Global Protein Ingredients Market Opportunity, Challenges & Future Demands
The protein ingredients market, valued at USD 61.0 billion in 2023, is set to reach USD 85.6 billion by 2028, growing at a CAGR of 7.0% during the forecast period (2023-2028). These ingredients, derived from plant, animal, insect, and microbial sources, boast high protein concentrations and find applications across various industries including food & beverages, feed, cosmetics & personal care, and pharmaceuticals. The market is witnessing significant growth driven by the increasing significance of protein-rich diets.
Market Dynamics
Growth Drivers:
The demand for proteins surged post COVID-19, with consumers increasingly prioritizing nutritious and functional ingredients. Research indicates a strong correlation between the pandemic and heightened consumer awareness regarding health and safety, leading to a greater emphasis on maintaining a healthy lifestyle and diet. This trend is expected to propel the demand for protein ingredients globally.
Restraints:
Cultural restrictions on gelatin consumption pose a challenge to the market. Gelatin, derived from animal sources, faces resistance from individuals with religious or dietary restrictions against animal products. This limitation is particularly evident in Middle Eastern and Muslim communities where pork-derived products are strictly prohibited, necessitating the use of halal-certified alternatives.
Opportunities:
The dairy and plant protein sectors present significant growth opportunities. Dairy protein suppliers stand to benefit from the growing interest in functional products and heightened consumer awareness regarding nutritional value. Additionally, the surge in veganism, driven by sustainability and animal welfare concerns, is fueling demand for plant-sourced proteins, particularly in regions with dietary and cultural restrictions against animal-derived proteins.
Challenges:
Concerns over the quality of food & beverages, stemming from the adulteration of genetically modified (GM) ingredients, pose challenges to the market. GM soy, wheat, and pea, often produced with hexane, raise health concerns among consumers. Regulatory mandates in regions like the Asia Pacific and Europe necessitate the declaration of GM status on food packaging, reflecting consumer apprehensions towards GM ingredients.
Regional Insights
South America emerges as the fastest-growing region in the protein ingredients industry, driven by significant CAGR growth. Meanwhile, the U.S. market experiences robust expansion fueled by heightened health consciousness and a shift towards healthier dietary choices. The growing demand for protein-rich ingredients, particularly plant-based proteins, underscores the market's adaptability to evolving consumer preferences and technological advancements in food processing.
Key Players
Key players in the market include DuPont (US), ADM (US), Kerry Group plc (Ireland), Cargill, Incorporated (US), and Arla Foods amba (Denmark), showcasing a blend of established companies and innovative startups driving continuous innovation in protein sourcing and product formulations.