Alternative proteins: The market is also on the rise in Europe

The alternative protein sector has the potential to transform the global food industry and drive sustainable food solutions. Driven by veganism, increasing environmental demands, and changing consumer behavior, demand is growing steadily. This is creating a dynamic market with attractive opportunities for companies and investors.

Alternative proteins form the basis for many innovative foods that serve as sustainable alternatives to meat, fish, seafood, and dairy products. They are derived from plants, cultured animal cells, microorganisms, and insects:

Plant-based: Proteins derived from vegetables or herbs.
Cultured: Proteins derived from animal cells.
Microorganism-based: Proteins derived from algae, seaweed, mycelium, microbes, and other types of microorganisms through processes such as fermentation.
Insect-based: Proteins derived from insects such as crickets and black soldier flies.

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Alternative Protein Sector: Current Market Trends

The number of transactions in the alternative proteins sector had already stabilized by 2024, and the market continued to recover last year. This is evidenced by the figures in the latest issue of our English-language “Alternative Protein Deal Cosmos.” Compared to general market conditions, transactions related to alternative proteins proved quite resilient; however, investors in this segment remain cautious and are increasingly focusing their capital on mature, scalable models with clear regulatory frameworks.

The alternative protein sector is expected to continue expanding its market size in the future despite macroeconomic pressures. This trend is supported, among other things, by public funding and a strong focus on technology- and research-driven innovations—such as an AI-powered precision fermentation platform and the world’s first autonomous insect protein factory.

Alternative Protein Deal Cosmos Q3 2025

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The Growing Importance of Alternative Seafood

In the Deep Dive section of this issue, we focus on alternative seafood. Its strategic market significance continues to grow due to overfishing, climate-related supply risks, and contamination concerns. Transaction activity rose by 23.5 percent last year, while the disclosed transaction value increased by 48.4 percent. Despite projected market growth from 2.1 billion euros in 2025 to 13.5 billion euros in 2033, scaling remains challenging due to cost pressures and a lack of clear regulation.

A brief overview of the performance of the four main segments:

The positive growth of the alternative protein sector continued last year, though there were significant differences among the four main segments.

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Plant-based proteins

Plant-based proteins will remain the largest and most mature segment in 2025, with a market size of 15.5 billion euros. Despite slower growth, they continue to outperform many traditional food sectors and attract high deal volumes.

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Microorganism-derived proteins

This segment will see the highest level of deal activity and strong growth in 2025, driven by innovations in fermentation and AI-powered bioprocess technology. Public funding is accelerating the transition from a niche market to industrial-scale production.

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Insect-based proteins

Due to regulatory uncertainties and low consumer acceptance, a decline in transactions involving insect proteins is expected by 2025. Nevertheless, ongoing activity in the pet food and aquaculture sectors points to long-term potential.

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Cultivated proteins

Cultivated proteins will see a decline in deal activity in 2025, but will come into sharper focus due to technological advances and growing media attention. Regulatory hurdles are slowing down scaling, but the first approvals are opening up new opportunities.

Our annual English-language report, “Alternative Protein Deal Cosmos,” along with our quarterly updates, provide a comprehensive overview of key market developments, recent deals, and industry trends in this sector.