The global functional proteins market is expected to reach at a CAGR of 5.6% during the forecast period. The global market will reach a value of 6.1 billion by 2025. The base value is considered to be USD 4.6 billion in 2020. Hectic lifestyles, busy schedules, and the rise of chronic diseases such as diabetes and obesity are shifting consumer preferences toward adopting healthier diets and nutritional supplements to prevent the onset of chronic ailments. Hence, the inclusion of functional proteins in consumers’ diets is on the rise. Furthermore, the steadfast economic development of countries and the rising per capita income of the millennial population is fueling the demand for functional proteins, as consumers can now afford to purchase higher-priced functional food products on account of their increased disposable income.
Functional Proteins Market Drivers: Rise in prevalence of chronic lifestyle diseases to drive market growth
There is a significant rise in the number of people suffering from chronic ailments, such as obesity, diabetes, high blood pressure, and cardiovascular diseases. Hence, consumers across regions have become more health-conscious and are focusing on adopting a healthier, more balanced diet. This shift in consumer preferences has risen on account of the high degree of chronic diseases prevailing in the population. Diseases like diabetes, cholesterol anomalies, and obesity are key factors that are projected to drive the overall functional proteins market.
The growing health and wellness trends among consumers due to chronic diseases will further drive the demand for functional proteins in the daily dietary intake of consumers. Consumers are also seeking options that provide the right combination of nutrition and taste, which leads to a rise in demand for functional proteins, which is further projected to contribute to the growth of the market.
The millennial population is increasingly adopting functional food products into their diets as these products suit their lifestyle and complement their hectic schedules in an ample way, thus increasing the demand for functional proteins. Furthermore, with the rising income levels of consumers and subsequent economic development, functional proteins have become a sought-after product owing to the associated health benefits and the consumers’ ability to purchase them.
Functional Proteins Market Restraints: High cost of plant-based functional proteins
Science and technology are helping people identify foods that will help them manage their weight and overall health. Plant-based functional food and dietary supplements involve significantly high costs, which could restrain the growth of the functional proteins market. Plant-based functional proteins' development and commerce aspects are complex, expensive, and uncertain. Substantial investment is required for the R&D of a strain to be used to produce new functional ingredients, such as proteins. As a result of the high cost of production, the price of the final product is also high.
Although consumers are aware of the health benefits of these expensive plant-sourced functional proteins, such as pea protein, their high prices restrict them from buying the product. These less economical products might restrict the market's growth, particularly in price-sensitive countries such as South Africa and Mexico.
By source, the animal source segment will continue to dominate the functional proteins market during the forecast period.
The market for functional proteins is segmented into animal and plant sources. The animal source segment has seen considerable growth, as it is widely preferred as a reliable protein source. Animal protein is proven to have positive health benefits and is used as an ingredient in dietary supplements. Major segments under animal-sourced proteins include dairy, egg, and gelatin.
The plant-based protein market is expected to grow significantly in the forecast period, as an increasing number of consumers vouch for its credibility and are inclined towards veganism.
North America is projected to account for the largest market during the forecast period.
North America is projected to dominate the market during the forecast period owing to the high prevalence of chronic diseases in countries such as the US. Whey protein concentrates are gaining traction as consumers shift to dairy proteins to fulfill their nutritional requirements. On the other hand, there has been an increase in the number of vegan consumers, primarily in the North American and European regions. Emerging markets in economies such as the Asia Pacific countries are going to be potential markets for functional protein manufacturers.
Top Companies in the Functional Protein Market
Key players in this market include ADM (US), DuPont (US), Cargill (US), Ingredion (US), Arla Foods (UK), Roquette (France), BASF (Germany), Glanbia (Ireland), Fonterra (New Zealand), DSM (Netherlands), FrieslandCampina (Netherlands), Essentia Protein Solutions (UK), Amai Proteins (Israel), Mycorena (Sweden), Merit Functional Foods (Canada), Plantible Foods (US), BENEO (Germany), ProtiFarm (Gelderland), Omega Protein (US)
