GVR Report cover Protein Ingredients Market Size, Share & Trends Report

Protein Ingredients Market Size, Share & Trends Analysis Report By Product (Plant Proteins, Animal/Dairy Proteins, Microbe-based Proteins, Insect Proteins), By Application, By Region, And Segment Forecasts, 2021 - 2028

  • Published Date: Mar, 2021
  • Base Year for Estimate: 2020
  • Report ID: 978-1-68038-451-2
  • Format: Electronic (PDF)
  • Historical Data: 2017 - 2019
  • Number of Pages: 150

Report Overview

The global protein ingredients market size was valued at USD 38.5 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 10.5% from 2021 to 2028. The market is gaining momentum and witnessing a high demand owing to rising demand for food products, such as margarine, cold cuts, bakery products, spreads, yogurt, and milk sausages, which are produced using protein ingredients. Increasing consumption of these products among health-conscious and elderly consumers is also fueling the market growth. Moreover, a rise in the innovation of several proteins by various manufacturers that constitute a wide range of amino acids and perform specific functions, including satiety, muscle repair, weight loss, and energy balance, is expected to present immense growth opportunities for the market.

U.S. protein ingredients market size, by product, 2017 - 2028 (USD Billion)

The U.S. market has witnessed a considerable increase in the consumption of animal-based products in the recent past. Animal protein is expected to witness further growth over the next few years in the country. Momentous demand for these products derived from animal sources in the domestic market is expected to ascend the product demand in the U.S. The supply chain initiatives undertaken by the ingredient manufacturing companies to strengthen the distribution of products are further expected to drive the market over the forecast period.

Plant-based ingredients are manufactured from crops, including soy, canola, wheat, and pea. Soy protein has been growing at a significant rate and has had the largest share in the plant-based category. It is expected to expand at a high compound annual growth rate over the forecast period. Additionally, the Food and Drug Administration (FDA) authorized a health claim for the reduction of LDL cholesterol through dietary guidelines suggesting four servings of soy per day to help reduce the LDL cholesterol level by 10% in the body.

Product innovations and technological advancements are expected to be the major factor for the expansion of the market over the forecast period. Protein ingredients are now being used in diverse applications, for instance, isolates have high dispersibility and very fine particle size due to which they are widely used in dairy applications. Consumers’ belief in the health benefits associated with these products has been the key driver for this market over the past few years and the trend is anticipated to continue over the forecast period.

Product Insights

Animal-based proteins led the market and accounted for more than 70.0% share of the global revenue in 2020. Numerous health benefits offered by animal protein ingredients have been supported by strong scientific evidence and recognized by the government food regulatory institutions. The high demand for animal-based ingredients is pushing their consumption further, thus propelling the growth of the segment over the forecast period. For example, whey increases glutathione (GSH) levels as well as enhances nutritional status and immunity in cancer patients undergoing chemotherapy.

Plant proteins are relatively inexpensive compared to animal-derived variants, which is expected to fuel the growth of the plant segment over the forecast period. Additionally, the growing trend of veganism is fueling the consumption of plant-based ingredients in North America and Europe. The perception of plant-based products being healthier than animal-based counterparts has resulted in the increasing adoption of products derived from soy and wheat. Pea protein has a relatively lower market share compared to soy and wheat protein, however, it is expected to exhibit a revenue-based CAGR of 12.9% over the forecast period.

The demand for cereal-based ingredients is expected to witness significant growth on account of their application in the personal care and cosmetics industry. Corn-based products are used as a pacifying agent, skin conditioning agent, hair conditioning agent; as abrasives and absorbents; and as binders in the eye and facial makeup, fragrances, hair care, hair dye and hair coloring, nail, and oral care applications.

The legume-based proteins segment is driven by the growing adoption of legumes in the vegan diet and food items as a source of protein. Furthermore, the increasing consumption of legume-based snacking products is predicted to positively impact segment growth. Rising incidences of health disorders, such as obesity, digestive problems, and diabetes, among consumers are driving the acceptance of healthy foods. This is evident through the fact that legumes prevent and reduce the onset of various health issues, including cell damage and high blood pressure.

