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The Good Food Institute (GFI) Europe has welcomed the European Commission’s new Biotech Act, but said it marks a ‘missed opportunity’ for food innovation due to its exclusion of novel foods from its regulatory sandbox scheme.

The Biotech Act, published earlier this week, aims to boost the European Union (EU)’s global competitiveness in biotechnology. While it is largely focused on the health sector, it includes measures that can help commercialise the findings of European researchers working on advanced food-tech technologies such as precision fermentation.

Precision fermentation involves training microbes to produce certain bioidentical molecules – such as dairy proteins like whey and casein – in a fermentation tank, without animal input. It is becoming more widely used in the animal-free dairy industry, as well as to create sustainable alternatives to ingredients like palm oil, which is widely used across the food sector but impacted by supply chain constraints and environmental concerns.

Companies applying to sell new foods made with precision fermentation in the EU must apply to the European Food Standards Agency (EFSA), which will then initiate a thorough assessment of these foods’ safety and nutritional value before they can be sold across all 27 member states.

The new Biotech Act proposes that EFSA expands the guidance provided to companies applying to sell novel foods. This would enable start-ups to request advice from regulators on the technical and scientific information required before making submissions. It also provides details about additional EFSA staff to ensure this function is adequately resourced.

GFI welcomed these plans, noting that the measures will support innovation by adding clarity to the application process and preventing unnecessary authorisation delays by ensuring start-ups are clear on the data needed to apply.

However, the Commission has excluded novel foods from its proposal to create regulatory sandboxes – controlled and time-limited environments designed to enable experts to design standards for new products.

GFI is calling for sandboxes to be introduced across all regulatory food and feed categories, including novel foods, to ensure the full range of new production technologies benefits from these opportunities.

Additionally, it has called on the Commission to build on plans to establish a pilot investment facility supporting the scale-up of health biotechnology industries. It proposes new financing for food biotechnologies in a planned second Biotech Act, expected to be published in late 2026.

Seth Roberts, senior policy manager at GFI Europe, said: “By expanding the regulatory guidance available to food innovators, the Biotech Act will play an important role in bringing new products to market in a way that meets the EU’s world-beating safety standards, helping to drive green growth, reduce our reliance on imports and boost competitiveness”.

He added: “But the Commission’s decision to block novel foods from the sandbox rollout is a disappointing move that marks a missed opportunity to drive forward evidence-based regulation while providing a forum for open dialogue that can give consumers more confidence in new products”.

Research conducted by think tank Accenture found that around half of consumers in Germany, France and Spain were willing to try dairy and egg products made using precision fermentation if offered a free sample, or if someone prepared it for them. Around one in five said they would add these products to their diet, highlighting the opportunity that advanced fermentation technologies bring to the F&B industry and its ambitions to improve food security and sustainability.