Trend watch: alternative proteins in 2026

Europe's alternative protein sector reached €5.8 billion in retail sales during 2025, representing a 12% year-over-year increase despite persistent macroeconomic headwinds and shifting consumer sentiment. Yet behind this headline figure lies a more complex story: cultivated meat companies secured their first regulatory approvals in the United Kingdom, precision fermentation facilities scaled beyond pilot stage in the Netherlands and Denmark, and plant-based incumbents faced margin compression that forced strategic pivots. For sustainability leads navigating procurement decisions, investment allocations, and corporate transition plans, understanding the metrics that differentiate sector leaders from laggards has never been more critical.

Why It Matters

The alternative protein sector sits at the intersection of multiple sustainability imperatives: food system decarbonization, land use optimization, biodiversity preservation, and protein security for a growing global population. The European Union's Farm to Fork Strategy explicitly identifies alternative proteins as essential for achieving a 55% reduction in agricultural greenhouse gas emissions by 2030. More immediately, Scope 3 emissions reporting requirements under the Corporate Sustainability Reporting Directive (CSRD) are compelling food manufacturers, retailers, and hospitality companies to scrutinize protein supply chains with unprecedented rigor.

The numbers underscore this urgency. Conventional animal agriculture accounts for approximately 14.5% of global anthropogenic greenhouse gas emissions, with European livestock systems contributing 502 million tonnes of CO2 equivalent annually as of 2024. Life cycle assessments consistently demonstrate that plant-based proteins generate 70-90% lower emissions per kilogram of protein compared to beef, while cultivated meat prototypes have achieved 65-92% reductions depending on the energy source powering bioreactor facilities.

Market dynamics in 2024-2025 revealed critical inflection points. European plant-based meat retail sales grew only 3.2% in 2024 after double-digit growth in previous years, prompting analysts to distinguish between category maturation and structural demand shifts. Meanwhile, precision fermentation companies raised €890 million in European-focused funding rounds during 2024-2025, signaling investor confidence in ingredients that enhance rather than replace conventional products. The regulatory landscape evolved substantially: the UK's Food Standards Agency approved Aleph Farms' cultivated beef for limited commercial sale in December 2024, while the European Food Safety Authority (EFSA) continued evaluating novel food applications with approval decisions expected throughout 2026.

For European sustainability leads, these developments create both opportunities and complexity. Procurement decisions now require evaluating protein suppliers across carbon intensity, water use efficiency, land footprint, and regulatory readiness—metrics that vary dramatically across alternative protein categories and individual producers.

Key Concepts

Alternative Proteins: An umbrella category encompassing protein sources produced through methods fundamentally different from conventional animal husbandry. The three primary pillars are plant-based proteins (derived from legumes, cereals, oilseeds, and other crops), cultivated meat (produced by culturing animal cells in bioreactors), and fermentation-derived proteins (manufactured using microbial organisms that produce protein through precision fermentation, biomass fermentation, or traditional fermentation processes). Each pillar carries distinct production economics, environmental footprints, regulatory pathways, and consumer acceptance profiles.

Plant-Based Proteins: Products formulated from protein-rich crops including soy, pea, fava bean, wheat gluten, and emerging sources like lupin and rapeseed. European production capacity expanded significantly, with pea protein isolate manufacturing growing 34% between 2023 and 2025. Key performance indicators include protein content (>80% for isolates), functionality scores measuring emulsification and gelation properties, and allergen profiles. The environmental benchmark for European plant-based burgers stands at 2.1-3.8 kg CO2e per kilogram of product, compared to 27-60 kg CO2e for conventional beef burgers.

