U.S. Protein Supplements Market Analysis Report By Product (Ready-to-Drink, Powder, Bars), By Raw Material (Whey, Casein, Soy, Pea), By Source, By Distribution Channel, By Application, And Segment Forecasts, 2019 - 2025

Report Overview

The U.S. protein supplements market size was valued at USD 5.74 billion in 2016, in terms of revenue, and is projected to expand at a CAGR of 6.2% over the forecast years. Growing health consciousness and awareness about leading an active lifestyle are expected to drive the market. Moreover, rising concerns regarding chronic non-communicable diseases including cancer, heart diseases, and diabetes due to changing lifestyles have compelled the consumers to adopt healthier diets that are rich in nutrients.

This will result in an increased demand for protein supplements over the coming years. Rising cases of gluten allergies and lactose intolerance in the country are projected to drive the demand for alternatives to whey and casein product forms. As a result, plant-based nutritional supplements, derived from soy and pea, are projected to remain the fastest-growing raw material segment.

The advent of new products, such as proteins containing a wide range of amino acids and targeting specified functions including energy balance, weight loss, muscle repair, is expected to propel the market growth in the coming years. Growing product demand among women, as a result of the rising popularity of the ‘strong not skinny’ trend, is also likely to contribute to the market development. In addition, the growing geriatric population in the country is projected to boost the product demand further.

Rising adoption of personal preventive healthcare through individual ownership of self-health and wellness, due to the high cost of medical care and rising concerns regarding public healthcare systems, is also expected to impel the market development. Consumer awareness about the benefits of exercising and maintaining a healthy diet will further contribute to market growth. Advances in nutrition and technology are also estimated to fuel the demand for protein supplements in the years to come.

Raw Material Insights

On the basis of raw material, the industry can be segmented into whey, casein, pea, soy, and others. Whey protein was the dominant raw material segment in the past owing to its superior characteristics including a high rate of absorption by muscles and tissues, the ability to promote fat loss, lean muscle growth, healthy metabolism, and cardiovascular support. Whey is the byproduct formed when milk is curdled and strained for the production of cheese or casein.

Whey products consist of various compounds including lactalbumin, lactoglobulin, serum albumin, immunoglobulins, and protease-peptones. It is available in various forms including concentrates, isolates, and hydrolysates. It serves various functions including maintaining and building muscle mass and recovery from heavy exercises. Soy proteins are extracted from soybeans, one of the very few plant sources that offer a complete nutrient package with all the nine essential amino acids. Soy products are available in various forms including concentrates and isolates.

The former is gaining prominence as a vegetarian source of the nutrient; they are loaded with various compounds including glutamine, arginine, and BCAA’s, which aid in muscle recovery and faster absorption. In addition, soy products are used to enhance immune function, promote bone health, and prevent Cardiovascular Diseases (CVDs) and certain types of cancers. Soy proteins are expected to witness steady growth over the forecast period owing to its low cost and rising usage in functional foods.

Source Insights

Animal-based proteins were the dominant source in the past. It consists of meat and dairy proteins, which include whey, casein, egg, beef, poultry, and fish proteins. Animal-based products are complete solutions as they have all the essential amino acids. Milk and egg product types are the most consumed animal-based products. In addition, it also has several nutrients including vitamin B12, Vitamin D, Docosahexaenoic Acid (DHA), heme-iron, and zinc, which makes it the preferred source. However, health concerns associated with animal-based sources including CVDs, certain types of cancer, kidney failure, autism, premature puberty, and female infertility will hinder the segment growth.

Plant-based products are expected to witness the fastest growth over the forecast period at a CAGR of 6.5% owing to increasing popularity among consumers. These products are derived from various sources including soy, peas, hemp, wheat, rice, quinoa, canola, cranberry, pumpkin, potato, flax, and oat. However, some of these products lack a few essential amino acids and thus are often blended together. In addition, various health benefits including a lowered risk of heart disease and type 2 diabetes along with protection against weight gain are expected to propel the demand for plant-based proteins.

