The Dutch alternative protein market is on the brink of exponential growth and is expected to exceed €10 billion by 2030. Despite globally recognized expertise in agriculture and biotechnology, startups and scale-ups face obstacles in scaling up. Foodvalley NL and Invest-NL mapped the challenges and make recommendations for developing a Dutch ecosystem for alternative proteins. The report “Enhancing the ecosystem for alternative protein innovation: Strategies for scaling success,” shows that limited access to facilities, high operating costs, complex regulations and funding shortages stand in the way of scaling up. With national cooperation, focused infrastructure, and innovative financing models, the Netherlands can further strengthen its role as a leader in food innovation.
Scaling-up challenges
Accelerating the protein transition requires innovation, but startups and scale-ups in the alternative protein sector face several obstacles in scaling up from laboratory to commercial production. Current pilot and demonstration facilities do not meet growing demand, and limited access to shared facilities leads to market launch delays. High operational costs, including expenses for equipment, personnel and raw materials, are a significant financial burden for shared facilities. Navigating regulations for new food products further complicates the process for startups and scale-ups. In addition, the “Valley of Death” – the critical funding gap between R&D and commercialization – hinders innovation and market access.
Recommendations
Invest-NL and Foodvalley NL make several recommendations to overcome the challenges and harness the full potential of the alternative protein sector in the Netherlands. First, developing a national strategy that creates innovation clusters and streamlines regulations to stimulate growth is crucial. Government policy should support this collaboration with structural funding and infrastructure.
In addition, strategic investment in shared facilities is essential. Establishing regional hubs with advanced shared facilities, supported by public-private partnerships, can help companies grow faster. Implementing flexible access models makes these facilities more affordable for startups and scale-ups.
Furthermore, financial support mechanisms should be expanded to include vouchers, grants and innovative financing models. Introducing bridge funding programs is also important to bridge the gap between R&D and commercialization phases.
“The transition to alternative protein sources with lower emissions is crucial to achieve a sustainable and climate-neutral food system. The Netherlands has a unique opportunity to become a global leader in the alternative protein revolution. This report serves as a call to action to work together with all parties to stimulate the growth of this promising sector,” said Michiel Strijland, Business Development Manager at Invest-NL.
Critical need
“The report highlights the critical need to address the scale-up challenges of startups and scale-ups,” said Emmanuel Anom, Lead Shared Facilities at Foodvalley NL. “By strategically investing in shared facilities and implementing supportive financial mechanisms, we can position the Netherlands as a world leader in the transition to sustainable protein production.”
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