Read time: 9 minutes
Highlights
The "third kingdom" has officially arrived as a scalable, regulatory-cleared pillar of the global protein supply, moving past the initial hype into a high-stakes execution phase.
- Regulatory Breakthrough. The Protein Brewery’s Fermotein became the first whole-food mycelium ingredient to gain EU Novel Food approval in June 2026, opening a massive new market after a six-year regulatory journey.
- Scaling the Unscalable. Companies like ENOUGH are hitting industrial volumes with continuous fermentation, though supply remains the primary bottleneck for "Big Meat" partners.
- The Allergen Conversation. Transparency around rare but real allergenicity and gastrointestinal concerns is becoming a non-negotiable standard for industry trust.
- Funding Maturation. While total fermentation VC funding dipped to $357 million USD in 2025, the focus has shifted from speculative "promises" to proven, cost-effective production models.
- Technological Convergence. 3D printing and continuous fermentation are driving the next wave of whole-cut products, moving the category beyond simple mince and nuggets.
Has fungi finally stopped being the "alternative" and started being the "inevitable"? As we hit the midpoint of 2026, the noise around "plant-based" has quietened down, but the hum of fermentation tanks is louder than ever! Using my FutureCUBED™ process, I've been tracking this "third kingdom" for years, and we're currently witnessing a fascinating shift from speculative science to massive industrial reality.
I'm pleased to bring you this state-of-the-art report on the Fungisphere. We've just seen some monumental shifts in regulation and manufacturing that change the game for everyone from ingredient suppliers to major CPG and QSR companies. But let's be clear… this isn't a hype piece. We're going to look at the wins, the "elephants in the room," and exactly what it takes to survive in the fungi space today!
The EU Floodgates Open: Fermotein’s Big Win
Just last month, in June 2026, the industry hit a milestone we've been waiting for since 2020. The Protein Brewery finally secured EU Novel Food authorisation for Fermotein, their Rhizomucor pusillus mycelium ingredient. Just think about this for a minute… it took six years of regulatory back-and-forth to get here. Six years!
This isn't just a win for one Dutch company; it’s a blueprint for the entire sector. Fermotein is a whole-food protein, not a processed isolate. It’s already been making waves in Singapore and the US with its self-GRAS status, but the EU was the tough nut to crack. Now that they have the green light for everything from protein powders to dairy alternatives, they're aiming for 600 metric tonnes in 2027 and over 2,000 tonnes by 2029 from their Breda facility.
The UK, Canada, and our friends at Food Standards Australia New Zealand (FSANZ) are already hot on the heels of this approval. It’s amazing to see how one regulatory domino can start a global chain reaction!
Scaling the Beast: ENOUGH and ABUNDA
While The Protein Brewery is celebrating its approval, ENOUGH Foods is busy proving that continuous fermentation can actually work at a massive scale. Their ABUNDA mycoprotein is being pumped out of their facility in Sas van Gent, right next door to their partners at Cargill.
To be honest, the last 12 months were hard for them… scaling up always is! But they’re currently hitting 10,000 tonnes a year and aiming for 60,000. CEO Jim Laird has been very vocal that the bottleneck isn’t demand… it’s supply. "Big Meat" companies are lining up to get their hands on this stuff because it delivers the texture they simply can’t get from peas or soy alone.
When we talk about strategic foresight, this is exactly the kind of "horizon three" technology that has now moved firmly into "horizon one" for major food brands.
Let’s Talk About the Allergen Elephant
But here’s the problem… we can’t talk about fungi protein without addressing the safety concerns that some prefer to sweep under the rug. Quorn’s Fusarium venenatum has been the gold standard for decades, but it has a documented history of rare but real allergenicity.
A study from 2018 highlighted nearly 1,800 self-reported adverse reactions. While true anaphylaxis is incredibly rare, gastrointestinal symptoms are more common than the industry likes to admit. We have to ask, is it time we were more transparent about this? As we introduce new strains like Rhizomucor pusillus, we have to be diligent. Transparency isn't a weakness; it's how we build long-term consumer trust. For the tech-native Gen Alpha, this kind of radical transparency is a non-negotiable prerequisite for purchase. If we want mycoprotein to be a staple, we must own the data on cross-reactivity with mould allergies!
The New Tech Wave: 3D Printing and Beyond
The Fungisphere in 2026 isn't just about big tanks of "mush." We’re seeing some stunning innovation in how that biomass is structured.
- 3D-Printed Seafood. Take a look at Revo Foods in Vienna. Their "Taste Factory" is now churning out 60 tonnes of 3D-printed mycoprotein salmon per month. It’s not just a gimmick; it’s a way to create complex, fatty textures that mimic the real thing.
