Growth opportunities and latent adjacency in Protein Ingredients Market

Northbrook, IL, USA, 2019-Oct-11 — /EPR Network/ —

The global protein ingredients market size is projected to grow from USD 49.8 billion in 2019 to USD 70.7 billion by 2023, at a compound annual growth rate (CAGR) of 6.0% during the forecast period.

Growing consumer awareness about healthy diets options, rise in demand for superior personal & healthcare products, growth of functional food & beverages, and rising demand for plant based proteins are the major drivers for the growth of protein ingredients.

The major protein ingredients players include Cargill (US), ADM (US), DowDuPont (US), Kerry Group (Ireland), Omega Protein Corporation (US), Friesland (Netherlands), Fonterra (New Zealand), Arla Foods (Denmark), AMCO (US), Roquette (France), Gelita AG (Germany), Kewpie Corporation (Japan), AGARNA (Austria), AMCO Proteins (US), Hilmar Ingredients (US), Axiom Foods (US), and Burcon Nutrascience (Canada). Expansions formed the most dominant strategy adopted by major players, followed by acquisitions. This has helped them to increase their presence in different regions and increase their product portfolio.

Can fluctuation in raw material prices of dairy proteins pose a challenge to the market growth?

Dairy commodities are inelastic, in terms of price demand. The decrease in demand leads to an increase in prices for scarce goods. End users who come across significant price volatility may switch from dairy protein to other protein such as egg protein and plant-based protein foods. The milk protein industry is heavily dependent on raw materials—conventional and organic raw milk. The raw material prices depend on the quality of animals from which the milk is obtained. Hence, nurturing the animals and providing proper feed additives to maintain the high quality of the milk produced is a necessity for the milk protein industry.

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How is the growth potential of dairy and plant proteins seen as an opportunity?

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.

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The European market accounted for the largest share in this 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.