A recent report on the alternative protein sector in Catalonia by the public agency Catalonia Trade & Investment reveals that the industry comprises 103 companies employing nearly 1,000 people and collectively generating €269 million in revenue.
With a global market projected to reach $1 trillion by 2040, the report says Catalonia is well-placed to capitalize on this immense opportunity with its community of food innovators, from small startups to established meat and dairy companies to ingredient suppliers.
The authors note that despite recent economic uncertainties, the outlook for the plant-based sector remains positive due to sustained consumer demand, growth in emerging markets, and innovative product improvements.
“In 2023, the market revenue generated by meat substitutes (plant-based meat) in the European Union (EU-27) amounted to about US$ 1.96 billion. By 2028, this amount is expected to exceed three billion dollars,” the report highlights.
A sector in expansion
Catalonia’s ecosystem is composed of producers, business organizations, associations, clusters, technology transfer platforms, and incubators. Universities, research centers, trade fairs, and conferences such as Alimentaria and BioCultura, which focus on this sector, are also integral parts of the ecosystem.
According to the report, the sector is in “clear expansion,” with 36.9% of the companies being less than ten years old, over two-thirds (68%) are small and medium-sized enterprises (SMEs), and 10.7% are startups.
Almost 70% of these companies are exporters, with over half exporting regularly, and 14.6% are Catalan subsidiaries of foreign businesses, highlighting the sector’s international framework. The report discusses the plant-based meat companies Heura and AlterVego and the precision fermentation startup Real Deal Milk as case studies.
Regarding government interest, Catalonia invested €7 million in Spain’s first Center for Innovation in Alternative Proteins, CiPA. The center focuses on research and innovation in biomass production, plant protein extraction, ingredient functionalization, safety evaluation, food prototypes, and food waste.
In addition, earlier this year, the Catalonia government announced a €12 million investment in a pre-industrial facility in Alcarràs, Lleida, to develop alternative protein ingredients and foods.
Foreign investment and international expansion
The region’s robust value chain and supportive business environment have attracted significant investment and innovation. The report notes that Germany’s HelloFresh launched in Barcelona in 2022, while Sweden’s Midsona is boosting investments in Vegetalia for plant-based meat alternatives.
Meanwhile, Japanese multinational Otsuka is enhancing its nutraceutical subsidiary, Nutrition & Santé, and Natural Gourmet Foods has opened a plant-based meat production and distribution facility.
According to Catalonia Trade & Investment, with its booming alternative protein sector, the region’s companies have global business opportunities with rising consumer demand in Singapore, Canada, China, South Africa, Australia, the Netherlands, and France. However, the industry faces challenges, such as technological advancements to match traditional food production capabilities and innovations in fermentation and cultivated meat production.
“It is exciting to see this growing ecosystem coupled with government investment in science as was announced by the Catalan government at the end of last year. This supports the proliferation of cutting-edge research and development to further expand and improve alternative protein products,” the Good Food Institute Europe shared on social media.
