Protein Ingredients Market

Market Overview

The Global Protein Ingredients Market Size was valued at USD 54.51 billion in 2022. It is projected to reach USD 91.21 billion by 2031, growing at a CAGR of 5.80% during the forecast period (2023-2031). North America is anticipated to rise at a CAGR of 5.90% over the course of the forecast period, making it the largest worldwide shareholder in the protein ingredients market share. Increasing Demand for Proteins as Functional and Dietary Elements and Growing Consumer Awareness of a Healthy Diet 

Proteins are the building blocks of bones, skin, muscles, and blood. Protein is needed by the human body to make hormones, enzymes, and other bodily substances. Due to growing public knowledge of healthcare issues and concerns about obesity, protein supplements are currently used widely. As a result of these health issues, consumers are turning their attention to eating nutritious foods and upping their protein intake to obtain additional nutrients from protein supplements made with both animal and plant protein, boosting the market for protein ingredients growth.

Market Dynamics

Protein Ingredients Market Drivers

Growing Consumer Awareness of a Healthy Diet

The market for protein ingredients is anticipated to increase as young people's health concerns, fitness trends, and shift toward healthy products, such as protein supplements. Additionally, protein's substantial nutritional benefits fuel its demand among health-conscious customers, propelling market expansion. Further, due to dietary changes and a sedentary lifestyle, the prevalence of chronic diseases, including cancer and cardiac ailments, has been rising at an alarming rate. As a result, consumers now follow a healthy diet to lower their risk of contracting such chronic diseases. In turn, this has increased protein ingredients market demand worldwide, speeding up the global market expansion.

Rising Demand for Proteins as Functional and Dietary Elements

The building blocks of bones, skin, muscles, and blood are thought to be proteins. The requirement explains this for protein-synthesizing hormones, enzymes, and other bodily substances. Due to growing worries about obesity and increased health awareness, protein supplements are currently used widely. In order to obtain the additional nutrients included in these supplements, consumers change their inclinations toward a healthy diet and consume more protein, which promotes the expansion of the market for protein components. Animal and plant-based protein sources have several advantages, including the ability to keep people feeling energized and full for longer periods, which reduces the need for unhealthy cravings. It allows them to keep their weight where it should be for their health. These factors increase demand for protein components, propelling market expansion.

Protein Ingredients Market Restraint

Cultural Restriction of Gelatin Consumption

In the culinary and pharmaceutical industries, gelatin has a variety of uses. It serves as a functional component in producing both hard and soft capsules and a protein supplement. However, gelatin is a byproduct of animal slaughter made from the collagen of the bones, hides, and hooves of cattle, pigs, fish, and fowl. People who must adhere to dietary or religious prohibitions on eating animal products are unwilling to consume gelatin-based products. For instance, meat and goods derived from pork are strictly prohibited in Muslim and Middle Eastern societies. They prefer to eat beef products that have received halal certification. Therefore, it is projected that there is little demand for gelatin made from pork skin in these areas.

Protein Ingredients Market Opportunities

Products Innovation and Increased Demand for Protein-Based Substances

Introducing new goods made from plant-based substances will challenge the idea that protein components contain artificial additives. The introduction of lactose-free and organic proteins is anticipated to raise demand among the health-conscious population and open up opportunities for the growth of the protein ingredients market because lactose-free protein also increases muscle mass and strength. Manufacturers of animal ingredients and organizations like the Innovation Center for U.S. Dairy have been working on R&D projects to improve protein components' performance, flavor, and scent. Additionally, this would give producers attractive chances to offer a wider choice of protein components, helping them increase their market share.

Regional Analysis

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

North America Dominates the Global Market

North America is the most significant global protein ingredients market shareholder and is expected to grow at a CAGR of 5.90% during the forecast period. The protein ingredients market trends is being analyzed in the United States, Canada, and Mexico. North America is the most developed and established market for protein ingredients due to an increase in the number of health-conscious consumers in the region. In addition, the fitness industry is anticipated to expand quickly and shows no signs of slowing down over the forecast period. This is primarily attributed to an increase in American consumers who live healthy lifestyles or engage in activities that support active and healthy lifestyles. Furthermore, approximately 20% of American adults presently belong to a fitness club, which is expected to climb in the future.

Europe is expected to grow at a CAGR of 5.65% during the forecast period. Germany, France, the United Kingdom, Italy, Spain, and the rest of Europe make up the European market. In 2021, Europe had the second-largest protein ingredients market share for protein components. Protein component consumption is increasing dramatically across Europe as consumers become more aware of the health benefits of protein. In addition, Europe is acknowledged as the primary commercial force, with 28 countries working as a unified market.

