MOA Foodtech and Espiga I+D have formed a Bakery Innovation Alliance to help bakery and pastry manufacturers reduce their reliance on eggs and remove E-471 from formulations. The partnership will focus on testing and validating bakery and pastry applications for MOA Q5, a yeast-based ingredient developed by MOA Foodtech that can replace egg, function as an emulsifier and eliminate the need for E-471. The companies said the collaboration aims to give manufacturers a route to evaluate fermentation-derived ingredients under real production conditions, addressing challenges around egg supply and demand for cleaner-label products. Bakery and pastry manufacturers have faced increased pressure from volatile egg prices and supply uncertainty, with repeated avian influenza outbreaks disrupting production over recent years. At the same time, retailers and consumers are placing greater emphasis on clean-label products, prompting manufacturers to explore alternatives to additives such as E-471. MOA Q5 is produced through biomass fermentation using starch-rich industrial byproducts. The ingredient is declared as “yeast” on the label, is non-GMO and does not require Novel Food classification, according to MOA Foodtech. The company said MOA Q5 has already been validated in bakery, pastry and pasta applications as an egg replacer, emulsifier and alternative to E-471. Through the new alliance, MOA Foodtech and Espiga I+D will work on further technical validation of egg replacement solutions for bakery and pastry applications. The partnership will provide manufacturers with access to ingredient samples, pilot formulations and application support, allowing companies to assess MOA Q5 in production environments. Espiga I+D will contribute its application development expertise and pilot-scale and semi-industrial infrastructure. The centre, which began operating in Sarriguren, Navarra, in mid-2025, provides research and development services across the cereal value chain. Its facilities include laboratories for quality control and physicochemical testing, first-processing and applications workshops, and infrastructure for formulation, prototyping and sensory validation. The centre also operates a Bühler teaching mill with capacity of more than 14 tonnes of flour per day, alongside industrial bakery lines using lamination and rounding technologies. This infrastructure will allow the partners to reproduce industrial processes, test different production conditions and validate formulations before their transfer to manufacturing plants. MOA Foodtech develops functional ingredients through fermentation, supported by its in-house AI computational platform, Albatros. The biotechnology company uses agri-food side streams to develop functional and nutritional ingredients for the human food, pet food and nutraceutical sectors. It also works with industrial partners to develop solutions using their byproducts. Bosco Emparanza, CEO of MOA Foodtech, said: “By partnering with Espiga I+D, we make it easier for manufacturers to validate and adopt next-generation fermentation ingredients." Maite Cabodevilla, head of new developments and applications at Espiga I+D, added that the centre works with companies developing functional, innovative and sustainable ingredients to create solutions for the food industry. The companies said the alliance will enable manufacturers to explore applications for MOA Q5 while supporting the development of new solutions in response to changing market requirements. MOA Q5 contains gluten, meaning allergen labelling requirements apply and must be assessed for each formulation and target market.

Emma Curtis, managing director of Strong Roots, argues that changing what we eat is a powerful lever for building a more sustainable and resilient future. But that doesn’t require radical new consumption habits. One of the biggest opportunities lies in improving the foods consumers already know, love and buy every week. Emma Curtis This year's World Food Day theme, 'Innovate today. Nourish tomorrow.', raised an important question for the food industry: what innovation will deliver the changes we need at scale? Food systems face scaling challenge Climate change is increasing pressure on agricultural production; natural resources are under growing strain and changing consumer priorities are rising across many markets – the need for change is pressing. Research from the EAT-Lancet Commission has highlighted the importance of shifting toward more plant-forward diets and transforming food production systems to build a healthier, more sustainable future. Equally, organisations such as Tilt Collective have pointed to the need for practical interventions that can shift consumption patterns towards more plant-forward choices at scale. However, much of the conversation around the solutions to these problems centres on breakthrough technologies, novel ingredients and entirely new categories of food. While these innovations have an important role to play, there is a risk that we overlook a simpler and potentially more scalable opportunity: improving the nutritional and environmental profile of the foods people already eat every day. However, the challenge is finding realistic pathways to get to the destination. Innovation only delivers impact when people embrace the products it creates. The overlooked opportunity: More vegetables on more plates One of the clearest opportunities lies in helping consumers eat more vegetables, more often. We already know that diets richer in vegetables can support better health outcomes while helping reduce pressure on food systems, yet awareness has often proved easier to build than behaviour