Recently, investors managing $11.5 trillion worth of assets began calling on major food companies and retailers to diversify into plant-based protein as a method of boosting the resiliency of their supply chains and mitigating food insecurity risks.
More specifically, a group of 73 investors engaging in the Farm Animal Investment Risk and Return (FAIRR) initiative network asked 20 food companies – including both manufacturers like Danone and Kraft Heinz, as well as retail giants like Amazon and Walmart – to capitalize on the “growth and health” opportunities presented by alternative protein sources.
“For food and retail, protein diversification is a key element to reduce your CO2 emissions,” Sophie Kamphuis, senior advisor for responsible investment at Dutch asset manager MN, told Reuters, pointing to Ahold Delhaize’s commitment to make 50% of the proteins sold at its European retailers plant-based by 2030 as one example.
According to The Good Food Institute, private investment in alt-proteins, including beans, pulses, plant-based meat substitutes, and cell-cultured meat products, plummeted from its peak of $1 billion in 2021 to just over $1 billion in 2024.
“We like it if companies set sales targets and launch products, but we also want that to be replacing animal proteins,” Kamphuis added.
Let’s explore a few of the most promising alt-protein innovations worth considering.
Mycelium
Also known as mycoprotein, mycelium is a root-like structure of a fungus that consists of a mass of branching, thread-like hyphae.
According to Paul Shapiro, CEO at The Better Meat Co., an alt-meat manufacturer specializing in Rhiza mycoprotein, adding mycelium to formulations is an effective way for brands to capitalize on the growing consumer demand for both clean labels and protein-rich products.
“Mycelium is one of the only areas in alt-protein that’s still attracting significant investment. Just in the past couple months, three mycelium companies (Better Meat Co., Protein Brewery, and Matr Foods) have all raised significant funding rounds,” Shapiro told FI.
“The Better Meat Co. harnesses the power of fungi fermentation to create all-natural, whole food mycelium ingredients. These protein-packed ingredients work well both as meat enhancers (better nutrition, texture, and yield) and in making next-generation plant-based meat as well,” added Shapiro.
Another nutritional perk associated with Rhiza mycoprotein is that it’s remarkably high in fiber, with 100 grams of the dry product providing 30 grams of fiber – 107% of the recommended daily value.
With companies ranging from Mintel to Whole Foods Market identifying fiber as a top trend to watch in 2026 and the years to come, mycelium is a promising ingredient that can help brands cater to the growing number of consumers interested in foods and beverages that can help them improve their gut health.
Other Fermentation-Derived Proteins
In addition to mycelium, brands are exploring other types of fermentation methods for alt-protein production.
Renewal Mill, for instance, uses fermentation byproducts (like okara from soy milk) to create “super ingredients” such as upcycled flours that are rich in both protein and fiber.
Other brands leverage biomass fermentation, a method that involves using fast-growing, protein-dense microbes (like bacteria, algae, or fungi) as the main ingredient rather than a processing aid, to produce protein in an extremely efficient manner with minimal land and water required to do so.
For example, Finland-based Solar Foods uses electrofermentation to covert CO2, air, and electricity into Solein, a fine protein powder used for food fortification.
The Japanese food conglomerate Ajinomoto recently used Solein to produce the plant-based protein creamer included in GRe:en Drop Coffee, a new line of coffee beverages launched under its Atlr.72 brand that also features a beanless coffee blend made by Prefer.
