A Taste of Tomorrow is the first study to look at the economic potential of alternative proteins for Germany, while also considering broader social and environmental benefits.
Systemiq’s analysis makes the economic case for diversifying the proteins we produce. With the right investment and policy support, it could drive economic growth, enhance trade opportunities, create future-proof jobs, and promote environmental sustainability, positioning Germany as a leader in Europe in the emerging alternative protein sector.
The new analysist, produced with support from the nonprofit think tank The Good Food Institute, finds that the Germany is well placed to become a market leader in this growth sector. Alternative proteins could boost the German economy by up to 65 billion euros and up to 250,000 new jobs by 2045 – if policymakers are prepared to leverage this potential. This would require an average investment per year of €260 million in research and infrastructure, while providing support for a reliable path to market.
Alt-protein as a growth industry
The report outlines various future scenarios, based on the level of policy support and investment. Under a conservative scenario, in which the sector would receive little political support and would fall behind in global competition in terms of private and public investments, the domestic market could reach €5 billion by 2030 and €8 billion by 2045. Even under this conservative scenario, the total market opportunity including export, could create roughly 45,000 jobs by 2030 and 115,000 jobs by 2045. However, due to unsolved challenges, Germany would lose its current leadership role.
In a high-ambition scenario, significant regulatory and investment support could position Germany as a global leader in protein diversification. The domestic market for foods based on plants, fermentation and cultivation could grow to €10 billion by 2030 and €23 billion by 2045, equalling around 10% of today’s food and drinks industry revenues. In this ambitious scenario, the industry could create up to 95,000 jobs by 2030 and up to 250,000 future-proof jobs by 2045.
Germany’s economic potential includes producing sustainable food to meet the demands of its robust domestic market. However, an even greater opportunity lies in leveraging its expertise in manufacturing machinery, such as extruders, fermenters, and other B2B inputs. As a global leader in mechanical engineering and exports, Germany is uniquely positioned to become a cornerstone of the international alternative protein sector, extending its influence far beyond its borders. The total export opportunity for Germany could be up to €15 billion in 2030 and up to €35 billion in 2045 in the high ambition scenario.
Health and environmental benefits
Research has shown that alternative proteins can also form part of the solution to Germany’s health concerns. Diet-related public health issues are a growing challenge in Germany. With 50% of the population affected by overweight or obesity, the nation incurs significant healthcare costs, including €57 billion annually for cardiovascular diseases alone. Innovations in alternative proteins may offer substantial public health benefits, as these products can be made without cholesterol, antibiotics, or excessive saturated fats, providing healthier alternatives to conventional processed meat and seafood. Expanding access to nutritious, sustainable food options could help alleviate rising health concerns and reduce the associated economic burden.
Estimates of the relative environmental impacts of alternative proteins are at an early stage. Based on the best available information, the analysis estimates emissions could be reduced by up to 4.8 million tons of CO₂e (equal to the emissions of one million cars), land use decreased by up to 1.2 million hectares, and freshwater use lowered by up to 76 million m3 (equal to the annual consumption of 420,000 German households) by 2045, in a high ambition scenario.
What can policymakers do now?
The analysis points out that the sector’s success will depend on several factors, such as technological advances, public and private investments in innovation and a clear path to market including regulatory approvals based on scientific evidence. Policymakers play a pivotal role in creating an enabling environment for protein diversification, ensuring Germany capitalizes on its potential. Currently, Germany’s alternative protein market faces significant barriers that risk stifling growth and global competitiveness.
The study identifies five strategic policy interventions, which align with national policy priorities:
Ensure plant-based meat and other alternative proteins are included in community catering - eg, for daycare centres, schools, senior facilities, and public workplace cafeterias.
Significantly increase public R&D investments from €13 million annually today to €140 million annually on average, including around €30 million for setting up an innovation hub.
Deploy €120 million annually to catalyse private investments in alternative protein infrastructure by de-risking investments, using tools like guarantees and low-interest loans.
Support companies in the regulatory framework for novel foods and provide targeted support to enable companies to file high-quality applications.
Strengthen the domestic protein supply chain through incentives for farmers which can position farmers as key players in protein diversification.
“Protein diversification presents a compelling solution, offering sustainable food options, boosting Germany’s economic competitiveness through innovation-driven export, and creating future-proof jobs. Over the next five years, developments in regulation, public and private investments, and technology will play a critical role in shaping the market’s trajectory and reducing this uncertainty.
With strong investment and policy support, Germany can position itself as a leader in protein diversification, driving strong innovation to secure future-proof jobs, economic growth, sustainability, and food security.”
