Analysis: Denmark misses the export potential in new plant-based foods

There is a huge untapped export potential in Denmark's production of plant-based foods. This is stated in a new analysis from the Technical University, which points out that the industry's development towards greater production and export of plant-based foods to European nearby markets must be won both with consumers, in retail, and within foodservice. "We have a historically good starting point with skilled entrepreneurs, strong research environments, and political support. Now we need to combine technology, market, consumer preferences, and risk-capital so that good ideas do not get stuck on the way from laboratory to shopping cart. Companies that can adapt their products to meet consumers across countries will win the European market," says Lars Hinrichsen, Business Director at the Technical University, in a press release. In this context, it makes sense that Bio Aus Dänemark and the Organic Land Association have actively worked for several years to increase the export of plant-based foods through the "DACH project," which focuses on strengthening Danish exports of vegetables and legumes to the DACH countries: Germany, Austria, and Switzerland. To promote plant-based specialty crops, grains, and legumes from Denmark, the DACH project invited a group of Danish organic farmers to participate in the Biofach fair in Nuremberg this year, which is the world's largest organic trade fair. At the same time, many Danish producers of plant-based meat alternatives were among the Danish exhibitors at the international fair, where, according to Dennis Hvam, International Market Manager at the Organic Land Association, a series of exciting contacts with potential customers in the DACH countries were established. He assesses that Denmark has good opportunities to increase exports, supported by the analysis "Plant-Based Foods: From Technology to Plate" from the Technical University. It points out that Denmark has achieved a top international position within new plant-based foods in just a few years. Danish research in plant-based foods is ranked number 1 in the world based on the number of peer-reviewed scientific publications per capita. At the same time, Denmark is number 3 in the world based on patents per capita, and the country's politicians see a good business opportunity. One of the strongest export opportunities The government's action plan for plant-based foods indicates significant growth potential for the sector, both in terms of climate and health, but also as one of Denmark's strongest export opportunities in the food area. The technological challenges of producing new plant-based foods are largely solved, according to the analysis, and production is ready for larger-scale manufacturing. Nevertheless, many companies struggle to achieve commercial success and to make plant-based foods a natural part of consumers' daily lives. This includes Organic Plant Protein and Matr Foods, both active abroad. The analysis from the Technical University highlights three interconnected measures that can translate Denmark's strengths into growth: consumer acceptance, export, and a strengthened, market-oriented infrastructure. Especially the international focus is crucial, writes the Technical University. "The Danish food industry has built strong experience over decades with efficient logistics and global market access. At the same time, knowledge of high, sustainable quality is a Danish core competence that plant-based producers can draw on," says Lars Hinrichsen, Business Director at the Technical University. He criticizes Danish producers for developing their plant-based products too much for the Danish market. "This is a challenge because consumer preferences, food culture, distribution methods, and food safety standards vary significantly between countries. Export markets must shape product development from an early stage," says Lars Hinrichsen. Consumers drive growth If the plant-based sector is to grow, we also need to understand the habits and food culture that influence consumer choices, according to the analysis. - The focus should also shift from technology to sensory quality. Plant-based products must taste so good that they become the preferred choice without consumers feeling they are compromising. The products must also meet everyday demands for price, packaging, and convenience. Only in this way will they want to buy the product again and again, says Mette Damborg Hansen, Section Leader at the Technical University. Need for testing facilities and capital Plant-based foods also have a central place in the government’s foundation for the new government. To fulfill political ambitions, access to testing new, innovative solutions on the market is necessary. Denmark is strong in research and technology, but facilities and equipment must keep pace with companies' development. However, new production equipment requires massive investments, the analysis points out. Therefore, companies need better access to data analysis, pilot plants, test kitchens, and consumer tests so they can experiment and test before making their own investments. This is connected to another barrier faced by plant-based companies: a lack of risk-capital.