Plant Based Protein Supplements Market Size, Share & Trends Analysis Report By Product (Protein Powder, Protein Bar), By Raw Material, By Distribution Channel, By Application, And Segment Forecasts, 2019 - 2025

Industry Insights 

The global plant based protein supplements market size was estimated at USD 4.18 billion in 2017. It is projected to expand at a CAGR of 7.9% during the forecast period. Rising importance of a vegan diet as a result of the risk of cardiovascular diseases and type 2 diabetes associated with the consumption of meat products is expected to have a strong positive impact on the growth. The global market is projected to register substantial growth over the next eight years as a result of rising population of flexitarians in U.S. and Canada, due to extensive campaigns for promoting vegan diet via media platforms.

Furthermore, increasing concerns regarding glutamic disorders and lactose intolerance among the millennials in developed markets including Germany and U.S. are projected to propel the utilization of soy as well as pea protein supplements. A majority of manufacturers are involved in selling their products through various distribution channels including direct selling contracts, e-commerce portals, and supermarkets. These products are available in different forms such as powder, liquids, Ready-to-Drink (RTD), and capsules.

Since the past few years, different types of retail chains including mass merchandisers, pharmacies, and grocery retail outlets have been focusing on growing popularity of sports nutrition among consumers. Pharmacies or drugstores, which hold a significant share of consumer health spending, have emerged as a key retail segment.

For instance, Walgreens, a U.S.-based pharmacy Company, has key outlets that feature a separate sports nutrition section for nutraceuticals aisles. There are two separate lines of protein powders for Walgreen-one under the umbrella of Walgreen’s banner while other is high quality premium version of private-label brand, Finest Nutrition. This trend in retail level is projected to provide options to buyers for choosing the best nutritional solutions.

Raw Material Insights

On the basis of raw material, the plant based protein supplements market is segmented into soy, spirulina, pumpkin seed, hemp, rice, pea, and others. The soy segment accounted for 66.2% of the overall market share in terms of revenue, in 2017. Soy protein supplements are extracted from soybeans - one of the very few plant sources that offer a complete package with all the nine essential amino acids.

These products are available in various forms including concentrates and isolates. Gaining prominence of soy products as vegetarian sources on account of their composition of ingredients including glutamine, arginine, and Branched-chain Amino Acids (BCAAs), is expected to drive segment demand over the forecast years.

Pea protein is a complete protein, which contains all the necessary amino acids, including BCAAs which is effective in muscle building and fast absorption. This segment is expected to account for 20.3% of total market share by the end of 2025 owing to its growing popularity among vegetarian and vegan population. Furthermore, this type of products is expected to remain a favorable choice for individuals allergic to egg or dairy proteins.

Product Insights

Protein powder was the dominant product segment and accounted for a market share of 68% in 2017, on account of predominant consumption among gym professionals. In line to this, increasing market visibility of powder products among bodybuilders, elite athletes, and casual exercisers as a result of its ease of incorporation into milk and water is expected to result in high market penetration in near future. Rapid innovation for manufacturing products containing an extensive range of amino acids and focus on functions, such as muscle repair, weight loss, energy balance, and satiety, is expected to create immense potential for market growth.

The bars segment is expected to witness a considerable CAGR of 6.8% over the forecast period. The ever-increasing pace of life coupled with consumer preference for healthier snacking options and the trend of on-the-go snacking has increased the demand for bite-sized snacks and healthy options such as bars.

The Ready-to-Drink (RTD) segment is expected to expand at a CAGR of 8.2% over the forecast period. RTD supplements are pre-formulated drinks that are easy to consume without the requirement of further mixing or preparation. RTDs offers a high dose of nutrient and can be consumed pre-workout, post-workout, or on the go. The nutrients in these drinks are easily absorbed by the body and they promote muscle recovery and aid in lean muscle growth. 

Distribution Channel Insights

Online stores accounted for the majority sales in 2017 owing to easy accessibility and discounted prices. The rising demand for supplements through e-commerce platform, such as Amazon, Alibaba, and several others is anticipated to bode well for growth. The Direct-to-Customer (DTC) channel is expected to witness the growth over the forecast period on account of then intensive capital investment by major manufacturers to strengthen their DTC channels.

Supermarkets or mass retailers accounted for approximately 13% of the overall sales of protein products in 2017. Major retailers in U.S., including Walmart, are moving into this market and are investing in private label varieties to promote product sales. However, retail sales are expected to witness a slower growth rate over the forecast period owing to strong competition from other distribution channels, such as online stores and DTC channels.