Cultivated Meat: Also termed cell-cultured or cell-based meat, this category involves growing animal muscle and fat tissue from stem cells in controlled bioreactor environments. Production requires cell lines, growth media, scaffolding materials, and substantial energy inputs. Current cost benchmarks for cultivated beef range from €40-120 per kilogram at pilot scale, with industry projections targeting €8-15 per kilogram at commercial scale by 2028-2030. Critical KPIs include cell doubling time, media cost per kilogram of output, and energy consumption per kilogram—currently averaging 23-68 kWh depending on facility design and renewable energy integration.

Precision Fermentation: A biotechnology approach using genetically engineered microorganisms to produce specific proteins, fats, or other functional ingredients traditionally derived from animals. European companies have achieved commercial scale for whey proteins, casein, and egg proteins. Production economics depend on fermentation yield (grams of target protein per liter of culture), feedstock costs, and downstream purification efficiency. The sector benchmark for precision fermentation dairy proteins is approaching €20-35 per kilogram, competitive with premium conventional dairy ingredients for specific applications.

Policy and Regulatory Frameworks: European alternative protein development operates within the EU Novel Food Regulation (2015/2283), which requires pre-market authorization for foods without significant consumption history before 1997. The authorization process typically requires 18-24 months and costs €200,000-500,000 per application. Additionally, the EU's protein strategy, announced in 2024, established targets for increasing European protein crop cultivation by 25% by 2030, directly impacting plant-based protein feedstock availability and cost structures.

What's Working and What Isn't

What's Working

Hybrid Product Formulations: European manufacturers have found commercial success with products blending plant proteins with precision fermentation ingredients. Companies like The Protein Brewery (Netherlands) and Impossible Foods Europe have demonstrated that combining texturized plant proteins with fermentation-derived fats and flavoring compounds achieves sensory profiles closer to conventional meat while maintaining favorable environmental footprints. Retail data from 2025 shows hybrid formulations achieving 23% higher repeat purchase rates than pure plant-based alternatives.

Business-to-Business Ingredient Scaling: While consumer-facing plant-based brands faced margin pressures, B2B ingredient suppliers expanded profitably. Roquette's Vic-sur-Aisne facility in France reached full capacity in 2024, producing 50,000 tonnes of pea protein isolate annually. Similarly, Denmark's AAK partnered with cultivated meat companies to develop specialty fat systems optimized for cell culture applications. The B2B segment grew 18% in value terms during 2024-2025, outpacing retail growth significantly.

Regulatory Pathway Clarity in the UK: Post-Brexit regulatory independence enabled the UK to approve cultivated meat products faster than the EU, creating a commercial laboratory for European companies. Aleph Farms, Mosa Meat, and Ivy Farm Technologies secured UK approval pathways, allowing limited commercial sales in premium restaurant settings. This regulatory advantage attracted €340 million in additional investment to UK-based alternative protein operations during 2025.

Institutional Food Service Adoption: European universities, hospitals, and corporate cafeterias emerged as high-growth channels for alternative proteins. Compass Group Europe reported that plant-based options represented 28% of cafeteria protein servings by late 2025, up from 19% in 2023. Institutional buyers prioritize verifiable sustainability metrics over brand premiums, creating demand for transparent life cycle assessment data and third-party certifications.

What Isn't Working

Consumer Price Sensitivity: Despite improvements in manufacturing efficiency, plant-based meat alternatives remain 15-40% more expensive than conventional equivalents at European retail. Economic pressures in 2024-2025, including elevated food inflation, caused price-conscious consumers to trade down to conventional proteins. The plant-based category lost approximately 2.3 percentage points of household penetration in Germany and France during this period.

Cultivated Meat Production Costs: While pilot facilities demonstrated technical feasibility, production economics remain challenging. Media costs—the nutrient solutions sustaining cell growth—account for 55-80% of cultivated meat production expenses. Despite significant cost reductions from €300+ per liter in 2020 to €15-40 per liter in 2025, achieving price parity with conventional meat requires further 80-90% media cost reductions or dramatic improvements in cell density and productivity.

