Dutch firms Foodvalley and Invest-NL have released a new report suggesting strategic recommendations to accelerate the production of alternative proteins in the Netherlands to drive the transition to a climate-neutral food system.
Advancements in plant-based production, cellular agriculture, and fermentation technology are pivotal for such a transition; however, companies’ barriers to scaling up hinder the sector from making an impact.
The market and the barriers
According to the firms, the Dutch market for alternative proteins is forecast to surpass €10 billion by 2030, indicating significant growth potential. The country’s alternative protein sector leverages traditional agricultural strengths with innovative biotechnological research, creating an ideal environment for alternative protein ventures, evidenced by the numerous startups successfully attracting private investments.
This unique positioning provides opportunities for the Netherlands to become a world-class leader amid the growing global demand for sustainable food, driven by shifting consumer diets, technological advancements, and more affordable products.
However, companies are challenged by key barriers while moving from lab-scale to commercial production. The report has identified the following:
- Limited access to facilities: Inadequate pilot and demonstration facilities and limited access to shared factories delay market introductions, as companies can’t test and optimize their processes. Moreover, the Netherlands’ current landscape of shared facilities is fragmented, offering limited capacity, flexibility, specialization, and high costs.
- High operational costs: High equipment, personnel, and raw materials expenses are substantial, “presenting a significant financial burden for shared facilities.”
- Regulatory complexities: Navigating food regulations is challenging, time-consuming, and expensive, hindering alternative protein scaling.
- Funding gaps: The “Valley of Death,” the critical funding gap that startups face between R&D and commercialization, limits innovation and market access.
Protein hubs & financial incentives
The new report proposes a roadmap to unlock this industry’s potential. First, it suggests a national strategy to develop innovation clusters and streamline regulations. This strategy could offer tax breaks for alternative protein companies and provide consistent funding and infrastructure for these collaborative hubs.
Second, it highlights that the Netherlands can empower its alternative protein sector by establishing regional protein hubs with cutting-edge facilities. These hubs, backed by public-private partnerships, would offer specialized equipment and expert personnel to handle various protein production processes. Flexible access models would make these facilities affordable for startups and growing companies.
“To achieve a sustainable and climate-neutral food system, transitioning to alternative protein sources with lower emissions is crucial”
Lastly, it calls for establishing financial mechanisms such as vouchers, subsidies, innovative financing models, and co-investment funds to ease the financial burden on companies. Bridge-funding programs would be especially crucial in providing startups with the resources to transition from R&D to successful commercialization. According to the report, by implementing these financial tools, the government can ensure a robust support system for the alternative protein industry in the Netherlands.
Global leader in alternative protein
Emmanuel Anom, Lead of Shared Facilities at Foodvalley, comments, “By strategically investing in shared facilities and implementing supportive financial mechanisms, we can position the Netherlands as a world leader in the transition to sustainable protein production.”
Michiel Strijland, Business Development Manager at Invest-NL, shares, “To achieve a sustainable and climate-neutral food system, transitioning to alternative protein sources with lower emissions is crucial. The Netherlands has a unique opportunity to become a global leader in the alternative protein revolution. This report serves as a call to action for all parties to work together and stimulate the growth of this promising sector.”
The entire report can be downloaded here.
