Protein transition: can the Netherlands keep the lead?

The Dutch market for alternative proteins is on the verge of significant growth, with expectations that the sector will exceed €10 billion by 2030. Despite being globally recognized for its expertise in agriculture and biotechnology, startups and scale-ups in the protein transition are facing various challenges in scaling up their operations. Foodvalley NL and Invest-NL have identified these bottlenecks and made recommendations to develop a strong ecosystem for alternative proteins.

Challenges in Scaling Up

Transitioning to alternative proteins requires innovation, but companies in this sector are encountering difficulties in scaling from lab-based to commercial production. Current pilot and demonstration facilities do not meet the growing demand, leading to delays in market introduction. Additionally, high operational costs, particularly for equipment, personnel, and raw materials, present a significant financial burden. The complex regulatory landscape further complicates the process for startups and scale-ups trying to bring new food products to market. Furthermore, the critical funding gap between R&D and commercialization, often referred to as the “Valley of Death,” is hindering innovation and market access.

Recommendations for Growth

To overcome these challenges and fully realize the potential of the alternative protein sector in the Netherlands, Invest-NL and Foodvalley NL have made several key recommendations. A national strategy that creates innovation clusters and streamlines regulations is essential to stimulate growth. Strategic investments in shared facilities are also crucial. Establishing regional hubs with advanced shared facilities, supported by public-private partnerships, can help companies scale up more rapidly. Flexible access models could make these facilities more affordable for startups and scale-ups. Lastly, financial support needs to be expanded with vouchers, subsidies, and innovative financing models to bridge the funding gap between the R&D phase and commercialization.

Read the report ‘Enhancing the ecosystem for alternative protein innovation: Strategies for scaling success’

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