Regulatory Fragmentation Across the EU: The European Commission's decentralized novel food authorization process creates uncertainty for companies. As of early 2026, no cultivated meat product has received EU-wide approval, with EFSA timelines extending beyond initial projections. This regulatory lag disadvantages European cultivated meat companies relative to competitors in Singapore, the United States, and the United Kingdom, limiting their ability to generate commercial revenue while scaling production.

Key Players

Established Leaders

Nestlé (Switzerland): The world's largest food company maintains significant alternative protein investments through its Garden Gourmet brand in Europe. Nestlé operates dedicated R&D facilities in Lausanne focused on plant-based and cultivated protein development, with reported alternative protein revenues exceeding €800 million globally in 2025.

Unilever (Netherlands/UK): Through its The Vegetarian Butcher brand, Unilever holds leading market share in European plant-based retail. The company invested €180 million in alternative protein capacity expansion between 2023 and 2025, including a precision fermentation partnership with ENOUGH in Scotland.

Danone (France): Danone's plant-based portfolio, centered on the Alpro brand, generates approximately €2.5 billion in annual sales, predominantly in Europe. The company has committed to achieving 50% plant-based revenues by 2030 and operates specialized innovation centers in Belgium and the Netherlands.

Roquette (France): As Europe's largest producer of plant-based proteins, Roquette supplies ingredients to virtually all major alternative protein brands. The company's vertically integrated model—from pea farming contracts to protein isolate manufacturing—provides cost advantages and supply chain security.

DSM-Firmenich (Netherlands): Following the 2023 merger, DSM-Firmenich became a dominant supplier of precision fermentation-derived ingredients and nutritional solutions for alternative proteins. The company's Delft biotechnology facilities produce commercial quantities of specialty proteins and vitamins for the sector.

Emerging Startups

Mosa Meat (Netherlands): Founded by cultivated meat pioneer Mark Post, Mosa Meat operates one of Europe's most advanced cultivated beef facilities. The company raised €85 million in Series C funding in 2024 and is pursuing EU novel food authorization for its cultivated beef products.

ENOUGH (UK/Scotland): ENOUGH's ABUNDA mycoprotein, produced through continuous fermentation of Fusarium venenatum, achieved commercial scale at a 50,000-tonne capacity facility in the Netherlands. The company supplies major food manufacturers and achieved profitability at the operating level in late 2025.

Formo (Germany): Berlin-based Formo produces animal-free cheese proteins through precision fermentation. The company operates a commercial-scale facility and secured partnerships with European dairy processors seeking to diversify their protein portfolios.

Heura Foods (Spain): Barcelona-based Heura emerged as one of Europe's fastest-growing plant-based meat brands, achieving €40+ million in annual revenues through distribution in 15 European markets. The company's Mediterranean-focused product line resonates with Southern European consumers.

The Protein Brewery (Netherlands): Developing FERMOTEIN, a protein produced through non-GMO fungal fermentation, The Protein Brewery represents next-generation fermentation approaches. The company's technology achieves 50% protein content at scale with a neutral flavor profile suited for diverse food applications.

Key Investors & Funders

Astanor Ventures (Belgium): One of Europe's most active sustainable food investors, Astanor has deployed >€400 million into alternative protein companies including Mosa Meat, Formo, and multiple precision fermentation startups.

European Investment Bank (EIB): The EIB's climate bank mandate has directed €250+ million toward alternative protein infrastructure, including co-investment in fermentation facility construction and plant protein processing capacity.

Blue Horizon (Switzerland): This specialized food-tech venture capital firm has invested in >50 alternative protein companies globally, with significant European portfolio concentration including stakes in cultivated meat, fermentation, and ingredient companies.

CPT Capital (UK): An early and prolific investor in alternative proteins, CPT Capital backs companies across the value chain from cell line development to consumer brands, with European investments exceeding €300 million.

InnovFin (EU): The European Commission's InnovFin program has provided risk financing to alternative protein innovators, including €40 million in quasi-equity and loan guarantees to European fermentation companies.

