Theresa Lieb Senior Director, Nature and Food Systems October 12, 2023
Summarized by AI
Full article: HERE
In the third quarter (2023) the alternative protein sector continued to grow, but the United States experienced a decline in the popularity of plant-based foods. Several plant-based food companies, such as Nowadays, Hooray Foods, and Tattooed Chef, ceased operations or went through layoffs. Consumer data revealed a 15.6% decrease in purchases of plant-based meat products in the first half of 2023 compared to the same period last year. Beyond Meat, a prominent company in the sector reported a 30.5% year-over-year decline in net revenue. This decline in demand and sales is attributed to an oversupply of similar products, increased investor scrutiny, and smaller funding allocations, leading to consolidation within the sector. Notably, significant investments in alternative proteins during this quarter were primarily made in companies outside the United States.
In the third quarter of this year, 15 food startups collectively secured an impressive $700 million in funding. The investments were categorized into three pivotal areas: regenerative agriculture, shifting diets, and reducing food waste. Notable raises in regenerative agriculture included Indigo Ag with a substantial $250 million, though its valuation dropped significantly since its last funding round. In the realm of alternative proteins, the U.S. saw a decline in investments, while notable funding went to companies outside the country. Food waste solutions gained traction, with startups like Mill and Traceless securing substantial funding for innovative approaches. Despite challenges, the food and agriculture innovation sector has shown promise. For more details, refer to the full newsletter.
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