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

Industry Insights

The global pea protein market size was valued at USD 101.7 million in 2018, and is expected to exhibit a CAGR of 17.4% over the forecast period. Substantial growth of key application sectors, such as meat extenders and analogues, dietary supplements, bakery goods, and beverages, are anticipated to drive the product demand. Growing popularity of meat substitutes and increasing concerns regarding lactose intolerance among adults, coupled with rising demand for gluten-free products, are some of the key factors expected to drive the market over the forecast period. Moreover, positive outlook towards sports nutrition is expected to stimulate market growth. However, presence of other plant-based ingredients including soy, canola, and wheat is expected to challenge the demand.

Green and yellow peas are used as raw materialsfor processing pea protein. Rising importance of organic farming owing to strong regulatory scenario in 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 market growth during the next few years.

Growing awareness regarding nutrition enrichment has increased the importance of dietary supplements and is expected to favorably impact the market growth. Increasing importance of protein consumption for vegetarians is foreseen to result in surging 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 most people 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 pertaining to 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 forecast years.

Robust presence of manufacturing facilities of meat producers, including Tyson, JBF, Cargill and National Foods, in 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 and beverage manufacturers owing to close proximity with Canada, which is a yellow pea producing country.

Product Insights

Isolates was the largest segment that accounted for 51.3% market share in terms of revenue in 2018. These products are used as texturizing agents in meat goods due to favorable properties, such as high amino acid content, excellent emulsification, high solubility, and good water-binding characteristics.

Rising concerns over gluten-related disorders in 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 the food and beverage industry. However, high market visibility for soy due to widespread availability across all the regions is expected to reduce the application scope for the isolates in near future. Expansion of the sports nutrition sector in developed countries including U.S., Germany, and U.K. is likely to boost the product consumption over the years ahead.

In 2018, concentrates generated a revenue of USD 27.6 million and is anticipated to expand at a CAGR of 17.2% over the forecast period. Concentrates are manufactured by separating 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 U.K., France, and Germany due to close proximity with equipment manufacturers and easy access of rice and wheat as raw materials is expected to increase the application of the concentrates over the forecast years.

In January 2019, Safe fair Foods Co., launched its allergy free product line of pea protein chips. The gluten-free chips are free from five of the top seven allergens, which comprise 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 few years.

Form Insights

The dry segment accounted for 72.2% market share in terms of revenue in 2018. It is anticipated to remain dominant during the forecast period, owing to its significant use in the processing of nutritional health supplements, meat, and bakery products. The dry products are mainly available in powdered form and find vast applications in meat extenders and analogues and bakery goods. This segment is anticipated to generate a revenue of USD 217.3 million by the end of 2025.

Liquid form is projected to be the fastest-growing segment during the forecast period. Ease of blending with other food components is one of the key aspects of the liquid pea protein, owing to which it is anticipated to witness rapid adoption on global scale. The segment is likely to exhibit a CAGR of 18.4% in terms of revenue over the forecast period.

Significant consumption of nutritional drinks, sports drinks, and other beverages in key countries, including U.K., 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 accounted for 68.60% share of global market in 2018. Expansion of the nutraceuticals industry in China, Japan, and India due to rising domestic consumption of nutritional supplements is anticipated to promote the product application in the forthcoming years. Fortified pea protein is added in nutritional tablets, syrups, soups, energy powders, and cereal bars on account of health benefits, such as enhancing muscle and bone growth as well as regulating blood sugar levels. Aforementioned benefits associated with consumption of the product are expected to increase the market application in 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 global food industry owing to increasing population and changing consumer lifestyle is projected to drive the demand for dietary supplements.

Bakery goods was the second-largest application segment in 2018. Rising expenditure on incorporation of the product as a rheology improving ingredient in manufacturing of baked goods, including cakes and desserts, will fuel the demand for bakery goods over the forecast years.

Meat substitutes and analogues is another significant application of the market. Growing concerns over meat allergies have 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 growth over the forecast period.

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

Regional Insights

North America held the largest market share of 37.6% in terms of volume in 2018. Factors such as increasing demand for gluten-free items in U.S., robust growth of sports nutrition industry, and rising concerns over cardiovascular diseases caused due to red meat consumption are expected to positively impact the market growth in the forthcoming years. A considerable rise in output of the 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. This in turn, is resulting in a robust demand for pea protein as a texturizing agent in baked goods and meat products.

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

Asia Pacific is likely to witness the fastest growth during the forecast period. It is likely to expand at a CAGR of 15.3% till 2025. Significant gains in the revenue of functional foods in Japan, China, and India is expected to remain a favorable factor driving the growth. In addition, booming hotel and restaurant industry, along with expansion of retail chains, particularly supermarkets is likely to play an important role in promoting growth of the regional food and beverage industry. As a result, positive food and beverage industry outlook across countries such as China and India is expected to fuel the demand for these ingredients in near future.

Emerging markets such as Central and South America and Middle East and Africa are likely to witness significant growth in the next couple of years. Positive outlook towards the sports nutrition sector in Brazil, Chile, and Argentina is likely to offer significant scope for growth in Central and South America during the forecast period.

Pea Protein Market Share Insights

Majority of manufacturers are located in 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 to ensure raw material supply at subsidized rates.

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

Report Scope

Segments Covered in the Report:

This report forecasts volume and revenue growth at a global, regional, and country levels, and provides an analysis of the latest industry trends in each of the sub-segments from 2014 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 Thousand, 2014 - 2025)

  • Isolates

  • Concentrates

  • Textured

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

  • Dry

  • Liquid

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

  • Meat Substitutes

  • Bakery Goods

  • Dietary Supplements

  • Beverages

  • Others

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

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

  • Central & South America

    • Brazil

  • Middle East & Africa