Functional Protein Market Size, Share & Trends Analysis Report By Product (Hydrolysates, WPI, WPC, Casein & Caseinates, Soy Protein), By Form (Dry, Liquid), By Application, And Segment Forecasts, 2018 - 2025

Industry Insights

The global functional protein market was estimated at 823.9 kilotons in 2016. Rising demand for nutraceuticals on account of growing awareness towards maintaining a healthy diet and enhancing the nutritional value of human body is expected to remain a key driving force in the near future.

Functional protein is those ingredients that induce biological effect when consumed by human or animals. For instance, raw soybean consists of an ingredient, trypsin inhibitor, which improves the ability of animal and the human body to digest protein easily. The soy-based foods are processed through heat treatment to disrupt the three-dimensional structure of the enzyme, thus inducing the inability to inhibit the trypsin function.

Germany functional protein market, by product, 2014 - 2025 (Kilo Tons)

Gaining popularity of sports nutrition functional foods and dietary supplements among working professionals is expected to increase the consumption of protein-enriched foods. Furthermore, significant increases in demand for medical nutrition in developed countries including Germany for maintaining nutrition levels of pregnant women and infants are expected to have a substantial impact.  

Technological advancement in terms of the development of colostrum milk on account of exhibiting significant properties aimed at improving hormone growth is projected to increase the consumption of functional proteins. Furthermore, growing animal feed industry in developing economies including China, India, and Brazil owing to the increment in sales of dairy derivatives on a domestic level is projected to expand the application of functional nutritional ingredients.

Over the past few years, food & beverage manufacturers on a global level are using the fortification of protein ingredients derived from soy and whey in their product offerings. The principal motive of incorporating abovementioned additives in the food & beverage industry is to increase the nutritional content in food items over the forecast period.

The European Commission and EPA have framed supportive regulations to augment the production as well as consumption of naturally derived ingredients in light of rising concerns towards reducing greenhouse gas (GHG) emissions. As a result, food & beverage manufacturers are pursuing efforts to fortify naturally derived additives in their product offerings to earn carbon benefits and ensure raw material access in future.

Product Insights

Hydrolysates accounted for 21.4% of the global market share in 2016. These products are prebiotic, anti-micro biotic, antioxidants, and hypertensive protein products aimed at use in manufacturing products for infant and clinical nutrition. However, the high price of hydrolysates as compared to other whey product forms are projected to limit their market reach in the near future. 

Whey protein isolates find applications in the manufacturing of low pH nutritional beverages, clear beverages, nutritional bars, dry mix beverages, protein fortified foods, and sports nutrition products. These products are projected to foresee revenue growth at 6.7% from 2017 to 2025.

Casein & Caseinates are expected to account for 6.3% of global functional proteins market share by the end of 2025. Casein is a source of various functional peptides comprising various properties such as structure formation, water binding, foaming, heat stability, and emulsification. Furthermore, casein derivatives are employed in the food as well as the non-food application segments including animal nutrition where they provide functional benefits.

Soy products are expected to witness the fastest volume growth, at a CAGR of 7.8% from 2017 to 2025. This increase is attributed to the increasing consumption of soybean for being easily digestible, superior fat retention capacity, and higher nutritional level.

Form Insights

Liquid forms are projected to foresee revenue growth, at a CAGR of 8.2% from 2017 to 2025. Increasing sales volumes of dietary protein-based juices and functional beverages in developed markets of North America and Europe on account of extensive brand campaigns through social advertising and electronics media is expected to have a positive impact. 

The market for dry functional proteins was USD 2.79 billion in 2016 and is projected to find applications as texturing agents for ground meat products including nuggets, meatballs, patties, sausages, and fish products. The positive outlook towards convenience meat products in developing countries including China, India, Brazil, and Mexico on account of increasing number of retail food centers is expected to upscale the requirements of functional protein ingredients.  

Application Insights

Functional foods dominated the market, accounting for 29.1% of global market share in 2016. Growing importance of nutritional fortification in food processing industry on a global level as a result of fluctuating climate patterns and hectic work life is expected to force buyers to target new convenience food products fortified with functional proteins.

Functional Protein market volume, by application, 2016 (%)

Dietary supplements are projected to reach USD 2.95 billion by the end of 2025. Leading corporates including Microsoft, IBM, ExxonMobil, AT&T, GM, and BASF, have increased their expenditure on the development of fitness centers and gymnasiums in their commercial offices. As a result, this favorable scenario in the health & wellness segment is expected to open new markets for functional protein-based nutraceuticals.

Regional Insights

Asia Pacific accounted for 39.7% of global functional proteins market share in 2016. Growing urban population, hectic lifestyle and rising disposable income are expected to remain key factors responsible for increasing the sales of dietary supplements. This trend is projected to push the dietary supplement manufacturers to establish their production units in the vicinity and thus, in turn, will open new industry avenues.

North America is expected to foresee volume growth at a CAGR of 5.9% from 2017 to 2025 on account of increasing use of products with reduced calorie level and high nutritional content. Furthermore, rising awareness toward consumption of nutraceuticals in Mexico owing to new product launches is expected to promote the application scope over the forecast period.

Functional Protein Market Share Insights

Key functional proteins vendors include Fonterra Co-Operative Group, Arla Foods AMBA, Kerry Group, Glanbia PLC, APC Inc., Saputo Ingredients, and Friesland Campina. In August 2016, Glanbia Nutritionals introduced EasyFlav, a flavor technology. The increment in milk products manufacturing capacity in New Zealand and China is expected to reduce the raw material prices for functional proteins processors over the forecast period. Technological innovation regarding the development of energy drink mix in emerging markets including China and India is projected to unlock new industry avenues over the next eight years.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional & country levels and provides an analysis on the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the functional protein market on the basis of product, form, application, and region:

• Product Outlook (Volume, Kilo Tons; Revenue, USD Million; 2014 - 2025)

  • Hydrolysates

  • Whey Protein Concentrates (WPC)

  • Whey Protein Isolates (WPI)

  • Casein & Caseinates

  • Soy Protein

  • Others

• Form Outlook (Volume, Kilo Tons; Revenue, USD Million; 2014 - 2025)

  • Dry

  • Liquids

• Application Outlook (Volume, Kilo Tons; Revenue, USD Million; 2014 - 2025)

  • Functional Foods

  • Functional Beverages

  • Dietary Supplements

  • Animal Nutrition

• Regional Outlook (Volume, Kilo Tons; Revenue, USD Million; 2014 - 2025)

  • North America

    • The U.S.

  • Europe

    • Germany

    • UK

  • Asia Pacific

    • China

    • India

  • RoW

    • Brazil