Proving to be no passing fad after all, plant-based food businesses in Southern California are surging – with investors, customers and corporate partners lining up to get a taste
From bustling startup kitchens in Santa Monica to expansive production facilities, a new wave of food-tech pioneers is redefining what’s possible in the plant-based space. And the numbers are making headlines.
Major L.A.-based players like Daring, Thrive Market, Yo Egg and Sweetgreen are not only hitting ambitious financial targets, but they’re setting new standards for B2B innovation, disrupting traditional supply chains and securing powerful partnerships with restaurant groups, retailers and food service giants.
Investors Cool
Southern California’s plant-based food scene is now firmly on the radar of venture capitalists and private equity firms seeking sustainable, high-growth returns. Beyond Meat, a genuine pioneer in the space and one of its biggest overall success stories, is headquartered in El Segundo. It has raised over $344 million to date and remains one of the best-known names in the global plant-based movement. Its high-profile partnerships with McDonald’s, KFC and Taco Bell signal not just consumer demand but a robust B2B strategy focused on scalability and consistency.
Lately, it hasn’t been all roses for Beyond, however. Faced with a rapidly growing roster of competitors and a relative slowdown in food-related investing, Beyond Meat recorded its lowest revenue in five years last year, leading some analysts and reporters to surmise the company had hit a wall.
Beyond’s struggles led to it cutting back its workforce. In February, it announced that it would lay off 9% of its global workforce, or 64 employees, which included all its staff in China. Last month, it said it would let go of 44 employees in North America.
In an earnings call, Beyond Meat blamed its sales challenges on softening demand and reduced distribution in U.S. retail and low sales of its burger products to restaurants internationally. But just as some started reporting that the company was on the ropes, Beyond Meat came out with a strong statement to set the record straight.
“Recent media stories suggesting that Beyond Meat filed for bankruptcy are unequivocally false,” the company posted on X. “We have not filed nor are we planning to file for bankruptcy. Go Beyond.”
Another standout in the space, Thrive Market in Marina del Rey, has raised a whopping $241 million, a reflection of investor confidence in online, healthy-eating ecosystems. Thrive’s curated approach to grocery and its membership-based model have struck a chord with wellness-conscious customers, while also serving as a growing distribution channel for emerging plant-based brands.
Meanwhile, Santa Monica-based Daring, which creates plant-based chicken, announced a fresh $40 million in Series B funding, backed by names like Maveron, D1 Capital and even celebrity investors such as Drake. Daring’s investor deck didn’t just highlight great taste and texture. It showcased a national rollout strategy and rising demand from restaurant chains and food service operators.
B2B: Where the Real Growth Is
For many of these companies, B2B partnerships are becoming the primary engine for scale. Rather than relying solely on direct-to-consumer (DTC) sales, SoCal’s most successful plant-based brands are pursuing large-volume agreements with restaurants, caterers, cafeterias and grocery distributors.
Yo Egg, an L.A.-based startup focused on creating the world’s first plant-based sunny-side-up and poached eggs, is making the leap from food service into retail, announcing plans to place their products in national grocery stores later this year. After testing the waters with restaurants and cafés across California and Israel, their pivot to B2B production capacity is poised to meet the breakfast needs of a growing base of flexitarian consumers.
Daring is also tapping into this strategy, partnering with restaurant groups and college dining services to integrate its plant-based chicken directly into existing menus. For restaurant operators, the appeal is clear: Daring’s products don’t require special preparation techniques, and their flavor and texture have been widely praised in culinary circles.
Even Sweetgreen, while best known as a direct-to-consumer salad empire, is deeply engaged in B2B partnerships, collaborating with local farms, plant-based ingredient suppliers and kitchen tech companies to scale its supply chain sustainably. With a $1.78-billion valuation, Sweetgreen continues to expand beyond its L.A. roots, opening new doors across California and major metropolitan areas nationwide.
Financials That Turn Heads
Behind these headlines lies real revenue. While profitability timelines vary, the trend lines are unmistakably strong.
• Thrive Market, though private, reported it surpassed $500 million in revenue in recent years, fueled by membership growth and a surge in demand for sustainable pantry staples during the COVID-19 era. And that momentum has largely stuck.
• Sweetgreen, which went public in 2021, reported revenues in 2024 were $676.8 million. This represented a 16% increase compared to 2023. The company aims for continued double-digit growth as it pushes into new markets with tech-enabled stores and a renewed focus on plant-forward meals.
• Daring, though still in early revenue stages, has landed significant distribution agreements, and analysts project multi-million-dollar revenue growth over the next 24 months.
• Yo Egg, meanwhile, raised $5 million in 2023 and is currently in talks with institutional food service players to scale its presence in hospitals, universities and hospitality venues, an indicator of B2B demand for protein alternatives beyond soy and tofu.
A Region Built for Innovation
Southern California’s combination of health-conscious consumers, top culinary talent, cutting-edge tech accelerators and environmentally-minded investors makes it uniquely fertile ground for plant-based pioneers. Incubators like L.A. Cleantech Incubator, Kitchentown LA and UCLA’s Startup Labs have provided crucial support for new ventures. The proximity to Hollywood and the entertainment industry hasn’t hurt either. Celebrities such as Natalie Portman and Leonardo DiCaprio have made high-profile investments in the space.
And it’s not just trend-chasing. Consumers in SoCal, particularly Gen Z and millennial demographics, are prioritizing climate impact, animal welfare and ingredient transparency when making food choices. For businesses, that’s translated into loyalty, repeat purchases and strong customer lifetime value.
Looking Ahead
The next frontier for SoCal’s plant-based leaders? Global scale. Several companies are already setting up international distribution hubs, exploring lab-grown meat collaborations and leveraging AI and robotics to enhance production efficiency.
There’s also growing interest in cross-category expansion. For example, Daring is exploring the frozen entrée space; Sweetgreen is piloting new menu formats and ghost kitchens; and Thrive Market is adding private-label plant-based SKUs faster than ever before.
From venture-backed startups to billion-dollar juggernauts, plant-based food companies in Southern California are delivering growth stories that are hard to ignore. Their ability to win over investors in a challenging market and lock in major B2B deals is transforming them from idealistic innovators into cornerstone suppliers of tomorrow’s food systems. In this sun-drenched hub of health, sustainability and tech-savvy business models, the plant-based revolution has found not only a home but a launchpad.
-Paul Williams
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