Pea Protein Market

The pea protein market is estimated at USD 2.1 billion in 2024 and is projected to reach USD 3.7 billion by 2029, at a CAGR of 12.0% from 2024 to 2029.

As consumer priorities shift towards health and wellness, pea protein gains traction due to its association with various health benefits such as muscle building, weight management, and satiety support. This alignment with prevailing health trends drives demand among individuals seeking nutritious and functional food options. Pea protein's natural origin and minimal processing address consumers' preference for clean label products. Its incorporation in food formulations enables manufacturers to meet the demand for transparent ingredient lists, fostering trust and loyalty among discerning consumers.

The allergen-free nature of pea protein, devoid of common allergens like soy and dairy, makes it suitable for individuals with dietary restrictions or allergies. Its plant-based origin also aligns with the growing vegan and vegetarian lifestyle trends, further boosting its adoption in plant-based food and beverage products. In addition, the rising awareness of environmental sustainability prompts consumers to seek alternative protein sources with lower environmental footprints. Pea protein production's minimal resource requirements and reduced greenhouse gas emissions compared to animal-based proteins position it as an eco-conscious choice that resonates with environmentally aware consumers.

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

In 2020, there was a significant rise in the popularity of plant-based foods globally, with various new products hitting the market, ranging from bakery items and pastries to pizza, lattes, and vegan burgers. By the end of the year, McDonald's joined the trend by introducing their McPlant menu. Additionally, the COVID-19 pandemic prompted two global lockdowns, leading people to reevaluate their priorities, focusing more on health and wellbeing. This shift resulted in a surge in plant-based food sales, increasing by 243%, with a notable 14% rise in the preference for meat-free and dairy-free options among consumers, as reported by New Food Magazine.

Pea protein powder has emerged as a popular ingredient for protein shakes, smoothies, and energy drinks due to its ability to enhance protein content. It is suitable for various dietary preferences as it is naturally vegan and hypoallergenic. Pea protein is rich in iron and high-quality protein, and it is believed to promote muscle growth, aid in weight loss, and support heart health. Studies indicate that protein derived from peas, particularly yellow peas, can help lower cholesterol and blood pressure without putting strain on the kidneys. These health benefits are anticipated to propel the growth of the global pea protein market.

Restraints: High cost of raw material

According to the October 2021 report by Roquette Frères, there has been a noticeable increase in global pea prices. The company, which launched a pea protein factory in Canada in 2020 and supplies to a prominent plant-based meat brand, "Beyond Meat," cautioned its customers about an imminent price surge. This warning came as the company observed a significant impact on supply from various fronts. Canada, a major pea-producing nation globally, experienced a sharp 45% decline in its production. Pea prices have surged by 120% compared to 2020 levels, following an unprecedented drought in Canada, described as the most severe in over a century.

Pea production in Europe, particularly in France, another significant pea-producing economy, also suffered as crops were severely damaged during harvest due to the wet season. Despite the growing global demand for peas driven by the introduction of numerous new plant-based food products, the sector is grappling with the repercussions of a pea shortage. The substantial price hikes are expected to result in increased costs for customers as companies look to offset rising expenses. Consequently, the market faces constraints on growth due to the unstable supply of raw materials and escalating prices.

Opportunities: Increasing focus on innovation and developments of better pea protein extracts & products in global markets

With evolving lifestyles and growing consumer demand for diverse options, the pea protein sector is experiencing a surge in innovation. Currently, pea protein serves as a primary ingredient in numerous plant-based meat products, including energy bars and snacks. Food technology companies are diligently refining this ingredient at every stage of production to cater to plant-based meat manufacturers, ranging from optimizing pea cultivation in the field to refining protein extraction technology.

Many consumers prioritize maximum protein content when selecting products, prompting companies to strive for higher protein extraction rates from raw materials to incorporate into their end products. In October 2021, Benson Hill, a company based in Missouri, launched a new yellow pea breeding and commercialization program aimed at developing plants that yield superior peas. Their focus lies on enhancing two critical attributes: nutritional density and flavor. The cultivation of more protein-rich yellow pea plants could also lead to greater efficiency in land use in farming practices. Benson Hill leverages a machine learning and AI-powered platform to guide its efforts in crop improvement.

On 2022, merit Functional Foods (Canada) opened a 94,000 square foot plant to process pea and canola protein. The company uses a proprietary manufacturing process that is more expensive than the industry standard. The process requires more equipment and more filtration but results in a higher-purity product with improved taste and texture. According to StartUs Insights (an AI-powered data platform), in September 2021, 149 new startups were identified in the pea protein sector, with the top five being Sunfed Food (New Zealand) (makes meat alternatives), Mighty Pea (UK) (formulates vegan milk), Elevate Nutrition (US) (offers sports nutrition), YoFiit (Canada) (offers plant-based nutrition bars), and PeaTos (US) (produces pea-based snacks). Thus, with a greater number of startups rising in the sector, significant research is being taken up to develop newer attractive products in the market.

