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Protein Ingredients Market Will Hit Big Revenues In Future

(Publishing-NewsWire.com, March 11, 2021 ) The global protein ingredients market size was valued at USD 52.5 billion in 2020 and projected to reach USD 70.7 billion by 2025, at a CAGR of 6.1%. 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 key players in the protein ingredients market include Cargill (US), ADM (US), DuPont (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), AGRANA (Austria), AMCO Proteins (US), Hilmar Ingredients (US), Axiom Foods (US), and Burcon Nutrascience (Canada) are the players that hold a significant share in the protein ingredients market.

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Cargill, Incorporated is engaged in manufacturing and marketing food, agricultural, financial, and industrial products and services. The company operates through five business segments—agriculture services, food ingredients & applications, origination & processing, risk management & financial, and industrial. Under its food ingredients & applications segment, the firm supplies protein ingredients, such as soy flour, to its end-users worldwide. Cargill is a leader in both full-fat and defatted soy protein products. Some of its other offerings include wheat gluten, hydrolyzed wheat proteins, and soy proteins that have various applications in beverage, bakery, dairy, and meat industries. The company operates across 70 countries with R&D centers in Europe, North America, and Latin America that provide services in various countries of Africa, Europe, Asia, Latin America, North America, and the Middle East to improve its global presence significantly. In May 2020, Cargill and Procter & Gamble collaborated to bring introduce nature nature-powdered innovation, fueling the future for more robust products.

Archer Daniels Midland Company (ADM) produces food & beverage ingredients, feed & feed ingredients, industrial ingredients, biofuels, and naturally derived alternatives to industrial chemicals. The company operates through five segments—agricultural services, oilseeds processing, carbohydrate solutions, nutrition and others. It offers animal protein products through its subsidiary ADM Animal Nutrition, Inc. (US), and plant protein products through its specialty ingredients segment. It operates in more than 170 countries, globally, and has 44 innovation centers, around 500 crop procurement facilities, and 270 food & feed ingredient manufacturing facilities. It is present in Europe, Asia Pacific, Africa, South America, and North America. In August 2018, ADM opened a new technical innovation center in Shanghai for flavor and ingredient creation.

OPPORTUNITY: The growing potential of dairy and plant proteins

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. The Islamic nations also aid the growth of plant-sourced protein ingredients across the globe (they avoid animal proteins, especially gelatin, prepared from pork). In contrast, other countries such as India and Nepal avoid animal proteins prepared from beef, owing to the issues relating to cultural and religious aspects.

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CHALLENGE: Demand-based price fluctuations in cropping pattern

Even though the prices of soy proteins are comparatively lower than most of the proteins, the supply can prove to be a significant factor in price escalation. The raw material for soy protein ingredients is 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. In 2013, increased diversion to biofuel and vegetable oil consumption led to more corn and canola production than soybean in North America. However, soybean cultivation has been maintaining better positive year-by-year growth in this region. So, the crops cultivated by growers are subject to change, based on the crop demand and price value. A wide-scale change in cropping patterns can be expected with the decline in price levels for a crop after a certain point of price saturation. Around 2020, this can play an important role in seeking a cost-effective supply channel to maintain operational efficiency, as Latin America is expected to near its optimum land resource utilization for soybean by that time.

The European market accounted for the largest share in the 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.

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Source: EmailWire.Com

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