China’s largest fermentation manufacturers are redirecting production capacity toward mycoprotein and other alternative proteins. That is according to a new report from the Good Food Institute APAC, authored by researcher Dr. Dirk van der Kley. The report links the shift to shrinking pharmaceutical margins and coordinated government support.
For decades, Chinese fermentation companies focused on pharmaceuticals, amino acids and vitamins. That focus made sense when the sector offered high prices for smaller volumes. But competition from biosimilars has narrowed returns on some pharmaceutical manufacturing. Companies with idle fermentation infrastructure are now looking at food applications instead.
Commodity producers face similar pressure. Prices for amino acids such as L-lysine sulfate and L-threonine fell sharply in Europe between January 2022 and November 2025. Some vitamin producers slowed or halted output amid oversupply. China accounted for roughly half of global amino acid exports and 38 percent of vitamin exports as of 2024. As margins compress at that scale, the incentive to pursue higher-value applications grows.
Government policy is reinforcing the trend. Alternative proteins now feature in China’s “new quality productive forces” strategy. Preparatory documents for the country’s upcoming biomanufacturing Five-Year Plan reference microbial protein and new food sources directly. In August 2025, officials published a list of 36 target biomanufactured products, including three tied to alternative proteins.
Investment is already underway. Fushine Biotech is expanding a 1,200-tonne mycoprotein line in Jingdezhen. Startup More Meat is building a 20,000-tonne facility in Guangzhou. By comparison, Marlow Ingredients in the UK, maker of Quorn, currently runs the world’s largest mycoprotein plant, with capacity above 67,000 tonnes.
The report frames China’s shift as a possible opening for international alternative protein companies, offering lower costs and faster scale-up. It also notes risks around intellectual property, tariffs and geopolitics that foreign partners would need to weigh.
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