Challenges: Supply constraints due to unstable production of peas hampering growth prospects

Pea protein manufacturers are confronted with a significant challenge: a shortage in supply. Climate change is already impacting agriculture, with consequences varying across regions. Rising temperatures have begun to diminish the yields of essential crops. Reduced production, compounded by import delays due to COVID-19, has resulted in escalated pea prices. According to an article by IndiaToday, the cost of pulses, which serve as one of the most affordable protein sources, has surged by over 15% since the previous year.

The USDA forecasts a 3% decline in the area seeded to dry peas in the US for 2021-22 compared to 2020, dropping to below 1.0 million acres, primarily driven by decreased seeding in North Dakota. Yields are anticipated to be below average. The USDA further projects a 44% decrease in US dry pea production to slightly over 0.5 million metric tons. Consequently, this decrease in production leads to fluctuations in prices and market uncertainty, posing significant challenges for both manufacturers and consumers in the global pea protein market.

Market Ecosystem

Based on the form, dry is estimated to account for the largest market share of the pea protein market.

Dry pea protein's powdered form streamlines formulation processes, ensuring precise measurement and consistent distribution throughout food and beverage products. This consistency in formulation maintains product quality, meeting consumer expectations for reliable and enjoyable products. Additionally, the reduced moisture content of dry pea protein translates to lighter weight and reduced volume, lowering transportation costs for both manufacturers and consumers. This cost-saving benefit contributes to the widespread adoption of dry pea protein across various markets.

The longer shelf life of dry pea protein minimizes the risk of spoilage and reduces food waste. This extended shelf life enhances product stability, ensuring prolonged availability to consumers and driving further demand for dry pea protein.

Based on source, yellow split peas is anticipated to have the highest growth rate in the pea protein market.

Yellow split peas serve as a significant driver in the pea protein market for several reasons. Their abundant protein content makes them an ideal source for pea protein extraction, enhancing the nutritional value of pea protein products. This appeals to consumers seeking protein-rich foods, especially within plant-based diets. The versatility of yellow split peas in food applications extends from soups and salads to baked goods, facilitating the creation of a diverse range of pea protein-based foods. This flexibility allows manufacturers to cater to various consumer preferences, including plant-based meats, dairy alternatives, snacks, and supplements.

Furthermore, yellow split peas are a sustainable crop choice, requiring fewer resources such as water and land compared to animal-based protein sources. Their ability to fix nitrogen in the soil reduces the need for synthetic fertilizers, aligning with consumer preferences for eco-friendly and ethically sourced products. The rising popularity of plant-based diets, driven by concerns for health, animal welfare, and environmental sustainability, fuels the demand for pea protein derived from yellow split peas. As more individuals adopt vegetarian, vegan, or flexitarian lifestyles, the demand for plant-based protein sources like pea protein continues to grow, positioning yellow split peas as a key driver in the pea protein market.

The European market is projected to contribute the largest share of the global pea protein processing market.

The Europe region is witnessing a burgeoning wave of growth in the pea protein market as food & beverage industries across the continent embrace the multifunctional applications of this plant based compound. European region's active participation in global trade further amplifies the accessibility of pea protein. The ease of trade facilitates the flow of these versatile compounds across borders, supporting the region's industries with a diverse range of applications.

European countries are active participants in global trade, both as importers of raw materials and exporters of finished products. The demand for pea protein in Europe influences international trade dynamics, affecting production, pricing, and supply chains globally. Europe has been at the forefront of environmental awareness and sustainability initiatives. The increasing awareness of environmental sustainability prompts consumers to seek alternative protein sources with lower environmental footprints. Pea protein production requires fewer natural resources and emits fewer greenhouse gases compared to animal-based proteins, making it an environmentally friendly choice that resonates with eco-conscious consumers.

Key Market Players

Key players operating in the pea protein market include Roquette Frères (France), Cargill, Incorporated (US), Glanbia PLC (Ireland), Kerry (Ireland), Ingredion Incorporated (US), Emsland Group (Germany), Yantai Shuangta Foods Co, Ltd (China), The Scoular Company (US), Burcan Nutrascience Corp (Canada), Shandong Jianyuan Group (China), ET-Chem (China), AGT Foods 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 expansion and collaboration. These companies have a strong presence in North America, Asia Pacific, and Europe.

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Scope of the Report

Pea protein Market:

By Type

• Isolates
• Concentrates
• Textured

By Application

• Food
• Beverage
• Other Applications

By Form

• Dry
• Wet

By Source

• Chickpeas
• Yellow Split Peas
• Lentils

By Processing Method

• Dry processing method
• Wet processing method

By Region

• North America
• Europe
• Asia Pacific
• Rest of the World (RoW)

Recent Developments

• In June 2020, Roquette Frères has joined a collaborative R&D initiative to promote Canada's plant protein ecosystem, identify solutions to development issues in cold Prairie conditions, and develop novel pea and fava bean products. The total investment by these three companies was USD 19.2 million. This collaboration will address the present pea processing issue and will help to implant new technology in pea protein processing.
• In November 2022, Ingredion Incorporated has entered an exclusive commercial distribution partnership with InnovoPro, a prominent chickpea solutions company. This partnership, effective immediately, focuses on distributing chickpea protein concentrate in the US and Canada. The aim is to enhance the availability of chickpea protein, aiding food and beverage manufacturers in meeting the rising consumer demand for sustainable, nutritious, and appealing plant-based products.

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