[248 Pages Report] The global protein ingredients market size is estimated to be valued at USD 52.5 billion in 2020 and projected to reach USD 70.7 billion by 2025, at a CAGR of 6.1% during the forecast period. This is attributed to the increase in demand for protein functionalities, awareness about healthy diet & nutritional food, new technological development in the protein ingredients industry, growth in demand for superior personal care and healthcare products, and increase in consumption of animal by-products.

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Market Dynamics

DRIVER: Increasing demand for proteins as nutritional and functional ingredients

Protein ingredients sourced from both animals and plants are well-known for their emulsification, gelation/viscosity, water-binding/hydration, foaming, aeration properties; other attributes of protein ingredients include thickening ability, stabilizing ability, and solubility. These functionalities, along with nutritional aspects of proteins, are a major advantage to end-user industries, and are, thus, one of the major market drivers. Another advantage associated with protein sources used for specific functional properties is that they are often less price-sensitive than those that are used only for their nutritional properties. This often benefits the end-user industries with cost advantages. In the end-user industries such as cosmetic & personal care, protein ingredients are primarily used for their conditioning and moisturizing properties in the hair and skin care industries. In major applications such as food & beverages, the use of protein ingredients continues to grow with the increasing demand for improved functionalities. The ability of protein ingredient manufacturers to design and develop specific isolates, concentrates, and other forms of protein ingredients for dairy products, beverages, dietary supplements, infant formula, bakery products, confectionery, and other food products is likely to drive the growth of the protein ingredients market during the forecast period.

COVID-19 is expected to boost the demand for protein ingredients at a much higher rate in the global market. An increase in awareness amongst people to strengthen their immunity immune system to prevent themselves from being infected easily is compelling them to maintain a healthy lifestyle and proper diet.

RESTRAINT: Cultural restriction on the consumption of gelatin

Gelatin has varied applications in the food and Pharmaceuticals industries. It is used as a functional ingredient to manufacture hard and soft capsules, and as a protein supplement. However, gelatin is an animal by-product formed from the collagen of slaughtered animals, which include the bones, hides, and hooves of cattle, pigs, fish, and poultry. Individuals with religious or dietary restrictions that forbid the consumption of animal products are not willing to consume those products that use gelatin. For instance, in the Middle Eastern and Muslim communities, pork and pork-derived products are strictly forbidden. They prefer to consume halal-certified bovine-derived products. Therefore, in these regions, the market for gelatin manufactured by pork skin is estimated to be negligible.

Similarly, In India, the consumption of cattle-derived products are culturally forbidden; the Hindu community do not generally consume beef and beef-derived products. Hence, in countries such as India, pork-based gelatin is mostly consumed. Similarly, the Jewish population largely prefers consuming kosher-certified products. Kosher guidelines also inhibit the consumption of pigs and pig-derived products. These cultural and regional outlooks pose a market restraint for the growth of protein ingredients such as gelatin.

OPPORTUNITY: The growing potential of dairy and plant proteins

There is a huge potential for the growing protein ingredients market in the near future, especially dairy and plant proteins. Dairy protein suppliers can continue to benefit from the trend towards more functional products, and the increased consumer interest in the nutritional value of products. Dairy proteins are known to possess a wide range of functional properties, including thickening & emulsification, gelling, foaming, heat stabilization, and flavor/color development. Their high nutritional quality and versatile, functional properties enable their usage in dairy desserts, nutritional beverages, ice cream, yogurt, spreads, confectionery, and baked goods.

In the plant protein market, the demand for soy proteins is projected to grow in the coming years, owing to the proactive positioning of soy as a sustainable food/protein source, low level of consumer awareness on non-soy protein, and its cost advantage. Furthermore, given the high-protein content in soy, as compared to any other plant source, the popularity of soy among the vegan population is likely to boost consumer inclination toward soy proteins. The Islamic nations also aid the growth of plant-sourced protein ingredients across the globe (they avoid animal proteins, especially gelatin, prepared from pork). In contrast, other countries such as India and Nepal avoid animal proteins prepared from beef, owing to the issues relating to cultural and religious aspects.

CHALLENGE: Demand-based price fluctuations in cropping pattern

Even though the prices of soy proteins are comparatively lower than most of the proteins, the supply can prove to be a significant factor in price escalation. The raw material for soy protein ingredients is soy meal, which is also highly demanded by the feed industry. Unless there is no drop in the cultivation area under soybeans, the supply is expected to remain unfazed for both feed and protein manufacturers.

Sometimes, crop growers, to avail better crop value, change their crop patterns, which can marginalize the flow of supply, and thereby, lead to an increased demand for protein manufacturing and price escalation. In 2013, increased diversion to biofuel and vegetable oil consumption led to more corn and canola production than soybean in North America. However, soybean cultivation has been maintaining better positive year-by-year growth in this region. So, the crops cultivated by growers are subject to change, based on the crop demand and price value. A wide-scale change in cropping patterns can be expected with the decline in price levels for a crop after a certain point of price saturation. Around 2020, this can play an important role in seeking a cost-effective supply channel to maintain operational efficiency, as Latin America is expected to near its optimum land resource utilization for soybean by that time.