The demand for micro-based proteins is increasing due to the growth in animal feed applications over the past few years. One of the main factors contributing to the growth of the microbe-based proteins segment is its rising utilization in the aquaculture feed industry. This is a result of the growth of fish farming all over the world, which is responsible for 50% of the world’s fish supply for food applications. The number is likely to grow over the next few years, resulting in the growth of the microbe-based proteins segment as it is a key ingredient supplying overall nutritive value and high-quality amino acids to the aquaculture sector.

Protein ingredients derived from insects, such as crickets, have found widespread applications, including bars. The protein from insects is typically used in powder form to enhance nutritional value as well as add flavor to the bars. Companies such as Crik Nutrition source these raw materials from farms that are inspected and designed to farm crickets that are suitable for human consumption. To ensure high quality of raw materials, these farms follow strict guidelines and practices for the same.

The market has been successfully penetrating new emerging markets, such as New Zealand, for the product owing to the high availability and abundance of favorable plant crops. Wrinkled peas, alfalfa, tree nuts, potato, kiwifruit seeds, and amaranth are some of the superior sources of protein and are highly harvested in New Zealand. In addition, New Zealand and similar European countries have been seeing the establishment of new manufacturing facilities in the region, further ascending the growth of the market in Europe.

Application Insights

The food and beverages application segment held the largest revenue share of over 40.0% share in 2020. Whey protein ingredients are an economical source of protein and are therefore extensively used in the bakery and confectionery industry. Furthermore, advancements in process design and technology have improved the quality of whey products that are highly refined, including demineralized whey, WPIs, and WPCs. The advancements have resulted in the increased incorporation of protein ingredients in various functional food products to make them nutrient-rich.

Global protein ingredients market share, by application, 2020 (%)

Protein ingredients are highly used in beverages to make liquid supplements. The ready-to-drink protein-rich beverages are becoming highly popular among fitness-savvy consumers, spiking the consumption of food and beverages over the forecast period. These ingredients are additionally used in other beverages to improve the textural properties by increasing their particulate level. The application of proteins in other beverages is expanding for value addition purposes as well as to improve the overall consistency of the drink.

The infant formulations application segment is expected to witness significant growth in the years to come as protein is an important constituent in the infant diet. Either animal or plant proteins constitute the ingredients of premixes. Infant formulas containing milk protein isolates and concentrates are widely used for infant nutrition. The product is available in liquid ready-to-eat, liquid concentrate, and powdered forms. Different products derived from cow milk include partially hydrolyzed whey protein and its concentrates, combinations of casein, and non-fat milk.

The growing research & development in protein-based products for clinical nutrition application have resulted in the increased number of products using protein ingredients in the biopharmaceutical industry. The growing awareness regarding diseases linked with nutrition deficiency and changing lifestyles has caused a rise in demand for these ingredients in the aforementioned applications.

Regional Insights

North America dominated the market and accounted for more than 40.0% share of the global revenue in 2020. The growing demand for protein ingredients is a result of the increasing consumption of snacks, cold cereals, and energy bars. The introduction of new products, such as Enfamil Human Milk Fortifier Liquid High Protein, by companies including Mead Johnson and Cargill, Inc. to cater to the consumer needs for cholesterol-free and low saturated fat beverages is expected to augment the product demand further.

In terms of revenue, Germany accounted for the largest share in the European region in 2020. The rise in the geriatric population in Germany has fueled the demand for medical nutritional products helpful in bone and muscle maintenance. This has propelled the demand for these ingredients in the recent past. Moreover, the contribution of protein ingredients in treating Alzheimer’s disease has positively impacted the market in Germany.

Asia Pacific is expected to register the highest growth rate in terms of revenue during the forecast period due to the emerging consumer markets in countries, such as China and India. The easy availability of raw materials has made China one of the biggest producers of plant and animal-based products. Soy protein is widely consumed in China and soy accounted for more than 91% share of the plant-based protein segment in the country. Moreover, growing dependence on packaged foods and drinks is expected to propel the product demand in South Korea, Malaysia, Indonesia, India, and China over the next few years.

