Protein Diversification in Retail and Wholesale

Protein diversification is gaining attention as a response to key challenges in the European food system, including climate change, environmental pressures, and import dependencies for protein crops and oilseeds.

For the retail and wholesale sector, it offers potential to improve sustainability and strengthen supply chain resilience, although both demand- and supply-side challenges remain.

Protein diversification is about making use of all protein sources, including animal-based products. The livestock sector remains an essential part of the food system, particularly for balanced diets and in regions less suited to arable farming.

This report focuses on alternative proteins, which are still developing and require further support to reach their potential within a balanced food system combining all protein sources and technologies.

It was developed as part of the School for Moral Ambition Fellowship, based on a voluntary survey, interviews, and feedback from retailers, wholesalers, and national associations. It reflects a range of perspectives without attributing individual views unless stated.

The report aims to share insights and highlight current actions across the sector, while recognising varying levels of engagement and priorities.

It is not a scientific study or a sector position, but a structured overview of current developments supported by research and stakeholder input.

• Opportunities and trends point in the direction of more protein diversification: There are many potential benefits for retailers and wholesalers, as well as resilience and competitiveness potential for other European food system actors – including farmers. To capture these potential benefits, retailers and wholesalers would benefit from setting clear protein diversification targets and actively pursuing them through the direct measures within their influence: product, price, placement, and promotion.

• Most grocery retailers recognize the importance of protein diversification, and many are already taking action, but with varying levels of engagement and diverse opinions, shaped by differing local contexts and perspectives.

• Consumer demand is the main challenge to increase protein diversification from the perspective of retailers and wholesalers: The most advanced companies – despite already taking numerous measures – say that they cannot do this alone. They are looking for more support to achieve their ambitious targets.

• Cooperations with other influential food environment stakeholders – such as the food industry, food service providers, media, influencers, governments, and civil society organisations – would help retailers increase protein diversification and achieve their targets. 
  • Increasing demand for alternative proteins: Demand-driving cooperations with private and public partners can help strengthen consumer in the alternative protein options already available on the market.
  • Building reliable supply chains: Value chain collaborations can support the development and scale-up of better, more affordable products, ensuring consistent supply.
  • Enabling innovation: A supportive regulatory framework and improved access to financing can accelerate innovation, helping create more competitive alternative protein products to better meet consumer expectations.

• Nonetheless, additional research is needed to evaluate to which extent protein diversification could be an attractive way for retailers and wholesalers to enable these potential benefits. A lack of quantitative assessments on more complex aspects like healthier foods for consumers (especially in the context of the UPF-discussion), supply chain resilience, future market opportunities, as well as for margin opportunities and food affordability, shows that there is room for more research and evaluations.

Protein diversification offers a wide range of opportunities for the European retail and wholesale sector, linking sustainability, health, and economic performance with key industry priorities.

Retailers and wholesalers that are interested to increase protein diversification, work on a wide range of measures within their direct sphere of influence, together with other stakeholders, and with internal measures.