Protein Ingredients Market

The Worldwide Protein Ingredients Market has been appraised at USD 61.0 billion in the year 2023, with projections indicating an ascending trajectory. This trajectory is set to continue as the market anticipates a compound annual growth rate (CAGR) of 7.0%, propelling it towards a substantial valuation of USD 85.6 billion by the year 2030. Protein ingredients, harnessed from sources encompassing plants, animals, insects, and microorganisms, undergo meticulous processing to yield elevated protein concentrations. These concentrated proteins are subsequently applied across a diverse range of industries including food and beverages, feed, cosmetics and personal care, and pharmaceuticals. The market is poised to experience noteworthy expansion, primarily driven by the escalating emphasis placed on diets rich in protein content, thereby driving demand for these versatile ingredients.

Protein Ingredients Market Dynamics

Catalysts: Surge in Protein Demand as Nutritional and Functional Elements Following COVID-19

A research article titled ""Impact of COVID-19 pandemic on consumer behavioral intention,"" published in October 2022, illuminated a substantial correlation between the consumption of nourishing meals and consumer buying behaviors. The study also underscored the heightened emphasis placed on health, security, and well-being by consumers in the post-pandemic era. The growing awareness among individuals about the imperative need to fortify their immune systems to mitigate susceptibility to infections has driven a resolute commitment to maintaining a health-conscious life and well-balanced diet. Consequently, the aftermath of the COVID-19 pandemic is anticipated to fuel an augmented demand for protein ingredients within the global market, manifesting at a significantly elevated pace.

Restraints: Cultural restriction on gelatin consumption

Gelatin finds a diverse range of applications within the food and pharmaceutical sectors. It functions as a pivotal ingredient for producing both firm and soft capsules, as well as serving as a source of protein supplementation. However, it's important to note that gelatin is derived from animal sources, specifically obtained from the collagen found in the bones, hides, and hooves of various animals such as cattle, pigs, fish, and poultry.

Due to its animal-derived nature, individuals adhering to religious or dietary restrictions that prohibit the consumption of animal products are reluctant to consume goods that contain gelatin. For instance, communities in the Middle East and those following Muslim dietary guidelines strictly forbid the consumption of pork and pork-derived products. Consequently, they seek alternatives that adhere to halal practices, often preferring bovine-derived products that have been certified as halal. As a result, the market for gelatin derived from pork skin is anticipated to have an insignificant presence in these regions, thereby restraining its potential for growth.

Opportunities: Growing potential of dairy and plant proteins

The foreseeable future holds significant potential for the burgeoning protein ingredients market, particularly in the domains of dairy and plant-based proteins. Suppliers of dairy proteins are poised to capitalize on the ongoing trend toward more functional product offerings and the heightened consumer curiosity regarding the nutritional content of items.

Simultaneously, the expansion of plant-derived protein ingredients is being underpinned by the escalating adoption of vegan lifestyles, driven by concerns related to sustainability and animal welfare. This growth is further bolstered by Islamic nations around the world, where there's a preference for avoiding animal-based proteins, particularly gelatin derived from pork. Additionally, countries like India and Nepal abstain from animal proteins sourced from beef due to cultural and religious considerations.

In light of these dynamics, the surging potential within the dynamic dairy and plant protein sectors presents a substantial opportunity for market participants to capitalize on.

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

A noteworthy aspect of concern arises from the fact that a considerable portion of genetically modified (GM) soy, wheat, and pea products are produced industrially using hexane, a compound that can pose health risks if consumed in excessive quantities. Consequently, the consumption of plant-based food items derived from genetically modified soybean, wheat, and pea has emerged as a global apprehension among consumers.

Within the Asia Pacific and Europe regions, government regulatory bodies have mandated the disclosure of GM/non-GM status for food ingredients on the packaging of all processed food and beverages. Genetically modified ingredients are associated with the potential for allergic reactions and may contain residues of herbicides. Their utilization in the production of plant-based foods and ingredients presents a challenge to the plant-based protein market. For instance, while Impossible Burgers (US) introduced soybean-based burger patties derived from genetically modified organisms (GMOs), this move has been met with skepticism from consumers due to concerns about the inclusion of inorganic components and herbicides.

The segment of plant-based protein sources within the broader protein ingredients market is poised to register substantial growth, with a projected notable compound annual growth rate (CAGR) of 6.8% during the forecast period.

The surge in demand for alternative protein sources on a global scale is significantly fueling the growth of the plant-based protein market. This growth can be attributed to the increasing adoption of vegan dietary trends worldwide. Furthermore, plant-based proteins present a cost-effective protein source with comparable protein content, making them particularly popular in developing regions. Consumer enthusiasm for plant-based protein sources is also influenced by health-related concerns surrounding the consumption of high amounts of animal-based meat, which contributes to the escalating prevalence of chronic illnesses.

