Protein Ingredients Market

Protein ingredients market size to hit USD 85.6 billion by 2028, growing at a CAGR of 7.0% between 2023 and 2028, from a projection of USD 61.0 billion in 2023. Protein ingredients are produced by processing plant, animal, insect, and microbial sources to obtain high protein concentrations which can find applications in the food & beverages, feed, cosmetics & personal care, and pharma industries. The market is projected to grow at a significant rate with the rising significance of protein-rich diet.

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Protein Ingredients Market Dynamics

Drivers: Increase in demand for proteins as nutritional and functional ingredients post COVID-19

As per a research article published in October 2022, titled – ‘Impact of COVID-19 pandemic on consumer behavioral intention,’ there was a significant link found between the consumption of nutritious meals and consumer purchasing habits. It also stated that consumers are more focused on their health, security, and safety post-pandemic. Increasing awareness among people to strengthen their immune system to prevent themselves from being infected easily compels them to maintain a healthy lifestyle and proper diet. Thus, COVID-19 is expected to boost the demand for protein ingredients at a much higher rate in the global market.

Restraints: Cultural restriction on gelatin consumption

Gelatin has varied applications in the food and pharmaceutical industries. It is a functional ingredient to manufacture hard and soft capsules and a protein supplement. However, gelatin is an animal by-product formed from the collagen of slaughtered animals, which includes the bones, hides, and hooves of cattle, pigs, fish, and poultry. Individuals with religious or dietary restrictions that forbid the consumption of animal products are not willing to consume those products that use gelatin. For instance, in Middle Eastern and Muslim communities, pork and pork-derived products are strictly forbidden. They, instead, prefer to consume halal-certified bovine-derived products. Therefore, the market for gelatin manufactured by pork skin is estimated to be negligible in these regions, restricting their growth.

Opportunities: Growing potential of dairy and plant proteins

There is a huge potential for the growing protein ingredients market in the near future, especially dairy and plant proteins. Dairy protein suppliers can continue to benefit from the trend toward more functional products and the increased consumer interest in the nutritional value of products. . The growth of plant-sourced protein ingredients is being supported by growing vegan trends as a result of sustainability and animal cruelty concerns. It is also being aided by the Islamic nations across the globe (they avoid animal proteins, especially gelatin, prepared from pork), while other countries such as India and Nepal avoid animal proteins prepared from beef, owing to the issues relating to cultural and religious aspects. Thus, the skyrocketing potential in dynamic dairy and plant protein industries is proving to be a big opportunity for players in the market.

Challenges: Concerns over quality of food & beverages due to adulteration of GM ingredients

Most GM (Genetically Modified) soy, wheat, and pea are industrially produced with hexane, which is detrimental to human health if consumed in larger quantities. Thus, the consumption of plant-based food products manufactured by GM soybean, wheat, and pea has resulted in a point of concern for consumers globally.

Government regulators in the Asia Pacific and Europe regions have made it mandatory to declare the GM/non-GM status of food ingredients on the packaging of all processed food & beverages. GM ingredients are associated with allergic reactions and might consist of herbicidal residues. Their production and usage for producing plant-based foods/ingredients are a challenge for the plant-based protein market. For instance, Impossible Burgers (US) launched GMO-based soybean burger patties but has earned some skepticism from consumers due to the presence of inorganic ingredients and herbicides.

Plant-based protein source in the protein ingredients market is projected to grow a significant CAGR of 6.8% during the forecast period

The growth of plant-based protein market is being contributed by the rise in demand for alternative protein sources worldwide. The rise is a result of  growing vegan trends across the globe. Moreover, plant-based proteins are a cheaper source of protein with similar protein content and thus find high popularity in developing regions. Consumer interest in plant-based protein sources is also a result of their health concerns regarding consumption of high animal-based meat that contributes to the ever rising prevalence of chronic diseases. Many cosmetics brands manufacture animal-cruelty free products these days, which are gaining huge popularity in the market. Their growing production is also adding up to the growth of plant-based proteins.

