Swedish startup Millow is using dry fermentation to create scalable, low-impact meat substitutes that could reshape the future of food production.
A New Approach to Protein Production
Millow, a foodtech company based in Gothenburg, has launched its first commercial-scale factory to produce a new kind of meat alternative. Its method combines oats and mycelium (the root-like fibres of fungi), using a patented dry fermentation technique to create a solid, sliceable protein block that can be turned into familiar foods such as burgers, meatballs and kebabs.
Addresses Two Core Challenges
Millow’s production model is designed to address two core challenges in the alternative protein sector, i.e. sustainability and scalability. For example, unlike many existing meat substitutes, which rely on liquid fermentation, imported ingredients or complex multi-stage processing, Millow’s product is created from just two inputs. The result is a minimally processed food that avoids the use of binders, flavourings or additives and can be produced at scale in just 24 hours.
New Factory
Millow’s 2,500 square metre facility was built in a repurposed LEGO factory and will eventually produce up to 500 kilograms of protein each day. The site also houses advanced fermentation labs to support future research and development.
What Makes Millow Different?
Although mycelium-based products are not entirely new, Millow’s approach appears to be significantly different from earlier efforts. Most notably, it avoids the need to extract protein strands or recombine them with synthetic binders, as is done in products like Quorn. Instead, the dry fermentation process grows a whole block of protein directly from the grain and fungus mixture.
The company also uses a proprietary texturing method, known as MUTE (Mycelium Utilised Texture Engineering), which gives the final product a structure similar to muscle tissue. This allows it to behave more like meat when cooked or handled, with a firmer texture and the ability to hold up in stews and other wet dishes.
Gluten Free and More
Millow says its product is fully plant-based, gluten free and contains no genetically modified ingredients. It also says the product is rich in nutrition, offering up to 27 grams of complete protein per 100 grams, along with fibre, vitamins and essential minerals.
A Response to Sector Shortcomings
Millow’s entry into the market comes at a time when the plant-based meat sector is facing growing criticism. Millow’s founders say their aim is to move the sector on from the shortcomings of first-generation plant-based meat, which often struggled with over-processing, long ingredient lists and inconsistent consumer appeal. By focusing on transparency, wholefood ingredients and production efficiency, the company appears to be trying to position its product as a more scalable and environmentally responsible alternative.
As the company puts it on its website: “Not all meat substitutes are actually better for the planet. Most alternatives are ultra-processed, which means they’ve gone through many different manufacturing stages right across the globe. And at every stage, a lot of energy and water are consumed. Millow is entirely different.”
Environmental Benefit
Millow is also aiming to produce food with a clearer environmental benefit. For example, a life cycle assessment of the product found it can cut greenhouse gas emissions by up to 97 percent compared to beef. Compared to soy-based substitutes, emissions are reduced by around 80 percent.
Water use is also significantly lower. For example, producing one kilogram of Millow requires only 3 to 4 litres of water. By contrast, producing a kilogram of beef can require over 15,000 litres, while soy protein typically uses more than 1,800 litres.
A Shift Toward Fermentation-Based Foods
While total investment in alternative proteins fell to 1.1 billion dollars globally in 2024, funding for fermentation startups rose by 43 percent, according to the Good Food Institute. This reflects a shift away from mimicry-focused meat alternatives towards more efficient, adaptable systems that can deliver clean-label products at scale.
Millow is, therefore, part of a growing European cluster exploring the potential of fungal fermentation. Hamburg-based Infinite Roots, for example, raised 58 million dollars in early 2025 to develop protein from brewery byproducts. Berlin’s Formo Foods has also attracted major investment to create cheese analogues using microbial fermentation.
These companies all seem to be sharing a focus on improving environmental outcomes through more efficient resource usage. By using locally sourced inputs, reducing energy consumption and avoiding long supply chains, they aim to provide credible alternatives to meat without the compromises seen in earlier products.
Business and Industry Implications
Millow’s model appears to offer a number of practical advantages for different stakeholders. For food brands and retailers, the simplicity of the ingredient list and clean processing could align with growing consumer demand for wholefood, high-protein alternatives that are not highly processed.
Foodservice providers may also benefit from the flexibility of the product, which can be barbecued, roasted, baked or fried without losing its structure. The mycelium-oat base also offers a neutral flavour profile that can be adapted to regional tastes.
For the wider food and farming sectors, the technology presents opportunities as well as challenges. The ability to swap grain types in the fermentation process opens the door for localised protein production using existing crops. This could reduce reliance on imported soy or pea protein, while creating new demand for Nordic oats or other regionally grown grains.
Not All Good News
However, it should be noted that there are, of course, some limitations. For example, Millow is currently only available in Sweden, and commercial rollout will depend on regulatory approval, consumer uptake and the ability to scale consistently. The company is working on distribution agreements and expects to launch products in retail and foodservice by the end of 2025.
Questions and Criticisms Remain
Although the sustainability credentials appear to be strong, some experts have urged caution. It seems that mycelium-based foods remain unfamiliar to many consumers, and overcoming cultural and psychological barriers may take time. Also, there are broader questions about production scale, cost competitiveness and long-term safety assessments, particularly in new markets.
There is also the issue of transparency. While Millow claims to be the most sustainable meat alternative currently available, much of the supporting data comes from internal research. Independent validation will be important if the company wants to win the confidence of regulators and buyers in new territories.
That said, Millow represents a departure from the first wave of alternative proteins. By using biotechnology and fungal fermentation to reduce complexity, cost and environmental impact, the company is helping to set a new direction for the sector. Whether others will follow remains to be seen.
What Does This Mean For Your Organisation?
What Millow’s approach demonstrates is that alternative protein production is entering a new phase, one shaped more by operational efficiency and wholefood principles than by novelty or marketing claims. Rather than mimicking meat through increasingly complex formulations, this new category focuses on simplicity, transparency and functional performance. For investors and researchers, this signals a change in the priorities of the sector. For food producers, it could offer a chance to streamline supply chains and reduce reliance on global commodity crops.
For UK businesses, particularly those in retail, foodservice and manufacturing, the emergence of scalable dry fermentation methods presents both opportunity and disruption. For example, if adapted successfully to local grain inputs and regional production models, similar technology could help strengthen domestic protein resilience while supporting decarbonisation goals. It could also create new partnerships between biotech firms and UK arable growers, with potential to reinvigorate oat and cereal markets in a lower-emissions food system. For buyers and procurement teams, the appeal is likely to lie in a product that promises nutrition, versatility and sustainability without the drawbacks associated with ultra-processing or long ingredient lists.
However, it seems that the model will need to prove itself beyond the Swedish market. Regulatory navigation, consumer education and price competitiveness will all play a role in determining its commercial viability. Various stakeholders, including environmental groups, health regulators and farming unions, will most likely be watching closely to see whether these claims of efficiency and low impact can be consistently validated at scale. As more companies experiment with mycelium and dry fermentation, a clearer picture will emerge of how these innovations fit into the wider protein economy. Millow is not the only player, but it offers a compelling case study in how targeted science and regional focus can create new routes to sustainable food production.