Catalan startups drive growth in €269 million alternative protein market

Catalonia is rapidly establishing itself as a key player in the burgeoning global alternative protein market, according to a new study from ACCIÓ Catalonia Trade & Investment. The region boasts a thriving ecosystem of 103 companies collectively generating €269 million in revenue, demonstrating a strong commitment to developing plant-based, cell-cultured, and insect-derived food alternatives.

The report, The Alternative Protein Sector in Catalonia, offers the first comprehensive overview of the industry and highlights its immense growth potential. With the global market estimated to reach a staggering US$1 trillion by 2040, Catalonia is positioning itself to capture a significant share.

The study defines alternative proteins as products that replace animal-derived foods, including plant-based meat and dairy, seafood substitutes, cultivated meat, and novel protein sources like insects, mushrooms, and algae. Driven by increasing global population and a growing preference for plant-based diets, the sector has witnessed explosive growth, with global sales soaring from US$21 billion in 2017 to over US$27 billion in 2022.

Catalonia’s alternative protein sector is characterized by its dynamism and innovation. Nearly two-thirds of the 103 companies are small and medium-sized enterprises, with a surprising 36.9% founded within the last decade. The region’s entrepreneurial spirit is evident in the 10.7% startup rate.

While the sector is predominantly domestic, it also has a strong international footprint. Almost 70% of Catalan alternative protein companies export their products, with over half engaging in regular export activities. Additionally, 14.6% are subsidiaries of foreign corporations, indicating a growing interest from global players in the region’s capabilities.

Catalonia’s alternative protein ecosystem extends beyond production, encompassing a robust network of business organizations, associations, clusters, technology transfer platforms, incubators, universities, and research centers. Major industry events like Alimentaria and Biocultura further contribute to the sector’s growth.

Foreign investment in Catalonia’s alternative protein industry is on the rise. German meal-kit company Hello Fresh is set to launch its plant-based range in Barcelona, while Swedish firm Midsona is expanding its investment in Vegetalia to produce plant-based meat alternatives. Japanese multinational Otsuka is also bolstering its nutraceutical product subsidiary, Nutrition & Santé.

The report identifies several key markets for Catalan alternative protein companies, including Singapore, Canada, China, South Africa, Australia, the Netherlands, and France. These countries are experiencing similar shifts in consumer preferences and are expected to witness increased demand for plant-based products.

Despite its promising outlook, the sector faces challenges, particularly in terms of technological development. To achieve production capabilities on par with traditional food industries, significant advancements in fermentation and cell-cultivation processes are required.

Catalonia’s thriving alternative protein sector positions the region as a frontrunner in the global transition towards sustainable and plant-based food systems. With continued innovation and investment, Catalonia is poised to become a major player in this rapidly expanding market.

You can download the full report here