REHOVOT, Israel — Future Meat Technologies (Future Meat) has raised $347 million in a record-breaking funding round for the cultivated meat category.
The round, co-led by ADM Ventures — the venture investing arm of ADM, a global leader in human and animal nutrition — also included participation from industry leaders Tyson Ventures, Rich Products Ventures and others.
According to Future Meat, which opened the world’s first cultivated meat production line in Israel earlier this year, it is now scouting several locations in the United States for a projected large scale production facility that will bolster its global rollout.
“We are incredibly excited by the massive support of our global network of strategic and financial investors,” said Professor Yaakov Nahmias, Founder and President of Future Meat.
He continued: “This financing consolidates Future Meat’s position as the leading player in the cultivated meat industry, just three years after our launch. Our singular technology reduced production costs faster than anyone thought possible, paving the way for a massive expansion of operations.”
Alongside its Series B funding, the company also announced that it would be reducing the cost of its cultivated chicken by more than $10 per pound — a move that will help to widen accessibility and further propel the category.
“While Future Meat is leading the pack as the fastest-growing company in this space, I truly see the entire cultivated meat industry as a massive agent of change, creating a sustainable future for coming generations,” said Nahmias of the decision.
By anchoring itself as the first cultivated meat company to break the commercial viability cost barrier, making cultivated meat that is non-GMO, healthy, sustainable and available for widespread consumption, Future Meat is not only confident it can meet future consumer needs and values associated with food, beverages, health and wellness. But in doing so, also radically transform the global production of meat.
However, despite already cracking the code when it comes to facilitating industry-leading low costs — the largest hurdle in bringing cultivated meat to cost parity with traditional meat — the Israeli company acknowledges that the real test will come when its products finally launch in the US.
In a partnership with Provoke Insights, Future Meat Technologies recently surveyed 2,016 American consumers to better understand the potential for cultured meat to crack the mainstream market. The results highlighted how awareness of and preferences around cultured meat will play a huge role in determining its success.
Key findings from the research revealed:
- Over one in three US consumers surveyed plan to adopt cultured meat into their diet when launched
- 58% had a general awareness of cultured meat
- “Cultured meat” is the preferred term by US consumers, closely followed by “cultivated meat” – as opposed to “cell-based meat” or “cell-cultured meat”
- And over 50% of respondents had already actively changed their diets to become more “conscious,” meaning they’ve adopted a specific type of dietary regimen.
In response, Liat Kaplan, Vice President of marketing and growth at Future Meat Technologies commented:
“Consumers appreciate great food, but they also believe science is key to advancing environmental and animal welfare issues. With over 50% of consumers already changing how they eat to have a more conscious diet, we know this is not lip service – the potential is there.”
However, Rom Kshuk, CEO of Future Meat Technologies added:
“As a leader in this new industry, it is on us to not only create the product but also to help the market get familiar with it, mitigate concerns and make it accessible to end consumers.”
Not alone in its mission, as a host of other startups take aim at the space, investors are also seeing its potential as a high growth sector.
According to the Good Food Institute, the cultured meat industry secured more than $366 million in 2020 — its best funding year ever, with Future Meat a subsidiary of Eat Just and Upside Foods landing more than $200 million respectively.
With several companies (including Future Meat) now focusing on commercial launch, 2022 looks set to be another pivotal year for the cultivated meat sector.