A new analysis by systems change company Systemiq, supported by GFI Europe, has found that plant-based foods, cultivated meat, and fermentation could add €111 billion a year to the EU’s economy by 2040 if treated as a strategic priority. This is comparable to the GDP contribution of Europe’s wine sector.
Furthermore, the industry could support 414,000 high-quality jobs in areas such as science, agriculture, and logistics, if given policy support and investment to enable development and scaling. When factoring in the entire supply chain, the domestic market for alternative proteins would be worth €79 billion, comparable to Lithuania’s gross domestic product in 2024. The export market would be worth €60 billion, which is comparable to the EU’s current exports to South Korea.
To achieve these benefits, the report recommends that EU institutions and national governments invest €690 million in research and €720 million in scale-up each year. This is said to represent a fraction of the amount that the EU and its member states have invested in other new industries.
The research adds that regulators should provide greater clarity for European SMEs seeking to introduce innovative products to the market, since the process for approving new foods is challenging to navigate and presents a barrier to alternative protein businesses.
“A growth opportunity for Europe”
The analysis claims that alternative proteins could enhance the resilience of EU agriculture, reducing the bloc’s reliance on imported crops while offering new market opportunities for Europe’s arable farmers. For example, plant-based meat and dairy could more than double the demand for raw ingredients such as peas, fava beans, lentils, and chickpeas. This 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 could also increase the demand for sugar and starch crops such as sugar beet, which can be used to make feedstocks for fermentation-derived foods. Many of these crops are currently grown for the biofuel industry, but a significant drop in demand is expected. The alternative protein market could provide farmers with future-proof income streams.
Previous research published by Systemiq last year concluded that innovative methods of producing food using fermentation could add £9.8 billion to the UK economy by 2050. However, this will only hold true if the right support is in place.
“Alternative proteins are a growth opportunity for Europe,” said Rupert Simons, partner at Systemiq. “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.”
