Investment in alternative proteins continued its decline in 2025, falling 20% year-on-year to $881 million, marking the first time it dropped below $1 billion since 2018. While the plant-based segment surpassed its 2024 total, largely due to a single debt financing round, fermentation-derived and cultivated meat categories experienced significant funding decreases of 43.5% and 49% respectively. European companies attracted more investment than North American ones for the second consecutive year. This downturn occurred as capital largely flowed to later-stage companies demonstrating revenue or a clear path to it and amid heavy investment concentration in artificial intelligence. The industry is also seeing increased consolidation, with many businesses acquired or closed.
Source: Alternative Protein Funding Down by 20% in 2025, Falling Below $1B for First Time in 7 Years