Shaping the Protein Transition From the Niche: Firm‐Level Dynamics in Europe's Plant‐Based Alternative Protein Sector

The agri-food sector, most notably intensive livestock production, stands as a major driver of climate change, prompting a shift towards plant-based alternative protein production and consumption. Such protein transition is widely recognised as central to the development of an environmentally sustainable food economy. Previous academic research mainly focused on consumer behaviour. In contrast, the production side, specifically how its trajectory is shaped by firm-level strategies and financial models, remains comparatively underexplored. This study addresses such critical gap by examining the production dimension and firm-level dynamics of plant-based protein companies in Europe. Guided by the multi-level perspective (MLP), the study conceptualises these companies as niche actors within a broader sustainability transition shaped by landscape-level forces such as climate change and sustainability-oriented policies. By analysing firm-level strategies and investment patterns, this research aims to examine whether companies in the plant-based protein sector challenge the prevailing agri-food status quo primarily through processes of regime adaptation or through dynamics of regime destabilisation. In particular, the research aims to explore how plant-based alternative protein firms, as niche actors, actively shape the construction and evolution of the plant-based alternative protein sector through innovation strategies, heterogeneous pathways and interactions with existing socio-technical regimes. It further seeks to examine how firm-level financial dynamics influence niche expansion, upscaling processes and the potential for wider regime transformation within the protein system. The study adopts a mixed-methods approach combining quantitative economic analysis, cluster analysis and event history analysis. The sample includes 87 companies across four European regions. Consulted databases are Orbis, Orbis M&A and NexisUni to assess financial metrics and investment trends. A two-step cluster analysis identified five key companies' clusters: ‘quality-driven brands’, ‘tech-oriented innovators’, ‘incumbents’, ‘sustainability-oriented brands’ and ‘niche startups’. Each cluster reflects distinct strategic orientations ranging from deep-tech R&D and market specialisation to large-scale distribution, consumer branding and startup-driven disruption. The event history analysis identified 58 financial events between 2006 and 2025 highlighting the role of private investments—especially from European and US venture capital—in driving growth, with most acquisitions occurring domestically. The study finds a dynamic yet fragmented sector, with innovation-oriented firms emerging unevenly across regions. By applying MLP to a firm-level analysis, the study found that the plant-based alternative protein sector in Europe is a niche innovation still unfolding mainly along regime-compatible trajectories.