- Product availability and perceived benefits are the vanguard of protein trends.
- Several benefits associated with protein ingredients are expected to act in favor of the global market.
- Lack of awareness is primarily restraining the revenue and volume growth.
Evolving consumers’ purchasing strategies have concurrently led to changes in the marketing strategies of manufacturers. At present, consumer reliance on a product is built on the basis of the available technical information about it such as the ingredients used in its making. Product availability and perceived benefits are the vanguard of protein trends. Educational marketing and scientifically approved products are becoming a major reason for the growth in the value of food products. Confusion still exists among consumers regarding product and nutrition labeling on packages of the end-use products, which leaves immense scope to educate these consumer education and thereby, improved consumer awareness.
The companies operating in the market are gearing up their strategies and game plans in order to stay competent and productive in the protein ingredient market. For instance, in January 2017, Arla Food Ingredients announced to increase its investments by 47% to $357 million at its milk processing plant located in Denmark, aiming at increasing milk supply from various local dairy farmers, favoring the protein ingredient production. The other companies operating in the global protein ingredients market are ROQUETTE FRERES S.A, CHS Inc., Axiom Foods, Inc., Archer Daniels Midland Company, Glanbia plc, and Solae LLC, among several others.
According to a report published by Future Market Insights (FMI), the global protein ingredients market is expected to witness a CAGR of 5.6% from 2018 to 2028. In 2017, the market was valued at $21.3 billion and is projected to rise to a valuation of $38.6 billion by the end of 2028.
Protein Fortification and Standardization to Lift up Demand through 2028
Food fortification entails adding of certain beneficial ingredients to a product for enhancing its functional properties. Through fortification, manufacturers can increase the quality of food and address crucial mineral or vitamin deficiencies among consumers. Protein fortification is gaining popularity among consumer owing to rising preference for protein in regular or everyday foods and increasing demand for weight management products that are low in fats and high in protein. Protein standardization is the adjustment of protein content in a food product to either meet regulatory guidelines or augment functional properties of the product. Protein standardization improves product uniformity, consistency, texture, and taste. Demand for fortified and standardized food and beverages is currently driving growth of the global market to a significant extent.
Moreover, several benefits associated with protein ingredients is also expected to act in favor of the global market in the long run. Protein ingredients are being increasingly perceived as healthy products that are a source of various amino acids that are not produced in the human body or are concentrated in muscle. Whey protein is considered a complete protein, i.e. it contains all the nine essential amino acids.
Low Awareness to Act as a Roadblock
Soy protein accounts for predominant share of the overall market in terms of value and volume due to very high usage and relatively high price. Despite registering high value and volume growth in markets in developed and developing countries, other plant proteins such as pea are relatively unknown in several parts of the world and as such account for moderate market share. This factor is primarily restraining the revenue and volume growth of the related segments within developed as well as developing regional markets.