Dry segment by form is estimated to dominate over the forecasted period

The dry form of protein ingredients is largely preferred by manufacturers of food & beverage, feed, and pharmaceutical products, for various reasons. In the protein ingredients industry, powdered or dry ingredients are excellent texture enhancers. Dry forms of animal and plant-based protein ingredients are widely used in multiple foods, feed pharma, and cosmetics applications. Moreover, with the rise in demand for meat alternatives and growing trends for plant-based foods, industries are focused on maintaining the texture of plant-based food. They are trying to make it as close as to the texture of meat. These textured proteins are mostly in dry form; thus, the rise in demand for texturized protein ingredients is driving the demand for dry-form protein ingredients. The demand for dry form is also being driven by the rise in demand for feed, owing to its high fiber content.

The food & beverage segment by application dominated the protein ingredients market with an estimated value of USD 6.9 billion in 2023

Growing health consciousness and obesity has compelled consumers to increasingly focus on healthy diets with low-fat and high-nutritional value food, leading to a rise in the consumption of protein ingredients. As a result, the demand for functional and healthy food is on the rise. Besides their nutritional properties, proteins are widely used for their functional properties, which include texturing, emulsifying, solubility, stabilizing, and binding.

These functional properties enable manufacturers to lower their raw material costs, as they act as substitutes for some food additives and are used to impart specific properties. As a result, protein ingredients are witnessing a high level of consumption and demand from segments such as bakery, dairy, processed foods, infant formula, beverages, and other food products. Further, to cater to the growing trend toward natural, organic products, protein ingredient manufacturers are engaged in the production of clean-label protein ingredients.

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South America is projected to be the fastest growing region in protein ingredients market, in 2023; it is anticipated to grow at a significant CAGR

The market in South America is projected to witness strong growth driven by fast developing economies, such as Brazil and Argentina. The level of overall investment in the region has increased substantially over the past decade. The region has also witnessed a rise in consumer health awareness in recent years. The region has a high demand for consumption of animal sources of protein. Brazil and Argentina are among the top producers and exporters of animal sources such as pork and beef. They are also one of the top producers of soy in the world thereby contributing significantly to the growth of both animal and plant-based protein ingredients industry.

Top Companies in the market

The key players in this market include DuPont (US), ADM (US), Kerry Group plc (Ireland), Cargill, Incorporated (US), and Arla Foods amba (Denmark)

Scope of the Protein Ingredients Market Report

Protein Ingredients Market Target Audience:

• Protein raw material (ingredients) suppliers
• Protein based product manufacturers
• Intermediate suppliers, such as traders and distributors of protein ingredients based food & beverages, feed, cosmetics & personal care products, and pharmaceuticals
• Protein ingredients based food & beverages, feed, cosmetics and pharmaceutical companies
• Government and protein research organizations
• Associations, regulatory bodies, and other industry-related bodies:
  • Food and Agriculture Organization (FAO)
  • European Food Safety Authority (EFSA)
  • The Association of American Feed Control Officials
  • Food Standards Australia New Zealand
  • US Food and Drug Administration (FDA) (US)
  • World Health Organization (WHO)

Protein Ingredients Market Report Segmentation:

This research report categorizes the market, based on source, form, application, and region 

Recent Developments in the Protein Ingredients Market

• In July 2021, Cosucra (Belgium) received investment worth USD 11.8 million from The Société Régionale d’Investissement de Wallonie (SRIW) (Belgium), the European Investment Bank (EIB) (Luxembourg), and Sofiprotéol (France), an Avril Group (France) financing company. This investment was intended to strengthen its production capacity of chicory and pea ingredients and enable the company to gain a stronghold in the plant-based protein industry.
• In January 2020, Burcon (Canada) and its joint-venture partner company Merit Functional Foods Corporation (Canada) entered a strategic partnership with Nestlé. This strategic partnership was intended to develop and commercialize the company’s plant-based protein ingredients for use in Nestlé’s plant-based foods.
• In August 2019, PURIS (US) received an investment of USD 75 million from Cargill, Incorporated (US), which was intended to enhance the production capacity of pea protein, starches, and fibers.
• In November 2022, International Flavors & Fragrances Inc., which merged with DuPont’s Nutrition & Biosciences business segment, launched Supro Tex, a soy-based plant protein ingredient. The ingredient has 80% protein content which gives it’s a protein profile comparable to animal meat. It is the newest addition to IFF’s Reimagine-Protein Program commenced in 2017. The launch will help DuPont expand its product portfolio in the plant-based protein ingredients category.

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