By source, the animal segment is projected to account for the largest share in the protein ingredients market during the forecast period

The market, by source, has been segmented into plants and animals. The animal segment is projected to dominate the market during the forecast period. Owing to its better nutritional profile than plant protein, its dominant usage in a larger number of end-use applications such as functional beverages, and difficulty in substituting egg and gelatin in bakery and confectionery applications

By form, the dry segment is projected to be the fastest-growing in the market during the forecast period

The market, by form, has been segmented into dry and liquid. Dry form, by type, is projected to grow at a higher CAGR during the forecast period. The dry form of protein ingredients is largely preferred by manufacturers of food & beverage, feed, and pharmaceutical products as they have better stability and ease of handling & storage, as compared to the liquid form. Furthermore, they have a longer shelf life compared to the liquid form. Dry forms of animal- and plant-based protein ingredients are widely used.

By application, the food & beverage segment is projected to be fastest-growing in the market during the forecast period

Based on the application, the protein ingredients market is segmented into food & beverage, animal feed, cosmetics & personal care, and pharmaceutical. The food & beverage segment is projected to grow at a higher CAGR during the forecast period. Increasing health consciousness and obesity has compelled consumers to increasingly focus on healthy diets with low-fat and highly nutritive value food, leading to a rise in the consumption of protein ingredients. As a result, the demand for functional and health food is on the rise. Besides their nutritional properties, proteins are widely used for their functional properties, which include texturing, emulsifying, solubility, stabilizing, and binding. These functional properties enable manufacturers to lower their raw material costs, as they act as substitutes to some food additives and are used to impart specific properties.

Europe is projected to be the largest and fastest-growing market during the forecast period

The European market accounted for the largest share in the market. This dominance is attributed to high consumption in this region. The consumption in Europe is more than twice the global average consumption. The high-protein trend in food & beverages and personal care & cosmetics is gaining a foothold in Germany, as protein claims on food and drink launches continue their growth path. The increasing prevalence of health-related problems along with high importance being laid on the quality, taste, and freshness of foods is modifying food demand, owing to which, the market for protein ingredients is projected to witness growth.

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Key Market Leader

The global protein ingredients market is dominated by large players in the food industry, including Ingredion (US), Cargill (US), DuPont (US), Darling Ingredients (US), ADM (US), and Kerry (Ireland).

Scope of the Report

Report Metric Details Market size available for years 2016-2025 Base year considered 2019 Forecast period 2020-2025 Forecast units Value (USD Million) & Volume (KT) Segments covered By type, by source, by application, by region Geographies covered North America, Asia-Pacific, Europe, South America, ROW Companies covered The major companies include Cargill (US), ADM (US), DuPont (US), Kerry Group (Ireland), Omega Protein Corporation (US), and Friesland (Netherlands).

The study categorizes the protein ingredients market based on type, source, application, and region.

By source

Plant

Animal

By form

Dry

Liquid

By application

Food & beverages

Animal feed

Cosmetics & personal care

Pharmaceuticals

By Region

North America

Europe

Asia-Pacific

South America

ROW

Recent Developments

In May 2020, Cargill and Procter & Gamble collaborated to introduce nature-powdered innovation, fueling the future for more powerful products.

In October 2019, Cargill announced plans to invest $USD 225 million at a facility in Sydney, Ohio, to better serve area farmers and meet the growing demand for protein and refined oils.

In November 2017, ADM expanded its ingredient portfolio with the launch of Nutriance, a range of wheat protein concentrates having applications in sports and geriatric nutrition.

In August 2018, ADM opened a new technical innovation center in Shanghai for flavor and ingredient creation.

In March 2019, Dupont unveiled its plant protein nuggets through its SUPRO and TURPRO product ranges.

Frequently Asked Questions (FAQ):

What is the current size of the global protein ingredients market? The market size for protein ingredients is expected to reach from USD 52.5 billion to USD 70.7 billion by 2025 growing at a CAGR of 6.1%. Who are the major players in the protein ingredients market? Some of the major players that are present in the protein ingredients market include Cargill (US), ADM (US), DuPont (US), Kerry Group (Ireland), Omega Protein Corporation (US), and Friesland (Netherlands). What are the major applications of the protein ingredients market? It is the food & beverage that held the largest market share based on the application for the global protein ingredients market. What are the countries included in the rest of the world segments? The rest of the world in the protein ingredients market include the Middle East and Africa. Where are the industry players positioned in the industry, in terms of the micro quadrants? In terms of the established players that are present in the protein ingredients market, it is mostly companies like ADM, Kerry, DuPont, and Cargill that held a dominating presence globally. Which are the major factors that are expected to drive the market in the near future? Any instances of the Covid-19 impact on the protein ingredients market as a whole? COVID-19 is expected to boost the demand for protein ingredients at a much higher rate in the global market. An increase in awareness among people to strengthen their immune system to prevent themselves from being infected easily is compelling them to maintain a healthy lifestyle and proper diet Which region would offer a higher growth for the players in the market? North America and Europe will continue to hold a larger share for the protein ingredients market. Which form would see the largest market share in the market, and what would be the impact of Covdi-19 on the overall segment? Dry form will continue to hold the largest market share based on type for the protein ingredients market even amidst the COVID-19 crisis. .

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