VCs Are Still Chasing Protein, Even As Fake Meat Falls Out Of Favor

Protein has emerged as the reigning macronutrient trend in the food and drink industry, despite plant-based meat alternatives losing their luster. Investors have poured billions into startups promising innovative ways to incorporate protein into various products. However, not all early bets have succeeded - lab-grown meat and earlier plant-based meat startups have struggled to find success.

Recently, the focus has shifted towards adding more protein to packaged foods and drinks, with startups and established brands touting the added protein content in their offerings.

In 2022, venture capital investment in protein-related startups remained robust, with numerous funding rounds for companies focused on snacks, beverages, ingredients, and processes. Notable deals include a $250 million Series B round for Medici Brands, maker of protein-filled snack bars, and Wilde Brands, which raised $40 million for their chicken breast crackers.

Early-stage startups such as Frozen One, raising funds for high-protein ice creams at Target, and Ripple Foods, a vegan milk brand using pea protein, have also been successful in securing funding.

Protein-focused startups are exploring various avenues, such as precision fermentation, plant-based ingredients, and animal feed. Companies like The Every Co., which makes animal-free egg white proteins, and Edonia, which creates high-protein cooking ingredients from spirulina, have attracted significant funding. Additionally, startups like InnovaFeed and NextProtein are focusing on precision fermentation to create protein-rich ingredients for livestock feed and pet food.

In summary, the protein trend in food and drink is diverse and expanding, with startups concentrating on incorporating more protein into a wide range of products.