Examples

1. Mosa Meat's Maastricht Production Facility (Netherlands): In 2024, Mosa Meat completed construction of its 2,500-square-meter cultivated meat production facility capable of producing 10,000 kilograms of cultivated beef annually. The facility achieved a production cost of €65 per kilogram by late 2025, representing a 78% reduction from 2022 levels. Key metrics include cell doubling time of 22 hours, bioreactor runs of 14 days, and 94% renewable energy sourcing. The company projects cost reduction to €15 per kilogram by 2028 through media optimization and larger bioreactor volumes.

2. ENOUGH's Protein Production Facility (Sas van Gent, Netherlands): ENOUGH completed commercial-scale production of ABUNDA mycoprotein, achieving 50,000 tonnes annual capacity by mid-2025. The facility's environmental footprint measures 0.8 kg CO2e per kilogram of protein—95% lower than beef and 65% lower than chicken. Water consumption stands at 15 liters per kilogram of protein versus 15,000+ liters for beef. The company achieved unit economics enabling profitability at €4.50 per kilogram wholesale price, competitive with premium plant proteins and well below cultivated meat alternatives.

3. Roquette's Pea Protein Expansion (Vic-sur-Aisne, France): Roquette's €300 million pea protein facility, fully operational since 2024, produces 50,000 tonnes of NUTRALYS pea protein isolate annually. The integrated facility sources 85% of pea inputs from European farmers under multi-year contracts, reducing supply chain emissions and supporting EU protein sovereignty goals. Life cycle assessment data shows 1.8 kg CO2e per kilogram of protein isolate. The facility has signed supply agreements covering 70% of output through 2028, demonstrating strong B2B demand.

Action Checklist

• Conduct a Scope 3 emissions inventory specific to protein ingredients across your supply chain, establishing baselines for conventional versus alternative protein categories
• Request life cycle assessment documentation from current and prospective protein suppliers, benchmarking against category averages for carbon intensity, water use, and land footprint
• Evaluate procurement portfolio exposure to cultivated meat regulatory timelines, distinguishing between UK-approved products available now and EU authorization pathways expected in 2026-2027
• Assess precision fermentation ingredient opportunities for reformulating existing products, prioritizing applications where fermentation proteins provide functional advantages alongside sustainability benefits
• Establish price threshold triggers for alternative protein procurement expansion, identifying volume commitment levels that unlock favorable supplier terms
• Engage with food service operators and contract caterers to understand institutional alternative protein demand trajectories and ensure alignment with corporate sustainability reporting
• Review novel food authorization status for priority alternative protein ingredients quarterly, maintaining awareness of EFSA decisions affecting European market access
• Develop sensory evaluation protocols for alternative protein products, ensuring consumer acceptance testing keeps pace with reformulation initiatives
• Build relationships with European alternative protein accelerators and innovation hubs to gain early visibility into emerging ingredients and production technologies
• Establish internal carbon pricing mechanisms that incorporate alternative protein premiums into procurement decision frameworks

FAQ

Q: How do benchmark KPIs differ across alternative protein categories in Europe? A: Carbon intensity ranges dramatically: plant-based proteins typically measure 1.5-4 kg CO2e per kilogram, precision fermentation proteins 3-8 kg CO2e depending on energy source, and cultivated meat prototypes 7-25 kg CO2e at current pilot scale. Water use intensity follows similar patterns, with plant proteins at 10-50 liters per kilogram, fermentation at 20-100 liters, and cultivated meat at 50-400 liters. Land use efficiency favors all alternative proteins substantially over conventional meat, with reductions of 75-99% per unit of protein produced. When evaluating suppliers, request facility-specific data rather than relying on category averages, as individual producer performance varies widely based on energy sourcing, feedstock efficiency, and process optimization.

