Market Dynamics
Global protein hydrolysate ingredients market drivers
growing influence of healthy lifestyle trends and rising
Due to a variety of reasons, including personal fitness, obesity, and others, the customers in the market under investigation have been altering their eating habits; according to OCED, 47%, 39%, and 35% of the population, respectively, are projected to be obese in 2030. These three countries are expected to have exceptionally high obesity rates. As a result, consumers are more interested in rigorous exercise, which affects how they balance work and personal life. Manufacturers are taking advantage of this trend to increase their market share.
On the other hand, sports nutrition products are primarily consumed by athletes and bodybuilders. However, the increase in users for leisure and lifestyle purposes benefits the market under study. The expansion of the consumer base in the market under study has been fueled by changes in lifestyle and rising disposable incomes in nations like China and India. The market under study has grown faster than average due to increased consumer awareness of the advantages of protein-based sports nutrition products, including protein hydrolysates like whey and soy.
increase in demand for plant protein-based products
With modified technologies, companies are targeting consumers by producing innovative products with organoleptic properties similar to real meat. These ingredients are made with a combination of protein hydrolysate to attain the desired flavor and taste. The new compositional research and the modified high-technological process are helping the growth of the plant-based protein hydrolysate market.
Further, Wheat proteins are the most widely used plant-based proteins in Europe, with hydrolyzed wheat protein and textured ones holding a market share of about 20%, as stated. Clean eating, environmental/sustainability reasons, and better treatment of animals are some factors spurring the demand. As most athletes and active consumers seek alternative products while cutting their requirement on animal protein, a load up on products made from old standbys, including pea, rice, hemp, and soy, have gained importance lately. Furthermore, newer unique proteins, including sacha inchi, quinoa, and water lentil, appear with greater frequency in protein blends. Yet, their efficacy for supporting muscle building is not noticeable. Among the plant sources, soy protein is the most acknowledged with 31%, followed by rice at 23%, hemp at 18%, pea proteins at 13%, and others in the United States. Thus, increasing inclination toward a plant-based diet depicts a considerable market potential for plant-based protein hydrolysate products that have driven the market in the forecast period.
Global protein hydrolysate ingredients market restraint
Availability of low-cost alternatives
The presence of other alternatives, like isolates and concentrates for protein enrichment in the food industry and other cost-effective flavor enhancers like Mono sodium glutamate and yeast extract, which has an established consumer base, act as a market restraint for the protein hydrolysate ingredient market. The cost of the product increases with the increase in the protein content per unit, as most of the other contents, like carbohydrates, fat, and cholesterol, are removed during this process. The protein is made into simpler form (small chains of amino acid) that could be easily absorbed by the body's muscles which, on the other hand, will create an off flavor or bitter taste too.
Thus, hydrolyzed protein ingredients are more expensive due to their processing method, wherein isolates and concentrates are widely preferred in functional food and supplements to gain a profit margin from manufacturers. Further, Whey concentrates have specific fat and cholesterol levels, with a higher number of bioactive compounds and carbs in the form of lactose acting as one of the most efficient and economic forms of whey protein. And typically, whey concentrate is the go-to protein supplement for 90% of manufacturers, and the taste of the concentrate is comparatively good, thus, widely used in common bodybuilding supplements.
Furthermore, in terms of taste enhancer ingredient monosodium glutamate has gained momentum. It is generally recognized as safe by various regulating bodies, like the Food Safety and Standards Authority of India, the United States Food and Drug Administration, and others. In addition, Aji-no-moto, one of the leading suppliers of MSG, has penetrated most of the global markets, including China, Thailand, Korea, Japan, Vietnam, Malaysia, Mexico, and African markets is further, creating a significant impact during the forecast period.
Global protein hydrolysate ingredients market opportunities
Escalating usage of clean-label ingredients
Global demand for clean-label ingredients in food is rapidly growing among consumers. They are highly concerned about the long-term effects of the ingredients they are consuming, in terms of nutrition content and its impact on health, environmental sustainability, sourcing, and social responsibility. This has triggered the increasing demand for the clean-label ingredient market. Globally, 82% of consumers found it essential to recognize the food and beverage ingredients while buying. For 81%, a short and simple ingredient list is essential, as stated by Cargill. The lean toward a slimming or clean-label orientation or on-the-go snack-based options like sports protein bars and ready-to-drink sports protein are spurring in the market. Thus, manufacturers are trying to penetrate this market through various strategies. Furthermore, knowledge about clean labeled products among the millennials and gen Z is rising significantly. Thus, more and more manufacturers are positioning their products as clean-label ingredients, driving market growth.
Regional Analysis
By region, the global protein hydrolysate ingredients market Is segmented into Europe, Asia-Pacific, North America, South America, Middle East & Africa.
