The alternative protein industry continues to draw attention from governments worldwide, with a mix of investment support and regulatory measures shaping its growth. The data in this article, compiled by Nicholas Dahl, founder and CEO of Alternative Proteins Global, reflects actions taken by governments in the first half of 2025, impacting companies working in alternative protein technologies. This update focuses on direct government involvement and regulatory actions.
Investments & funding
Governments have continued to provide substantial funding for alternative protein companies, particularly those engaged in precision fermentation and plant-based products. In January 2025, the European Investment Bank (EIB) provided $36 million in debt financing to Formo, a German company producing dairy alternatives using precision fermentation.
In the Netherlands, Invest-NL, a national development institution, backed Vivici, a precision fermentation company focused on ingredients and dairy, with a $34 million investment in February 2025. Business Finland, the Finnish governmental body, followed suit with a $10.6 million grant to Solar Foods, a biomass fermentation company, in March 2025.
Governments in several other countries also supported the sector. The European Investment Bank provided €50 million in co-financing for a pea protein plant in Sweden, while the US Department of Energy made multiple investments, including $2.4 million in Ginkgo Bioworks and $5.4 million in Tender Food for the development of precision fermentation and plant-based meat alternatives.
Investments from Israel, Saudi Arabia, Canada, and Brazil also featured prominently, with Israel’s Innovation Authority granting $4 million to AlgaeCore, a plant-based fish company, and Saudi Arabia’s NEOM Investment Fund contributing $50.5 million to US-based Liberation Labs.
Regulatory measures and bans
Alongside financial backing, several key regulatory actions have been taken. In the US, the states of Indiana and Texas enacted restrictions on cultivated meat. Indiana imposed a two-year ban on the production, sale, and labeling of cultivated meat products starting in May 2025. Texas followed with its own law banning the sale of cultivated meat products from June 2025.
Meanwhile, the regulatory landscape in Europe experienced both setbacks and progress. The Czech Republic abandoned a proposed amendment to restrict plant-based meat labeling, while France’s Council of State annulled government decrees from 2020 and 2022 aimed at curbing such labeling. However, Switzerland’s Federal Supreme Court upheld a restriction on labeling plant-based meat products in May 2025.
For further details on all 50 government actions impacting the industry in the first half of 2025, readers can access the paid version of the full report compiled by Nicholas Dahl at Alternative Proteins Global.