change. Most consumers are not making food choices based on health or sustainability alone. They are balancing affordability, convenience, taste, habit and nutrition, often all at once. For manufacturers, that reality should be viewed as an opportunity rather than a barrier. If we want to encourage more sustainable diets, we need to make those choices more appealing and more accessible within existing eating habits. Making better choices easier The food industry often talks about changing consumer behaviour. A more useful question may be how we can work with existing behaviour instead. Research demonstrates that, when forced to, most will prioritise value and simplicity above all else. The most successful food innovations, therefore, tend to reduce those trade-offs rather than reinforce them. That means focusing on products that fit naturally into people's lives. Foods that consumers already recognise, enjoy and regularly buy often provide a far more effective route to impact than entirely new categories that require people to rethink the way they shop, cook or eat. Food manufacturers should therefore judge innovation by its impact, and ask how familiar foods can be improved through better ingredients, better production methods and better agricultural practices – such as incorporating regenerative farming and sustainable sourcing. Reinventing familiar foods By improving foods that already have a place in consumers' shopping baskets and freezer aisles, consumers aren't asked to abandon familiar favourites. As part of the wider McCain Foods family, we see first-hand how food-system resilience depends on both how food is grown and produced. Regenerative agriculture practices can strengthen the long-term resilience of food production, while continuing to bring innovation to how familiar foods are made more sustainably. It is a reminder that meaningful change can happen across the entire food system, from the way ingredients are grown to the way everyday foods are produced and enjoyed. The broader lesson is that innovation does not always require entirely new categories. Sometimes the biggest impact comes from improving the ones that already exist. Health, sustainability and innovation at scale As World Food Day prompts reflection on the future of food, it is worth remembering that resilience is not built through technology alone, it is built through adoption. Too often, food innovation is discussed through a single lens, whether health, sustainability or technology. In reality, successful innovation combines all these priorities, alongside taste and convenience. A healthier product that fails to deliver on taste is unlikely to achieve widespread adoption, while a sustainable product that is inconvenient to prepare may struggle to fit into busy lives. The most effective innovations are often those that fit seamlessly into people's lives, helping them eat more vegetables and make better choices without demanding entirely new behaviours. Building a more resilient food system is unlikely to depend on asking consumers to reinvent their lifestyles. More often, it will depend on reinventing the foods they already love.

New research reveals that the number of global patent applications for high-protein foods hit a record high of 5,626 in the year to 30 June 2026, up from 5,148 the previous year. The research, by intellectual property (IP) law firm Mathys & Squire, analysed patent applications data sourced from Patentscope and the World Intellectual Property Organisation. It found that within five years, there has been an 80% increase in the number of patent applications filed, compared with the 3,122 filings made in the year to 30 June 2021. Growth in demand for functional, high-protein foods has been driven by the growing number of consumers seeking to lose weight or support muscle growth – including those taking GLP-1 receptor agonist medications – with protein-boosted products shifting from the supplements arena and into the mainstream. Additionally, the firm noted that the US federal government’s Dietary Guidelines for Americans emphasise notably on protein, inverting the traditional food pyramid to place protein at the base. Interestingly, Michael Stott, partner at Mathys & Squire, observes the trend towards high-protein foods as a “natural continuation of the earlier drive to develop meat alternatives,” with many of the techniques used to create these products now being used to develop high-protein products across other applications. “Demand for high-protein foods is so strong that manufacturers are looking for every possible way to add protein to their best-selling products. That has fuelled a wave of innovation in the food industry,” he commented. Nestlé, Cargill and Arla are among the world’s top patent filers for high-protein food technologies, with 58, 46 and 28 patents filed in the last year respectively, according to the research. Examples of technologies that were subject to patent applications included a plant-based whipping cream with more than twice the protein content of traditional whipping cream; a protein ingredient developed from microorganisms that can be used in industrial confectionery; and a ready-to-drink, high-protein beverage that replicates the smell, texture and flavour of milk. “The goal for a lot of major food manufacturers has been to increase the protein content of some of their products, without changing the taste or appearance consumers expect,” Stott said, highlighting “new and disruptive” approaches. “This research is creating a vast library of hugely valuable intellectual property for food companies. Over time, that IP becomes a significant component of their valuations.”

