The global protein ingredients market is projected to reach USD 85.6 billion by 2028, with a forecasted Compound Annual Growth Rate (CAGR) of 7.0% during the forecast period.
The market's growth is influenced by various macroeconomic and microeconomic factors in several important countries, which have a significant impact on the market. Factors such as the increasing demand for protein alternatives, high-end personal care products, changing lifestyles, consumption patterns, and rising consumer awareness and health consciousness are driving the growth of the protein ingredients market.
Cargill, Incorporated is a leading player in the North American protein ingredients market, where it holds a significant market share due to high consumer awareness and demand. North America, with its high disposable income, urbanization, and developed stable economies, offers attractive investment opportunities for players from around the world.
While protein ingredient-based food & beverages for human consumption are well-established, protein ingredient-based feed for animals is less commercialized. However, the importance of providing healthy animal diets rich in proteins is increasing due to the rising demand for clean, antibiotic growth promoter (AGP)-free meat products. This trend is driving manufacturers to produce products that cater to the gradually growing animal end-user segment.
Insect-based protein sources are expected to experience the fastest growth with a CAGR of 33.4% during the forecast period. This growth is attributed to their high protein content, easy availability, and low cost of raw materials. The increasing interest from consumers and high investments in this segment, especially in developed regions, are contributing to the market's expansion.
The liquid form segment is projected to witness significant growth in the protein ingredients market during the forecast period, driven by the soaring demand for ready-to-drink (RTD) beverages. Liquid protein ingredients are easy to mix and provide a uniform texture to products, making them particularly suitable for applications in beverages and cosmetics & personal care products.
Proteins are widely used in the cosmetics and personal care industry, especially in skin-care and hair-care formulations. Collagen, in particular, is a popular protein ingredient used in cosmetics due to its beneficial effects on the skin. As disposable incomes and consumer spending on high-end personal care products rise, the demand for protein ingredients in this industry is expected to grow.
Europe is estimated to dominate the protein ingredients market, with a value of USD 21.4 billion in 2023. The region benefits from developed economies, high disposable incomes, and strong consumer awareness. Government initiatives and investments also contribute to the industry's growth. Key players such as Kerry Group plc (Ireland), Arla Foods amba (Denmark), Roquette Freres (France), and Cosucra (Belgium) play a positive role in the industry ecosystem.
