Sustainable Food Monthly Market Update summarizes key announcements, M&A, and capital raising activity related to sustainable food, while providing detailed trading metrics on public companies across the sector.
Key Updates & Investment Trends
Inflation and higher food prices continue to be top of mind for consumers, governments, and central banks across the globe
With increasing livestock feed and meat prices due to war and supply chain issues coupled with decreasing plant-based food prices, consumers are being forced to revaluate their eating habits and spending patterns
UPSIDE Foods, a cultivated meat company, raised $400m from new investors including Abu Dhabi Growth Fund, Givaudan, Bill Gates and John Doerr
Investment Activity
o Amount raised by sustainable food companies1 in 2021 totalled ~$6.0bn across 224 deals, a 93.4% increase YoY in deal value
o Strong investment activity in 2021 driven by three factors
-Maturation of the plant-based sector and an extensive list of companies seeking late-stage VC funding
-Commercialization of fermented proteins in consumer packaged goods, leading to new start-ups, products and funding
-Commercialization of cultivated protein products
o Investment momentum expected to continue in 2022 as start-ups continue to raise capital to fund R&D and production facilities
Industry Trends
Shifting consumer behavior towards healthy and sustainable options continues to be one of the primary drivers of growth in the sustainable food sector in 2022
Plant-Based Protein
-Incumbent consumer packaged goods (“CPG”) players are doubling down on plant-based meat alternatives and other adjacent products
-3D printing pea and algae-based salmon and other related products signal shift toward whole cut plant-based products in 2022
Fermented Protein
-Fermented protein products are increasingly debuting at grocery retailers
-Precision fermentation continues to take center stage in R&D due to its ability to produce functional ingredients, enzymes, flavoring agents, vitamins, fats, among others
Cultivated Protein
-Cultivated meat products will soon be distributed through foodservice channels
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