NIRAS says agility and scalable plant-based production will reshape food manufacturing in 2026

Food and beverage manufacturers were expected to rethink how their factories were designed, operated, and justified in 2026, with agility and scalable plant-based protein production emerging as defining priorities, according to engineering consultancy NIRAS. Drawing on its work across Europe and beyond, the firm said companies would face growing pressure to build more flexible operations that could respond quickly to market volatility, cost constraints, and shifting consumer demand.

Jonas B. Borrit, Vice President for Process Industries at NIRAS, said recent years had fundamentally altered the operating environment for manufacturers and that those pressures were unlikely to ease in the year ahead.

“Manufacturers across Europe have faced hugely challenging market forces over recent years. In 2025 alone, we’ve seen ever-changing tariffs, stagnant economic growth and rising labor costs, on top of the constant challenge of constantly shifting consumer demands,” Borrit said.

He added that these conditions were forcing companies to become more adaptive and disciplined in how they approached investment and operations.

“For example, at NIRAS we’ve been discussing the rising demand for capital avoidance, a focus on optimizing existing operations fully before looking at capital expenditure, and the scrutiny on costs and budgets means this approach will be just as important next year,” Borrit said.

Alongside Borrit, NIRAS colleagues Nick Hickman, Vice President for Business Development, and Jolmer Nieuwkerk, Engineering Expertise Manager, shared their expectations for how manufacturing strategies would evolve in 2026, based on projects spanning dairy, alternative proteins, and broader food processing.

One of the clearest shifts, according to Nieuwkerk, was the move from experimentation to scale in plant-based protein manufacturing. While many early-stage companies had already proven their concepts, he said 2026 could mark a turning point toward industrial production.

“2026 could be the year that the plant-based protein revolution grows at scale. Consumer demand for alternative protein sources has never been higher, driven both by huge improvements to the taste and texture of products and a rising awareness about the impact of animal proteins on the environment,” Nieuwkerk said.

He noted that start-ups and smaller innovators were likely to continue leading this transition, but that scaling remained a major hurdle.

“There are so many innovative plant-based startups moving products towards pilot and factory scale. The key challenge facing them all is accessing the funding and technical insights to enable them to turn their ideas into safe, scalable and profitable operations and compete with more established players,” he said.

Nieuwkerk also pointed to growing interest in hybrid protein products that combine plant-based and animal-derived ingredients. He said these approaches could reduce animal content while preserving familiar product characteristics, but required careful process design.

“There is more focus on hybrid approaches within the protein transition. Plant-based is truly different from animal-based; both the process and the product are distinct since pure plant proteins behave differently. Yet, you can still reduce hybrid content while maintaining the desired product characteristics and ensuring the process remains suitable,” he said. Manufacturers, he added, would need to address practical challenges around hygienic design and scalability to succeed.

Energy use and emissions were another area where NIRAS expected continued evolution. Borrit said sustainability considerations were becoming inseparable from cost management, rather than a separate objective.

“The fundamentals of sustainable manufacturing are arguably even more important given the pressure on costs. Lower emissions, increased energy efficiency and cost reductions are vital considerations for businesses to drive growth, without considering the huge impact manufacturers have on planet health,” he said.

He pointed to advances in heat pumps, green fuels, and power-to-X solutions as expanding the options available to manufacturers. In particular, he said heat pump technology was reaching higher operating temperatures, making it increasingly relevant for food and beverage processes that had traditionally relied on fossil fuels.

At the same time, Hickman said capital projects were coming under far closer scrutiny. Global economic uncertainty had slowed approvals and increased the need for rigorous financial justification.

“This year we’ve seen many CapEx projects face tighter scrutiny due to global macroeconomic instability delaying approvals and increasing pressure on costs before work can begin,” Hickman said.

Looking ahead, he said a stronger focus on total cost of ownership would be essential.

“This rising scrutiny means that an increased focus on analysis of the total cost of ownership will be vital for businesses. More emphasis on TCO in 2026 will help to assess the viability of projects and support businesses to continue to invest in their facilities for much-needed capacity and efficiency improvements,” he said.

Agility in manufacturing footprint and design was another theme expected to gain momentum. Hickman said speed-to-market and cost pressure were pushing manufacturers to rethink traditional factory models built around large volumes and inventories.

“Speed-to-market remains key, and ongoing cost pressures mean manufacturers need adaptable, efficient facilities that can respond quickly to market changes,” he said. “A factory designed for multiple products has always been inherently flexible and this flexibility should be part of the design process.”

Borrit added that site selection was also shifting, with more facilities being developed closer to urban areas to improve access to skilled labor.

“As well as demand for more agile facilities, new production sites will be increasingly located closer to urban areas. This shift makes it easier to attract and retain staff, but brings additional supply chain challenges,” he said. Many existing European sites, he added, were also under pressure to refurbish, with payback periods and productivity gains now central to investment decisions.

Taken together, NIRAS said these trends pointed to a year in which food and beverage manufacturers would prioritize flexibility, disciplined investment, and scalable alternative protein production as they navigated another period of uncertainty and transformation.