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The protein ingredients market size is estimated to grow by USD 27.02 billion at a CAGR of 10.03% between 2023 and 2028. The infant formula market is experiencing significant growth due to increasing global awareness of the importance of proper nutrition for infants. This trend is further fueled by the rise in demand for soy-based formulas, as soy proteins offer several advantages, including being lactose-free and suitable for infants with cow's milk allergies. Additionally, the sports nutrition industry is thriving, with consumers seeking high-performance products to enhance their fitness routines. Key offerings in this sector include protein powders, energy bars, and ready-to-drink beverages, which cater to the nutritional needs of athletes and fitness enthusiasts alike. The convergence of these trends presents a lucrative opportunity for businesses operating in the infant formula and sports nutrition industries.
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The market encompasses a wide range of components derived from various sources, including plants, animals, insects, microbes, and GM ingredients. This market caters to numerous industries, such as the feed industry and pharmaceuticals, to meet the rising demand for protein-rich diets. Consumer behavioral intention towards health consciousness and dietary trends, particularly plant-based proteins, significantly influences market growth. Protein sources include soy, dairy proteins, and plant proteins. Soy, a prominent plant-based protein, is utilized in various forms, such as spreads, yogurt, milk sausages, and margarine. Aging consumers and those engaged in sports nutrition also seek functional foods and supplements to maintain muscle health and overall well-being. The market for protein ingredients is driven by the increasing awareness of the importance of amino acids in maintaining a balanced diet and promoting optimal health. The development of new protein sources and applications continues to shape the market landscape. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The growing infant formula market is notably driving market growth. Protein ingredients, derived from both plant and animal sources, play a pivotal role in various industries, including animal feed, food and beverage, and infant formulations. In the context of infant formulations, animal/dairy protein, such as whey protein isolates and concentrates, are widely used due to their nutritional benefits. The increasing trend towards plant-based eating among consumers, driven by factors like vegetarian, vegan, and flexitarian diets, has led to a growing demand for plant source protein ingredients. Whey protein, a high-quality animal protein derived from milk, is a key ingredient in infant formulations. It provides essential nutrients for the healthy development of infants. The demand for protein ingredients in infant formulations is on the rise, fueled by factors such as the increasing birth rate in many countries and the growing number of working women.
Furthermore, the animal feed industry is another significant consumer of protein ingredients. Animal feed manufacturers use animal and dairy protein to produce high-quality feed for livestock. The environmental impact of protein ingredient production is a concern, and there is a growing emphasis on eco-friendly methods and waste generation reduction. Raw materials used in the production of protein ingredients must be sourced sustainably to minimize environmental impact. Eco-friendly methods, such as recycling and reusing waste, are being adopted to reduce the carbon footprint of protein ingredient production. Taste and texture are crucial factors in the selection of protein ingredients for food and beverage applications. As consumer preferences evolve, the demand for protein ingredients with specific taste and texture profiles is expected to increase. Thus, such factors are driving the growth of the market during the forecast period.
Increase in promotional and marketing initiatives is the key trend in the market. Protein ingredients derived from plant sources, such as soy, have experienced significant growth in various industries, including animal feed, food and beverage, and infant formulations. Vendors of these plant-based proteins have increased their promotional efforts, investing substantial resources to target both manufacturers and consumers. The success of these marketing campaigns is evident in the expanding market for soy protein ingredients. Government bodies also contribute to the promotion of protein ingredients.
For instance, the US government supports the health benefits of soy proteins and actively advocates for their use. In the animal feed industry, plant-based proteins are gaining popularity due to the shift towards plant-based eating among consumers identifying as vegetarian, vegan, or flexitarian. Whey protein ingredients, including isolates and concentrates, are popular choices in the food and beverage sector. Animal and dairy proteins continue to dominate the market, but eco-friendly methods and the environmental impact of production are increasingly important considerations. Raw materials used in the production of protein ingredients must be sustainably sourced to meet the growing demand for eco-friendly methods and reduced waste generation. Taste and texture remain crucial factors in the selection of protein ingredients. As consumers become more conscious of their dietary choices, the demand for high-quality, nutritious, and delicious protein sources continues to rise. Vendors must ensure their products meet these expectations while also addressing the environmental concerns associated with protein production. Thus, such trends will shape the growth of the market during the forecast period.
A highly fragmented market is the major challenge that affects the growth of the market. The market is marked by a significant number of participants, both large and small, making it highly fragmented. This market caters to various industries, including animal feed and food and beverage, with a focus on protein sources from both plant and animal origins. Animal and dairy proteins, such as whey protein isolates and concentrates, are widely used in the animal feed industry, while food and beverage applications include infant formulations and vegan/vegetarian alternatives. The limited number of end-user applications poses a challenge for market participants, as does the need to differentiate products in a competitive landscape.