North America accounted for the largest market share and is estimated to grow at a CAGR of 6.9% during the forecast period. Consumers in the United States continually demand beverages that provide sensory taste and the required nutritional benefits. The rise in the adoption of plant-based protein food and beverages due to the awareness among consumers about the benefits offered by a plant-based diet is one of the major factors spurring plant-based protein beverages across the country. The nation's population still largely consumes animal protein, but over the past few years, plant protein hydrolysates derived from soy, lentils, and beans have gained significant ground. This is a result of the retail market's high penetration of vegan, protein-based products and rising consumer awareness of the diet's weight control and health benefits. The United States Department of Agriculture's (USDA) confirmation that soy protein reduces heart diseases has boosted the US market enormously. It has further increased the demand for other vegan proteins.
Europe is the second largest region. It is anticipated to reach an expected value of USD 2600 million in 2031, recording a CAGR of 8%. Germany is one of the fastest-growing European markets for protein ingredients due to the increased demand from fitness-conscious populations. Younger generations in Germany have displayed a more significant interest in high-quality protein ingredients. This has eventually led to the growth in the sales of protein isolates and hydrolysates. For instance, in 2017, FrieslandCampina launched its latest innovation in whey protein hydrolysates. 'Nutri Whey Hydro' is expected to strengthen the dairy protein portfolio of hydrolyzed and intact proteins developed for lifestyle nutrition and performance. Additionally, the increasing demand for plant-based sources such as soy protein hydrolysate is attributed to its immense health benefits, including obesity concerns. It also aligns perfectly with veganism. Germany is one of the countries that have the highest vegan population in the world. Germany, in 2016 launched more vegan food products than any other country; about 18% of all the global vegan products launched were in this country. Thus, the market reflects the strong growth of plant-based and dairy-based hydrolyzed protein sources, primarily driven by consumer inclination towards fitness and environmentally sustainable sports nutrition sources.
Asia-Pacific is the third largest region. According to SEO China Agency, the Chinese consumed over CNY 115 billion in vitamins and dietary supplements in 2019 due to increasing disposable incomes and health awareness among the Chinese middle class. Thus, the expansion of the protein hydrolysate ingredients market in the Chinese dietary supplements industry is expected to fuel the market's growth. The growing demand for sports nutrition products with protein hydrolysate ingredients is supported by government policy; the National Fitness Policy of the State Council from 2016-2020 encouraged Chinese citizens to participate in physical exercise and sports to promote public health. Chinese consumers are paying greater attention to their health and physical appearance. In particular, millennials from the middle class have been anchored by the fitness boom, regarding a healthy lifestyle as a sign of success; this is propelling the need for high-protein diets and protein supplements, including protein hydrolysate.
Segmental Analysis
The global protein hydrolysate ingredients market Is segmented by type, application, and region.
By type, the global protein hydrolysate ingredients market is segmented into milk protein hydrolysate (whey, casein), plant protein hydrolysate (soy, other plant protein hydrolysates), and animal protein hydrolysate. The milk protein hydrolysate dominated the market and is anticipated to register a CAGR of 6.9% during the forecast period. Within the milk protein hydrolysate, the whey segment holds the largest market share and is anticipated to exhibit a CAGR of 7.5% during the forecast period. Whey protein hydrolysates can be incorporated into all sorts of functional food applications. In addition to protein powders and ready-to-drink beverages, they are ideal for snacks and protein bars, which creates a lucrative opportunity for functional food and snack manufacturers to incorporate this ingredient in their product portfolio. The rising aging population worldwide is creating an opportunity for protein manufacturers to expand their product portfolio as senior citizens seek better nutritional and functional supplements for a long and healthy life. Moreover, the increasing adoption of hydrolyzed whey protein in infant formulas, as they can be easily absorbed in the body and digested quickly, is expected to fuel market growth. Due to the rising demand for the category, various players are innovating. For instance, in 2017, FrieslandCampina DMV revealed its latest product innovation, 'Nutri Whey Hydro.' This further strengthened its extensive dairy protein portfolio of intact and hydrolyzed proteins specifically developed for performance and lifestyle nutrition.
By application, the global protein hydrolysate ingredients market Is segmented into food and beverage (functional food and beverage, infant nutrition), sports nutrition, and medical and clinical nutrition. The food and beverage segment accounted for the largest market share and is estimated to grow at a CAGR of 6.9% during the forecast period. Within the food and beverage segment, the infant nutrition segment accounted for the largest market share and is estimated to grow at a CAGR of 6.7% during the forecast period. The emerging popularity of breast milk substitutes led to increased R&D in protein hydrolysate ingredient formulations. Infant nutrition is a crucial and sensitive area where every ingredient should be rigorously tested for quality, efficacy, and safety. Moreover, protein hydrolysates provide protein and work as an essential nutrient for growth and development in a most convenient and easily digestible form, reducing the overall gastrointestinal transit time. Thus, protein hydrolysate's high bioavailability, enhanced safety, allergen-free, and convenience make it a suitable ingredient for infant food and liquid formula products.
