Protein Ingredients Market Report

Protein Ingredients Market Analysis By Product [Plant Proteins (Wheat, Soy Protein Concentrates, Soy Protein Isolates, Textured Soy Protein, Pea, Canola), Animal/Dairy Proteins (Egg Protein, Milk Protein Concentrates/Isolates, Whey Protein Concentrates, Whey Protein Hydrolysates, Whey Protein Isolates, Gelatin, Casein/Caseinates)], By Application [Foods & Beverages, Infant Formulation, Personal Care & Cosmetics, Animal Feed (Aquaculture, Pet Food)] And Segment Forecasts To 2020

Published: June 2015  |  171 Pages  |  Format: PDF  |  Report ID: 978-1-68038-451-2

Industry Insights

Global protein ingredients market is expected to witness significant growth on account of rising health awareness among consumers coupled with widespread applications in personal care and cosmetic products. One of the key drivers for market growth is the strong scientific evidence supporting health benefits. Ongoing research conducted by scientists has proved that these products are the best source to keep the body fit. Whey ingredients are beneficial for cancer patients as well. Increasing consumer awareness, especially for functional foods and dietary supplements, has been a critical factor for market development in recent times. With egg proteins finding market penetration tough on account of unattractive prices and increasing sensitivity to wheat glucans, especially in the U.S., plant and dairy products are expected to witness enhanced demand over the next six years. However, volatile prices are expected to have a negative impact demand. Owing to the imbalance in the supply-demand of grains, the prices of soybean continuously fluctuate, which ultimately increases the cost of production of protein ingredients resulting in manufacturers refraining from producing the product. Low consumer awareness of non-soy products and fluctuating prices of soybean are expected to be key challenges to the protein ingredients market.

Rapid growth in the food & beverage industry, primarily in Asia Pacific including India, China, Malaysia and Indonesia, is anticipated to boost demand over the projected period. Growing domestic demand for foods & beverages in emerging markets of BRICS is anticipated to have a positive impact on global food & beverage industry. In addition, population growth, rising disposable income, and increasing urbanization in Middle East countries, especially Saudi Arabia, are anticipated to promote food & beverage industry over the forecast period. This, in turn, is likely to have a positive impact on the industry over the next six years.

Protein ingredients have been approved for use by the U.S. FDA and are approved as essential ingredients by the European Union and other countries around the world including Japan, Australia, and Canada. The presence of favorable government regulations in various regions is anticipated to propel market growth over the projected period. Furthermore, these ingredients are being used in a wide range of novel applications, which include manufacturing of paper, printing inks, paper coatings, paints, fertilizers, insect sprays and sizing for textiles. Studies related to the application of soybean extracts as a dry strength additive have been conducted over the past few years. Dry strength additives are an important set of compounds that are essential for maximizing the mechanical integrity of papermaking products. Soybean protein is being used in manufacturing dry strength additives as they are cheap and effective dry strength additives as compared to carboxymethyl cellulose, guar gum, chitosan, and polyacrylamides. In addition, plant protein extracts are employed as a substitute for linseed extracts in the manufacturing of paints, further driving protein ingredients industry growth.

Higher profitability related to manufacturing is expected to result in increased marketing expenditures, thus catalyzing protein ingredients market demand over the forecast period. Also, initiatives including International Sustainability and Carbon Certification, Initiative for Sustainable Soy and Round Table on Responsible Soy resulted in its proactive positioning as a sustainable protein source.

Global protein ingredients market volume by application, 2012 - 2020 (Kilo Tons)


Application Insights

Food & beverages accounted for the largest share of the market in 2013. It is expected to dominate the market over the forecast period owing to the increasing population, changing the lifestyle of consumers and rising number of restaurants and cafes, especially in the developing countries of India and China. Plant proteins are being increasingly used in the Asia Pacific region on account of its increasing acceptability among various cultures as compared to animal proteins. Plant ingredients are also added to low-fat or non-fat dairy products including non-dairy ice-creams to improve its texture. These are important ingredients employed in various food & beverages on account of its emulsifying and viscous properties. Plant and animal ingredients are used in combination in a wide range of low-fat dairy products as it adds higher nutritional value to the product and is typically employed at lower volumes than the individual component alone. In addition, animal proteins are excessively used in the bakery industry as it enhances dietary fiber, increases finished product volume, reduces mix time, and improves product release and enhances dough texture and strength. Moreover, high protein content in bakery products improves moisture retention capacity and inhibits retro gradation thus increasing the shelf life of baked goods.

