For the first time, investment in fermentation exceeds that of plant-based products
August 9, 2024
The Good Food Institute Europe cited data from Net Zero Insights that showed fermentation companies on the continent raised more than €164 million in the first half of 2024.
The total amount raised by those working on precision fermentation, including the production of non-animal milk proteins, was €49 million. This figure is up from €33 million for the whole of 2023. According to the data, the highest amount of money raised by the sector was €80 million in 2022. €53 million was invested in 2021. €7 million was spent in 2020.
By comparison, in the first half of 2024, the investment in the sector that has historically attracted the most money was €79 million. This is a striking difference from the €553 million invested in this segment last year. However, last year's statistics include €391 million in transactions attributed to Oatly.
According to GFI, the increased investment in fermentation is a sign of a renewed focus on scaling up.
The NGO said many large-scale investments in fermentation focus on using agricultural and food side streams to produce food more efficiently and cheaply. Both of these propositions are attractive to investors.
These companies also use this money to expand their operations and build the infrastructure needed to move closer to commercialization.
GFI also notes that, while they no longer attract as much investment in European plant-based companies, they continue to attract significant investment.
In the first half of 2024, companies raised €45 million for cultured meat production. This is nearly half of the €116 million raised in 2023.
Which dairy companies are investing in fermentation?
The major dairy companies in 2024 DanoneYou can also learn more about the following: Leprino FoodsStrategic steps have been taken to address bottlenecks in precision fermentation and increase production of fermentation-derived casein. Danone has also invested in precision fermentation company ImaginDairy and Wilk's cell-cultured milk.
The French dairy giant recently committed to developing "bio-sourced ingredients" that can improve the nutritional and functional quality of its products, as well as reduce their carbon footprint. This will be done at a brand new R&D center in France.
A company spokesperson told us that the company will begin ramping up production in 2025 using a large fermentation tank, purification machines, and a demonstration line. Danone will invest €16 million in its first production line. A second could be added to the system in the coming years.
Leprino Foods Company and precision fermentation specialists Fooditive Group have joined forces to provide one of the world's largest mozzarella producers with access to exclusive markets for fermentation-derived casein used in cheese production.
Fooditive, in partnership with Leprino, will use Leprino's fermenters to increase ingredient production.