Trubar has launched Trubar Pro, a new range of plant-based protein bars now available in Target stores nationwide in the US, targeting consumers seeking high-protein snacks with simplified ingredient profiles and dessert-inspired flavours. Each bar contains 18g of plant protein and 12g of fibre, with a protein blend made from brown rice and pea protein. The range is sweetened with monk fruit and formulated without gluten, dairy, soy, sugar alcohols or seed oils. The launch comprises three flavours: Chocolate Pea-nut Job, Caramel But Make It Salty and Cake It 'Til You Make It. The collection aims to combine higher protein content and fibre with flavours inspired by familiar sweet treats. Trubar Pro enters a protein bar category in which brands are increasingly seeking to balance nutritional composition, ingredient preferences and taste. Its plant-based formulation also positions the range for consumers looking for alternatives to dairy-based protein products. Alongside its nationwide Target launch, Trubar Pro is available through CVS, Wegmans, Big Y, Lowe's Grocery, the brand's direct-to-consumer website and Amazon.

Biotechnology company Mycofeast has announced its acquisition of New Zealand-based precision fermentation start-up Daisy Lab. Mycofeast was founded in 2023 and is headquartered in Oxford, UK, with a biotechnology facility in California, US, and 16-million-litre fermentation plant in Poland. The company’s portfolio includes carotenoids, dairy proteins and other biologically produced ingredients and compounds, powered by its innovation engine Evolutia Bio. The platform combines AI discovery, high-throughput screening and genetic engineering capabilities, with capabilities in strain development, biosynthesis, enzyme design, fermentation scale-up and industrial production. Daisy Lab, based in Auckland and founded in 2021, develops proteins claimed to be bioidentical to dairy proteins through precision fermentation. One of its key focuses is lactoferrin, a high-value milk protein with applications across various specialised nutrition and health categories, while it has also developed wider capabilities in recombinant dairy proteins. © Matt Queree The deal, the financial terms of which were not disclosed, aligns with Mycofeast’s strategy to integrate capabilities that can help address the fragmentation between scientific discovery, strain and process development, industrial manufacturing and access to market. Witek Hruzewicz, Mycofeast’s CEO, said: “The sector has no shortage of exceptional science. The harder problem is connecting that science with process development, industrial manufacturing, capital and commercial markets quickly enough – and with economics that actually work.” “Daisy Lab brings a strong dairy protein platform, proven scale-up capability and a talented New Zealand team into that system. It is highly complementary to what we are building.” Daisy Lab has progressed its technology platform from lab development to 500-litre fermentation while building in-house expertise across molecular biology, fermentation, downstream processing and scale-up. The deal will enable Mycofeast to expand into the Asia-Pacific market, while for Daisy Lab, the deal allows it to move beyond the limitations of a standalone start-up model, the company’s co-founder and CEO, Irina Miller, said. “Mycofeast gives us access to a much broader scientific, manufacturing and commercial platform while allowing the expertise developed by the Daisy Lab team to contribute across a much larger organisation,” Miller added. Daisy Lab’s founders will take on roles within the wider Mycofeast group, extending their involvement beyond the New Zealand business and contributing to broader development. Its lactoferrin programme will continue to be developed within the group, working closely with the Evolutia Bio R&D team in California and Mycofeast’s wider engineering, commercial and manufacturing operations.

A US federal court has dismissed a lawsuit brought by precision fermentation company Onego Bio against The Every Company, bringing an end to the latest legal dispute between the two companies over patents covering the production of ovalbumin. The companies are among a growing number of businesses developing animal-free egg proteins using precision fermentation, a technology that uses microorganisms to produce specific proteins without relying on conventional egg production. The US District Court for the District of Delaware ruled that Every had not made a patent infringement claim against Onego Bio and declined to issue the declaratory judgment sought by Onego. The court did not rule on the validity of Every’s US Patent No. 12,096,784, nor did it determine whether Onego Bio infringes the patent. The dispute centres on the production of ovalbumin, the primary protein found in egg white, through precision fermentation. Every produces ovalbumin using yeast, while Onego Bio uses the filamentous fungus Trichoderma reesei. Onego, a spin-out of Finland’s VTT Technical Research Centre, filed the lawsuit in September 2025 seeking a declaration that its technology did not infringe Every’s patent. It also argued that the patent was invalid and unenforceable. Onego had argued that statements made by Every to investors created uncertainty over whether it could face an infringement claim and that the company had indicated Onego would need a licence to use its technology. However, the Delaware court found that Every had not taken an affirmative step indicating that it intended to sue Onego or assert the ’784 patent against it. According to Onego, the court stated that Every had “never singled-out the ’784 Patent or accused Onego of infringing it”. The court also characterised Every’s reported statements to investors, even if they had been made, as “forms of puffing rather than actual threats”. Onego said it had sought the declaratory judgment as a precautionary measure to protect technology developed through decades of research at VTT and provide greater certainty for customers and companies operating in the precision fermentation sector. The company added that its Trichoderma production technology is fundamentally different from EVERY’s approach and that Every’s patent does not disclose how to produce ovalbumin using the organism. Following the ruling, Onego Bio CEO and co-founder Maija Itkonen said the company would focus on commercialising its Bioalbumen product in the US. “We welcome the decision that there is no infringement claim against Onego, no challenge to our freedom to operate, and no litigation between us anymore,” she said. “Our team is busy shipping metric tons of Bioalbumen and selling to US customers, and the response has been incredible.” Itkonen added that there was room for multiple companies in the precision-fermented egg protein market, arguing that increased competition could help expand the category and give customers greater choice. The latest ruling follows the dismissal of a parallel case in Wisconsin in May 2026 on jurisdictional grounds. With the Delaware case now closed, Onego said there is no ongoing litigation between the two companies.

