VTT White Paper: Plant-Based Ingredient Businesses Must Move Beyond Protein-Only Models to Attract Capital

The VTT Technical Research Centre of Finland has published a white paper examining what separates investable plant-based ingredient businesses from those struggling to attract capital, concluding that profitability depends on extracting value from every fraction of raw material rather than focusing on protein alone.

The analysis, produced through VTT’s RETHINK co-innovation project, identifies three structural shifts the sector needs to make as investor appetite becomes more selective. The project runs until August 2026 and is funded by Business Finland, with Finnish industry partners including Anora, Apetit, Fazer, Helsinki Mills, Raisio, Valio, and Viking Malt.

Performance over purity

VTT argues that current protein extraction technologies have notable limitations. Wet extraction methods achieve protein content above 80–90% but are water- and energy-intensive and economically feasible only at large scale. Dry fractionation carries lower capital costs but typically yields concentrates of 50–65%, with sensory and functional constraints that restrict use in demanding applications.

The paper makes the case for milder enrichment that preserves fibre and bioactive compounds, designed for specific end applications rather than maximum purity. This positioning also intersects with GLP-1-related dietary patterns, where protein- and fibre-rich ingredients can support satiety during reduced food intake.

Carbohydrate streams as a profitability bottleneck

A central thesis is that protein-only business models leave too much value unrealised. From one tonne of peas priced at around €300, VTT illustrates that a dry fractionation route might yield roughly 200 kg of protein concentrate at €5/kg, alongside 600 kg of carbohydrate-rich fractions and 200 kg of hulls. Without commercial outlets for those side streams, the economics of the protein fraction itself weaken.

Decentralised production and local infrastructure

VTT also points to decentralised, modular production aligned with regional raw materials, arguing that hybrid models can balance unit cost against supply chain resilience. The paper cites two examples from within the consortium: Happy Plant Protein, a VTT spinout that raised €1.8 million in late 2024 for an extrusion-based process that separates protein and carbohydrates in a single step, and Viking Malt’s Sprau, a germinated faba bean ingredient paired with Valio’s Gold&Green expertise for alternative and hybrid meat applications.

The full white paper, authored by Emilia Nordlund and Pia Silventoinen-Veijalainen of VTT alongside Tomi Järvenpää of Green Mountain, is available via VTT’s website.