Investing in a plant-rich future 

Just as the automobile industry pivots from gas-powered to electric vehicles and the energy sector from fossil fuels to renewables, the food system is poised for its own transformative shift. Crucially, these transitions are motivated not only by an environmental imperative but by a clear economic opportunity. New technologies and innovations can lead to job creation, spur economic growth, and open up new markets.

The transition towards plant-rich diets and alternative proteins is therefore not just a matter of sustainability or ethics. It represents a vast economic frontier. Moreover, the plant-based and alternative proteins sector can create better incomes and stability for farmers, contribute to more diverse food company portfolios, improve food system resilience, and strengthen domestic food security, making a huge contribution to the EU economy.^{1 2}

Based on real-life examples of good food policy, this policy brief examines the potential of a plant-forward transition and shows why investing in alternative proteins is good for national economies as well as our planet.  

“Plants and plant-forward diets are key to our future, as a city, as a nation, and as a planet” 

New York City Health Commissioner Dr. Ashwin Vasan³

Potential for growth

The environmental and public health impetus to diversify our protein supply is becoming more, not less, urgent. Potential for growth and innovation remains abundant. 

• The economic benefits of a food systems transformation are estimated to be at a minimum of 5 trillion USD per year – including rising incomes as part of the transition could further increase those benefits to 10 trillion USD per year.⁴
• Total agricultural income in the EU could increase by 71% by 2050 with a transition to the planetary health diet.⁵  
• In Denmark 27,000 new jobs would be created, if Denmark gets a share of 1 – 3% of the global market for plant-based food.^{6 7}  
• Just a modest increase in the global market share of alternative proteins from today’s 2% to 8% by 2030 could yield an emissions reduction equivalent to the almost total decarbonisation of the aviation industry.⁸ 

So far, the majority of investment in plant-based foods and alternative proteins has come from private sources, such as venture capitalists and impact investors. Public investments, however, are also critical. Since the start of this decade alone, governments have allocated over USD 1:34 trillion towards clean energy initiatives.⁹ As with other sustainable technologies, governments must invest now to maximize their economic and environmental potential. 

Examples of public investments from EU countries^{10 11 12 13 14}