Alternative proteins target use in premium pet nutrition
Insect and cultivated meat producers are expanding capacity and testing retail demand, but high costs and uneven consumer uptake continue to present challenges.
The world of alternative proteins has seen mixed fortunes in 2026, with major producers of insect and cultivated meat receiving funding to scale production, while other players halted or stopped activities. In this feature, companies in Europe and elsewhere that moved closer to commercial availability this year share how they are overcoming high production costs to reach shelves and bowls by betting on differentiation, health benefits and careful marketing.
Insect-based premium treats
Danish company Globe Buddy expanded its line of treats made with insect protein this year, adding two new products to an existing portfolio of snacks made with black soldier fly larvae, supplied by Protix, and mealworms.
According to CEO and co-founder Bjarne Gravesen Jensen, the decision to increase the offering comes as sales and demand grow. “We are still a small company, so I don’t want to make that sound like we are suddenly selling hundreds of tonnes of insect-based snacks,” he says. “We are progressing from relatively small initial sales to more consistent sales across Europe through different channels and markets.”
With products distributed either via brick-and-mortar retail or online channels on the continent, Jensen says demand is strongest in Germany, France and increasingly Italy. “Germany is interesting because there is already a degree of awareness around insect protein. In France, both retailers and dog owners are surprisingly open-minded about insect protein, and we are actively developing our retail presence in the market,” he says.
The producer is starting to build distribution in other parts of Europe, including Poland and, most recently, the Baltic countries, with a partnership to introduce the products in Lithuania, Latvia and Estonia. “We are also seeing some interest through veterinary retail, particularly where nutrition, sensitivities and functionality are part of the conversation,” he adds.
Increased production capacity
In June, the producer of functional and sustainable insect-based ingredients Innovafeed received a €51 million ($58.6M) funding round to invest in the commercial development of its product ranges, among other projects.
“At the moment, we are talking with a lot of new clients where we want to move forward in Europe and North America. In the Asian region, we are starting up the first discussions,” Roel Boersma, Product Strategy & Marketing Director, says.
The company is ready to produce 15,000 tonnes of ingredients in its facility in Nesle, northern France, he explains, which has the potential to be extended.
Europe is still the frontrunner in demand, especially in Germany, the Netherlands, Belgium and France. The company also has clients performing well in the US and Canada, it says, highlighting Jiminy’s, a US-based dog food brand producing dry food and treats.
While dry kibble is still the largest type of food among its clients, the company is developing new products for wet food, especially cans and pouches. Apart from protein, its insect-based oils are being applied to flea and tick prevention in partnership with players in Germany.
Australia’s first lab-grown pet brand
Australian company Magic Valley produces cultivated meat and decided to launch its own dog treats brand, Unruly, in March, less than one year after cell-cultured foods were regulated in the country in June 2025.
CEO Paul Bevan tells PETS International that the manufacturer is currently producing at pilot-commercial scale, with capacity sufficient to support limited Unruly product drops while testing consumer acceptance.
“At this stage, we have deliberately kept production relatively lean while validating customer demand, refining the manufacturing process and preparing for the next phase of scale-up,” Bevan says.
Early signs are positive. “Demand is now beginning to outpace our current production capacity, so increasing supply is a major priority for us,” he adds. The near-term expansion aims to reach 2,000-liter bioreactor production of cultivated protein and is expected to require around $0.35 million (€0.3M) in additional investment.
The product – treats made with cultivated pork – is currently sold directly to consumers and has surpassed 1,000 orders since the launch. “That has allowed us to build a direct relationship with early customers and gather feedback quickly,” Bevan explains. Retail penetration is part of the company’s longer-term strategy, following production lift.
Costs and pricing challenges
Costs are among the challenges in this industry. Magic Valley’s CEO says that many of the inputs, processes and equipment needed to develop cultivated ingredients have been designed for pharmaceutical or research applications rather than high-volume food production.
Improving cell productivity, reducing the cost of the nutrients used to grow the cells and increasing the efficiency of the overall production process will be essential in lowering costs, he explains.
