Germany’s food sector is on the verge of a significant transformation, with alternative proteins emerging as a key driver of economic expansion, job creation, and export growth. A new study by systems change company Systemiq, in collaboration with nonprofit think tank Good Food Institute (GFI) Europe, outlines how the country can leverage plant-based, fermentation-derived, and cultivated foods to strengthen its economy while overcoming regulatory and investment challenges.
Germany’s Strength Lies in Manufacturing and Global Supply Chains
The report, A Taste of Tomorrow: How Protein Diversification Can Strengthen Germany’s Economy, highlights that Germany’s real opportunity extends beyond simply producing alternative proteins for domestic consumption. The country is well-positioned to become a global industrial hub by developing and manufacturing the specialized machinery and infrastructure required for the sector’s growth worldwide. Systemiq’s analysis presents different scenarios, showing how varying levels of political support and investment could impact the alternative protein market’s trajectory.
Projected Market Growth: A Conservative vs. High-Ambition Approach
If political support remains limited, Germany’s alternative protein market could still reach €5 billion by 2030 and €8 billion by 2045. Even in this scenario, the sector could generate 45,000 jobs by 2030 and expand to 115,000 jobs by 2045. However, the report warns that unresolved regulatory and investment challenges could cause Germany to lose its leading position in the industry.
Conversely, with strong government backing and strategic investments, the domestic market could expand significantly, reaching €10 billion by 2030 and €23 billion by 2045, equivalent to 10% of the country’s current food and beverage industry revenue. In this optimistic scenario, up to 95,000 jobs could be created by 2030, potentially rising to 250,000 by 2045. The total export potential could soar to €15 billion by 2030 and €35 billion by 2045.
Industry Experts Call for Strategic Investment and Policy Support
Sophie Hermann, Partner at Systemiq, emphasized that alternative proteins present an opportunity to modernize Germany’s food industry, enhance export competitiveness, and create sustainable employment. “Expanding protein sources can strengthen Germany’s global economic position while offering environmentally friendly food choices,” she said. However, she cautioned that the sector is still in its early stages, with uncertainties surrounding regulatory approvals, investment levels, and technological advancements.
Environmental and Public Health Benefits
Beyond economic advantages, the study underscores the environmental and health benefits of increasing alternative protein consumption. Under a high-ambition scenario, Germany could achieve:
• A 4.8 million-tonne reduction in CO₂ emissions by 2045, equivalent to removing one million cars from the road.
• A 1.2 million-hectare decrease in land use, freeing space for other agricultural or conservation purposes.
• A 76 million cubic metre reduction in freshwater consumption, comparable to the annual water use of 420,000 German households.
From a health perspective, expanding alternative protein options could help lower cholesterol and saturated fat intake while increasing dietary fiber, addressing key dietary health concerns.
Five Key Policy Recommendations
Despite Germany’s strong starting position, the report identifies major hurdles, particularly in regulatory approvals and investment levels. To address these, it outlines five key policy interventions:
1. Incorporating alternative proteins into public food procurement for schools, daycare centers, and workplace cafeterias.
2. Increasing public research and development (R&D) funding from €13 million to €140 million annually, with €30 million allocated for an innovation hub.
3. Providing €120 million per year to de-risk private investments in alternative protein infrastructure through guarantees and low-interest loans.
4. Simplifying regulatory pathways to expedite approvals for novel foods. 5. Strengthening domestic protein supply chains by offering incentives to farmers to participate in alternative protein production.
Germany Must Act Now to Lead the Global Protein Transition
Ivo Rzegotta, Senior Public Affairs Manager at GFI Europe, urged policymakers to take swift action, stressing that Germany has a rare opportunity to become a global leader in protein diversification. “The next federal government should prioritize alternative proteins in its agenda by ensuring adequate funding for research, infrastructure, and regulatory support,” he stated. He warned that failure to act could result in Germany falling behind in the global shift toward sustainable food production, potentially missing out on billions in economic benefits and the broader environmental and social advantages this sector offers.
Germany’s Future in Sustainable Food Hinges on Policy Choices
With global demand for alternative proteins on the rise, Germany faces a pivotal moment. The decisions made today—regarding investment, policy support, and innovation—will determine whether the country cements itself as a leader in the sustainable food revolution or falls behind in the race. If Systemiq’s findings are any indication, the potential rewards for early action are immense, both economically and environmentally.
