New reports from the Good Food Institute suggest segments of the alternative protein industry are regaining momentum following a challenging period marked by slowing sales growth, investor caution and questions around consumer adoption.
The organization’s annual State of the Industry series, released last month, examines developments across the plant-based, fermentation-derived and cultivated meat sectors, covering areas including consumer behavior, investment trends, scientific progress and regulatory developments. The series also includes a review of global policy initiatives and public-sector investment tied to alternative proteins.
In the plant-based category, US retail sales of plant-based meat and seafood products declined in 2025, continuing pressure on a segment that expanded rapidly earlier in the decade. Still, the reports indicate the long-term market opportunity remains substantial, particularly among younger and health-conscious consumers.
According to the analysis, nearly three in four US consumers from Generation Z through Generation X remain open to plant-based foods. Health-focused consumers also spend 56% more annually on plant-based meat products than the average shopper, suggesting the category retains a core audience despite softer overall sales.
The report estimates that doubling purchase frequency among existing consumers—equivalent to eating plant-based meat roughly once a week—could generate an additional USD1bn in annual sales.
Globally, retail sales of plant-based meat and seafood products reached USD6.6bn in 2025, according to Euromonitor data cited in the report, representing approximately 8% growth from the previous year. Europe accounted for much of the expansion, while the US remained the single largest national market, representing nearly one-quarter of global sales.
The fermentation segment also showed signs of commercial progress, particularly in products developed through precision fermentation technology. Several new retail launches emerged in 2025, including an egg-white protein powder introduced at Walmart and dairy products launched in Israel.
Industry participants increasingly view precision fermentation proteins as ingredients that can integrate into existing food formulations rather than requiring entirely new product architectures. Companies are positioning the technology as a way to improve functionality, diversify supply chains and reduce costs as manufacturing scales increase.
Meanwhile, the cultivated meat sector achieved a symbolic milestone in 2025 with its first retail launch in the US. Consumer research cited in the report suggested that products described using consumer-friendly benefit language, rather than technical terminology, generated stronger purchase intent.
Technical advances in cultivated meat production also continued, according to the analysis. Cell-culture media costs have fallen by more than 99% over the past decade, while the availability of open-access cell lines and artificial-intelligence tools is accelerating research and development timelines. Companies are also developing customized bioreactor systems aimed at reducing infrastructure costs associated with commercial-scale production.
Taken together, the findings suggest the broader alternative protein industry is moving from early-stage hype toward a more operationally focused phase centered on cost reduction, manufacturing efficiency and targeted consumer adoption.
Find out more at: https://www.gfi.org