Following Beyond Meat's expansion into the beverage category, the company has launched Beyond Immerse Energy, a sparkling beverage combining plant protein, fibre, antioxidants, electrolytes and caffeine. The new drink is available in Cherry Berry and Watermelon Strawberry flavours and is launching exclusively through Beyond Meat’s website in the US. Beyond Immerse Energy contains 20g of protein and 5g of fibre per serving, alongside vitamin A from beta-carotene and electrolytes. The beverage is made without dairy or GMOs. The new product also provides 160mg of caffeine per serving, sourced from coffee beans. Beyond Meat said the launch is intended to combine the energy boost associated with traditional energy drinks with nutritional attributes including plant protein and fibre. Ethan Brown, founder and CEO of Beyond Meat, said: “Energy shouldn’t mean choosing between a boost and good nutrition. Beyond Immerse Energy brings caffeine from coffee beans together with plant protein, fibre, antioxidants, and electrolytes in one refreshing drink.” Alongside the energy drink launch, Beyond Meat has introduced three new flavours to its existing Beyond Immerse sparkling protein drink range. Watermelon Strawberry is available now, while Limoncello Ginger and Yuzu Grapefruit are set to launch soon. The new flavours join the existing Peach Mango, Strawberry Lemonade and Cherry Berry variants, bringing the Beyond Immerse range to six flavours. The company said the wider portfolio is designed to provide consumers with plant protein, fibre, antioxidants and electrolytes in a convenient sparkling format, with Beyond Immerse Energy adding caffeine for occasions when consumers are seeking an energy boost. Beyond Immerse and Beyond Immerse Energy each provide 20g of protein and 5g of fibre per serving. The drinks are also made with electrolytes and contain vitamin A from beta-carotene.

Consumers are curious about precision fermentation but need clearer information about the technology and its benefits before they can develop confidence in products made using it, according to new research from the EIT Food Consumer Observatory. The qualitative study, From Curiosity to Confidence: Developing effective messaging for products made with precision fermentation, examines how consumers perceive the emerging food-production technology and how different communication approaches influence their response to products containing precision-fermented ingredients. The research found that consumers are often willing to try a precision-fermented product before forming an opinion, creating an opportunity for food manufacturers and brands to turn initial curiosity into acceptance. However, the report warned that this curiosity also places pressure on the first consumer experience, with products needing to meet expectations from the outset. Precision fermentation uses microorganisms such as yeast or fungi to produce specific substances, including proteins and fats, which can subsequently be used as food ingredients. The study, conducted with 45 participants, found that consumers generally viewed precision fermentation as new and innovative. While many participants were not yet convinced by the technology, they expressed enough curiosity to want to taste products made using it. At the same time, participants raised questions about how microorganisms are used during production, whether the resulting ingredients should be considered “real” foods or alternatives, and the safety of the technology. Some participants also questioned what precision fermentation could mean for farming and employment across the food production sector. Klaus G. Grunert, professor of marketing at Aarhus University and lead of the EIT Food Consumer Observatory, said that unanswered questions could cause consumers' initial curiosity to turn into suspicion. The research also found that overly vague explanations of the technology could make precision fermentation appear almost “like magic”, potentially leading consumers to believe that information was being withheld. As a result, the report recommends that companies make the science accessible while providing sufficient detail to demonstrate transparency. One potential route to improving consumer understanding is to connect precision fermentation with traditional fermentation. The research found that consumers were already familiar with fermented foods such as bread, yogurt and cheese, although some participants did not immediately identify these products as fermented. Linking precision fermentation to this established food-production