From a record $1.7B peak to a $515M reality check: #fermentation industry powers through, as 158 companies forge ahead" 🌟🔬
😓 It's been a tough year! Investment is down 32% from last year, mirroring a broader venture funding contraction. 💸 The eye-popping rounds of 2021 have given way to a stealthier funding approach, with startups supplementing through undisclosed SAFEs and bridges. Though we're seeing a trickle of alternative funds like government grants and philanthropy, there’s no denying—we’re in leaner times.
📈 Yet, the sector isn’t just surviving; it's growing. Against the odds, the number of companies climbed by 16%, up to 158.
🍦 Product #innovation isn’t on pause. The product set expanded to microbial fats, lactoferrin, postbiotics, algae-based proteins, and sweet proteins. There is a clear pivot toward the B2B model - case in point, Perfect Day's strategic divestment of consumer brands. 🔄
🏭 On the infrastructure front, 7 new fermentation facilities have been launched (shoutout to Liberation Labs and Meaty Foods’ Mega Ranch). Still, with available fermentation capacity ranging from 0.4 to 2.8 MMT, the room for growth is unmistakable—significant investment is essential. 🏗️
🔬 The march of science continues unabated, with dozens of patents granted and several GRAS notices filed, signaling a sector still rich in innovation.
🤝 Collaboration is in full swing, too, with 19 new partnerships inked this year, a boost from the 21 formed in 2022. Names like ADM & AirProtein and Solar Foods & Ajinomoto are leading the charge.
🙋♂️ Consumers are curious: dozens of studies demonstrate a considerable willingness to try fermentation-based products, especially when given a simple explanation of the benefits and technology. This highlights the need for continued investment in consumer education campaigns. Nomenclature research continues, with terms like “animal-free” and “made from fermentation/precision fermentation” rising to the top.
🌐 Policy-wise, we’re getting a nod from the heavy-hitters. The US, EU, and China are propelling biotech initiatives, with precision fermentation on their radar.
As for industry maturity, it’s not just talk—we’re walking the walk with two new associations, Precision Fermentation Alliance and Food Fermentation Europe, laying the foundations for the future. 🚧
So here we are, not just weathering the storm but advancing through it, with more companies, more partnerships, and unwavering progress.
Download the full State of the Industry Report from The Good Food Institute Here:
https://lnkd.in/eAtHqGvJ
#precisionfermentation #biomassfermentation #foodtech