French Startup Nxtfood Secures €49 Million in Funding Amidst Plant-Based Meat Market Challenges

While many markets experience a downturn in plant-based meat sales, French startup Nxtfood, renowned for its ACCRO brand, has successfully secured a €49 million ($58 million) funding round, driven by rapid growth in both retail and foodservice sectors.

This funding round received support from existing investors, including Creadev and Roquette Ventures, as well as new investors like Clay Capital and IRD Invest (Groupe IRD).

Matthieu Vermersch, managing partner at Singapore-based Clay Capital, indicated that this investment is their first in the plant-based meat sector. He remarked, “We have long observed the plant-based meat market with caution, looking for the right alignment between product, strategy, and team. With Nxtfood, we have found a company that combines operational excellence at scale, European ambition, and a clear path to profitability— a challenge that few players in this sector can meet today.”

Expansion Plans and Future Goals

The capital raised will be used to expand production at Nxtfood’s site in Vitry-en-Artois, France, increasing its footprint to 12,000 square meters while funding further R&D in high moisture extrusion. Furthermore, the investment will accelerate sales and marketing efforts, particularly in France via the ACCRO brand, and expand into other European markets through B2B and co-manufacturing opportunities.

CEO Renaud Saïsset stated their aggressive growth trajectory, projecting significant revenue increases over the next few years. In 2022, Nxtfood recorded €1 million ($1.2 million) in sales, and by the next year, this figure rose to €9.2 million ($10.8 million). This year, they aim to reach €17.4 million ($20.5 million).

Capitalizing on the Growing French Market

Despite the decline in sales of meat alternatives in many regions, the French plant-based market is reportedly experiencing double-digit growth. Saïsset noted that retailers and foodservice companies are eager to capture this growth by offering more space for innovative products and launching private labels to tap into this burgeoning market.

He emphasized that their focus on innovation over sheer quantity of brands is key. “We must learn from other markets that experienced saturation with similar products. Our goal is to provide something distinct that resonates with consumers,” he explained.

Innovation and Sustainability in Plant-Based Alternatives

Nxtfood aims to stand out with its commitment to using locally sourced wheat and pea proteins in its product offerings. The company is not only focused on taste and texture but also on providing products that are nutritionally balanced with short ingredient lists and clean labels.

In terms of sustainability, Saïsset mentioned that the new generation of products minimizes waste, addressing one of the significant barriers previously encountered in plant-based menus. “These products not only have a lower environmental impact, but they also align with consumer demands for healthier options,” he added.

Looking Ahead

Regarding the current investment climate, Saïsset acknowledged the tougher economic landscape and said that investor disillusionment with the plant-based market is partly due to unrealistic expectations. Nevertheless, he maintains a positive outlook, suggesting that the French market, still relatively young, provides ample opportunities for innovation and growth.

As Nxtfood continues to expand its operations, its focus will remain on meeting consumer demand for clean-label, nutritionally robust products in the plant-based segment. With this groundbreaking investment, the company is positioned not just to survive but thrive in the evolving landscape of food technology.