- Continuous Fermentation Gains. Companies like Pow.Bio, in partnership with Bühler, have achieved a 3x productivity gain at the 3,000-litre scale. This is the "holy grail" for bringing costs down to parity with conventional meat.
- Agri-Waste Upcycling. The MycoStruct project in the EU is currently working with a €7.22 million EUR budget to turn agricultural side-streams into whole-cut mycelium steaks. This is circular economy thinking at its best!
The "Asset-Light" Revolution: Brewing the Future in Existing Tanks
Here’s where the story gets really interesting… some of the smartest mycoprotein companies aren't betting their future on building enormous new bioreactor farms from scratch. They're looking at the idle brewery infrastructure already sitting across Europe and Latin America, then asking a very simple question, why pour millions into new stainless steel when the tanks are already there?
This is the essence of a "distributed fermentation" model, and I think it's one of the most important shifts in the entire category. If fungi protein is going to reach true price parity with conventional meat, it can't rely only on expensive greenfield plants and massive "Steel in the Ground" costs. It has to become more agile, more modular, and far more capital efficient!
Pacifico Biolabs in Germany is one of the clearest examples. In May 2026, the company raised €7 million EUR to scale production using idle German brewery tanks rather than building a conventional new fermentation footprint. Their headline claim is eye-catching, a 95% reduction in CapEx. Even more provocative is their argument that idle European brewery capacity could theoretically replace all European chicken consumption. Now, that's a huge statement, and clearly theoretical… but it captures the scale of the opportunity brilliantly.
Infinite Roots, formerly Mushlabs, is following a similar logic through its partnership with Bitburger Brewery Group. This isn't just about borrowing tanks. It's about leveraging existing industrial infrastructure and side-streams to accelerate scale-up without waiting years for a perfect new facility to be built.
We're seeing the same pattern beyond Europe. In Brazil, startup Typcal is collaborating with AB InBev, using spent yeast in development and targeting 60 tonnes per month by late 2026. In Spain, Hijos de Rivera and Inproteins are partnering on a €7.5 million EUR facility designed to upcycle beer byproducts into new protein production streams. Again, the signal is clear… the future may not be one mega-factory in one location. It may be a network of repurposed assets spread across existing food and beverage infrastructure.
For me, this is the part too many people miss. The fungi race won't be won only by whoever has the best strain or the best texture. It'll be won by whoever can scale with the lowest capital burn and the fastest route to industrial output. That's why this asset-light model matters so much. It's not a side story… it's one of the best shots the sector has at cracking mainstream affordability.
The Money: Shifting from Promise to Proof
Recently we've seen many VCs looking at the fermentation space. The GFI State of the Industry report showed that funding for fermentation dropped from $632 million USD in 2024 to $357 million USD in 2025.
Some might see that as a "bust," but I see it as a maturation! Something didn't quite add up with the astronomical valuations we saw in 2021. The collapse of companies like Meati and Motif was a wake-up call. Today, investors aren't buying dreams… they're buying scalable, cost-effective production. If you can't show a path to profitability and a 50,000-litre demo scale, you're going to struggle. But if you can? The capital is still there, as proven by The Protein Brewery's recent €18 million EUR Series B extension.
Why Fungi Still Wins
Despite the challenges, the "Pro" list for fungi is just too strong to ignore:
- Nutrition. We're talking 40-50% complete protein with all essential amino acids.
- Fibre. It’s packed with prebiotic fibre that supports gut health.
- Footprint. It uses a fraction of the land and water required for livestock.
- Clean Label. It’s a whole food, important for some consumers.
But we have to be smart. Consumer awareness is still surprisingly low… only about 11% of consumers in some markets even know what "mycoprotein" is. Plus, the EU’s ongoing ban on meat-related terms for plant-based alternatives makes marketing a nightmare!
The 2026 Verdict
The Fungisphere has moved past the hype phase and entered the "prove it at scale" phase, which is a good thing! We’re seeing more production facilities coming online globally, and the focus has shifted to driving down costs and improving transparency.
Whether it's hybrid products mixing mycoprotein with cultivated cells or high-tech 3D-printed fillets, the potential is boundless. I'm fortunate to be working with businesses navigating this exact transition, helping them understand where the real opportunities lie in this $30 billion USD potential market.
If you're a leader in the food or ag space, you can't afford to ignore the fungi. The "third kingdom" is no longer a fringe curiosity; it's a strategic pillar of our future food system!
Join me at one of my upcoming speaking events where I'll be diving deeper into these fermentation trends! You can also check out my thoughts on the future of fermentation for a broader perspective on how these technologies are converging.
To continue the conversation email me at tony@futuristforfood.com