Key Companies & Market Share Insights

The incorporation of protein powders in different products and the expansion of protein derivatives are expected to remain key factors for the success of industry participants over the next few years. For instance, Bunge Limited expanded its clean label ingredients portfolio with a new pulse-based lentil functional flour. This newly offered product is dense in protein and offered as a substitute for modified starches.

Market players are taking up various strategies in order to cater to the increasing demand for the product as well as to cut down overall expense through the reduction in raw material and labor costs. There is a high potential for small, public, and internationally renowned players in the market with the presence of both fragmented and organized market structures in developing and developed countries, respectively. The key players are engaged in mergers and acquisitions to capture the emerging markets and compete with domestic players. The strategy has also helped the companies in the expansion of distribution channels for a better supply of the products throughout the regions. Some prominent players in the global protein ingredients market include:

  • DuPont

  • Rousselot

  • Fonterra

  • Archer Daniels Midland Company

  • Burcon NutraScience

  • Tessenderlo Group

  • Kewpie Corporation

  • Roquette Frères

  • The Scoular Company

  • CHS Inc.

  • Mead Johnson & Company, LLC

  • Cargill, Incorporated

Protein Ingredients Market Report Scope

Report Attribute

Details

Market size value in 2021

USD 42.5 billion

Revenue forecast in 2028

USD 85.5 billion

Growth Rate

CAGR of 10.5% from 2021 to 2028 (Revenue-based)

Market demand in 2021

6,662.1 kilotons

Volume forecast in 2028

11,860.3 kilotons

Growth Rate

CAGR of 8.6% from 2021 to 2028 (Volume based)

Base year for estimation

2020

Historical data

2017 - 2019

Forecast period

2021 - 2028

Quantitative units

Revenue in USD million/billion, volume in kilotons, and CAGR from 2021 to 2028

Report coverage

Revenue forecast, volume forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Product, application, region

Regional scope

North America; Europe; Asia Pacific; Central & South America; Middle East & Africa

Country scope

U.S.; Germany; U.K.; France; China; India

Key companies profiled

DuPont; Rousselot; Archer Daniels Midland Company; Burcon; Tessenderlo Group; Kewpie Corporation; Roquette Frères; The Scoular Company; CHS Inc.; Mead Johnson & Company, LLC

Customization scope

Free report customization (equivalent to up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope.

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Segments Covered in the Report

This report forecasts revenue and volume growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2017 to 2028. For the purpose of this study, Grand View Research has segmented the global protein ingredients market report on the basis of product, application, and region:

  • Product Outlook (Volume, Kilotons; Revenue, USD Million, 2017 - 2028)

    • Plant Proteins

      • Cereal-based

      • Legumes-based

      • Root-based

      • Nuts & Seeds-based

      • Ancient Grains

    • Animal/Dairy Proteins

      • Egg Protein

      • Milk Protein Concentrates/Isolates

      • Whey Protein Concentrates

      • Whey Protein Hydrolysates

      • Whey Protein Isolates

      • Gelatin

      • Casein/Caseinates

      • Collagen Peptides

    • Microbe-based Proteins

      • Algae

      • Bacteria

      • Yeast

      • Fungi

    • Insect Proteins

      • Coleoptera

      • Lepidoptera

      • Hymenoptera

      • Orthoptera

      • Hemiptera

      • Diptera

      • Others

  • Application Outlook (Volume, Kilotons; Revenue, USD Million, 2017 - 2028)
    • Food & Beverages

      • Bakery & Confectionery

      • Beverages

      • Breakfast Cereals

      • Dairy Alternatives

      • Dietary Supplements/Weight Management

      • Meat Alternatives & Extenders

      • Snacks

      • Sports Nutrition

      • Others

    • Infant Formulations

    • Clinical Nutrition

    • Animal Feed

    • Others

  • Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2017 - 2028)

    • North America

      • U.S.

    • Europe

      • Germany

      • U.K.

      • France

    • Asia Pacific

      • China

      • India

    • Central & South America (CSA)

    • Middle East & Africa (MEA)

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