Alternative proteins could add €111 billion a year to the EU’s economy by 2040 if treated as a strategic priority, new research shows.

Analysis by systems change company Systemiq, supported by nonprofit think tank the Good Food Institute Europe (GFI Europe), reveals the economic benefits of plant-based foods, cultivated meat and fermentation. Fermentation is an age-old method of food production that is now being used in innovative ways to develop foods with the distinctive flavour and texture of animal products.

The research modelled how policy support and investment in developing and scaling these foods could fuel economic growth across the bloc. It revealed that, if treated as a strategic priority, the industry could support 414,000 high-quality jobs in areas ranging from cutting-edge science to agriculture and logistics.

Systemiq’s analysis found that with a modest level of investment and policy support, within 15 years: 

• Alternative proteins could generate €111 billion in annual gross value added – comparable to the GDP contribution of Europe’s wine sector. 
• When factoring in the entire supply chain, the domestic market for these foods would be worth €79 billion, comparable to Lithuania’s gross domestic product in 2024. 
• The export market would be worth €60 billion, comparable to the bloc’s current exports to South Korea, positioning Europe as a global hub for advanced food biomanufacturing. 

EU and national governments must act

The report found that to realise these benefits, the EU needs to invest in the research and infrastructure necessary to make alternative proteins delicious and affordable, and build a more predictable and transparent regulatory framework to bring innovative products to market.

By investing €690 million in research and €720 million in scale-up each year, EU institutions and national governments can unlock progress and catalyse private investment, boosting consumer uptake by making these foods affordable and tasty.

This annual investment represents a fraction of the amount that the EU and its member states have invested in new industries, such as the €10.6 billion in public funding for green hydrogen in 2022.

The report adds that regulators need to provide greater clarity for European SMEs seeking to introduce innovative products to the market. Although the EU’s food safety standards are world-leading, the existing process for approving new foods is challenging to navigate and presents a barrier to alternative protein businesses.

Opportunities for agriculture

Alternative proteins could also enhance the resilience of EU agriculture by reducing the bloc’s reliance on imported crops while offering new market opportunities for Europe’s arable farmers.

An expanded market for plant-based meat and dairy could more than double the demand for raw ingredients such as peas, fava beans, lentils and chickpeas. Supporting European farmers in growing more of these crops would align with the EU’s goals for a more self-sufficient and sustainable protein supply, whilst helping to improve the fertility of farmland by fixing atmospheric nitrogen to the soil.

Alternative proteins would also increase demand for sugar and starch crops, such as sugar beet, which can be used to make the feedstocks needed to produce fermentation-made foods – similar to those used for brewing beer.

Many of these crops are currently grown for the biofuel industry, but with the EU forecasting a significant reduction in demand for these crops by 2035, this new market could offer farmers future-proof income streams.

Rupert Simons, Partner at Systemiq, said: “Alternative proteins are a growth opportunity for Europe. With public investments of just €1.4 billion a year, the EU and its member states can increase food security, create jobs and add economic value in excess of €100 billion. We urge European leaders to recognise the potential of this industry and put in place the regulations and investment to support it.” 

Elena Walden, Research Lead at GFI Europe, said: “These figures reveal that in just 15 years, alternative proteins have the potential to become a thriving European industry, reducing emissions from our food system while delivering tasty and nutritious products and creating opportunities for rural communities.

“But to unlock these benefits, the EU must treat alternative proteins as a strategic priority. Europe’s leaders need to modernise regulations so that innovative products can be brought to market while meeting the EU’s world-leading food safety requirements, and invest in the research and infrastructure needed to make these foods available to everyone.”