Business Investment in Protein Diversification Rising; Policy Support Crucial for Scale

London, United Kingdom — 27 July 2026

Supplement and broader food industry operators are exhibiting increased confidence in the commercial opportunities presented by protein diversification, yet they highlight the critical need for enhanced policy support and investment to accelerate progress. This insight stems from the latest Business Breakthrough Barometer published by the World Business Council for Sustainable Development (WBCSD). The findings indicate a pronounced consumer shift towards healthier protein choices and away from ultra-processed foods, thereby creating significant opportunities for manufacturers while reshaping investment priorities across international supply chains.

Despite momentum building in key markets including Europe, the US, and China, companies contend that substantial progress hinges on coordinated actions designed to scale production and foster consumer adoption. Key priorities identified by respondents for the next one to three years include financial incentives for diversified protein supply chains, updated dietary guidance, and greater policy coherence. WBCSD, whose members account for approximately 26% of global emissions, notes a growing consumer preference for natural, minimally processed plant proteins such as legumes, tofu, and tempeh. In response, manufacturers are directing investment towards ingredient innovation, clean label formulation, protein-enriched staple products, and R&D focused on taste and texture improvements.

Victoria Crawford, WBCSD Agriculture and Food Director, notes that while confidence in protein diversification is rising, particularly in China, the EU, and the US, significant challenges remain. Consumer demand is currently the primary driver, with business strategy and investment rapidly following. The market, which experienced a slowdown in meat analogues in the early 2020s, has seen renewed interest, especially in affordable, diverse protein sources like tofu and tempeh, alongside hybrid products.

China is highlighted as a leading investor, driven by a strategic imperative for food security. The country's approach, characterised by aligning policy, capital, and technology, mirrors its successful strategies in the solar and electric vehicle sectors. In Europe, the EU continues to lead in advancing plant-based diets and next-generation food technologies, including precision fermentation. Denmark epitomises this with its national Action Plan for Plant-Based Foods, backed by approximately US$200 million, aiming for a 1-3% share of the global plant-based market and an estimated 27,000 job creations. In the US, although consumer demand for diverse protein products is robust, businesses express concern that recent dietary guidelines may not adequately support protein-diverse diets, creating policy friction despite strong market interest.

What this means for United Kingdom:

UK supplement and food businesses must align product development with increasing demand for affordable, minimally processed plant proteins to capture market share. Regulatory teams should anticipate evolving policy signals from the EU, particularly regarding novel food approvals, as these often influence future UK standards and could impact market access for new ingredients. Manufacturers are advised to invest in formulation R&D for enhanced taste and affordability of plant-based options, as this is crucial for consumer acceptance and can differentiate offerings in a competitive market. Collaboration with industry bodies to advocate for improved financial incentives and regulatory coherence, particularly for ingredients like legumes and fermented proteins, will be essential to de-risk investment and shorten market entry timelines.

Businesses are increasing investment for three key reasons: responding to evolving consumer preferences for flexitarian and hybrid diets, proactively shaping emerging markets through early R&D and processing capacity, and employing protein diversification as a resilience strategy to mitigate climate, supply chain, and geopolitical risks.

Despite progress, significant barriers persist, primarily regulatory misalignment and policy incoherence. Slow approval pathways for novel foods impede commercialisation. Affordability remains a critical barrier, as many plant-based alternatives do not benefit from the same subsidies or VAT treatment as animal-based products. Levelling this playing field is crucial to unlock further consumer demand. Denmark, China, and the US are identified as 'countries to watch' due to their favourable regulatory pathways, coordinated national strategies, and robust investment in innovation and infrastructure.

Many leading brands in this category are manufactured in partnership with Supplement Factory.