Dive Brief:
- Scottish alternative protein startup Enough has raised $43.6 million as it plans to double its production by next year.
- The mycoprotein supplier will use the funding to scale up production of Abunda, which is its meat alternative made from fungi, so that it can “serve a greater customer demand,” the company said. Enough is looking first to expand in Europe.
- Enough is embarking on its ambitious plans as the mycoprotein market is expected to see massive growth in the years ahead. Fungus fermentation may be a solution to achieving a preferred satiating taste and texture in plant-based products, which has been a challenge for the space.
Dive Insight:
The B2B alternative protein company currently has more than 30 customers, including Unilever, which plans to test Abunda in its European Vegetarian Butcher products, Dutch poultry processor Plukon Food Group, and manufacturers supplying UK retailer Marks & Spencer, according to the AgFunder Network.
CEO Jim Laird told the AgFunder Network that the company had potential customers in North America, but that the majority of their product will be in Europe.
Plant-based meat alternatives in the U.S. have been declining in sales in recent months. Whereas other regions, specifically the EU, have not seen the same drop.
European plant-based food sales have increased by 22% since 2020, taking the total value of the category to a record $5.7 billion, according to a report from the Good Food Institute Europe.
This demand in Europe is showing that there is still room in the market for alternative protein companies, a space some have called dead, and that has reached “peak veganism,” according to a report from Wired.
The global market for mycoprotein products is expected to grow rapidly, according to a Future Market Insights report. Mycoprotein — and fermented ingredients on the whole — are in a position for massive expansion and expected to reach $948.9 million by 2029, according to reports. The demand for mycoprotein is due to the products’ high percentage of vitamins and minerals. It has been called preferable to other “meatless meat” options and also is said to have a better taste and texture.
Fungus fermentation is used by a variety of companies ranging from Quorn’s portfolio of meat alternatives to MycoTechology’s ingredients. The product is said to block bitter tastes and enhance sweetness.