The Protein Ingredients Market size was estimated to be valued at USD 52.5 billion in 2020. It is projected to reach USD 70.7 billion by 2025, recording a CAGR of 6.1%, in terms of value. The major factors driving the protein ingredients market include the increase in demand and consumption of functional food & beverages, growing consumer awareness about healthy diets among people, and increasing demand for protein as nutrition and functional ingredients.
Opportunities: Growing potential of dairy and plant proteins
There is a huge growth potential for the protein ingredients market, especially dairy and plant proteins. Dairy protein possesses a wide range of functional properties, including thickening & emulsification, gelling, foaming, heat stabilization, and flavor/color development. Its high nutritional quality and versatile, functional properties enable its 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 of non-soy protein, and cost advantages. 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 the consumer inclination toward soy proteins.
Challenges: Demand-based price fluctuations in cropping patterns
Even though the prices of soy proteins are comparatively low than most proteins, the supply can prove to be a significant factor in price escalation. The raw material for soy protein ingredients includes 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.
Key players in this market include Cargill (US), ADM (US), DuPont (US), Kerry Group (Ireland), Omega Protein Corporation (US), FrieslandCampina (Netherlands), Fonterra Co-operative Group Limited (New Zealand), Arla Foods (Denmark), Roquette (France), Gelita AG (Germany), Kewpie Corporation (Japan), AGRANA (Austria), AMCO Proteins (US), Hilmar Ingredients (US), Axiom Foods (US), Burcon Nutrascience (Canada), Rousselot (Netherlands), Foodchem International Corporation (China), A&B Ingredients (US), and Reliance Private Label Supplements (US).