history helped make the technology feel less experimental to some participants. However, the report cautioned that the comparison should be accompanied by a clear explanation of how precision fermentation works, rather than being used as the sole means of communicating the technology. The research suggests that manufacturers should focus communications on tangible benefits for consumers, rather than relying primarily on explanations of the technology itself. Taste, texture and nutritional value were identified as more compelling reasons to purchase than messages focused mainly on replacing existing ingredients for sustainability or ethical reasons. While wider benefits such as animal welfare and sustainability remained important to participants, these tended to act as supporting rather than decisive factors in purchase decisions. The report also advised companies against positioning precision-fermented products simply as replacements for familiar foods. Direct comparisons could encourage consumers to assess a new product against an established favourite, creating a challenging benchmark for an unfamiliar innovation. Instead, the research recommends developing products with their own clear consumer benefit and using the novelty of precision fermentation to build on consumers' existing curiosity. The EIT Food Consumer Observatory recommends that manufacturers and brands make precision fermentation understandable without concealing its complexity, capitalise on consumers' willingness to try new products and communicate tangible benefits. It also advises companies to avoid presenting products solely as substitutes for familiar favourites and ensure that products deliver on consumer expectations during their first trial. The research forms part of the EIT Food Consumer Observatory's wider work examining perceptions of emerging food technologies and the factors that influence consumer acceptance. The findings were published ahead of World Food Day on 16 October 2026, which this year focuses on the theme “Innovate today. Nourish tomorrow.” The study was carried out through the EIT Food Consumer Observatory's Citizen Participation Forum. Participants first explored their perceptions of precision fermentation before being divided into three groups to assess product concepts and communication narratives.

Plant-based pizza brand One Planet Pizza has expanded into the ready meals category with a new range launched exclusively at Asda stores this week. Three meals are rolling out at 276 Asda stores across the UK as part of the new line: Tofu Tikka Masala with Basmati Rice, Mac & Cheeze, and Veg & Lentil Ragù Lasagne. The meals, priced at £3.85 per 400g meal, are centred around whole-food, plant-based ingredients such as lentils, beans and tofu, with a focus on plant protein and fibre. Tofu Tikka Masala features cooked tofu in a spiced tikka masala sauce with sweet potato, cauliflower and edamame beans, served with basmati rice and chana dal lentils, containing 24g of protein per pack. Mac & Cheeze, containing 22g of protein, features cooked macaroni pasta in a soya-based butter bean and cheese alternative sauce, topped with a cheese alternative crumb. Finally, Veg & Lentil Ragù Lasagne features lasagne sheets layered with a vegetable, lentil and pearl barley ragù, topped with a soya-based white sauce and cheese alternative. All three meals can be prepared from frozen in ten minutes in a microwave, and are also suitable for oven cooking. The range responds to market research, commissioned by One Planet Pizza and conducted by North Star, that found plant-based ready meals have been underperforming within the broader ready meal category, highlighting opportunities for growth. Joe Hill, co-founder of One Planet Pizza, said: “We wanted to create familiar comfort food favourites that were properly satisfying, full of flavour and delivered the protein and fibre credentials shoppers are looking for”. “Finding the right manufacturing partner was one of the biggest challenges for these meals. This is quite a specific range and we wanted to work with a factory that still makes things by hand in small batches, which is much harder to find these days. The fact that we found that capability here in the UK was a real bonus.” The launch comes as One Planet Pizza celebrates hitting more than £1 million in annual retail sales for the first time in its ten-year history. The brand’s frozen pizzas are currently listed in Asda, Morisons, Co-op and from January 2027, two pizzas will be listed in Iceland’s 207 UK Food Warehouse stores.

