WASHINGTON – Investment in the development of plant-based meat, dairy and egg alternatives, cultivated meat and alternative protein fermentation companies reached $5 billion in 2021, according to the Good Food Institute, an alternative protein advocacy group. The figure is 61% greater than the 2020 investment of $3.1 billion.

“The investor community is beginning to see the huge potential of alternative proteins to transform our food system, as well as the strong potential to meet their target returns,” said Sharyn Murray, senior investor engagement specialist with the GFI. “With more and more investors acknowledging that climate risk is investment risk, alternative proteins offer a scalable solution that gets the world closer to a more secure, carbon-neutral food system. Managing climate risks is impossible without addressing food, and agriculture and alternative proteins offer us a tool to do that.”

Investments in cultivated meat and alt protein fermentation companies surged during the year. Cultivated meat companies received $1.4 billion in 2021, up from $400 million in 2020. Investments included $347 million to Future Meat Technologies in a Series B round, $100 million to Aleph Farms in a Series B round, and $60 million to BlueNalu.

Fermentation companies focusing on alternative proteins raised $1.7 billion in 2021, up from $600 million in 2020. Investments included $350 million in Nature’s Fynd, $350 million in Perfect Day and $226 million in Motif Foodworks.