Top report

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After bouncing back in 2024, investments are declining again

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• DigitalFoodLab released its yearly report on the state of AgriFoodTech investments

• Investments declined again in H1 2025:

  • after a low in 2023, investments bounced back in 2024, but since the start of the year, they are declining rapidly
  • this downturn is less severe in upstream (AgTech) and midstream (Food Science) technologies.

  

• While investments decrease elsewhere, they are still increasing (compared to 2024) in the US which now represents 60% of the global FoodTech funding.

DigitalFoodLab

Other reports

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Alternative protein startups raised $377M across Q2-Q3 2025, led by plant-based segment

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• The Good Food Institute (GFI) published its investment update for the alternative protein ecosystem covering Q2 and Q3 2025 (see tables below).
• It says that alternative protein companies raised $130M in Q2 and $247M in Q3 2025, bringing year-to-date funding to $611M, and total investments since 2016 to $19B.

Q2 total investments

Q3 total investments

**The Good Food Institute 1 & 2**

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Biotech coalition projects $1T alternative protein market by 2040, requiring $500B investment

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• AB4S (Advanced Biotech for Sustainability), a coalition including L’Oréal, EIT Food, GFI and Italian startup Arsenale Bioyards, partnered with McKinsey to assess four biotech technologies (precision fermentation, biomass fermentation, cultivated meat and enhanced breeding), projecting a $700B–$1.1T market by 2040 (see graph below).

  

• The report found that the cost of precision-fermented dairy proteins could be reduced to $8–13/kg (50–75% below current levels), reaching price parity with conventional dairy through strain optimisation, process design improvements, and capital efficiency strategies (see graph below).

  

• It concludes that up to 60% of global physical inputs (including dairy ingredients) could be bio-manufactured and up to 5% of global emissions avoided, but scaling will require ~$500B investment by 2040, particularly in capacity expansion, regulation, and consumer acceptance.

Green Queen

Quick news

• The Good Food Institute released an interactive map of the alternative protein ecosystem, highlighting over 1,200 companies and 600 researchers.
• Research by Green Queen shows the alternative protein sector is undergoing its first major shakeout, with more than 40 companies, mostly plant-based and concentrated in Europe and North America, shutting down, going bankrupt, selling assets, or being acquired, often at discounted valuations, between September 2024 and August 2025.