Alternative protein manufacturers see room for growth in the ever-expanding health and wellness category. "Clear proteins offer a perfect solution for high-quality protein-based beverages that meet a range of consumer expectations," says Tim Gran, specialty development manager at Prinova USA. "As well as clean-label and natural credentials, clear protein beverages can deliver functionality, convenience and refreshment across both ready-to-drink (RTD) and RTM platforms."

"Clear protein has a cleaner taste profile at lower dosages (15 grams or less), reduces foaming and has favorable cost-in-use," Gran adds. The company was set to present its latest research on formulation at IFT FIRST 2026 and discuss its ingredient profile for juice and water-based proteins.

As whey-based protein costs continue to rise, reformulation options with plant-based proteins are challenging. "If we’re talking about substituting plant-based proteins for whey proteins in existing formulas, it’s rarely a drop-in substitution," says Kari Barnes, regulatory standards manager, TraceGains. "Depending on the application, there can be challenges in terms of solubility, suspension stability or tolerance for different processing methods."

New product development and reformulation teams are evaluating new tools to iterate quickly. TraceGains recently announced Formula AI, which is built to leverage food science datasets and foundational research to augment and constrain the AI responses. "It’s an example of applied AI using an industry-specific knowledge layer, created by and for the food science community, to provide formulations that meet the needs of specialists," Barnes adds.

Food manufacturers and processors are now undertaking the "great migration" to digital tools, seeking context from both structured and unstructured data. In 2025, TraceGains released its New Product Development (NPD) Report that showed innovation budgets were growing and open to AI data foundations. Last year, the company reported that 17% of food and beverage companies have adopted AI to "heavily utilize the technology to analyze market and consumer insights."

TraceGains' recent partnership announcement with SGS Digicomply heads in this direction. SGS Digicomply provides restricted data across most regulatory jurisdictions worldwide and uses industry-focused AI to integrate regulatory checks into the workflow for food science teams.

And the Superstar is Protein

In a June webinar, Tom Vierhile, vice president, strategic insights for Innova Market Insights, discussed the top 10 consumer trends for 2026 in the food and beverage segment. Vierhile noted how consumers equate protein ingredients with enhanced focus, clear thinking and energy.

"There is a 34% year-to-year increase globally in new food and beverage launches that are tracked with a high or source of protein claim," Vierhile said during the live event.

Vierhile also noted a possible new trend among consumers: how protein is absorbed by the body. "A third of consumers – globally – say how well the body absorbs or uses protein is a factor in choosing products to purchase in the supermarket."

The protein absorption trend aligns with amino acid profiles and promotes the "slow release" of the ingredients into the body. Some global products are promoting this feature through the protein digestibility-corrected amino acid score (PDCAAS) rating.

These future trends are why companies like FoodChain ID are touting AI tools and digital tools for new product development teams. "AI is an example of creating a brand new muscle for organizations that provides decision-making advantages that just really weren't possible a few years ago," says Wes Frierson, vice president of enterprise solutions at FoodChain ID during the live webinar event. "However, transformation capabilities require a data foundation that is trusted and connected and easily accessed."

The Next Wave of Precision Fermentation

Looking to innovate via precision fermentation, Ginkgo Bioworks integrates AI modeling with its synthetic biology to produce custom microbes for meat analogs and dairy proteins. The company offers a turnkey lab platform that can simulate genetic edits and metabolic outputs prior to physical testing, enabling precision iteration in silico. The company claims it reduces development time for engineered strains from 18 months to under six months, allowing partners in the alternative protein space like Motif FoodWorks and ADM to move faster.

In 2025, research grants, government funding and capital for precision fermentation wavered. According to the Good Food Institute, funding for fermentation was down significantly year-over-year. Companies operating primarily in the fermentation ecosystem raised $357 million in 2025, compared to $632 million in 2024, according to GFI's analysis of Net Zero Insights data.

 

 

Fermentation produces bioidentical animal proteins and functional ingredients such as vitamins, flavors and fats. However, in 2026, companies are finding more capital to leverage bioreactor buildout and scale the right ingredient.

Brevel partnered in late June with Coffeesai, a coffee cell-culture firm that uses light as a key factor in promoting cell growth. The Israel Innovation Authority granted Brevel $1 milllion specifically to extend the illuminated fermentation platform to plant cell culture companies.

Due to climate change, companies want to research light fermentation and assess its scalability for coffee production.

"Our recent work has demonstrated the platform's ability to achieve high cell densities while sustaining continuous growth through an advanced semi-continuous cultivation process, paving the way for scalable and efficient production," says Yonatan Golan, CEO and co-founder of Brevel.

While alternative meat has faced headwinds, such as the alternative meat ban in Italy, the European Union authorized the whole-food mycelium ingredient, Fermotein, from Protein Brewery in June. Protein Brewery’s mycelium ingredient is a first for the EU market, opening a new chapter for biomass fermentation and for innovation in Europe.

Fermotein delivers approximately 50% protein, including all essential amino acids, 30% dietary fiber and naturally occurring micronutrients and bioactives. The ingredient is approved for use across the food and beverage categories serving health and wellness, including, among others, protein powders, supplements, bars, dairy alternatives and better-for-you foods and drinks.

Another sign of momentum in the segment is Tetra Pak’s announcement of the launch of its Bioreactor RF, its first industrial bioreactor. The launch follows Tetra Pak’s acquisition of Bioreactors.net in December 2025 and demonstrates the potential for greater vertical integration in industrial fermentation.

Food processors are moving quickly to launch data-driven context and machine-learning platforms to monitor batch recipes, and Tetra Pak’s fermentation vessel is designed to maintain stable conditions while providing operators with actionable process insights.

"Industrial fermentation succeeds when performance is repeatable, day after day," says Rafael Barros, director of the new food business stream at Tetra Pak. "The bioreactor is designed to reduce operational risk and remove complexity, helping operators stay in control."