Tate & Lyle and BioHarvest Sciences have reported progress on their collaboration to develop ‘next-generation’ plant-based sweeteners, confirming that BioHarvest’s Botanical Synthesis platform can produce their targeted sweetening solution. The partnership between the two companies was announced in late 2024, aiming to address demand for sustainable and healthy plant-derived sweeteners that can be used to enhance taste in sugar-reduced and sugar-free food and beverage products. It was expanded earlier this year, with the scope broadened to include multiple plant-based sweetener molecules. Now, the latest milestone marks continued progress in the collaboration, with development activities continuing to advance in line with expectations. BioHarvest’s Botanical Synthesis platform, based on plant cell cultivation technology, can reduce the industry’s reliance on traditional agricultural extraction for botanicals, aligning with both companies’ sustainability goals and the ambitions of the broader food and beverage industry. The approach could also improve consistency and supply reliability, while reducing some of the time, labour and natural resources required to produce certain ingredients. Susanna Palatucci, vice president of commercial innovation and strategy at Tate & Lyle, said: “Different food and beverage categories demand different balances of taste, nutrition, cost and labelling, which is why building a broader toolbox of solutions matters”. “This milestone further bolsters the potential of BioHarvest’s Botanical Synthesis platform and the role new approaches to ingredient development could play in helping us meet those varied customer needs across our portfolio.”

Venture studio Food Founders Studio has closed an oversubscribed €4 million funding round, supporting the development of innovative food-tech start-ups designed to address unmet needs across the food and beverage industry. Securing investment has been notably challenging for the European food-tech industry in recent years – investors are becoming more selective and demanding stronger proof of commercial value, with many start-ups struggling to bridge the gap between pilot-scale lab innovation and commercial viability. Despite this, Food Founders Studio noted that investment is ‘beginning to return,’ with European food-tech start-ups raising €401 million in the first half of 2026 – nearly 18% more than a year earlier, though the number of funding rounds fell by 12%. Food Founders Studio, headquartered in Zurich, Switzerland, works with food and beverage manufacturers to identify key challenges for the industry, then searches for technologies that can address them. Its boards assess technical performance, the commercial case, and the viability of the intellectual property. It then recruits experienced leadership and co-founds the selected venture, working alongside the team on industrial validation, partnerships and fundraising. The studio has already scouted more than 100 technologies and advanced nine to validation before launching its first venture, SentiaNova. SentiaNova is built around neutral plant protein technology licensed from a European university, with the tech designed to remove unwanted off-flavours at the source rather than masking them. Within a year of launch, it has now recruited a CEO and is working toward commercial production while closing its own funding round. The €4 million, raised by family investment offices and angel investors, will support the studio’s next ventures and the work of identifying and securing the technologies behind them. It is currently recruiting a CEO and co-founder for its second company. Additionally, the firm is expanding its search for technologies beyond universities and research institutes – it will now open its sourcing to start-ups and corporate R&D teams who cannot take technologies forward. The studio will assess those opportunities against the same industrial, technical and commercial criteria it applies to academic research. Alexandre Morel, CTO and co-founder of Food Founders Studio, said: “A technology can be technically strong and still lack a route into the food industry”. “We want to find that technology wherever it sits, secure what is needed to build on it, and put the right team around the opportunities that meet a tangible industry need.”

The vertical farming industry has faced turbulence as the soaring expectations of its early days have levelled with growing consciousness of unit economics and scalability setbacks bringing a sense of realism instead – much like other advanced food-tech industries. While some growers took a significant hit, with a series of bankruptcies making headlines in recent years, those that remain cautiously optimistic believe the path ahead is clearer, more focused and displaying signs of maturity. In this feature, included in FoodBev magazine's September issue, we explore how the industry is rising to the challenge. According to the Gartner Hype Cycle framework, which tracks how emerging technologies mature over time, the ‘Trough of Disillusionment’ is a necessary – albeit challenging – stage that promising, emerging technologies must move through before reaching a more productive plateau in which mainstream appeal and widespread adoption await. For the vertical farming industry, these stages have been clear to observe, and the disillusionment phase has hit some harder than others. Hiroki Koga, co-founder and CEO of vertical farming company Oishii, told FoodBev: “Drawing a parallel to the Gartner Hype Cycle, the sector – similar to electric vehicles and other clean-tech industries – experienced an initial wave of excitement and high expectations, followed by a necessary market correction as companies worked to prove the long-term viability of their business models. Over the past few years, optimism has become more grounded and pragmatic.” Indoor vertical farms, where crops are grown vertically in controlled conditions using hydroponics and other soilless technologies, provide clear environmental benefits in reducing water use, land use and waste – in addition to being independent