Protein Ingredients Market: Trends, Opportunities, and Challenges

Protein Ingredients Industry Overview

The global protein ingredients market size was valued at USD 77.69 billion in 2022 and is expected to grow at a revenue-based compound annual growth rate (CAGR) of 5.8% from 2023 to 2030. The market is gaining momentum and witnessing a high demand owing to rising demand for food products, such as margarine, cold cuts, bakery products, spreads, yogurt, and milk sausages, which are produced using protein ingredients. Increasing consumption of these products among health-conscious and elderly consumers is also fueling the industry’s growth. Moreover, a rise in the innovation of several proteins by various manufacturers that constitute a wide range of amino acids and perform specific functions, including satiety, muscle repair, weight loss, and energy balance, is expected to present immense growth opportunities for the market.

The industry has witnessed a considerable increase in the consumption of animal-based products in the recent past. Animal protein is expected to witness further growth over the next few years in the U.S. Momentous demand for these products derived from animal sources in the domestic market is expected to ascend the product demand. The supply chain initiatives undertaken by the ingredient manufacturing companies to strengthen the distribution of products are further expected to drive the market over the forecast period.

Gather more insights about the market drivers, restrains and growth of the Protein Ingredients Market

Plant-based ingredients are manufactured from crops, including soy, canola, wheat, and pea. Soy protein has been growing at a significant rate and has had the largest share in the plant-based category. It is expected to expand at a high compound annual growth rate over the forecast period. Additionally, the Food and Drug Administration (FDA) authorized a health claim for the reduction of LDL cholesterol through dietary guidelines suggesting four servings of soy per day to help reduce the LDL cholesterol level by 10% in the body.

Product innovations and technological advancements are expected to be the major factor fueling the growth of the market. Protein ingredients are used in diverse applications, for instance, isolates have high dispersibility and very fine particle size so they are widely used in dairy applications. Consumers’ belief in the health benefits associated with these products has been the key growth driver over the past few years and the trend is anticipated to continue over the forecast period.

The flavoring characteristics associated with new and innovative protein sources including plants, insects, and fermented proteins act as a potential market challenge. Proteins derived from legumes such as peas are associated with a beany flavor. Other proteins such as soy protein isolates are also associated with an ‘off-flavor’. This has led to substantial research being conducted on the reduction of characteristic flavorings associated with plant-based protein sources.

The protein industry is moving towards alternative protein sources owing to environmental sustainability concerns. Microbes and insects are becoming increasingly popular as protein sources due to their high nutritional value, low environmental impact, and cost-effectiveness compared to traditional livestock farming. Insects and microbes also have a high feed conversion rate, meaning they require fewer resources to produce the same amount of protein as traditional livestock.

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• The global egg yolk oil market size was valued at USD 293.45 million in 2023 and is expected to grow at a CAGR of 5.3% from 2024 to 2030. The use of egg yolk oil in industries is rising due to its rich nutrient profile, which benefits skin and hair care products. Trends show increasing demand for natural and organic ingredients, driving its popularity in cosmetics and personal care formulations. Additionally, its applications in dietary supplements are expanding due to its health benefits.

• The global food fortifying agents market size was valued at USD 92.86 billion in 2023 and is expected to grow at a CAGR of 9.1% from 2024 to 2030. The market is primarily driven by the increasing demand for nutrient-rich diets to address widespread deficiencies, especially in developing regions. Public health initiatives and government regulations mandating fortification to combat malnutrition and prevent diseases play a significant role.

Protein Ingredients Market Segmentation

Grand View Research has segmented the global protein ingredients market report based on product, application, and region:

Protein Ingredients Product Outlook (Volume, Kilotons; Revenue, USD Million, 2017 - 2030)

• Plant Proteinso Cerealso Wheato Wheat Protein Concentrateso Wheat Protein Isolateso Textured Wheat Proteino Hydrolyzed Wheat Proteino HMEC/HMMA Wheat Proteino Riceo Rice Protein Isolateso Rice Protein Concentrateso Hydrolyzed Rice Proteino Otherso Oatso Oat Protein Concentrateso Oat Protein Isolateso Hydrolyzed Oat Proteino Otherso Legumeso Soyo Soy Protein Concentrateso Soy Protein Isolateso Textured Soy Proteino Hydrolyzed Soy Proteino HMEC/HMMA Soy Proteino Peao Pea Protein Concentrateso Pea Protein Isolateso Textured Pea Proteino Hydrolyzed Pea Proteino HMEC/HMMA Pea Proteino Lupineo Chickpeao Otherso Rootso Potatoo Potato Protein Concentrateo Potato Protein Isolateo Macao Otherso Ancient Grainso Ancient Wheato Quinoao Sorghumo Amarantho Chiao Milleto Otherso Nuts & Seedso Canolao Canola Protein Isolateso Hydrolyzed Canola Proteino Otherso Almondo Flaxseedso Otherso Animal/Dairy Proteinso Egg Proteino Milk Protein Concentrates/Isolateso Whey Protein Concentrateso Whey Protein Hydrolysateso Whey Protein Isolateso Gelatino Casein/Caseinateso Collagen Peptideso Microbe-based Proteino Algaeo Bacteriao Yeasto Fungio Insect Proteino Coleopterao Lepidopterao Hymenopterao Orthopterao Hemipterao Dipterao Others

Protein Ingredients Application Outlook (Volume, Kilotons; Revenue, USD Million, 2017 - 2030)

• Food & Beverageso Bakery & Confectionaryo Beverageso Breakfast Cerealso Dairy Alternatives (cheese, desserts, snacks, others)o Dietary Supplements/Weight Managemento Meat Alternatives & Extenderso Snackso Sports Nutritiono Others

• Infant Formulations

• Clinical Nutrition

• Animal Feed

• Others

Protein Ingredients Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2017 - 2030)

• North Americao U.S.o Canadao Mexico

• Europeo Germanyo U.K.o Franceo Italyo Spain

• Asia Pacifico Chinao Indiao Japano Australiao Indonesia

• Central and South Americao Brazilo Argentina

• Middle East and Africao South Africao Saudi Arabia

Key Companies profiled:

• DuPont

• Rousselot

• ADM

• Burcon

• Tessenderlo Group

• Kewpie Corporation

• Roquette Freres

• The Scoular Company

• CHS, Inc.

• Mead Johnson & Company, LLC

• CropEnergies AG

• Fonterra Co-Operative Group

• Bunge Limited

• Cargill, Incorporated

• MGP

• Ingredion

• Kerry Inc.

• Givaudan

• Axiom Foods

• Tate & Lyle

• Puris

• DSM

• Glanbia Plc

• Louis Dreyfus Company

• Barentz

• Nutri-Pea

• Prinova Group LLC

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Recent Developments

• At Vitafoods held in April 2023, Darling Ingredients’ health brand Rousselot showcased its collagen peptides solution PEPTAN® for holistic well-being benefits. The premium protein-based ingredient provides multiple science-backed health benefits with nifty formulation properties.

• In June 2023, Roquette unveiled the new food innovation center, in Lestrem, France. This center will include a sensory analysis laboratory, a demonstration kitchen, and collaborative labs for pilot-scale testing of various plant-based ingredients.

• In May 2023, Burcon NutraScience Corporation, a global manufacturer of plant-based proteins for the F&B industry, announced its strategic initiative called Burcon 2.0. The Burcon 2.0 strategy will offer pilot-scale plant protein processing as a service.

• In April 2023, Burcon announced its plans to acquire Merit Functional Foods (Merit). Earlier in January 2023, Burcon was granted a patent for pea protein, which protected and maintained its pea protein licensee, Merit, with marketplace differentiation.