By James Petrie, CEO and Founder of Nourish Ingredients
As a founder in the food technology space, I’ve had a front-row seat to the recent investment pullback in our sector. While headlines focus on funding challenges, I see something more nuanced: a necessary recalibration that’s separating visionary solutions from hollow promises — ultimately strengthening the foundation of an industry that’s essential to our collective future.
Beyond the market cycle
The alternative protein sector is undergoing what I call a “de-unicorning” process. Companies that once commanded sky-high valuations based on promise rather than performance are facing a reality check. While challenging, this correction is healthy — separating viable innovators from those selling unrealistic visions.
For those of us building in this space, the fundamentals remain compelling. Global meat consumption exceeds 350 million tons annually and continues climbing, putting immense pressure on our planet’s resources. Meanwhile, dairy production hit its peak in 2004, yet global demand keeps rising. The mathematical reality is inescapable: conventional methods alone cannot sustainably meet future nutritional needs.
Recent supply chain disruptions — from extreme weather events to disease outbreaks affecting egg production — further highlight the vulnerabilities in our current system. These aren’t temporary fluctuations; they represent permanent shifts that demand technological intervention.
Building through headwinds
Companies navigating today’s environment successfully share common attributes: capital efficiency, strategic partnerships, and laser focus on solving specific high-value problems. The days of raising capital on potential alone are behind us, but I don’t think that’s necessarily a bad thing.
At Nourish Ingredients, our mission is to create specialized fermented fats that unlock the full sensory potential of proteins. Rather than competing with traditional agriculture, we’re developing complementary ingredients that enhance both plant-based alternatives and hybrid products from established food companies. This approach allows us to partner across the food ecosystem while addressing the growing demand for supply-chain sustainable protein options.
For founders in our sector, the lessons are clear. Commercial validation through customer commitments is essential. The most resilient companies now prioritize strategic partnerships over rapid scaling, demonstrating clear commercial potential before seeking significant capital. Technical innovation must be paired with market relevance. And perhaps most importantly, patience and capital discipline matter more than ever.
Why this matters beyond investment returns
The transformation of our food system isn’t optional — it’s inevitable. While other technology investments can often wait for favorable market conditions, food security cannot. With global food demand projected to nearly double by 2050, the need for innovation goes beyond market cycles.
This reality is driving renewed interest despite current headwinds. Nations increasingly recognize that climate change threatens traditional agricultural systems, creating both urgency and opportunity for technological solutions. It’s a shark that’s beginning to bite and we’re starting to see permanent shifts in food production.
What’s next?
In a world of increasing uncertainty, no challenge exceeds that of sustainably feeding humanity. Food technology isn’t just another investment sector — it’s developing essential systems upon which our future depends.
For forward-thinking investors and founders, the current landscape offers unique advantages. Valuations have reset to more reasonable levels, creating attractive entry points in an industry addressing non-negotiable global needs.
The winnowing process happening now will ultimately produce stronger, more resilient companies. Those who combine scientific innovation with commercial execution are positioning themselves for long-term success as the industry inevitably grows.
Dr. James Petrie, CEO and Co-founder of Nourish Ingredients, is a world-class scientist with decades of experience in synthetic biology. Since 2019 James has been using his expertise to revolutionise the alternative protein and dairy space. Prior to co-founding Nourish Ingredients, James spent 14 years at CSIRO, Australia’s premier research institute. James was a part of the team who spearheaded the creation of omega-3 canola, the world’s first plant-based and sustainable source of omega-3.