of climate and seasonal limitations and removing the need for pesticides. This ability to address the growing need for more planet-friendly farming methods fuelled early optimism and the boom in investment that came with it – a pattern seen with many cutting-edge technologies. In F&B, this pattern has played out across other food-tech categories such as plant-based and cultivated meat, and precision fermentation-made ingredients. Martin Davalos, partner at investment firm McWin Capital Partners, said: “Several years ago, vertical farming was sometimes presented as a universal solution capable of replacing large parts of conventional agriculture. Significant capital was invested on the assumption that scale, automation and technological improvement would rapidly drive down costs.” However, he emphasised, what came next showed that growing crops successfully in a controlled environment and operating a profitable agriculture business are two different challenges. “A number of companies expanded infrastructure before fully validating unit economics, crop market fit and operational reliability,” he explained. “Rising energy prices and a more difficult fundraising environment then exposed the fragility of those models.” The last few years have seen a string of companies – some regarded as leaders within the sector – file for bankruptcy and enter liquidation, despite promising beginnings, significant achievements and notable funding raises. UK-based Jones Food Company, operator of the largest vertical farm in the country, closed in May last year after failing to secure new investment. More recently, in the US, major player 80 Acres Farms announced in August 2026 that it would wind down operations. In a statement, 80 Acres said that despite “an exhaustive effort to find a way forward,” it was unable to secure the capital required. The news came just a year after it announced a major merger with Soli Organic, and 18 months after it raised $115 million in capital alongside an acquisition of biotech firm Plantae Biosciences. AeroFarms, a microgreens grower also based in the US, also said it would cease operations in December 2025 – though the company received emergency funding just a week later and now continues to operate with the backing of VC firm Palm Ventures, which announced its acquisition of the company in June 2026. Lessons learned Increasingly sophisticated technologies such as artificial intelligence (AI) and Internet of Things (IoT)-enabled monitoring tools, smart sensor solutions and optimised LED lighting are all delivering efficiency,cost reduction and crop quality gains. However, smart use of these technologies – alongside a solid business model and the right operational expertise – are where the real impact lies. © Intelligent Growth Solutions Dave Scott, chief technology officer at UK vertical farming tech manufacturer Intelligent Growth Solutions, emphasised this: “It might sound counterintuitive coming from someone with ‘technology’ in their job title, but I don’t believe the greatest advances have come from the technology itself,” he said. “More often, they come from the scientific understanding that shapes how that technology is applied.“ “Much of the hardware used in controlled environment agriculture is based on proven technologies. The challenge, and ultimately the opportunity, lies in how those systems are integrated and used to generate actionable insights.” Growers implementing smart technologies must be able to use these solutions to turn data and scientific understanding into better outcomes, leveraging them to better understand how crops respond to their environment, he argued. McWin’s Davalos echoed this sentiment, telling FoodBev: “Ultimately, commercial success depends less on the sophistication of an individual technology than on the integration of biology, engineering, operations, procurement and sales”. “Companies are more likely to struggle when they approach the sector primarily as an infrastructure development exercise, underestimate the biological complexity of production or assume consumers will pay a substantial premium solely because a product was grown vertically.” When investing in a vertical farming start-up, McWin looks for companies with automation designed around a proven production process, in addition to proven unit economics at a relevant scale and crop types with sufficient value to justify controlled environment production. “We would avoid companies whose economics depend primarily on optimistic assumptions about future electricity prices, unproven yields or large cost reductions that have not been demonstrated,” Davalos pointed out. “We would also be cautious where significant capital expenditure is committed before the company has established product market fit and operational stability.” Identifying where the value lies and focusing on the appropriate crop type is one of the most fundamental elements of success for businesses in this category, with cost competitiveness against existing, traditionally grown field crops being a key factor in whether products achieve widespread adoption, Oishii’s Koga said. He highlighted four major ‘waves,’ with crops already grown in greenhouses – such as strawberries, lettuce, tomatoes and bell peppers – being the first to see widespread adoption due to production costs in smart farms soon falling below those of traditional methods. © Oishii Fruit trees could come next – while growing them in smart farms is not currently cost-effective or time-efficient, he noted, future developments in plant dwarfing and selective breeding breakthroughs could create varieties of peaches or pears that are suitable for such facilities. Root vegetables are less compelling due to their low market prices and ability to withstand long-distance transport, while grains also face competition from extremely low-cost alternatives despite being easiest to grow, Koga acknowledged. A recent analysis in Plant Physiology put the current minimum production cost for dried staple crops, such as wheat, rye and barley, at around $10 per kg of dry plant matter through vertical farming – and