Alternative protein sources, including algae, insects, microbial fermentation, and cultured meat, present a promising opportunity to alleviate the environmental burdens associated with conventional livestock production, which is characterized by high energy and water consumption, significant greenhouse gas emissions, and considerable waste generation. While alternative proteins generally require less water and land and produce fewer greenhouse gas emissions compared to conventional animal proteins, there are variations and complexities within each alternative that necessitate further research and optimization. For example, the energy used in producing some alternative proteins can be equivalent to or even higher than their conventional counterparts, and specific feed sources for alternatives such as insects and algae can result in higher greenhouse gas emissions compared to soybean. Moreover, while alternative proteins tend to generate less waste, with some even offering circular economy benefits by utilizing waste as an input, the full extent of their sustainability potential is yet to be fully realized and requires further investigation. Some of the alternative protein sources offer a beneficial macronutrient profile when compared to conventional animal-based proteins, although research on their bioavailability depending on type of alternative protein, mode of production and mode of processing is ongoing. Alternative proteins have advantageous profiles when it comes to their micronutrient content, although there too the impact of different production processes and processing deserves further investigation. The potential of alternative proteins to replace conventional protein sources hinges on their nutritional contribution to people’s and animals’ diets, besides their price, regulation, and consumer acceptance. The level of investment in R&D, commercial and technological maturity and industrial capacity further point to how the future of alternative proteins may play out. The outlook as it emerges from this study is summarized below, for each category considered. Algae as an alternative protein presents less potential for food rather than feed. That is principally due to low consumer awareness and the limited possibilities for generating wholesome food products from algae. By contrast, there is more support for its potential as a supplement to feed.

The EU algae sector has not joined in the aquaculture expansion that has characterized it elsewhere in the world. There are knowledge gaps and industrial capacity to address before the industry may scale up. The current costs of producing seaweed protein ingredient is too high to be competitive with conventional alternatives (e.g. soy protein), especially for species with low protein content, such as sugar kelp. Substantial investments in cultivation and processing infrastructure as well as co-extraction of protein and high-value compounds would be needed to sustain the development of the emerging European seaweed industry, while innovative methods could be implemented for lowering the environmental impact of seaweed protein ingredients. Insect production for food and feed is less land-intensive and can have lower greenhouse gas emissions than traditional livestock, especially when insects are fed organic waste. Energy use varies but can be significantly lower compared to beef. GHG emissions are influenced by diet, but emissions are generally lower than conventional proteins, while water use is generally higher. Nutritionally, insects offer high-quality protein with a better feed conversion ratio than beef and similar to poultry. Their amino acid profiles are comparable to soybean meal, making them suitable for feeding certain livestock, although only as a partial replacement for optimal growth performance. Insects hold the most potential as a supplement for compound foods, especially sports foods and functional foods, as a feed supplement. The EU is seeing growth in insect farming, supported by R&D and regulatory advancements, but faces hurdles in market development and competitive pricing. Challenges include achieving consumer acceptance and managing potential allergens like chitin alongside scaling up production sustainably. Microbial fermentation offers the potential to reduce environmental impacts, in particular land use and GHG emissions. Mycoproteins are best understood in terms of their contribution to nutritional needs, offering a palatable and nutritious alternative to meat, with the added benefit of beneficial micronutrients. The potential of microbial fermentation largely lies principally with the provision of useful food ingredients, with some alternatives already mature and many others at early stages of development and commercialization. Insufficient food grade industrial capacity is a known bottleneck for the expansion microbial fermentation, in the EU and elsewhere, although an influx of investments (both public and private) in recent years have begun to fund the construction of large scale production capacity. Cultured meat offers potential environmental benefits compared to conventional animal proteins, particularly relative to beef production. While it is an energy-intensive production process, cultured meat uses industrial energy that in principle can be generated sustainably, requires less land and water, and may emit fewer greenhouse gases. Nutritional profiles of cultured meat are likely to be similar to conventional equivalents, but in theory can also be adjusted to reduce undesirable components like cholesterol and saturated fats. Cultured meat still faces significant challenges in scaling up production, reducing costs, and achieving consumer acceptance. Whilst regulatory approval has been granted in other territories, no cultured meat products have been approved for the EU market. The technology is still in development, with pilot-scale facilities operating worldwide and a need for commercial production facilities in the EU. Despite increased investment and R&D funding, the industry still faces challenges in production capacity, facilities, supply chain integration and scalability. Consumer acceptance will be crucial for successful substitution of conventional animal proteins with cultured meat.