Asia-Pacific is expected to grow significantly over the forecast period. The Asia-Pacific market for protein ingredients has shown substantial growth in the past and is predicted to expand at the highest CAGR over the projected period. In many Asian nations, the food, beverage, and nutrition industries employ a lot of protein components. The region's market for casein, derivatives, and whey protein has grown significantly due to increased knowledge of these proteins as sports or refreshment drinks.

Brazil, Argentina, the UAE, Nigeria, Turkey, South Africa, and the rest of LAMEA are all included in the LAMEA protein ingredient market analysis. During the projection period, the LAMEA region's consumption of products containing protein components is anticipated to increase at a considerable pace of 8.9%. An increase in disposable income encourages the demand for nutrient-dense foods, beverages, and nutrition products, accelerating the market's expansion. In order to meet the demand, market competitors introduce new and cutting-edge protein components.

Segmental Analysis

The global protein ingredients market is segmented by source, form, and application.

Based on the source, the global protein ingredients market is bifurcated into plants and animals.

The animal segment is the highest contributor to the market and is expected to grow at a CAGR of 6.30% during the forecast period. Animal husbandry, food and beverage, health, and personal care industries all use animal protein components, which have been isolated from sources including meat, milk, and eggs. Although animal proteins have a high-fat content, consuming too much can increase your risk of developing heart disease. Additionally, they own a market share of more than 70% for all protein components, making them the industry leader. The market offers a variety of animal protein ingredients, including whey protein, casein and caseinates, milk protein, egg protein, and others.

Soy, peas, wheat, and other grains are examples of plant-based proteins. Ingredients in plant proteins are enormous molecules made of amino acids. The leading players have been advertising the nutritional profiles of different plant protein components, like pea and soy proteins, along with their health advantages on social media and in health publications during the past few years. This has increased understanding and awareness of the various protein components' functional characteristics. Growing vegan populations and increased consumer awareness of the advantages of nutritious food are the two main drivers of demand for products containing plant-based protein components.

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

The solid segment owns the highest market share and is expected to grow at a CAGR of 6.25% during the forecast period. The proteins' constituents come in a dried state that is solid. 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. Compared to the liquid form, the solid form of protein components is easier to handle and store. Due to its extended shelf life and better handling characteristics, the solid form is most frequently used in various applications, including nutrition, food and beverage, feed, and personal care.

For those with higher protein needs, the liquid form of protein components gives a concentrated dose of protein. In addition to being utilized pre-and post-surgery, liquid proteins are also used to treat anorexia, stress, and trauma. The main factors anticipated to propel market expansion during the forecast period include increased demand for liquid protein components, consumer awareness of healthy diets and nutritional foods, and innovation in the protein ingredients market sector. Because of customers' busy lifestyles, liquid protein has become more popular, which should help producers of protein components regain market share in the sector. Additionally, liquid protein is a great supplement for the paleo diet and may be used in smoothies and other dishes.

Based on application, the protein ingredients industry is bifurcated into food and beverages, animal feed, cosmetics and personal care, and others.

The food and beverages segment is the highest contributor to the market and is estimated to grow at a CAGR of 6.10% during the forecast period. Products with protein components, both plant- and animal-based, are widely used in the food and beverage sector. 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 supply of necessary amino acids. In addition, the rising customer demand for food goods high in protein fuels the food and beverage industry's expansion. Increased demand for products containing protein components in the food and beverage sector is a significant driver of market expansion.

In order to produce the fodder that is eaten by cattle and poultry, animal-based feed is used. Animal health depends heavily on protein from eggs. The American Feed Industry Association reported that USD 20 billion worth of feed ingredients were bought in 2018 to feed cattle and poultry. Additionally, as consumer demand for meat and meat-based products rises, it is anticipated that feed demand will climb with time. As a result, poultry and cattle producers invest in cutting-edge feed that aids in and encourages animals' rapid growth, which in turn helps the market flourish.

Infant formulations, medicines, and nutrition are the topics covered in the other division. Nutritional proteins contain a higher density of micro and macronutrients than ordinary proteins. Despite not being utilized in treatments, these protein-rich foods encourage a healthy lifestyle. Since animal-based protein are a rich source of bioactive peptides that enhance human health, protein components are frequently included in infant formulations and pharmaceutical products. Different nutraceutical and supplement producers created the sophisticated peptide-bonded amino acid formulation used in these proteins to deliver amino acids directly to muscles.

Recent Developments

• December 2022- High-tech optimized crop breeder Equinom raised USD 35 million in a funding round, nearly doubling the company’s lifetime funding to USD 71 million.
• December 2022- DSM debuted clean-label canola-based protein ingredients.