Pea Protein Market Size, Share & Trends Analysis Report By Product (Isolates, Concentrates, Textured), By Forms, By Application (Meat Substitutes, Bakery Goods, Dietary Supplements, Beverages, Others) and Segment Forecasts, 2019 - 2025

Industry Insights

The global pea protein market size was estimated at USD 159.6 million in 2018. The substantial growth of key application sectors, such as meat extenders & analogues, dietary supplements, bakery goods, and beverage, are anticipated to drive the product demand over the years ahead.

Growing popularity of meat substitutes and increasing concern towards lactose intolerance among adults coupled with rising demand for gluten-free products are some of the key factors expected to drive pea proteins market over the forecast period. Also, positive outlook towards sports nutrition is also expected to stimulate market growth. However, the presence of other plant-based ingredients including soy, canola and wheat are expected to challenge industry demand.

For processing of the product, green and yellow peas are used as raw materials. Rising importance of organic farming owing to strong regulatory scenario in the U.S., Australia, and Brazil, to provide incentives to farmers is expected to increase the manufacture of pea crops and enhance raw material availability. This in turn is expected to boost the industry growth during the next seven years.

The growing awareness toward nutrition enrichment has increased the importance of dietary supplements and is expected to favorably impact the market. Increasing importance of protein consumption for vegetarians is foreseen to result in rising demand for pea protein powder over the forecast period. Rising concerns regarding dairy and meat allergies are expected to fuel the demand for protein fortified food products in the near future.

Rising importance of flexitarian diet among the majority population in U.S. owing to increasing concerns regarding cardiovascular diseases that are associated with red meat consumption is expected to remain a favorable factor for promoting the industry growth. Moreover, increasing awareness towards adverse effects associated with food comprising gluten as well as lactose is likely to play a crucial role in enhancing the product demand over the next seven years.

Robust presence of manufacturing facilities of meat producers including Tyson, JBF, Cargill and National Foods in the U.S. is expected to increase the use of pea protein as a part of texture improving agent in meat processing. Increasing consumption of grains including soy and canola to produce bio-based chemicals is anticipated to reduce their availability as protein ingredients. As a result, the product is anticipated to emerge as an important ingredient among food & beverage manufacturers owing to the close proximity with the yellow pea producing country Canada.

In terms of volume, concentrates segment in the U.S. market is likely to expand at a CAGR of 7.4% from 2019 to 2025. Application growth of frozen breads in the retail markets of the country is anticipated to play a crucial role in increasing the manufacturing output of baked goods which will fuel the product demand in the near future.

Product Insights

Isolates was the largest segment that accounted for over 50.1% of global industry revenue in 2018. These products are used as texturizing agents in meat goods due to providing properties such as high amino acid content, excellent emulsification, high solubility and good water-binding characteristics.

Rising concerns over gluten-related disorders in the U.S. and Canada owing to increasing expenditure on research pertaining to human health is expected to promote the importance of gluten free pea protein isolates in food & beverage industry. However, high market visibility for soy in light of widespread availability across all the regions is expected to reduce the application scope of pea protein isolates in the near future. Expansion of the sports nutrition sector in developed countries including the U.S., Germany and the UK is likely to boost the product consumption over the years ahead.

In 2018, Concentrates generated a revenue of 46.7 million and is anticipated to grow at a CAGR of 9.0% over the forecast period. Concentrates are manufactured by separating the protein of pea seeds from the fiber and starch fractions through the utilization of dry as well as wet processes. These products possess properties including high digestibility and good emulsification which promotes their use as sports supplementation.

Moreover, pea protein concentrates are increasingly incorporated in cakes on account of providing dry-texture and good flavoring properties. Robust manufacturing base of baked goods in the UK, France and Germany in light of close proximity with equipment manufacturers and easy access of rice and wheat as raw materials is expected to increase the application of pea protein concentrates over the forecast years.

In January 2019, Safe fair Foods Co, launched its allergy free product line under pea protein chips. The gluten free, protein packed chips are free from five of the top seven allergens which compromises of pea protein and lentil flours. New product development and establishment of partnership between manufacturers and buyers are anticipated to remain critical success factors for textured pea protein manufacturers over the next seven years.

Form Insights

Dry based pea protein segment accounted for 69.8% of the total industry revenue in 2018. The dry form is considered to remain the dominant segment during the forecast period, owing to its significant use in the processing of nutritional health supplements, meat, and bakery products. Dry segment is mainly available in powdered form in the global market. It finds vast applications in meat extenders & analogues and bakery goods sectors. This segment is anticipated to generate a revenue of USD 111.3 million by the end of 2025.

Liquid form is projected to be the fastest growing segment during the forecast period, between 2017 and 2025. Ease of blending with other food components is one of the key aspects of the liquid pea protein, owing to which its rate of adoption on the global level is anticipated to rise at a fast-paced growth rate over the next couple of years. The segment is likely to witness a CAGR growth of 10.3% in terms of revenue over the forecast period.