Infant formulation applications accounted for 19.8% of the total market and are expected to lose share by 2020. FDA concerns relating to melamine contamination in infant formulation are anticipated to restrain demand over the projected period. Asia Pacific is likely to be the fastest market for plant & animal protein ingredients in infant formula applications on account of increasing birth rates in developing countries including India and China. This is anticipated to fuel the market for infant formulation over the projected period. Furthermore, increasing production of dairy products in European countries including UK, Italy, France, Germany and Poland is likely to propel market demand in infant formulations over the next six years.

Consumers with sensitivities or allergies to these products are advised to find the source from which these ingredients are derived. This is likely to act as a restraining factor for the market over the projected period.

Product Insights

Global protein ingredients industry can be segmented in terms of product into two major sources including plant and animal/dairy. Plant products are further bifurcated into pea, canola, soy, and wheat. The animal/dairy product segment is segmented into egg, gelatin, milk isolates/concentrates, WPC, WPI, WPH, and casein.

Plant ingredients accounted for over 40% of the total market share in 2013. Low cholesterol and saturated fat content of plant ingredients along with the presence of necessary amino acids which are essential for growth of the human body is a key factor driving market demand. Demand for these ingredients is expected to grow on account of global acceptability toward plant proteins as compared to animal products and low-cost factor. Consumers are increasingly adopting plant derivatives as they perceive it to be healthier and nutritious, as compared to animal counterparts. Furthermore, the relatively low cost associated with plant derivatives is one of the key factors driving the market. However, lack of awareness among consumers about non-soy proteins is one of the major challenges for the market to overcome. Over the next six years, industry participants are expected to invest heavily in R&D to develop and introduce plant and animal/dairy ingredients in blended formulations.

Pea protein ingredients market is the fastest growing segment within the plant product segment as it is free from GMO, antibiotics and do not contain growth hormones that are present in conventionally grown meat. Pea derivatives are extensively used in the food & beverage industry and offer functional advantages and nutritional profile with maximum amino acids. The pea protein market is primarily driven by increasing vegetarian population globally, new extraction techniques and advanced R&D initiatives taken by various companies.

Animal proteins are primarily derived from fish, milk, meat, egg and gelatin. On account of advancement in extraction techniques, different ingredients obtained from milk as concentrates, isolates, and hydrolysates, among which isolates comprise 90% of total content. Whey proteins are beneficial for cancer patients as well. Increasing consumer awareness, especially for functional foods and dietary supplements, has been a critical factor for market development in recent times. Tough penetration of egg proteins within the global market on account of unattractive prices and increasing sensitivity to wheat glucans, especially in the U.S. are crucial factors anticipated to drive plant and animal/dairy proteins to demand over the next six years. However, volatile prices are expected to have a negative impact on market development.

Regional Insights

North America was the largest regional market accounting for approximately 40% of the total market and is expected to grow at below average growth rate as a result of the maturity of the food & beverage industry in the U.S. coupled with stringent regulatory compliances acting as an entry barrier for new participants. Europe protein ingredients market was the second largest owing to rising popularity of food and feed supplements in the region. Europe is expected to lose share owing to shifting infant formula manufacturers to countries of Asia Pacific including Japan, China, and Australia. Furthermore, Asia Pacific protein ingredients market is expected to gain significant share by 2020 on account of growing animal feed industry as a result of increasing aquaculture in India and China. Rising cosmetic products consumption on account of increasing awareness regarding personal hygiene is expected to augment Asia Pacific demand.

North America protein ingredients market is expected to grow on account of increasing consumption of energy bars, cold cereals, and snacks. New product introductions by companies including Cargill and Mead Johnson are focused on consumer needs for low saturated fat and cholesterol free beverages thus driving market demand. Consumer perceptions regarding health benefits relating to soy products consumption coupled with FDA approval for major plant and animal ingredients for use in the food industry are expected to result in high acceptance by end-use industries such as food, cosmetics and infant formulations. Increasing demand for pea protein from food & beverage industry including sports nutrition and dietary supplements in the U.S. coupled with Canada being a key producer and exporter is expected to result in market growth over the forecast period.

Competitive Insights

Bunge, Scoular, Cargill, Roquette, Burcon NutraScience and Mead Johnson dominated protein ingredients market share in 2014. Cargill manufactures soy products at its U.S. facility. In addition, the company manufactures soy flour that comprises additional functions for various food systems such as fat and water binding, emulsification, protein enhancement, and shelf-life extension. In March 2014, Burcon NutraScience announced a partnership with ADM to expand production of Clarisoy soy protein. Both the companies have contributed considerable resources and efforts to get Clarisoy products to the global food and beverage market.

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