Germany’s alternative protein sector could contribute billions to economy

A new analysis from SYSTEMIQ, in partnership with The Good Food Institute Europe, suggests that Germany’s alternative protein sector has the potential to generate up to €65 billion in economic value and create 250,000 jobs by 2045. The report, titled A Taste of Tomorrow, highlights how targeted investments in research, infrastructure, and regulatory support could position Germany as a leader in the global protein transition.

The findings indicate that alternative proteins—including plant-based, fermentation-derived, and cultivated options—could become a significant part of Germany’s food system, representing an industry valued at €10 billion by 2030 and €23 billion by 2045. This expansion could create up to 95,000 jobs by 2030 and a quarter of a million by 2045 if the country takes a proactive approach in supporting the sector.

The report outlines different growth scenarios based on the level of investment and policy support. Under a high-ambition scenario, where Germany prioritizes alternative proteins through targeted funding, favorable regulations, and research incentives, the industry could expand at a rapid pace, contributing significantly to both the national economy and sustainability goals.

Even in a moderate-growth scenario, where the sector develops without strong policy backing, the domestic market for alternative proteins could still reach €5 billion by 2030 and €8 billion by 2045. However, this would create fewer jobs—around 45,000 by 2030 and 115,000 by 2045—suggesting that strategic support could unlock much greater economic and employment potential. Without such backing, Germany risks lagging behind other nations that are aggressively investing in alternative protein production and infrastructure.

Beyond domestic consumption, Germany has an opportunity to lead in the global alternative protein industry due to its established expertise in manufacturing and engineering. The country is a global hub for mechanical engineering, producing essential equipment like extruders and fermenters used in food production. By leveraging its strong industrial base, Germany could secure a position as a key exporter of alternative protein technology and equipment.

Under the high-ambition scenario, Germany’s export potential for alternative protein technology and products could reach €15 billion in 2030 and €35 billion in 2045. This would strengthen Germany’s position as a major supplier in the global food production market while supporting domestic businesses that develop processing equipment, ingredients, and production facilities.

The transition to alternative proteins also presents opportunities for improving public health and reducing the environmental footprint of food production. Currently, around half of Germany’s population is overweight or obese, contributing to significant healthcare costs, including an estimated €57 billion annually for cardiovascular diseases alone. Expanding access to plant-based and fermentation-derived proteins, which are generally lower in saturated fats and cholesterol, could play a role in reducing diet-related health issues.

While concerns around ‘ultra-processing’ of alternative protein products have been raised, existing research does not establish a direct link between plant-based meat consumption and negative health effects. In fact, studies suggest that shifting toward plant-based diets can offer health benefits when nutrient density and processing methods are carefully considered.

From an environmental standpoint, alternative proteins require fewer resources than conventional meat production. They use less land and water, generate lower greenhouse gas emissions, and help reduce dependence on deforestation-linked supply chains, such as those associated with soy-fed livestock and palm oil production. These sustainability benefits align with Germany’s broader climate goals and could make the sector an important contributor to emissions reduction strategies.

To fully capture the economic and environmental benefits of alternative proteins, the report recommends a sustained public investment of approximately €260 million per year in research, development, and infrastructure. Increased financial support for scientific research in plant-based, fermentation-derived, and cultivated protein development would help accelerate innovation and drive progress in the sector. Expanding production facilities and supply chain capabilities would be necessary to support large-scale alternative protein manufacturing, ensuring that companies can scale efficiently. Regulatory clarity and streamlined approval processes for novel food products would also play a crucial role in enabling broader adoption. Greater public awareness of the benefits of alternative proteins could further drive consumer demand and acceptance, making these products more mainstream.

To successfully develop a competitive alternative protein sector, industry players and policymakers must collaborate closely. Companies involved in food production, biotechnology, and equipment manufacturing can benefit from government-backed incentives, ensuring that Germany does not fall behind international competitors. Governments in other regions, including the USA, Singapore, and Israel, have already invested heavily in alternative proteins, positioning themselves as leaders in the field. If Germany follows suit with strategic funding and regulatory support, it can strengthen its leadership in food innovation while ensuring economic and environmental benefits.

Germany’s alternative protein sector represents a significant economic opportunity, with the potential to drive job creation, innovation, and sustainability. Whether through domestic production, technological leadership, or export potential, the industry can contribute to the country’s long-term economic resilience. However, realizing this potential will require deliberate investment, clear policy direction, and cooperation between businesses, research institutions, and policymakers.

As demand for alternative proteins continues to grow globally, Germany has a choice: take a proactive role in shaping the future of food, or risk ceding leadership to other nations. The decisions made today will determine whether the country emerges as a key player in this rapidly evolving industry.