Distribution Channel Insights

Online stores accounted for the majority of sales in 2016. An increasing number of internet users, ease of access due to convenience and 24/7 availability, and a wide range of options to choose from are the factors driving online sales. Moreover, discussion portals, discounts, and offers on products and various promotion strategies used by sellers will fuel online sales further.

Supermarkets or mass retailers accounted for a considerable share of the overall sales of protein products in 2016. Major retailers in the country, such as Walmart, are investing in private label varieties to promote the sale of new products. However, the product retail sales are expected to witness slower growth over the forecast period owing to strong competition from other distribution channels, such as online stores and DTC channels.

Direct-to-Customer or DTC is expected to be the second-largest distribution channel over the forecast period. Major companies including Glanbia, Quest Nutrition, IOVATE, and NBTY are investing in DTC channels to expand their consumer base and extend their reach to other regions. Such distribution channel involves direct marketing aimed at the end consumers, companies are developing user-friendly and specialized websites to market their products without the need for any third-party distribution.

Application Insights

Sports nutrition was the dominant application segment and accounted for approximately 78.2% of the U.S. market revenue in 2016. Increasing demand for sport nutritional supplements from core, strength and endurance athletes, weekend warriors, fitness enthusiasts, and professional athletes is expected to drive the segment. Moreover, demand for sports nutritional supplements to promote lean muscle growth, improve stamina, and the weight loss coupled with the increasing number of gym-goers are expected to drive the segment.

The functional food segment accounted for 21.7% of the overall market revenue share in 2016. Rising awareness regarding leading an active lifestyle and maintaining a balanced diet along with increasing health consciousness is driving the demand for nutrient-rich functional foods and beverages, thereby supporting the segment growth.

Product Insights

The powder was the most-preferred product segment and is expected to maintain its dominance over the forecast period. Increasing online sales and mass channels of distribution by various companies including Glanbia, NBTY, and IOVATE are expected to fuel the demand for powdered products. Protein bars are also expected to witness considerable growth during the estimated period. Growing consumer preference for healthy snacks and the increasing popularity of the “living-on-the-go” trend is expected to drive the demand for bars. In addition, demand for products that help in weight loss, fat loss, and promote lean muscle mass is expected to fuel segment growth.

RTD’s are expected to witness the fastest growth at a CAGR of 6.8% over the forecast period. Ready to drink supplements are pre-formulated drinks that are easily available to consume without the requirement for further mixing or preparation. RTD offers a high dose of nutrients that can be consumed pre-workout, post-workout, or on the go; these nutrients are easily absorbed by the body and promotes muscle recovery and aids in lean muscle growth.

Key Companies & Market Share Insights

The industry is exceptionally aggressive with organizations undertaking a few activities including M&A, capital extension, and strategic alliances with established companies of a specific province. Established companies are concentrating on expanding their productivity and market share through technological innovations. Some of the key companies in this market are, Glanbia PLC, Nature's Bounty Co.; Iovate Health Sciences International, Inc.; NOW Foods; CytoSports, Inc. The organizations are concentrating on business development by actualizing different development techniques. To gain further access to the global and regional markets, companies are integrating forward through the value chain.

U.S. Protein Supplements Market Report Scope

Segments Covered in the Report

This report forecasts revenue and volume growth at country level 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 U.S. protein supplements market report on the basis of raw material, source, product, distribution channel, and application:

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

  • Whey

  • Casein

  • Soy

  • Pea

  • Others

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

  • Animal-based

  • Plant-based

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

  • Protein Powder

  • Protein Bars

  • Ready-to-Drink (RTD)

  • Other Products

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

  • Supermarkets

  • Online Stores

  • Direct-to-Customer (DTC)

  • Other Channels

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

  • Sports Nutrition

  • Functional Foods