6 billion in 2021 and 2022 to less than $20 million by June of this year.
