Mycelium Protein Sector Attracts Investment, Focuses on Circularity

The alternative protein sector continues to see notable activity, particularly within mycelium-based food production. Pacifico Biolabs, a company specialising in mycelium fermentation protein, recently secured €7 million in a Series A funding round. This investment, backed by firms including Stray Dog Capital, TGFS, Sprout & About Ventures, Simon Capital, and FoodLabs, is earmarked for converting brewery infrastructure into facilities for protein production. This development underscores a strategic move towards repurposing industrial assets for sustainable food innovation.

This approach aligns with a broader trend in EU-funded research, where mycelium's potential as a sustainable protein source is being actively explored. The Mushlabs project, for instance, focuses on developing meat replacements from mushroom roots (mycelium) through proprietary fermentation technology, feeding the mycelium with side streams from agro- and food industries. Similarly, the PLANTOMYC initiative aims to create hybrid meat analogues by combining plant proteins with mycelial protein biomass, produced from upcycled circular substrates such as starch-rich pea protein by-products and brewer's spent grains, directly mirroring Pacifico Biolabs' strategy. Another project, NoMy, is developing new sustainable alternative proteins from fungi, with a vision for circular production systems, including mycoproteins for fish feeds.

The common thread across these initiatives is the commitment to circular economy principles and resource efficiency. By utilising industrial side streams and existing infrastructure, companies and projects are demonstrating viable pathways to scale alternative protein production while minimising environmental impact. The focus on mycelium's versatility allows for the creation of diverse food products, from meat replacements to hybrid analogues, and even sustainable animal feeds, positioning it as a key component in the future of food systems.

What this means: The significant investment in companies like Pacifico Biolabs, coupled with ongoing research in projects such as Mushlabs, PLANTOMYC, and NoMy, indicates a maturing market for mycelium-based alternative proteins. This trend suggests a strategic shift towards scalable, sustainable food production methods that leverage existing industrial capacities and circular resource management.