A report from the Good Food Institute (GFI) Europe suggests investment in alternative-protein businesses shows the sector remains "immature".

Its analysis revealed fundraising by individual companies is still capable of having a major impact on the overall investment figures.

Research quoted by GFI Europe, which champions alternative proteins, reveals some €79m ($86.2m) was raised by plant-based companies in Europe in the first half of 2024. But it suggested that while the figure looks small compared to 2023’s €553m, investment levels are similar if the deals of Sweden-based plant-based dairy heavyweight Oatly are discounted.

“The 2023 figures show that, while total investments in alternative-protein companies increased compared to 2022, much of this can be attributed to a single company - Oatly - which attracted €391m in two deals,” it said.

It also pointed out that although the plant-based sector is not attracting the “enormous funding rounds” seen a few years ago, successful companies are still receiving large investments, such as Spain’s Heura, which raised €40m, and the UK’s This, which raised €25m.

GFI also cited investment in cell-based meat companies.

“Europe’s cultivated-meat companies raised €45m in the first six months of this year - almost half as much as the €116m raised throughout 2023,” it said.

“Much of this funding is aimed at scaling up the sector - particularly Mosa Meat’s €40m investment aimed at preparing the company for market entry.”

GFI Europe concluded: “It’s important to consider these figures in the context of a difficult international investment picture that has seen investors become far more cautious over the last few years.

“Economic uncertainty and increased inflation have led to a wider decline, with global start-up funding falling 38% in 2023 to its lowest levels since 2018, investments in food tech start-ups declining by 61% last year and sustainability-focused investments dipping in the first half of this year.”

The organisation has called on the wider food industry to be involved by forging more strategic partnerships such as major mozzarella producer Leprino Foods' collaboration with precision fermentation specialist Fooditive Group to scale-up the production of non-animal casein, and Spain’s Palacios partnership with The Every Company to use animal-free egg in its omelettes.