A landmark analysis by sustainability consultancy Systemiq, supported by the Good Food Institute Europe, reveals that scaling the alternative protein sector across the European Union could generate €111 billion in annual gross value added by 2040, a contribution on par with Europe’s wine industry.

The analysis, Seizing the economic opportunity of alternative proteins in Europe, positions plant-based foods, cultivated meat and fermentation-derived ingredients as potential engines of economic growth, competitiveness and job creation for the continent’s food system.

The report underscores that alternative proteins, spanning plant-based products to novel fermentation-made ingredients and cell-cultivated meats, are not merely niche consumer trends but could form the backbone of a new industrial ecosystem.

With modest public investment and supportive policies over the next 15 years, the sector could unlock substantial market opportunities, entire value chain growth and significant export momentum.

Key economic highlights for the EU

€111 billion in annual gross value added (GVA) by 2040, assuming strategic prioritisation of the sector, comparable to longstanding European staples like the wine market.

A €79 billion domestic market across the full alternative protein value chain, from ingredient production to processing and distribution, roughly equivalent to Lithuania’s GDP in 2024.

€60 billion in export value potential, positioning the EU as a global hub in advanced food biomanufacturing, with levels comparable to current EU exports to South Korea.

Up to 414,000 quality jobs across science, manufacturing, agriculture and logistics, supporting both traditional and technology-driven food production roles.

The report also highlights that alternative proteins can strengthen food security and agricultural resilience by diversifying demand for crops such as peas, beans and lentils, expanding opportunities for farmers and reducing dependency on imported feedstocks.

To realise this potential, the analysis argues that EU and national policymakers must treat alternative proteins as a strategic priority.

Key recommendations include scaling public R&D investment and improving regulatory pathways to help emerging companies navigate novel food approvals efficiently, particularly benefiting small and medium enterprises.

Analysts suggest that annual public spending of around €1.4 billion, split between research, scale-up infrastructure and supportive regulation, could generate far greater private sector investment, accelerate commercialisation and make European products globally competitive.

While the EU-wide report paints a broad picture, country-specific studies indicate additional potential.

For example, a complementary Systemiq analysis focused on Germany estimates that, under ambitious scenarios, alternative proteins could contribute €65 billion to the German economy and create up to 250,000 jobs by 2045.

For food manufacturers, ingredient producers, restaurant chains and retailers, the report signals both market growth and supply chain evolution.

The expansion of plant-based, fermented and cultured products could shift commercial dynamics in categories ranging from meat substitutes and dairy alternatives to functional ingredients and flavour platforms.