Animal Protein Market

Market Overview

The global animal protein market size was valued at USD 44.08 billion in 2021. It is projected to reach USD 72.60 billion by 2030, growing at a CAGR of 5.70% during the forecast period (2022-2030). 

Animal protein is a type of protein that comes from sources including fish, dairy, eggs, and other animals. Gelatin, dairy protein, fish protein, and egg protein are the four types of animal protein. Animal protein is widely used in the food and beverage, personal care, pharmaceutical, and nutraceutical industries and feed and animal nutrition. The animal protein market has expanded due to the increasing use of animal protein in several sectors, including the pharmaceutical and nutraceutical industries, feed manufacturing, and others. The market is increasing due to the extensive use of animal proteins in the food and beverage industry, such as dairy and egg proteins.

Market Dynamics

Market Driving Factors

Wide Application in the Food and Beverages Sector

The food and beverage industry frequently uses animal proteins, including gelatin, dairy and egg protein, due to their high nutritional value and high functional qualities like foaming, emulsification, gelling, and others. Animal protein is a prevalent and significant ingredient in the food and beverage industry, helping fuel the market for animal protein's healthy expansion. Moreover, the development of the food and beverage industry is anticipated to present significant potential for the growth of the animal protein market.

Rising Need for Proteins as Functional and Dietary Components

Proteins are believed to be the fundamental components of blood, skin, muscles, and bones. This is explained by the need for hormones, enzymes, and other biological components that can synthesize proteins. Due to growing worries about obesity and increased health awareness, protein supplements are currently used extensively. To obtain the additional nutrients in these supplements, consumers are changing their preferences toward a healthier diet and consuming more protein, boosting the demand for animal protein. Animal protein, such as the protein in eggs, offers various benefits, including the capacity to maintain people's energy and fullness for prolonged durations, which aids in reducing unnecessary cravings.

Increasing Demand for Baby Formula

An increase in working women is causing the growing demand for infant nutritional supplements. Baby formula is a suitable replacement for milk for working women because it is easy and provides the necessary nutritional value for infants. Rapid urbanization and an increase in middle-class families have changed consumer lifestyles. The middle-income groups are wealthier and have more money to spend on their children's dietary requirements. Consumption of infant formula is expected to increase due to consumer perceptions of high nutritional content and parents' concern for their children's health. Also, the primary ingredients of baby formula are dairy proteins. Therefore, the market for dairy proteins is anticipated to rise due to the rising demand for infant formula.

Market Restraining Factors

Increasing Demand for Plant-Based Proteins

The need for plant-based protein has increased as non-vegetarians gradually reduce their consumption of foods like beef, pork, and chicken and increasingly embrace the vegan lifestyle. Meat and meat products contain saturated fats and cholesterol, increasing your risk of developing cancer, diabetes, and heart disease. This change has been noted as consumer preference for a healthy diet has improved. Additionally, as consumer awareness of the living conditions of cattle on farms has grown, non-vegetarians preferences for vegetarian food have also shifted. Customers are looking for different protein substitutes, which has increased the demand for plant-based proteins.

Key Market Opportunities

Increasing Demand for Organic Protein Components and Product Innovation

The idea that egg protein ingredients contain artificial substances will be disproved by releasing new products derived from organic sources. Additionally, the availability of organic and lactose-free egg proteins is anticipated to enhance consumer demand among health-conscious consumers because lactose-free proteins build muscle and strength. The Innovation Center for the U.S. is one of many organizations. Manufacturers of dairy and egg components have been working on R&D projects to improve egg protein ingredients' flavor, aroma, and performance. Manufacturers should benefit financially from the opportunity to provide a broader range of egg protein ingredients, which will help them increase their market share.

Regional Analysis

Europe Dominates the Global Market

The global animal protein market is bifurcated into four regions, namely North America, Europe, Asia-Pacific, and LAMEA.

Europe is the most significant global animal protein market shareholder and is expected to grow at a CAGR of 4.20% during the forecast period. The development of the food and beverage sector and the rise in demand for foods like bakery goods and confectioneries, which need egg protein to prepare, are to blame for the market for animal proteins expanding significantly during the forecast period. Egg protein helps to smooth the skin and reduce wrinkles and fine lines. Therefore, animal proteins like gelatin and egg protein have seen an increase in demand from the personal care and cosmetics business in Europe. The consumption of egg protein is anticipated to be the highest in the region due to rising demand for sports drinks and an increase in young sports engagement, which will support market growth.

North America is anticipated to increase at a CAGR of 5.40% and produce USD 20,192.22 million during the forecast period. Animal protein is the most established market in North America, ascribed to the region's growing population of health-conscious consumers. The fitness sector is predicted to expand more quickly over the projected period and doesn't appear to be slowing down. The increase in American consumers adopting healthy lifestyles or engaging in activities that support active and healthy lifestyles is responsible for this. About 20% of Americans currently belong to a fitness club, which is predicted to rise in the coming years. Additionally, a rise in the demand for protein-rich foods brought on by an increase in the number of health-conscious consumers is projected to fuel market expansion.

