Beans, nuts, mushrooms, milk and cheese in containers

DLG Insights: Alternative Protein Sources

Perspectives along the value chain: agriculture, market and consumption

Alternative protein sources are becoming increasingly important in the food industry—particularly for meat and dairy alternatives.

The main drivers are changing dietary habits, health considerations and environmental concerns.

Plant-based protein sources such as soybeans, peas and other legumes are a particular focus; in some cases, proteins from fungi or insects are also being used.

To better assess market potential, consumer acceptance, and the opportunities and challenges for agriculture and the food industry, DLG conducted a study on alternative protein sources together with Prof. Dr Holger Buxel of Münster University of Applied Sciences at the end of 2025.

The study is based on surveys of farms and consumers addressing the cultivation, marketing, awareness, image and consumption of alternative protein sources, as well as meat and dairy alternatives.

Key insights from the study

From cultivation to consumption:
alternative protein sources need acceptance, quality and reliable markets

The market for alternative protein sources is clearly growing, but it remains in a transitional phase without a clear breakthrough.

There is potential in agriculture, particularly for peas, field beans and soybeans. At the same time, low prices, uncertain returns and a lack of marketing channels are slowing further development.

Consumers are increasingly taking a positive view of meat and dairy alternatives, associating them primarily with environmental and animal-welfare benefits.

Taste, price and quality still drive purchases; only around one in four buyers consciously considers the protein source.

Although meat and dairy alternatives are being consumed more regularly, they are still often perceived as inferior to animal-based products in terms of taste or quality.

The central challenge is to improve the integration of the entire value chain: alternative protein sources can only realise more of their market potential if cultivation, processing, product quality, marketing and consumer acceptance work together.

Summary

Expert insights

Perspectives from science and practice

“Domestic protein crops offer potential—but expanding their production requires more than additional acreage: reliable sales channels, fair prices and structures that allow farmers to participate more strongly in the value created.”

Stefan Beuermann, UFOP

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“The key is to take a view of the entire value chain: protein crops can only be used successfully if variety, quality, processing and sales are considered together at an early stage.”

Dr Jasmin Dold-Schmid, BiGuPro GmbH

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“Plant proteins must do more technologically than merely replace animal proteins: functionality, taste, consistent quality and economically scalable processes are crucial.”

Christian Zacherl, Fraunhofer IVV

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“The key lies in enjoyment and suitability for everyday life: alternative products must meet familiar expectations while also being perceived as a genuine enhancement.”

Simone Poppe, NewFoodConsulting

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“We are seeing growing demand for alternative products, particularly among younger target groups.”

Alexander Liedke, Head of Quality and Sustainability, Lidl in Germany

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“However, there are not yet any specific recommendations for plant-based meat and dairy alternatives. Although their presentation and consumption habits often suggest a direct substitution, a differentiated assessment is nevertheless required.”

Dr Andrea Lambeck, German Association of Ecotrophology (VDOE)

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