Scaling up is necessary to maintain a leadership role in the protein transition

Despite the globally recognised expertise in agriculture and biotechnology, startups and scale-ups in the Netherlands face barriers to scaling up. Foodvalley NL and Invest-NL mapped the challenges and make recommendations for the development of 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 operational costs, complex regulations, and funding shortages hinder scaling up.

Challenges in Scaling Up

To accelerate the protein transition, innovation is necessary, but startups and scale-ups in the alternative proteins sector face various obstacles when scaling from laboratory to commercial production. The current pilot and demonstration facilities do not meet the growing demand, and limited access to shared facilities causes delays in market entry. High operational costs, including expenses for equipment, personnel, and raw materials, place a significant financial burden on shared facilities. Navigating the regulations for new food products further complicates the process for startups and scale-ups. Additionally, the "Valley of Death" – the critical funding gap between R&D and commercialisation – hampers innovation and market access.

Recommendations for the growth of the alternative protein sector in the Netherlands

To overcome these challenges and realise the full potential of the Dutch alternative protein sector, Invest-NL and Foodvalley NL put forward several recommendations. Firstly, it is crucial to develop a national strategy that creates innovation clusters and streamlines regulations to stimulate growth. Government policy should support this collaboration with structural financing and infrastructure.

Furthermore, 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.

Moreover, financial support mechanisms should be expanded with vouchers, grants, and innovative financing models. Introducing bridge financing programmes is also important to close the gap between the R&D phase and commercialisation.

"To achieve a sustainable and climate-neutral food system, the transition to alternative protein sources with lower emissions is crucial. The Netherlands has a unique opportunity to become a global leader in the alternative protein revolution. This report is a call to action to collaborate with all parties and stimulate growth in this promising sector," said Michiel Strijland, Business Development Manager at Invest-NL.

"The report highlights the critical need to address the scaling challenges faced by startups and scale-ups," says 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."