Q: What regulatory timeline should European buyers expect for cultivated meat availability? A: The UK market offers cultivated meat products in limited channels as of 2025, following FSA approval. For EU markets, EFSA continues evaluating novel food applications from multiple cultivated meat companies, with the first approval decisions anticipated in late 2026 or 2027. Companies including Mosa Meat, Aleph Farms, and Upside Foods have applications under review. Practical availability will depend on production scale-up following approval, suggesting meaningful EU commercial volumes in 2028-2029 timeframe. Procurement planning should treat EU cultivated meat as a 3-5 year horizon opportunity while leveraging UK market access for pilot programs and early product evaluation.

Q: What metrics indicate genuine sustainability performance versus greenwashing in alternative protein claims? A: Rigorous sustainability claims require third-party verified life cycle assessments following ISO 14040/14044 methodology with peer review. Key indicators of credibility include: transparent system boundary definitions (cradle-to-gate versus cradle-to-grave), explicit energy source disclosure (renewable versus grid average), allocation methodology for co-products, and sensitivity analysis for key assumptions. Red flags include claims based on theoretical production scenarios rather than actual facility data, selective metric reporting (carbon without water or land use), and comparisons against worst-case conventional protein benchmarks rather than industry averages. The Smart Protein Project and Good Food Institute Europe publish comparative databases enabling verification of supplier claims.

Q: How should companies balance cost premiums against sustainability benefits when procuring alternative proteins? A: Effective procurement frameworks establish internal carbon pricing or shadow pricing that quantifies the value of emissions reductions, enabling like-for-like cost comparisons. At €100 per tonne of CO2e—consistent with EU ETS projections for 2027-2030—a plant-based protein delivering 50 kg CO2e savings per kilogram relative to beef carries implicit value of €5 per kilogram, partially offsetting retail price premiums. Additionally, CSRD reporting requirements mean Scope 3 emissions reductions carry regulatory compliance value beyond carbon pricing. Companies should also factor brand reputation benefits, noting that consumer research shows 34% of European shoppers actively seeking sustainable protein options. Finally, volume commitments often unlock tiered pricing that substantially reduces per-unit premiums.

Q: What role does European protein crop cultivation play in alternative protein supply chain security? A: European pea, fava bean, and soy cultivation provides feedstock independence from volatile global commodity markets, reducing supply chain risk and transportation emissions. The EU protein strategy targets 25% growth in European legume cultivation by 2030, supported by Common Agricultural Policy eco-scheme incentives. Currently, approximately 70% of European plant protein isolates derive from European-grown crops, with the remainder imported primarily from Canada. Companies prioritizing supply chain resilience should require supplier disclosure of crop origin and evaluate contract farming arrangements that guarantee European sourcing. Emerging protein sources including lupin and rapeseed offer additional diversification, with several European processors developing commercial-scale extraction capabilities.

Sources

• Good Food Institute Europe. (2025). State of the Industry Report: Europe Plant-Based Meat, Eggs, and Dairy. Berlin: GFI Europe.
• European Food Safety Authority. (2025). Novel Food Applications Register and Authorization Status. Parma: EFSA.
• Smart Protein Project. (2025). Plant-Based Foods in Europe: Consumer Research and Market Analysis. Copenhagen: University of Copenhagen.
• McKinsey & Company. (2024). Cultivated Meat: The Path to Commercialization in Europe. Amsterdam: McKinsey.
• Poore, J., & Nemecek, T. (2018). Reducing food's environmental impacts through producers and consumers. Science, 360(6392), 987-992.
• European Commission. (2024). EU Protein Strategy: Towards Sustainable and Resilient Protein Systems. Brussels: EC DG AGRI.
• UK Food Standards Agency. (2024). Cultivated Meat Regulatory Framework and Authorization Decisions. London: FSA.
• CE Delft. (2024). Life Cycle Assessment of Cultured Meat: Updated Analysis with Commercial Production Data. Delft: CE Delft.