The other segment includes pharmacies, fitness centers, and small-scale retailers. Sales through these channels is expected to witness a reasonable growth over the forecast period owing to increasing number of fitness centers in countries such as U.S., Brazil, and Argentina.

Application Insights

The sports nutrition held the dominated market share of 77.3% in terms of revenue in 2017. Rise in sport nutritional supplements for core, strength, and endurance athletes, fitness enthusiasts, and professional athletes is expected to drive growth. Furthermore, rising demand for sports nutrition supplements to promote lean muscle growth, improve performance and stamina, promote weight management coupled with increasing number of gym goers is expected to fuel product demand.

Additional nutritional segment accounted for 22.7% of market share in terms of revenue in 2017. Increasing awareness regarding the benefits of balanced and nutrient-rich diet and regular exercise to maintain a healthy body weight is driving the demand for additional nutrition supplements, prescribed by medicine practitioners or doctors.

Regional Insights

North America accounted for 50.7% of the global revenue share in 2017. Rising awareness about vegan diet along with shifting trend towards vegetarianism as a result of new brand campaigns on social media and television channels is projected to upscale the plant-based protein supplements in near future.

The demand in U.S. is expected to grow at a steady pace over the forecast period owing to the increasing consumption of sports nutrition supplements. In addition, rising concerns regarding weight management coupled with growing consumer awareness about the intake of a nutritious diet and maintaining a healthy lifestyle are expected to boost the regional market growth over the forecast period.

Asia Pacific is expected to account for a revenue share of 16.6% of the global market by 2025. Rising spending for the development of natural ingredients including soy for the production of nutraceuticals in China and Japan is expected to open new investment avenues. In addition, favorable factors, such as rising disposable income and urbanization are anticipated to play a key role in promoting consumption of the products, particularly among the vegan population.

Central and South America accounted for approximately 5.0% of the global revenue share in 2017. The market is expected to witness considerable growth over the forecast period owing to rising number of health clubs and fitness centers in countries like Brazil and Argentina. In addition, presence of several major players coupled with easy availability of raw materials like soybean, is expected to boost the regional demand over the forecast period.

Plant Based Protein Supplements Market Share Insights

Key manufacturers in the market include Glanbia plc, NOW Foods, MusclePharm Corporation, CytoSport, Inc., Quest, and NBTY. The market is characterized by joint ventures, capacity expansions, mergers and acquisitions, and substantial distribution and branding decisions to improve the market share of manufacturers. Product innovation is projected to remain a key success factor for the players over the forecast period.

Increasing concerns over cardiovascular risks associated with animal nutrition are expected to trigger new investments by nutritional supplements manufacturers. Over the past few years, governments of developing nations such as, China and India, have been implementing numerous steps for renovating major cities including Shanghai, Hangzhou, and Chengdu in China and Hyderabad, Bangalore, and Pune in India through infrastructural development along with the establishment of multinational companies (MNC).

The popularity of e-commerce portals as one of the selling mediums across all buyer segments is increasing as they provide service benefits, such as free home delivery, cashback offers, and coupons. This is anticipated to force nutraceutical manufacturers to establish tie-ups with online firms. Therefore, product innovation and tie-ups with e-commerce firms are projected to remain the major strategies adopted by the manufacturers to maintain competitive edge.

North America is likely to remain a key market for supplement manufacturers to position premium product forms owing to the increased awareness among adults about non-GMO and gluten-free diet. In addition, U.S. is expected to remain one of the favorable markets owing to easy access to plant based protein supplements in supermarkets along with increasing concentration of gluten-free labeling across restaurants and food joints.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at 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 plant based protein supplements market report on the basis of raw material, product, distribution channel, application, and region:

• Raw Material Outlook (Revenue, USD Million, 2014 - 2025)

  • Soy

  • Spirulina

  • Pumpkin Seed

  • Hemp

  • Rice

  • Pea

  • Others

• Product Outlook (Revenue, USD Million, 2014 - 2025)

  • Protein Powder

  • Protein Bars

  • Ready- to-Drink (RTD)

  • Others

• Distribution Channel Outlook (Revenue, USD Million, 2014 - 2025)

  • Supermarket

  • Online Stores

  • DTC

  • Others

• Application Outlook (Revenue, USD Million, 2014 - 2025)

  • Sports Nutrition

  • Additional Nutrition

• Regional Outlook (Revenue, USD Million, 2014 - 2025)

  • North America

    • U.S.

  • Europe

    • Germany

    • U.K.

  • Asia Pacific

    • China

    • India

  • Central & South America

    • Brazil

  • Middle East & Africa