The latest news, trends, analysis, interviews and podcasts from the global food and beverage industry

With meat prices hitting record highs, manufacturers and consumers alike are feeling the pinch. Dr Felipe Lino, co-founder and CTO of Nosh.Bio, highlights how fermentation-based proteins can deliver high-quality, affordable and resilient alternatives, helping the food industry navigate rising costs while meeting growing demand for sustainable and nutritious options.

Price has always been a key driver for consumers when it comes to protein, with nutrition coming a close second. Meat is not only tasty but also widely regarded as generally healthy. Yet rising costs, driven by shrinking herds, climate change and supply chain disruptions, are changing the landscape. For food manufacturers, this isn’t just a consumer affordability issue – it’s also a challenge for margins and supply chain stability.

The opportunity for alternative protein sources is clear. The protein that can beat meat on price, maintain quality and can be scaled reliably will capture the greatest market advantage. Fermentation is emerging as a leading candidate to deliver exactly that.

The cost challenge in protein supply

In July 2025, FAO’s meat price index hit a new all-time high of 127.3 points, up 1.2% from its previous peak in June. This price increase has been linked to large import demand from markets like China and the US and supply constraints affecting Europe. This rise in prices is putting financial pressure on households, further amplified by geopolitical instability and supply chain disruptions across other industries.

The consequence: cost conscious consumers start to consider dietary changes, such as buying cheaper proteins (ie. processed meats) or cutting back on animal-sourced foods entirely.

Despite this rise in prices, plant-based alternatives derived from raw materials (like soy or peas) are still struggling to reach price parity with meat. This is down to the high costs associated with the heavy processing required and also the price volatility of raw ingredients. So, although the price gap between the two is shrinking, it’s still not a viable cost-cutting option for consumers yet.

This is where fermentation comes in.

Fermentation: Efficiency without compromise

Fermentation-based production uses microorganisms (such as fungi, yeast or bacteria) to produce high-quality proteins, without relying on large-scale land use, like crop agriculture or animal farming.

Nosh.bio uses non-GMO fungi to create its signature Koji protein ingredient through fermentation.

Because production happens in controlled environments, it is unaffected by climate disruptions that increasingly threaten conventional agriculture and drive up food prices.

These systems also require significantly less water than animal farming or large-scale crop cultivation, further strengthening their resource use efficiency. This stability means production can maintain predictable output and costs, avoiding the supply volatility and price spikes affecting plant-based protein. The result is a protein source that is not only climate-resilient, but one that, crucially, can beat the price of meat.

Microbes grow rapidly on low-cost, widely available feedstocks and require minimal processing to become a high-value food ingredient. With the ability to produce tonnes of protein in days rather than months or years, fermentation is also remarkably efficient. This translates directly into lower production costs, reduced environmental impact and a secure supply chain that doesn’t rely on volatile global markets.

In short, fermentation is less resource intensive than other plant-based alternatives, and can produce cost-effective, high quality, nutritional protein efficiently.

Balanced nutrition profile as added value

In addition to economic benefits, fermentation-based proteins can deliver a favourable nutritional profile compared to conventional meat, with high-quality protein and fibre content alongside lower levels of saturated fat and cholesterol. This enables manufacturers to create products that are both more affordable and aligned with health-conscious consumer preferences.

Beyond basic nutrition, fermentation also allows for tailored functionality. For example, proteins can be engineered to enhance digestibility, deliver specific amino acid ratios or include bioactive compounds such as antioxidants. This opens opportunities for functional food and beverage products that meet specific dietary needs.

Hybrid solutions: A win for industry and consumers

In hybrid-meat products, these nutritional attributes make it possible to improve the nutritional profile of a product while maintaining its familiar taste and texture. Hybrid products blend conventional meat with alternative protein ingredients and are emerging as a practical way for manufacturers to cut costs while meeting shifting consumer demands.

With meat prices continuing to rise, incorporating cost-effective protein from fermentation offers a way to reduce raw material expenses and improve nutritional quality, without changing established production methods. Crucially, these advantages provided by hybrid-meat (cost saving, nutritional value) can be achieved without compromising on taste or texture.

Resiliency as a form of sustainability

Resiliency is another increasingly important factor when it comes to protein production. In a volatile global market, the ability to produce essential ingredients locally is becoming as important as their cost or quality.

Fermentation offers a level of resilience that conventional agriculture cannot match. Instead of relying on harvests vulnerable to droughts or floods, it produces protein in controlled systems that require far less water than conventional agriculture or animal farming. As fermentation runs on diverse, low-cost feedstocks it also reduces exposure to resource shocks and price volatility. Because production is continuous and scalable without extra farmland, facilities can be built close to where the food is eaten, shortening supply chains and reducing exposure to geopolitical instability.

Considering the geopolitical instability of the world today, resilience is sustainability. Countries will increasingly need local solutions to bridge the protein gap using minimal resources and keeping production costs under control. Less resource use and shorter transportation distances not only reduce environmental impact but also help stabilise pricing, creating more sustainable and self-reliant supply chains – biomass fermentation can deliver exactly that.