During the recent Future Food-Tech innovation summit in London, industry leaders voiced urgent concerns about the future of the cultivated meat sector. They warned that without significant government investments, the nascent industry may struggle to survive. Robert Jones, VP of global public affairs at Mosa Meat, articulated the gravity of the situation, stating, “There’s a valley of death we’re not going to cross as an industry without a massive infusion of public investment.”
The cultivated meat industry has seen a dramatic decline in private funding since its peak in 2021, when investments reached nearly $1 billion. This figure dropped to $807 million in 2022 and plummeted by 78% in 2023, resulting in just $177 million in funding. This downturn mirrors a broader 50% decrease in agrifoodtech investments overall. Alarmingly, the trend does not appear to be reversing in 2024, with only two significant funding rounds reported so far—Mosa Meat’s $43 million in April and Ever After Foods’ $10 million in June. The financial strain has led many startups to downsize or even cease operations entirely, while others find themselves embroiled in disputes over unpaid bills with co-manufacturers.
While some governments have begun to recognize the strategic value of cellular agriculture, the support has not been enough to offset the dwindling private capital. Jones highlighted the €60 million ($66 million) allocated by the Dutch government in 2022 to foster an ecosystem around cultivated meat, but he acknowledged that this is merely a “drop in the ocean” compared to what is needed. Andrew Ive, founder of Big Idea Ventures, echoed this sentiment, suggesting that only substantial investments from countries with strategic interests, such as the Netherlands, UAE, or Japan, could provide the necessary capital for large-scale commercial facilities.
Another critical topic discussed at the summit was the regulatory landscape for cultivated meat. Owen Ensor from UK-based Meatly emphasized the importance of an efficient regulatory process, cautioning that delays could hinder the industry’s growth. Jones, however, defended Europe’s regulatory framework, describing it as “clear” and “protected,” while acknowledging that the industry must adapt its messaging to better resonate with the public and policymakers. He noted that previous rhetoric, which often framed cultivated meat as a replacement for traditional animal products, may have alienated some stakeholders. Instead, the industry is now focusing on its value proposition as a complement to existing protein systems, emphasizing food security and European competitiveness.
The summit also highlighted the need for innovation amid financial constraints. Ensor pointed out that many of the early-stage companies, which raised significant capital without delivering on their promises, have paved the way for a new wave of startups that are finding cost-effective solutions. For instance, Meatly has reduced media costs from £700 per liter to just £1, and they aim to lower that even further. Such innovations are crucial for scaling cultivated meat production, which industry experts agree will take decades rather than years to make a significant impact on conventional agriculture.
As the industry recalibrates its approach, some companies are exploring hybrid products that blend cultivated and traditional meats. Jones mentioned that Mosa Meat is adopting a more ingredient-focused strategy, while Ive suggested that cultivated meat could be used similarly to how ethanol is blended with gasoline. This could lead to a gradual introduction of cultivated meat into various markets, allowing consumers to become accustomed to its presence.
Despite the challenges, optimism remains within the sector. The three best-funded cultivated meat startups—UPSIDE Foods, GOOD Meat, and Believer Meats—are navigating the funding landscape in different ways. UPSIDE has paused plans for a large facility in Chicago to focus on its smaller site in California, while GOOD Meat is concentrating on process development rather than large-scale funding. Believer Meats, however, is moving forward with plans for what it claims will be the world’s largest cultivated meat facility in North Carolina, although it still awaits regulatory approval to sell its products in the U.S.
The cultivated meat industry stands at a crossroads, facing significant challenges in funding and public perception. However, with strategic government support and a commitment to innovation, it may yet carve out a sustainable future in the global protein market.