Protein Market - Global Outlook & Forecast 2023-2028

INDUSTRY OVERVIEW

The global protein market was valued at USD 450 billion in 2022 and is expected to reach USD 624.82 billion by 2028, growing at a CAGR of 5.62%. The global market is ever-evolving, dynamic, and highly lucrative. It covers many protein-rich foods, including meat, fish, eggs, dairy, nuts, legumes, and grains, and offers ample health benefits. With a rising global population and an increasing demand for high-protein diets, the global protein market has risen in recent years. The current industry trends and drivers are largely attributed to the rising global demand for protein-rich foods, increasing disposable incomes, and the advent of new product categories. Additionally, increased awareness of the health benefits of high-protein diets has been a major driver of this industry.

The global protein market shipments are expected to reach 323.76 million tonnes by 2028. The industry will continue evolving to meet the needs of an ever-growing and increasingly diverse population. Manufacturers must stay ahead of the curve to remain competitive and relevant. This means investing in research and development to create innovative, high-quality products that provide unique nutritional benefits without sacrificing taste.

MARKET TRENDS & DRIVERS

Rising Demand for Plant-based Products in Sports Nutrition

Consumers worldwide are adopting a healthy lifestyle, especially in developed countries. As a result, the consumer base for sports nutrition and supplements is expanding. Sports nutrition is one of the fastest-growing categories within consumer health. It is expected to grow during the forecast period, driven by expanding core users from bodybuilders and performance athletes to a broader basket of consumers focused on fitness and healthy lifestyles. One of the key trends in the sports nutrition and supplement industry is the rising demand for plant-based products.

Increasing Demand for Fitness & Health Clubs

Health clubs and fitness centers have grown consistently due to increased health concerns and lifestyle changes in recent years. Consumers are willing to spend more on health and fitness clubs, with health aspects playing a key role in driving the growth of health and fitness clubs worldwide. The growing number of health clubs and gyms with personal training and the latest fitness equipment is attracting consumers to join the same. The increasing concern about physical well-being and the rising demand for fitness and health clubs have increased the demand for protein products. In addition, growing health awareness and the need for adequate protein content have fostered the demand for protein products. The demand for various types of dietary supplements, energy drinks, and protein bars among athletes and bodybuilders has driven the growth of the protein market.

INDUSTRY RESTRAINTS

Fluctuating Price of Raw Materials

The rise and fall in the price of raw materials such as soy, pea, almond, coconut, rice, and other ingredients required to produce plant-based protein supplements directly impact the cost of production. Thus, changing the price of these raw materials is one of the most significant challenges to the protein market. Moreover, the increasing casein prices are putting manufacturers of food & beverage under pressure. With higher dairy prices in APAC, the manufacturers of ready-to-drink (RTD) tea and coffee, non-dairy creamer, and analog cheese compete to uphold margins and prevent all the added costs to consumers.

SEGMENTATION INSIGHTS

INSIGHTS BY SOURCE

The meat source segment is expected to be the largest revenue segment in the global protein market. Meat protein comprises cattle, mutton, pig, poultry, and other meats. Meat is a great source of protein as these proteins perform peculiar functions in living muscle tissue and the transformation of muscle to meat. They include glycolytic enzymes and myoglobin (sarcoplasmic proteins), actin and myosin (myofibrillar proteins), and collagen (connective tissue proteins). Meat is considered a complete source of protein as the proteins found in meat provide all nine essential amino acids to the diet.

INSIGHTS BY APPLICATION

The global protein market by application includes food & beverages, animal feed, personal care & cosmetics, supplements, and pharmaceuticals. The food & beverages segment is expected to be the largest revenue segment in the global industry. The food & beverages segment includes meat & meat alternatives, dairy & dairy alternatives, bakery products, performance nutrition, convenience foods, and other food application. Due to the continuously rising popularity of protein-enriched food and beverage products, brands are tasked with advancing using new, more innovative technologies to keep up with consumer demand. The developed industries are witnessing protein fortification shift from niche areas, such as sports nutrition, into the mainstream. This transformation provides opportunities for developing new products, remarkably about whey protein.

GEOGRAPHICAL ANALYSIS

The global protein market is well developed in APAC, Middle East & Africa, and Europe. The increasing economic development and consumer awareness are contributing to the growth of the protein market. On the other hand, North America and Latin America are highly potential markets that help manufacturers to expand their product segments, thereby increasing sales. The global industry is set to continue evolving to meet the needs of an ever-growing and increasingly diverse population. The growing health-conscious population and increasing technological developments drive the protein production industry. Furthermore, protein sources can be easier to digest and provide greater strength and stamina for athletes and fitness enthusiasts.

The APAC region dominated the global protein market with a share of over 54% in 2022. Increasing consumer interest in healthy lifestyles and rising disposable income are the key factors driving the demand for protein products in the region. In addition, there is a growing demand for products containing natural and organic certified ingredients and high demand for certain food ingredients having health benefits such as nuts, vitamins, and minerals.

COMPETITIVE LANDSCAPE

The global protein market has seen impressive growth in recent years and is projected to grow rapidly in the coming years. An increase in consumer demand for high-quality, nutrient-dense foods drives this growth. The key players in the global protein market are ADM, Cargill, FrieslandCampina, International Flavors & Fragrances, and Fonterra Co-operative Group. In addition to industry strategies, government regulations play a pivotal role in determining the market’s competitive dynamics. Government regulations also significantly impact the animal protein industry, one of the most heavily regulated sectors in the food industry.

Competition in the global protein market is becoming increasingly globalized as new players enter, mainly in emerging markets such as China, India, and Brazil. In addition, multinational companies are seizing the opportunity to gain a competitive edge by investing in new protein sources and in research and development initiatives to create new and innovative products. As a result, the competition is global and highly structured, with a clear delineation between industry leaders and up-and-coming rivals. The growing competition in the industry is impacting the competitive dynamics, with larger players investing heavily in R&D initiatives while smaller companies look to capitalize on new opportunities.

ABOUT THE REPORT

The global protein market is provided for the forecast years 2023 to 2028 and a base year of 2022. The market is segmented by source, application, and geography. The report provides a holistic approach to the global protein market, enabling customers to analyze the industry thoroughly.