Pea Protein Market

The pea protein market is expected to grow rapidly, reaching $2.9 billion by 2027 at an 11.9% CAGR. The foundation of this upward trend is the industry's expanding understanding of the benefits of pea protein, which is anticipated to be worth $1.7 billion in 2022.

This exponential growth can be attributed to the increasing demand for plant-based protein sources and the recognition of pea protein as a sustainable and nutritious alternative. As consumers continue to prioritize healthy and environmentally conscious food choices, the pea protein market is poised for continued success, presenting exciting opportunities for businesses and investors. Consumers are getting increasingly aware of the benefits of nutritional and health products. The usage of pea proteins has rapidly evolved in the past years, which has contributed significantly to the food & beverage, pet food, feed, textile, and pharmaceutical industrial applications. Furthermore, the rise in vegan population, popularity of plant-based foods and gluten-free products and nutritional benefits of pea-based products are key factors that are projected to drive the growth of the Pea Protein market during the forecast period.

Pea protein is an excellent source of protein. It is not only sourced from a sustainable and environmentally beneficial source, but it is also hypoallergenic, making it a perfect solution for anyone with food allergies or sensitivities. Pea protein is a high-quality protein source that contains all of the necessary amino acids needed by the human body. It can assist meet dietary needs while also boosting overall health and wellness. 

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Impact of Covid-19 on Pea Protein Market

The outbreak of the COVID-19 pandemic had an impact on the pea protein market's application sector. Initially, the imposition of lockdowns in global markets in 2020 had a significant impact on the business of many large-scale retailers in the food and beverage industries. For a short time, sales were down. However, these sales quickly recovered as the market for online food and grocery purchases boomed in the mid-2020s. As they remained under lockdown, this resulted in a greater emphasis on healthy and nutritious foods. Further, governments in the global regions made efforts to stabilize their respective countries' and regions' food security, which kept the food sector industries running.

According to a recent Smartbrief report, approximately one-third of people will consume more functional foods and beverages in 2020 than in previous years. With the impending reintroduction of another lockdown in 2021, there is an increase in the availability of sports nutrition products such as protein drinks, electrolyte replenishers, energy boosters, and performance enhancers. released Applied Nutrition's new ABE brand of energy and performance beverages will be available in August 2020. As a result, an increase in pea proteins in these markets and applications is expected to occur soon.

The coronavirus pandemic had a positive impact on the Pea Protein consumption in North America, Europe, Asia Pacific, South America, and Rest of World as under the first lockdown the sales dipped a little but recovered as people started accepting healthier and functional food options. In 2021, the sales remained stagnant due to reimposement of lockdown in these countries as a result of reliance on comfort foods along with these healthier options. As a result, the pea protein market had a slight growth at the start of COVID-19 but has stayed stagnant in the last 2 years.

Pea Protein Market Dynamics

Driver: Growing consumer awareness about nutritional benefits offered by pea and pea-based products

Pea protein powder is being popularly used to manufacture protein shakes, smoothies, and energy drinks to increase the protein content and is an excellent fit for almost any diet since it is naturally vegan and hypoallergenic. It is a great source of iron and high-quality protein. It is also estimated to help muscle growth, weight loss, and heart health. The protein from peas, mainly yellow peas, has been shown to lower cholesterol and blood pressure while gentle on the kidneys. All these benefits of pea proteins are expected to drive the growth of the global pea protein market.

Restraint: Low processing outputs result in limited supply to manufacturers

The global demand for pea protein is also rising with the growing nutritional benefits. However, due to the complex and costly extraction and processing of pea protein, the supplies are insufficient to cater to the global demand. Somewhere, soy protein, being the leading protein ingredient and having economies of scale by the food & beverage manufacturers, is leading to the limited supply of the pea protein ingredient. Also, the conversion rate of peas into pea protein is comparatively low. The ratio is about 15% in the industrial process, including drying, dehulling, and milling of peas. Comparatively, the ratio of pea protein extracted from peas in the pilot process, including soaking and wet milling, is over 20%. For instance, if there is an input of 40 tons of peas in an industrial process, the output will only be about 6 tons of pea protein isolates. Similarly, putting in 50 kg of pea seeds will produce 10 kg of pea protein isolates in the pilot process. The rest of the pea seeds are then either converted into pea starches or pea fibers. Hence, the market is facing a crunch in the supply of pea protein required by food & beverage manufacturers, which has led them to switch to other plant-based proteins or blends and alternatives.

Opportunity: Advancements in texture properties supporting adoption in baking ingredients

Pea protein has excellent emulsification properties, binding both fat and water for a stable emulsion. This is beneficial for egg replacement and is demonstrated well in Hampton Creek’s Just Mayo, replacing the eggs with pea protein to make a vegan ‘mayonnaise.’ It is also helpful in reducing the fat content of salad dressings, with little impact on mouthfeel or flavor. Beyond Meat uses pea protein for producing meat alternatives, lending a chewy, meat-like texture to their products. It can also be used in ground beef products to act as a binder, increasing the cooking yield of meats.