less than $1 per kg through conventional field production, highlighting the scale of the price premium. “Furthermore, their high requirement for sunlight makes electricity costs a major bottleneck,” Koga added. “An energy revolution is required; this is not a problem that can be solved in five or ten years, but rather a challenge spanning 30-50 years.” Meanwhile, McWin’s Davalos pointed out the challenges associated even with leafy greens, which have been the primary focus for many industry players – the economics can be challenging when vertical farms compete directly against efficient field production or advanced greenhouses. “The relevant comparison is not whether a crop can be grown vertically, but whether it can be grown competitively against the best available alternative in a specific geography,” he summarised. For Oishii, which recently raised $150 million in Series C funding, its focused approach on premium strawberries is described by Koga as a key factor behind its success and differentiation in the market. “We intentionally launched with a premium product to establish credibility and demonstrate the value consumers place on exceptional quality,” Koga enthused. “By concentrating our resources on a single crop…we’ve been able to deepen our expertise, improve product quality and steadily reduce costs. That focus has been central to our strategy from day one.” Rising to the challenge The challenge is undeniable, with high energy, capital expenditure, labour and maintenance costs all posing critical hurdles to be tackled. However, technological advancements to reduce costs and accelerate growth are ongoing. “Lighting and climate management – including cooling, heating, ventilation and dehumidification – represent a major portion of energy demand,” Davalos said. “These costs can be reduced through more efficient LEDs, better airflow design, improved insulation, heat recovery, flexible operation around energy prices and access to renewable or otherwise stranded energy.” Targeted automation can also bring down costs – however, he warned of being mindful that fully automating an unstable production process can add cost and complexity. Additionally, while robotics can address labour-intensive burdens in areas such as transplanting, crop handling, inspection and handling, Davalos noted, technologies must be able to operate reliably in humid and “biologically complex” environments. AI systems are frequently cited among the biggest technological opportunities when it comes to unlocking more of the industry’s potential. Intelligent Growth Solutions’ Scott said: “Vertical farms generate vast amounts of information every day, and AI gives us the ability to extract meaningful insights at a scale that simply wasn’t possible before”. “Over the next five years, this will help drive continuous improvements in crop performance, energy efficiency, automation and overall farm productivity, accelerating the industry’s path to commercial maturity.” AI-driven “physical intelligence” and crop breeding can improve yields and “dramatically” lower costs, Oishii’s Koga said, while sharing his optimism about the potential of surging productivity and further falling costs if governments and businesses globally do their bit to encourage investment in the sector. “Applying the principle known as McKinsey’s ‘Cleantech Moore’s Law’ – which states that costs decrease by 70% when the market grows 100-fold – our strawberries, currently priced at $7, could see their cost drop to the $2-$3 range simply through the expansion of industrial scale,” Koga explained. Additionally, he emphasised the potential of rapid crop variety improvement: “At our Japanese research centre, numerous varieties have already been identified in just one year that offer nearly 40-50% higher yields while maintaining quality; at this pace, it would not be surprising to see yields more than double – and costs cut by nearly half – within five years.” Greater collaboration across the value chain could facilitate the sector’s much-needed progress, encompassing both private and government-backed funding initiatives, transparent and credible knowledge and data sharing from both growers and technology providers, and long-term purchasing partnerships with retail and manufacturing partners. © Oishii “Energy providers and infrastructure partners also have an important role,” said McWin’s Davalos. “Locating facilities near low-cost renewable power, waste heat, industrial carbon dioxide or other underutilised resources could materially improve both economics and environmental performance.” “Investors, meanwhile, need to finance businesses in stages and require proof of performance before funding successive waves of expansion.” Overall, from an investor’s perspective, Davalos said McWin expects vertical farming to become a “smaller, but more commercially credible” industry than some earlier forecasts suggested. “It is unlikely to replace conventional agriculture or advanced greenhouse production across broad crop categories,” he noted. “Instead, it should become an important component of a more diversified agricultural system, particularly for high-value crops, specialist ingredients, propagation, climate-stressed regions and markets that place a high value on local, reliable production.” Looking ahead, he expects continued consolidation with a greater focus on profitability, standardised facilities and collaboration with retailers, manufacturers, energy providers and agricultural organisations. “Success would not be measured by the total amount of capital invested or hectares of facilities announced,” he concluded. “It would mean multiple companies operating facilities profitably over several years, expanding primarily from internally validated economics and customer demand, and delivering measurable benefits in supply resilience, quality, resource efficiency and environmental performance.” “Vertical farming has an important role to play, but its future will be defined by focused applications and operational excellence rather than the claim that it can grow every crop, everywhere.” Top image: © Oishii