However, the increasing trend towards plant-based eating and eco friendly methods in raw material sourcing presents opportunities for innovation. This could include developing new plant-based protein sources, improving taste and texture, and reducing environmental impact through sustainable and waste-reducing production methods. In the animal feed industry, animal and dairy proteins continue to dominate, but there is a growing demand for plant-based alternatives. As consumers adopt more flexible diets, such as flexitarianism, the demand for vegetarian and vegan options in food and beverage applications is also increasing. Meeting these demands while maintaining product quality and sustainability requires continuous innovation and investment in research and development. Hence, the above factors will impede the growth of the market during the forecast period
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Archer Daniels Midland Co. :- The company offers Protein Ingredients for avrious applications.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market share growth by the animal based protein segment will be significant during the forecast period. Protein ingredients play a pivotal role in various industries, including the feed and pharmaceutical sectors. The demand for protein-rich diets continues to escalate, driven by Health conscious consumers and dietary trends. Protein sources originate from plants, animals, insects, and microbes. In the animal domain, gelatin consumption is significant in the food industry, while dairy proteins and plant proteins are popular choices for human consumption.
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The animal based protein segment showed a gradual increase in the market share of USD 27.19 billion in 2018. The feed industry relies heavily on soy, canola, wheat, and other plant-based proteins to enhance animal nutrition. In contrast, the pharmaceuticals industry utilizes amino acids derived from plants, animals, and microbes for therapeutic applications. Consumer behavioral intention towards plant-based proteins is on the rise due to vegan trends and the desire to combat chronic diseases. Sports nutrition and functional foods are key markets for texturized protein ingredients, which offer improved texture and functionality. Soy, a prominent plant-based protein, is used in spreads, yogurt, milk sausages, and margarine. Animal source proteins, such as milk and dairy products, remain popular among health-conscious and aging consumers due to their satiety and muscle repair properties. Plant-based constituents, like LDL cholesterol-reducing canola and wheat proteins, are gaining traction due to their health benefits.
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Europe is estimated to contribute 36% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
Protein ingredients play a pivotal role in various industries, including the feed and pharmaceuticals sectors. The demand for protein-rich diets continues to escalate, driven by health consciousness and dietary trends. Protein sources originate from plants, animals, insects, and microbes. In the animal domain, gelatin consumption is significant in the food industry, while dairy proteins and plant proteins are popular choices for human consumption. The feed industry relies heavily on soy, canola, wheat, and other plant-based proteins to enhance animal nutrition. In contrast, the pharmaceuticals industry utilizes amino acids derived from plants, animals, and microbes for therapeutic applications. Consumer behavioral intention towards plant-based proteins is on the rise due to vegan trends and the desire to combat chronic diseases. Sports nutrition and functional foods are key markets for texturized protein ingredients, which offer improved texture and functionality. Soy, a prominent plant-based protein, is used in spreads, yogurt, milk sausages, and margarine. Animal source proteins, such as milk and dairy products, remain popular among health-conscious and aging consumers due to their satiety and muscle repair properties. Plant-based constituents, like LDL cholesterol-reducing canola and wheat proteins, are gaining traction due to their health benefits. Soy protein, a staple in the protein market, is used in various applications due to its nutritional value and versatility.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion " for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
Protein Ingredients Market: Protein Ingredients Market by Source and Geography - Forecast and Analysis
Protein Market: Protein Market Analysis APAC, Europe, North America, South America, Middle East and Africa - US, China, India, Germany, France - Size and Forecast
Soy and Milk Protein Ingredients Market: Soy and Milk Protein Ingredients Market Analysis North America, Europe, APAC, South America, Middle East and Africa - US, China, Germany, UK, France - Size and Forecast
The market is a significant sector in the global food industry, driven by increasing consumer awareness and preference for healthier food options. Proteins are essential nutrients for the human body, and their demand continues to grow due to their role in building and repairing body tissues. The market for protein ingredients is diverse, with various sources such as plant-based, dairy, and animal-derived proteins. Plants, such as soy, pea, and rice, are popular sources of plant-based proteins. Dairy proteins, including whey and casein, are derived from milk and are widely used in food and beverage applications. Animal-derived proteins, such as collagen and gelatin, are sourced from animals and are used in various industries, including food, pharmaceuticals, and cosmetics.
Furthermore, the market for protein ingredients is influenced by several factors, including consumer trends, regulatory policies, and technological advancements. The increasing demand for clean-label products and the growing popularity of Plant based proteins are some of the key trends driving the market. Additionally, the development of new technologies for protein extraction and processing is expected to provide new opportunities for market growth. In conclusion, the market is a dynamic and growing sector, driven by the increasing demand for protein-rich foods and the diverse range of sources and applications. The market is expected to continue its growth trajectory, fueled by consumer trends, regulatory policies, and technological advancements.
Market Scope |
|
Report Coverage |
Details |
Page number |
147 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 10.03% |
Market growth 2024-2028 |
USD 27.02 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
8.88 |
Regional analysis |
Europe, North America, APAC, South America, and Middle East and Africa |
Performing market contribution |
Europe at 36% |
Key countries |
US, UK, China, Japan, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Archer Daniels Midland Co., Axiom Foods Inc., Burcon NutraScience Corp, Cargill Inc., CHS Inc, Darling Ingredients Inc., DuPont de Nemours Inc., Farbest Brands, Fonterra Cooperative Group Ltd., Ingenza Ltd., Kewpie Corp., Mead Johnson and Co. LLC, Perfect Day Inc., Proeon, Protera, Roquette Freres SA, Rousselot SDN. BHD., Sotexpro, The Peterson Company, Victory Hemp Foods, and Ynsect SAS |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for market forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Source
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
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