Whether for protein manufacturers or their customers, costs that are higher than those of traditional protein pose a challenge – but one can be turned into an advantage. Globe Buddy says that alternative protein is not a cheaper substitute – it’s a premium ingredient around which higher-end products can be built.
“We will never be a commodity. So, it will always be a more expensive product,” Innovafeed’s Director adds.
Winning by functionality
Producers aim to gain share by pivoting the focus from the ingredients themselves to their benefits. They want to move away from the ‘niche product’ label and compete for the demand for functional, health-oriented nutrition. “The technology might attract someone’s attention initially but repeat purchasing will ultimately come down to the same things that matter across the pet food industry: nutrition, palatability, trust, convenience and value,” Bevan says.
Safety and palatability are also issues because owners are worried about whether their pets will like the food and if it’s safe for them to consume it. “Alternative protein and sustainability can be part of the reason for choosing a product, but for many owners the first questions are much more personal: Is it suitable for my dog? Is it easily digestible? Does it fit with particular sensitivities? And, very simply, will my dog actually eat it?” Globe Buddy’s Jensen says.
This is leading to a move toward functionality. Globe Buddy has developed options with amino acid and roots with calming effects for stress relief; electrolytes and minerals to support hydration and energy recovery; and collagen, microalgae and lactobacillus to improve skin and coat and immune health.
Innovafeed also started to work around the functionality of its ingredients at the beginning of this year, such as the antimicrobial properties of peptides. According to Boersma, pet food brands are interested in benefits, such as hypoallergenic qualities or skin and coat health.
Regulatory considerations
Regulatory endorsement is unlocking in the UK. In 2026, the Food Standards Agency (FSA) has approved five novel food applications and is running a two-year program to “facilitate extensive dialogue with industry to gather learning about cell-cultivated products (CCPs)”.
In May, the Colorado-based biotech company Bond Pet Foods received a No-Objection Letter from the US Food and Drug Administration (USDA) for its brewed lamb protein (also known as lamb protein yeast), developed in partnership with Hill’s Pet Nutrition, a subsidiary of Colgate-Palmolive. The process of precision fermentation uses microorganisms, such as yeast, bacteria or fungi, to produce specific proteins.
Approved for use in dog food
The USDA status enables the companies to offer the ingredient for use in food formulations for adult dogs, with inclusion levels of up to 15% in the end product. They have already produced over 25 tonnes at commercial scale.
“[The No-Objection Letter] provides important regulatory clarity and gives customers and partners confidence in [brewed lamb protein’s] safety and efficacy as they move through their own applications development and material evaluation,” a Bond spokesperson says.
Consumer acceptance
There is little updated material on consumer acceptance of or preferences for novel proteins in Europe. A survey of 8,823 dog and cat owners in German-speaking countries published in May 2026 showed that insect-based dry food was the daily choice of 3.17% of dog owners, while insect-based wet food was chosen by 1.59% for daily feeding.
However, the survey was conducted from August to December 2023, and so does not offer any insights into how habits may have evolved over the past three years.
A still precarious market
Despite progress, uncertainty remains a factor in this nascent market. Companies such as Innovafeed and Beta Bugs, a biotech firm producing insect strains, have received funding in 2026. And in April, German manufacturer Symrise made a strategic equity investment in Bond Pet Foods with a view to combining Bond’s fermentation platform with Symrise’s pet food ingredients and applications. However, the industry also saw setbacks.
The most recent example is FarmInsect, a Munich-based insect technology company, which ceased activities this September.
Chief Operating Officer Wolfgang Westermeier said that while the company “drove the unit economics close to fishmeal parity”, bankruptcy was caused by “not yet enough demand at a price that could sustain our production, and building a physical, biological business takes longer than the funding timelines our sector was working with”.
For Innovafeed, such cases are inherent to market under-development, but they do not mean the project is compromised. “When you look back at new industries, there will always be companies who go bankrupt. But there will also be some companies who will command commitments and move on,” Boersma concludes.
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