‘Investors have seen the market opportunity and are moving to capitalize on a global shift in the way meat is produced.’

While the US meat industry is grappling to survive after more than 20 major slaughterhouses shuttered due to its workers catching the COVID-19 virus, the plant-based protein and cell-based meat companies are thriving raking in more capital to create new and innovative alt meat options.

According to Good Food Institute (GFI)’s new report, the U.S. plant-based meat, egg, and dairy companies have received $741 million within the first quarter of 2020,  already close to the record $747 million raised in all of 2019.

In the past decade, the U.S. plant-based meat, egg, and dairy companies have raised $2.7 billion in venture capital, $1.2 billion or 45 percent of which was raised in 2019 and Q1 2020 alone.

Cell-based meat

The cell-based or cultivated meat industry, including cell-based seafood, is also rapidly growing, according to  GFI’s other report.

The upcoming industry raised $189 million in investment capital in the first quarter of 2020, the highest the industry has raised in its history.

GFI Executive Director Bruce Friedrich said: “Plant-based and cultivated meats give consumers everything they like about meat but are produced more sustainably.

“Most of the conventional meat companies have reconstituted as protein companies, and nine of the 10 biggest have either launched or invested in plant-based meat, cultivated meat, or both.

“With historic pressures on conventional meat production, we expect to see the large meat conglomerates double down on their alternative protein investments.”

According to the reports both sectors including vegan meat, egg, and dairy companies as well as cell-based or cultured meat companies have raised a record $930 million in investments in the first quarter of 2020.

Market opportunity

Investors are seeing the surge in meat less alternatives as a market opportunity and are rapidly moving forward to capitalize on the changing food landscape.

“There’s been a surge in investor confidence fueled by durable and increasing consumer interest in alternative proteins,” said Caroline Bushnell, GFI Associate Director of Corporate Engagement.

 “Investors have seen the market opportunity and are moving to capitalize on a global shift in the way meat is produced.

“This record-level investment will bolster the industry and support continued growth and innovation for the long term, ensuring that alternative protein companies have the resources to grow and thrive, particularly during times of short-term market volatility.

“The COVID-19 crisis has made bolstering our global protein supply more critical than ever, given the inherent—and now very apparent—vulnerability of supply chains dependent on industrial animal agriculture.”

• Read: Beyond Meat shares soar as coronavirus stalls meat plant production

Share this story to reveal the growing market of meat less protein alternatives.