Mycoprotein has hit a tough patch. Quorn is one of the biggest brands in this category. Meati Foods in the US is also laying staff off, and Swedish supplier Mycorena has recently declared bankruptcy.
Despite this, the consumer is still not aware of mycoprotein. Mycoprotein is a term that few people have heard, and the brands don’t do much to promote it. They get it wrong when they try: Meati was sued for marketing their products as being made of “mushroom roots”. They’re actually made of a red mold commonly found on the surface of bread.
Mycoproteins are able to deliver on many promises: high levels of protein, minimal processing, and great sustainability. What’s stopping it? What’s the problem? Is mycoprotein too foreign for the consumer to accept?
The struggle for mycoprotein was not always a constant.
It wasn’t always a tough sector. It was smaller but more profitable for decades.
Marlow Foods launched the Quorn label in 1985. Fusarium Venenatum Mycoprotein, a strain of Fusarium Venenatum that was developed by the company in 1985, entered the market 10 years before the EU novel food laws.
Marlow Foods’ financial performance has declined every year since 2021. The revenue fell by PS186.7m in 2024 (EUR211.5m).
Quorn, owned by Marlow Foods, was profitable last in 2021. (Image: Quorn)
Quorn is the leader in the mycoprotein market, but the growth of alternatives to meat has seen more companies enter the marketplace. Meati and Mycorena were two of the mycoprotein makers.
New mycoprotein firms continue to emerge, despite the fact that Meati has hit roadblocks now and Mycorena declared bankruptcy. Smaqo is the latest to emerge from the ashes of Mycorena. The founder has now blended mycoprotein into traditional meat in order to gain wider consumer acceptance.
What went wrong What went wrong?
Mycoprotein might seem unusual. Peas and soy tend to come up when consumers consider alternative proteins. Mycoprotein is made from microscopic filaments of fungi that are fed nutrients, then fermented. This process does not sound very appetizing.
Ram Nair, the founder of Mycorena, claims that it was not an image issue which led to bankruptcy. Ram Nair, the founder of Mycorena, says that there were actually two factors involved: first, the B2B model took longer than anticipated to go to market, and many companies weren’t quite ready to switch over to mycoprotein.
Nair acknowledges that the other factor was the decline in demand for meat substitutes, which Nair says affected funding. “Especially when we were in need of larger institutional investments. “It was very difficult to raise the capital needed for large investments with a longer return.”
The Quorn team is not convinced that there is a problem with its image. Lucy Grogut admits that not all customers are interested in mycoprotein. However, she thinks it has “a huge opportunity” to draw new consumers.
Build appetite for mycoprotein by eating meat
Mycoprotein is a great product. Mycoprotein is healthy, it’s sustainable and, for meatless alternatives, it tastes surprisingly meaty.
Mycoprotein: Benefits galore
- It’s healthy to eat Mycoprotein: it is a complete, high-fiber protein that contains no cholesterol and low saturated fat.
- Mycoprotein has a sustainable production: it requires very little water and land, with a minimal carbon footprint.
- Mycoprotein tastes good: The filamentous structure gives it a chewy, fibrous texture that is surprisingly similar to meat
How can the mycoprotein product be presented in such a manner that consumers will understand it, try it, and come back for that crucial repeat purchase?
To build consumer familiarity, it is important to be relatable. Nair’s Smaqo takes this approach. Smaqo is a hybrid product that combines mycoprotein and traditional meat to make it more accessible.”
The founder hopes this approach will help bridge the gap between the familiar and the new. And importantly, it’s not asking too much from the consumer, who doesn’t have to give up on meat completely and make a “drastic” change in their food habits.
It’s a slow and steady strategy, he explains. “We believe that over time Smaqo will build brand trust and shift consumer perceptions, helping to position mycoprotein as a mainstream, accessible ingredient rather than a niche alternative, which is how it is perceived today.”
Is education the secret sauce of success?
Others are seeking to educate. To a certain extent, that’s Quorn’s approach with its latest ‘Nothing to Hide’ advertising campaign. No, the business isn’t educating consumers about what mycoprotein is, rather about what it isn’t.
The campaign focuses on Quorn’s frozen mycoprotein products, which it highlights contain ‘no artificial ingredients’. “People are paying closer attention to labels and ingredients and they want simple, clear nutritional cues like high in protein and fibre and low in saturated fat,” says marketing lead Grogut.
But it could be that in further promoting Quorn, the wider mycoprotein sector suffers. The main barrier to mycoprotein success is that consumers think it’s made by just one brand, says Smaqo’s Nair. “For many reasons, the average consumer still associates fungi or mycoprotein primarily with Quorn.
“After years of activity, by mostly B2B companies in the space – including my previous company Mycorena – market adoption of mycoprotein as a standalone ingredient remains limited.”
Ram Nair, founder of Smaqo wants to let consumers know that Quorn may not be the only brand making mycoprotein. (Image: Smaqo)
Nair believes that education is the missing piece. The issue is not about How to get started Mycoprotein can be made but consumers need to understand that it is not the same as a single component. It’s more of a versatile, multi-fungi strain ingredient. This can be used in a wide range of products and brands.
You need to inform consumers about the product if you wish them to try it.
Another argument is that mycoprotein education should be more comprehensive. This idea has been supported by research.
A survey by Lumina Intelligence for FoodNavigator found that the biggest challenge facing this ingredient is its lack of awareness. Two-fifths (25%) of global consumers are unaware of the ingredient mycoprotein.
Mycoprotein has a greater presence in some areas than others. In China, the majority of consumers are aware of mycoprotein, and they have the highest intention of consuming it. Malaysia, India, and China follow. In Europe, however, there is the most resistance.
What’s your takeaway? Mycoprotein education needs to be a priority for brands. Data shows that 40% of consumers would not try mycoprotein because they didn’t have enough information.
There’s still no major players who have fully adopted this strategy, and so it’s not clear whether it’s effective or not. We know that this category struggles, but doing more of what we’re already doing won’t help.
It’s time to pay attention to consumers who say that better information will make them willing to give it a try.