Paleo, a food-tech start-up developing animal-free heme proteins for plant-based meat and seafood, has announced a strategic refocus of its operations amid challenging market conditions.

The start-up, based in Belgium, uses precision fermentation to produce animal-free and non-GMO myoglobin from yeast.

Claimed to be identical to those found in animal meat, the heme proteins are designed to enable plant-based meat to deliver the flavour, aroma and nutritional properties consumers that consumers seek in alternative protein products.

The company said the strategic refocus of its operations will centre around focusing solely on its core R&D, though further details have not been given at this time regarding how operations will specifically be streamlined.

However, it has revealed that the plans will include a ‘significant’ reduction of its staff located at its R&D site in Leuven.

The plans come amid challenging market conditions in the broader plant-based and food-tech industries, with the alt-protein sector facing headwinds such as long regulatory approval timelines and a more cautious investment climate.

Hermes Sanctorum, CEO of Paleo, said: “Our technology works – every partner and taster who experiences our ingredient recognises its transformative potential. However, the current market and funding environment require us to prioritise: maintaining our core R&D.”

The company said it ‘remains confident’ in the long-term potential of its technology and the growing consumer demand for sustainable and authentic meat alternatives.

“This is a challenging but necessary step to ensure Paleo’s innovation endures and continues to make an impact,” Sanctorum concluded.

Top image: © Paleo