Significant consumption of nutritional drinks, sports drinks, and other beverages in key countries including the UK, Germany, and France is anticipated to provide opportunities for liquid-based food ingredients in Europe to a certain extent over the forecast period.

Application Insights

In terms of volume, dietary supplements constituted 59.2% of global market in 2018. Expansion of nutraceuticals industry in China, Japan and India in light of rising domestic consumption of nutritional supplements at domestic level is anticipated to promote the application of pea protein over the next seven years.

Pea protein is fortified added in nutritional tablets, syrups, soups, energy powders and cereal bars on account of providing health benefits such as enhancing muscle and bone growth as well as regulating blood sugar levels. Moreover, aforementioned benefits associated with consumption of pea protein are expected to increase the market application in the near future.

Rising awareness among consumers regarding healthy and nutritious diet coupled with increasing demand for energy drinks and processed food is expected to fuel the product demand. Growth of the global food industry owing to increasing population and changing lifestyle of consumers is projected to drive demand.

Bakery goods was the second-largest consumer of the global market in 2018. Rising expenditure on incorporation of the product as a rheology improving ingredient in manufacturing of baked goods including cakes and desserts by baking industry players will fuel the demand over the next seven years.

Meat substitutes & analogues is another significant application of the market. Growing concerns over meat allergies has resulted in technological development of new textured products, which resemble meat. Positive outlook on meat substitutes as a result of rising vegetarian population is expected to have a positive impact on the industry growth over the forecast period.

Pea protein offers good texturing properties which are expected to promote its application scope in the production of meat items including chicken, mutton, beef and lamb, over the next seven years. However, predominant consumption of soy, wheat, tofu, tempeh and textured vegetable protein as meat substitutes will pose a substitution threat to the product over the next seven years.

Regional Insights

North America was the largest consumer accounting for 38.1% of the global volume in 2018. Increasing demand for gluten-free items in the U.S., robust growth of the sports nutrition industry and rising concerns towards cardiovascular diseases caused due to red meat consumption are important factors which are expected to positively impact market growth over the next seven years.

A considerable rise in output of food processing sector in Mexico on account of increasing number of imports for machineries is expected to promote the application of baked goods and processed meats, thereby resulting in a robust demand for pea protein as texturizing agent in baked goods and meat products over the forecast years.

Europe was the second-largest consumer of the global industry in 2018. Rising concerns towards lactose intolerances along with shifting consumer inclination towards plant-based proteins in Europe is expected to have a positive impact on the industry in the near future. However, stagnant growth of food & beverage industry in key markets including Germany, France and UK in light of increasing utility expenditure along with stringent environmental regulations to limit production output will remain a restraining factor for pea protein market over the forecast years.

Asia Pacific is likely to witness fastest growth during the forecast period. In terms of volume, the demand of pea proteins in the region is likely to increase at a CAGR of 8.7% till 2025. Significant gains in the revenue of functional foods in Japan, China and India is expected to remain a favorable driving factor over the next seven years.

In addition, grooming hotel and restaurant industry along with expansion of retail chains particularly supermarkets are likely to play important role in promoting food & beverage industry growth. As a result, positive food & beverage industry outlook across countries such as China and India is expected to fuel the market demand for pea protein ingredients in the near future.

Central & South America and Middle East & Africa are likely to witness emerging market growth in the next couple of years. Positive outlook regarding the sports nutrition sector in Brazil, Chile, and Argentina is likely to offer significant scope for industry improvement in the Central & South America region during the forecast period.

Pea Protein Market Share Insights

Majority of the manufacturers are located in the U.S. and Western Europe owing to easy access to raw materials and equipment on a domestic level. Pulse protein ingredient suppliers are expected to sign agreements with farming agencies and government bodies in order to ensure the supply of raw materials in subsidized rates.

High processing cost of pulse ingredients to produce pea proteins along with extensive R&D infrastructure is expected to pose major barrier to the market growth over the next seven years. The manufacturing companies are expected to increasing spending on the development of new products including non-GMO level pea protein ingredients. As a result, the companies are likely to collaborate with buyers located in food & beverage industry for research & development of including nutritious bakery goods and beverages.

Report Scope

Segments covered in the report:

This report forecasts volume and revenue growth at a global, regional & country level, and provides an analysis on the industry trends in each of the sub-segments from 2019 to 2025. For the purpose of this study, Grand View Research has segmented the global pea protein market report on the basis of product, form, application, and region:

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

  • Isolates

  • Concentrates

  • Textured

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

  • Dry

  • Liquid

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

  • Meat Substitutes

  • Bakery Goods

  • Dietary Supplements

  • Beverages

  • Others

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

  • North America

    • U.S.

    • Canada

  • Europe

    • UK

    • Germany

    • France

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

  • Central & South America

    • Brazil

  • Middle East & Africa