Newswise — We are a little over two months into 2025, and there is already a flurry of activity in the alternative protein space, especially around fermentation. This success builds upon . largest investment rounds for alternative proteins in 2024 belong to fermentation companies.
For the billions of people globally who eat meat, eggs, and dairy, these products can offer tasty ways to diversify their diets and help the planet in the process. found that substituting just 20 percent of beef with microbial proteins from fermentation could cut deforestation in half by 2050.
Business for fermentation-derived proteins is booming globally so let’s take a trip to discover the latest developments in the world of fermentation.
First stop: Richmond, Indiana
In its latest fundraising round, Biotech firm Liberation Labs secured as part of its funding efforts to build a large-scale facility for precision-fermented foods in Richmond, Indiana.
The Richmond factory is expected to have a 600,000-liter fermentation capacity and a fully dedicated downstream process. This will allow it to produce between 600 and 1,200 tonnes of protein annually while bringing in $40M in yearly revenue. The firm's newest fundraising round will also support the construction of a facility in Saudi Arabia — in fact, Liberation Labs' global plan involves building factories in six geographies: the U.S., Europe, the Middle East, Brazil, Asia, and Australia.
To meet rising global demand and advancements in microbial biotechnology and fermentation techniques, more and larger fermentation facilities suitable for food production are needed. It's encouraging to see continued progress at Liberation Labs' facilities around the world.
In 2023, we partnered with Integration Consulting on a report that takes a look at the existing landscape of manufacturing capacity for fermentation-derived proteins and strategies to scale manufacturing to ensure long-term category growth.
Next stop: The Netherlands
Vivici, a Dutch precision fermentation startup, in Series A funding to expand their production of animal-free dairy proteins, particularly beta-lactoglobulin and lactoferrin, using precision fermentation.
Precision fermentation uses microbial hosts as “cell factories” for producing specific functional ingredients. It can be used to produce enzymes, flavoring agents, vitamins, natural pigments, or fats, and these ingredients can improve the sensory characteristics and functional attributes of plant-based products.
Backed by DSM-Firmenich and Fonterra, Vivici aims to scale up production and enter new markets with a focus on sustainability. According to Vivici, its beta-lactoglobulin is clear in color and neutral in flavor, and can be used in applications such as ready-to-mix protein powders, ready-to-drink protein beverages, and protein bars.
The startup is also following suit with many other fermentation companies in developing lactoferrin, an iron-binding protein found in human milk and bovine colostrum. This protein is said to have , but is generally available only in small concentrations in milk. Vivici plans to bring lactoferrin to market in the second half of 2025, aiming for regulatory approval in the U.S. and other regions.
Seeing companies such as Vivici continue to scale their technology is a positive sign of progress for the alternative protein industry in bringing fermentation-derived products to market.
Third stop: Nova Scotia
The government of Nova Scotia is investing to expand the Verschuren Centre's fermentation plant to enhance automation, support new clients, and create skilled biomanufacturing jobs.
This expansion would make the Verschuren Centre the largest and only provider of precision fermentation piloting services in Canada and increase the productivity of the country's growing biomanufacturing sector—a key supply chain sustainability goal for Canadian and Nova Scotian manufacturing companies.
Leveraging precision fermentation technology can enable the production of proteins that require a fraction of the resources compared to animal-based proteins. This, in turn, creates a more sustainable and resilient protein supply chain. More public investments like this are needed to help this sector scale. Canada deserves credit for making a smart investment in its biomanufacturing sector.
Final stop: Spain
Spanish biotechnology startup MOA Foodtech was awarded a commitment from the European Innovation Council (EIC) as part of the latest EIC Accelerator funding round.
MOA, which specializes in biomass fermentation and artificial intelligence-driven ingredient production, plans to use this investment to scale its AI-powered fermentation platform and advance the development of functional ingredients derived from agri-food byproducts. The company is collaborating with industry partners, including Italian food manufacturer Barilla, to develop novel ingredient applications.
It's exciting to see more public investment in innovations that turn food industry waste into high-value ingredients to create more choices for consumers. If you're curious to learn which agricultural sidestreams hold the most potential as inputs for alternative protein production, we wrote last year on how alternative proteins can reduce food waste.
Keeping the momentum going
While many fermentation-derived protein products are in their early days, the technology used to make them is not new. Fermentation has been used in food production for millennia. Ancient civilizations used microbial cultures to preserve foods, create alcoholic beverages, and improve the nutritional value and bioavailability of foods ranging from kimchi to tempeh.
Over the past century, the role of fermentation has expanded far beyond its historical usage to a much broader range of applications. One well-known example is cheese—one of the most popular products on the market. Rennet, an enzyme that aids in coagulation during cheesemaking, used to be sourced from calf stomachs. Today, it’s produced using microbial fermentation. Alternative proteins represent the next step in this natural progression, harnessing advances in fermentation technology to make familiar products in a more sustainable and efficient way.
Fermentation-derived proteins are quickly emerging alongside other agricultural solutions that can help transform the future of food for the good of people and the planet. Key stakeholders around the world are beginning to lean in, but much more public investment is needed to accelerate progress at the scale and pace required.
With global demand for meat projected to increase significantly by 2050, a shift toward alternative proteins is critical. Diversifying how we produce meat today will lead to more affordable and sustainable options tomorrow.
We saved you a spot. It’s the ‘yeast’ we could do.
Interest and investment in the precision fermentation sector are growing. This week, GFI corporate engagement experts will dive into the state of the precision fermentation industry globally. During this session, we’ll cover:
The value proposition of precision fermented ingredients
Different applications of precision fermented ingredients
An overview of companies active in the space
The regulatory and labeling landscape
RSS