The food, beverage and nutrition industries use animal protein extensively in many Asia-Pacific nations. China, Japan, and Australia are the three countries that consume the most dairy protein in the Asia-Pacific region. The market for casein, derivatives, and whey protein is expanding significantly in the region, along with the rise in awareness of dairy protein as sports or rehydrating drinks. The market for milk protein concentrate is anticipated to grow due to its widespread use as an ingredient in skincare products, which have recently become more popular.

Brazil, Saudi Arabia, South Africa, Turkey, and the rest of LAMEA are all included in the LAMEA animal protein market analysis. The consumption of animal protein is predicted to increase significantly in LAMEA during the projection period. An increase in disposable income encourages the demand for nutrient-dense foods, drinks, and nutrition products, eventually boosting market expansion.

Segmental Analysis

The global animal protein market is segmented by product type, form, and application.

Based on product type, the global animal protein market is bifurcated into dairy protein, egg protein, fish protein, and gelatin.

The egg protein segment is the highest contributor to the market and is expected to grow at a CAGR of 5.10% during the forecast period. Eggs are the source of egg proteins like whole egg protein, egg white protein, and egg yolk protein and are commonly used in food, drink, personal care, and nutrition products. They have been widely adopted because of their versatility and various uses in various industries, including texturizing, gelling, binding, foaming, and thickening. The increased demand for egg proteins on the global market is fueled by the rising consumption of foods, including baked goods, confectionery, snacks, processed meat, and seafood. Additionally, the market's increased desire for nutrient-dense food fuels the demand.

Nutritional elements called dairy proteins are utilized to prepare various food products. They are helpful in the processing of food products since they have a variety of bioactivities and functions. Whey protein, casein, and milk protein are dairy proteins used in creating various food products as gelling agents, thickening agents, carriers, foaming agents, and texture modifiers. In addition, they are widely employed in a wide range of applications in the food and beverage, personal care, nutrition, and animal feed industries. Manufacturers of food and beverage ingredients have spent a lot of money on research and development to improve the flavor, properties, or nutritional value of dairy protein.

Based on form, the global animal protein market is bifurcated into solid and liquid.

The solid form segment owns the market share and is expected to grow at a CAGR of 5.70% during the forecast period. The solid form of animal protein, such as dairy protein, is separated from milk through several downstream procedures—this aids in achieving the required moisture content and protein concentration in goods. Additionally, the solid egg protein form is a dried counterpart of fresh eggs. Due to its improved handling characteristics in food applications, solid form, known as powder form, is mainly applied in the food business. Solids may perform various tasks, including foaming, gelling, and emulsifying, which is advantageous when making food and cosmetics.

For consumers with higher protein needs, liquid forms of proteins offer a concentrated amount of protein. Liquid animal proteins, like egg protein, are used to treat anorexia, stress, trauma, and uncontrollable weight loss. The liquid form of animal protein is a concoction of by-products and essential components derived from animals and other sources. For consumers with more significant protein needs, liquid form delivers a concentrated source of protein. Liquid dairy protein is administered for unintentional weight loss before and after surgery, anorexia, stress, and trauma.

Based on application, the global animal protein market is bifurcated into pharmaceuticals and nutraceuticals, food and beverages, cosmetics and personal care, and feed.

The food and beverages segment is the highest contributor to the market and is expected to grow at a CAGR of 4.40% during the forecast period. Animal proteins such as gelatin, whole eggs, yolk eggs, and dairy are frequently consumed in the food and beverage industries. The usage of animal proteins explains this as a primary source of protein in many foods and beverages since they are regarded as an optimum source of necessary amino acids, such as the proteins found in eggs. The rise of the food and beverage industry is driven by customers' rising desire for foods high in protein. Among the products in the food and beverage sector are groceries, oils and fats, functional foods and beverages, food additives, health and natural foods, nutritional foods, and energy drinks.

Nutritional animal proteins have a higher density of micro and macronutrients than ordinary proteins. Even though these proteins are not employed in treatments, they encourage a healthy lifestyle. Animal proteins are increasingly used in food, giving it nutritional and functional value. Consumers active and concerned about their health have changed their preferences to include healthy drinks, supplements, and goods. Animal proteins are highly sought after in industrialized nations' pharmaceutical and nutraceutical industries due to their high nutritional content.

Recent Developments

• August 2022- The largest independent rendering firm in Brazil, FASA Group, was acquired by Darling Ingredients Inc., the world's leading provider of decarbonization solutions and a company that transforms animal and food by-products into specialty ingredients for food and feed.
• May 2022- At the German dairy Pronsfeld, Arla formally opened a new production facility. The development is Arla's largest dairy investment and a significant factor in meeting the rising global demand for sustaining, reasonably priced, and nutrient-dense dairy products. Arla committed EUR 190 million to expand its dairy in Pronsfeld,