Additionally, the increasing number of cosmetic brands that manufacture products without testing on animals is gaining considerable traction within the protein ingredients market. This expanding production of cruelty-free products aligns with the growth trajectory of plant-based proteins.

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

Manufacturers within the realms of food and beverage, feed, and pharmaceuticals exhibit a distinct preference for protein ingredients in their dry form, a choice informed by various factors. Within the protein ingredients industry, powdered or desiccated forms serve as exemplary enhancers of texture. Both animal and plant-derived protein ingredients, when rendered in dry forms, are extensively utilized across a multitude of applications spanning food, feed, pharmaceuticals, and cosmetics.

Moreover, with the surge in demand for meat alternatives and the burgeoning popularity of plant-based dietary choices, industries are directing their efforts towards achieving the texture akin to meat in plant-based foods. This aspiration predominantly revolves around maintaining a meat-like texture, and this endeavor often necessitates the employment of dry forms, particularly in the realm of textured proteins. Consequently, the heightened demand for texturized protein ingredients is precipitating a corresponding upswing in the demand for protein ingredients in their dry form. Additionally, the escalating need for feed, driven by the advantageous fiber content it offers, further contributes to the flourishing demand for protein ingredients in dry configurations.

Furthermore, within the scope of applications, the food and beverage segment stands out as the dominant force within the protein ingredients market, boasting an estimated value of USD 6.9 billion in 2023.

Heightened health consciousness and the growing concern over obesity have prompted consumers to shift their focus toward healthful diets featuring low-fat, nutrient-rich foods. Consequently, there has been a noticeable uptick in the consumption of protein ingredients, driven by the escalating demand for functional and wholesome foods. Beyond their nutritional attributes, proteins are widely acclaimed for their functional characteristics, encompassing texturing, emulsification, solubility, stabilization, and binding.

These functional properties offer manufacturers the opportunity to optimize their raw material expenses, as proteins can serve as substitutes for certain food additives while imparting specific traits. Consequently, protein ingredients are witnessing robust consumption and demand across diverse segments, including bakery, dairy, processed foods, infant formula, beverages, and various other food products. Additionally, in response to the mounting preference for natural and organic products, protein ingredient producers are actively engaging in the production of clean-label protein ingredients.

South America is poised to emerge as the most rapidly expanding region within the protein ingredients market. In 2023, it is projected to experience substantial growth at a notable compound annual growth rate (CAGR). This growth can be attributed to the region's rapidly developing economies, notably Brazil and Argentina. Over the past decade, South America has witnessed a marked increase in overall investment, while also observing a notable rise in consumer awareness regarding health and wellness. The region, with a substantial demand for animal-derived protein sources, is notably prominent in the consumption of products like pork and beef. Moreover, Brazil and Argentina hold distinguished positions as top global producers and exporters of these animal-derived sources, as well as being major contributors to the growth of both animal and plant-based protein ingredients industries.

Top Companies in the Protein Ingredients Market

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

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:

By Source

• Animal
• Plant
• Insect
• Microbial

By Form

• Dry
• Liquid

By Application

• Food & Beverages
• Meat & Meat Alternatives
• Dairy & Dairy Alternatives
• Bakery Products
• Performance Nutrition
• Convenience Foods
• Other Food Applications
• Feed
• Cosmetics & Personal Care Products
• Pharmaceuticals

By Region

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

Recent Developments in the Protein Ingredients Market

• In July 2021, Cosucra (Belgium) secured an investment of USD 11.8 million from entities including The Société Régionale d’Investissement de Wallonie (SRIW) (Belgium), the European Investment Bank (EIB) (Luxembourg), and Sofiprotéol (France), a financing firm within the Avril Group (France). This infusion of funds aimed to bolster the company's production capacity for chicory and pea ingredients, thus facilitating its establishment as a significant player in the plant-based protein sector.
• During January 2020, Burcon (Canada) joined forces with its collaborative partner, Merit Functional Foods Corporation (Canada), to forge a strategic partnership with Nestlé. This strategic alliance was forged with the goal of jointly developing and commercializing the firms' plant-based protein components, which would find application in Nestlé's line of plant-based foods.
• In August 2019, PURIS (US) received a substantial investment of USD 75 million from Cargill, Incorporated (US), intended to bolster the production capabilities of pea protein, starches, and fibers.
• Fast-forward to November 2022, following the merger between International Flavors & Fragrances Inc. and DuPont's Nutrition & Biosciences business segment, the company introduced Supro Tex, a plant protein ingredient derived from soy. This innovation boasts an impressive protein content of 80%, which aligns its nutritional profile with that of animal-derived meats. This unveiling represents the latest addition to IFF's Reimagine-Protein Program, which was initiated in 2017. This product launch is set to broaden DuPont's range of offerings within the realm of plant-based protein ingredients.