Challenge: Supply constraint due to unstable pea production

The major challenge that pea protein manufacturers face is a supply shortage. Climate change is already affecting agriculture, with effects unevenly distributed across the world. Higher temperatures eventually reduce the yields of desirable crops. Lower production and Covid-related import bottlenecks have pushed up the prices of peas. The prices of pulses, which are among the cheapest sources of protein, have risen marginally since last year.

In terms of type, the textured segment is projected to grow at the highest CAGR in the forecasted period.

The unique benefit of textured pea protein lies in its granule size. Its small granule size and fibrous appearance make it ideal for plant-based ground-meat applications and vegan sausages and patties. It is specifically known to enhance the juiciness of products and mimic the sensation of biting into the meat. These factors are expected to drive the growth for textured pea protein.

Yellow split peas dominate the global pea protein market during the forecast period.

Yellow split peas are one of the most popular pea sources among product manufacturers. This is due to peas' functionality and adaptability to different product types, which is driving demand for yellow split peas in a variety of products such as plant-based meat, beverages, functional foods, and performance nutrition. Yellow split peas' high protein content makes them ideal for producing pea protein isolates.

The dry form pea protein is estimated to dominate the pea protein market during the forecast period.

The dry form of pea protein is more popular than wet pea protein because it has a wider range of applications. Dry textured pea proteins have a dominant market position due to their characteristics and demand in a wide range of applications. The increased demand for dry textured proteins in applications such as plant-based meat due to its’ ability to replicate the meaty texture has helped to improve the industry outlook for dry textured pea proteins. They are commonly used as a nutritional supplement formulated with yellow protein pea extract. It is mostly used as a protein filler in products like fitness shakes and smoothies.

Food application is projected to see a significant growth in the Pea Protein market during the forecast period.

The growing demand for meat substitutes has aided the growth of pea protein, which is now used in the production of plant-based burger patties and sausages. The use in performance nutrition has also grown significantly, as factors such as lactose intolerance have led to athletes substituting vegan protein alternatives such as pea proteins for whey protein. Meat substitutes, performance nutrition, functional foods, snacks, and bakery are all part of the food segment. The meat substitutes segment dominated the food application segment due to the rising application of pea proteins, making it healthier and more popular among customers.

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North America holds a significant share in the pea protein market during the forecast period.

North America is experiencing strong growth prospects in the plant-based pea protein sector due to the increasing demand for healthy meat and dairy substitute products. The growing trend of veganism has pushed the growth of the North American pea protein industry. Consumers are gradually shifting their diet preferences and are going vegan due to the health and wellness benefits associated with it. This paradigm shift in food culture is being supported by health & fitness industries, medical communities, celebrities, and athletes, which has bolstered the demand for pea protein.

Key Market Players

The key players in this market include Rouquette Freres (France), DuPont (US), Glanbia PLC (Ireland), Kerry (Ireland), Ingredion (US), Puris (US), Emsland Group (Germany), Yantai Shuangta Foods Co., Ltd (China), The Scoular Company (US), Burcon (Canada), Shandong Jianyuan Group (China), ET-Chem (China), AGT Food and Ingredients (Canada), The Green Labs LLC. (US), and Axiom Foods, Inc. (US). These players in this market are focusing on increasing their presence through agreements and collaborations. These companies have a strong presence in North America, Asia Pacific and Europe. They also have manufacturing facilities along with strong distribution networks across these regions.

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Scope of the Report

This research report categorizes the Pea Protein market based on type, application, form, source, and region.

Recent Developments

• In December 2021, Ingredion Incorporated and Grupo arcor have agreed to form a joint venture that combines their production experience, complementary geographic footprints, and marketing capabilities to expand their food & beverage ingredient supplies to clients in Argentina, Chile, and Uruguay.
• In September 2021, Batory Foods and Ingredion have signed a new ingredient distribution agreement. The agreement expands Ingredion's distribution network in the West and Central Midwest of the US, making it easier for food & beverage businesses to obtain the ingredients they need to manufacture and promote their goods.
• In September 2021, Roquette Frères set up a new center of expertise in Vic-Sur Aisne in France. This center will expand the area of possibilities in terms of food innovation, novel protein development, and new manufacturing technologies by focusing solely on plant protein.
• In July 2021, Ingredion Incorporated launched VITESSENCE TEX Crumbles 102. The textured protein VITESSENCE TEX Crumbles 102 enables food makers to create consumer-favorite substitute meat products without sacrificing taste or texture. The textured protein is labeled as pea protein and provides 65% protein (dry weight).
• In September 2020, Roquette Frères focused on setting up the world's largest pea protein plant in Portage la Prairie, Manitoba, Canada, just outside of the City of Winnipeg by the end of 2020. The construction of this new plant aims to meet the growing demand for pea protein worldwide.

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