Animal-based conventional protein sources like beef and pork generate significant negative costs on the environment, human health, and animal welfare. Alternative proteins could potentially help drive down these negative costs.
Our project partner Impact Institute assessed and compared the True Price of conventional and alternative proteins across Europe. The True Price is the market price of a product plus all its hidden environmental and social costs (such as contribution to climate change, biodiversity loss, child labour or underpayment). These costs are not always included in the market price, or reflected in what consumers pay - but are paid by somebody else, or by society in general. The difference between the calculated true price and the market price paid is the True Price Gap.
By measuring hidden environmental and social costs, we can better understand where impact is created across the protein value chain, and where the biggest opportunities for dietary choices, product development, and investment lie.
The scope of this impact assessment consisted of a True Price assessment of 5 key conventional protein sources: beef, pork, chicken, milk, and soy (the only one plant-based). In addition, 6 alternative proteins were assessed: rapeseed, pea, mushroom, microbial, krill and mealworm protein. Three of the alternative proteins are plant-based (rapeseed, pea and mushroom), two are animal-based (krill and mealworm) and one is microbe-based.
The environmental costs included in the assessment are climate change, land use, fossil fuel depletion, scarce water use and air, water and soil pollution. The social costs in scope were underearning, underpayment, child labour and animal welfare.
The most important results are that the upscaled, alternative proteins have lower True Price gaps than most conventional proteins. This is primarily driven by lower animal welfare and environmental costs. Alternative proteins, particularly the upscaled, plant-based proteins, have significant potential to reduce the environmental and social cost of European protein production and consumption. Soybean, even though it is a conventional protein, was also linked to a low True Price (gap), further strengthening the case for plant-based protein.
These insights contribute to the protein transition by guiding policymakers in developing regional and local strategies and supporting investors and agrifood companies to shift towards more sustainable, healthy, and fair food systems.
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