Functional proteins play a crucial role in supporting specific physiological functions, such as muscle building, immune support, and enzyme activity. They are essential components in various nutritional products and supplements.
Competitive Landscape of the Functional Protein Market: Key Players, Strategies, and Market Dynamics
The functional protein market has experienced substantial growth driven by the increasing demand for protein-rich and functional food and beverage products. Key players in this sector are strategically positioning themselves to capitalize on the evolving health and wellness trends. This analysis provides insights into the key players, strategies adopted, factors influencing market share, emerging companies, industry trends, overall competitive scenario, and a recent development in 2023.
Key Players:
Glanbia Pic
Archer Daniels Midland Company
GNC Holdings Inc
Maxi Nutrition
Herbalife Ltd
Strategies Adopted:
Market Share Analysis:
New & Emerging Companies:
Industry Trends:
Recent industry developments highlight a growing trend towards sustainable and plant-based functional proteins. Major players are investing in technologies for sustainable protein production, including plant-based and fermentation methods. Additionally, there is increased attention to reducing the environmental impact of protein production, aligning with consumer preferences for eco-friendly and ethical products.
In terms of investment trends, companies are exploring technologies to enhance the bioavailability and functionality of proteins. Investments in novel processing techniques, bioinformatics, and advanced extraction methods contribute to developing proteins with improved functional attributes.
Competitive Scenario:
The competitive landscape of the functional protein market is dynamic, with established players adapting to emerging trends and new entrants exploring innovative solutions. The focus on product innovation, strategic collaborations, and sustainability remains central to the overall competitive scenario.
Recent Development
The functional protein market was the increased emphasis on personalized nutrition solutions. Major players introduced initiatives to offer customized functional protein products, allowing consumers to tailor their protein intake based on individual health and lifestyle needs. This development aligns with the broader trend towards personalized nutrition, recognizing the diverse and individualized dietary requirements of consumers. Companies invested in technologies and platforms that facilitate personalized nutrition, contributing to a more consumer-centric approach in the functional protein market. This shift towards personalized solutions reflects the industry's recognition of the importance of addressing individual health and wellness goals, providing consumers with tailored functional protein options for optimal nutritional outcomes.
Functional Protein Market Size was valued at USD 0.055 billion in 2022. The functional protein industry is projected to grow from USD 0.057 Billion in 2023 to USD 0.072 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 4.1% during the forecast period (2023 - 2030). Increased demand for animal-derived proteins in sports and fitness nutrition and the development of various protein ingredients, such as isolates and concentrates for food sector applications, are the primary market drivers boosting functional protein market share.
Source: Primary Research, Secondary Research, MRFR Database, and Analyst Review
People with chronic illnesses like obesity, diabetes, high cholesterol levels, and cardiovascular problems are becoming more and more prevalent. As a result, consumers worldwide are paying more attention to adopting a healthier, balanced diet and are becoming more health conscious. The prevalence of chronic diseases in the population has contributed to this shift in consumer preferences. According to the IDF, approximately 463 million people worldwide have diabetes, with 55 million living in the Middle East and North Africa region. This figure is expected to rise to 108 million by 2045. As a result, diseases such as cholesterol, diabetes, and obesity, among others, are driving up demand for functional proteins in general. The millennial generation gravitates towards functional protein products that complement their hectic lifestyle.
The increasing well-being and health trends among consumers due to chronic diseases will increase the demands for functional proteins in consumers' daily dietary intake. Consumers are also looking for options that provide the proper nutrition and flavor, further fueling demand for functional proteins, which is expected to contribute to overall functional protein market CAGR growth. When a human or animal consumes functional protein, it produces biological effects. For example, raw soybean contains trypsin inhibitor, which improves the ability of animals and humans to digest protein. Moreover, expanding the livestock nutrition sector in developing countries such as India, China, and Brazil owing to rising domestic demand for dairy derivatives drives the functional protein market revenue growth during the projected timeline.
Based on type, the functional protein market segmentation includes whey protein isolates, hydrolysates, whey protein concentrates, soy protein, and casein. The whey protein concentrates segment held the majority share in 2022, contributing to around ~35-37% of the functional protein market revenue. Whey protein is a critical ingredient in the production of many milk-based products. Many food and beverage manufacturers use it as a protein source for product development. They are used in functional food and beverages as emulsifiers, viscosity enhancers, binding, foaming, and flavor enhancers. Whey protein concentrates are commonly used in developing protein-based products due to their versatility. Key players like DSM (Netherlands) and Arla Foods (UK) invest in whey protein regularly and focus on developing innovative formulas and products.
Figure 1: Functional Protein Market, by Type, 2022 & 2030 (USD Billion)
Source: Primary Research, Secondary Research, MRFR Database, and Analyst Review
Further, the hydrolysates segment is expected to account for the fastest CAGR of the functional protein industry share over the forecast period. Protein hydrolysate is helpful in sports medicine as it allows amino acids to be absorbed more quickly by the body than intact proteins, maximizing nutrient transfer to muscle tissues. Additionally, it is utilized in the biotechnology sector as an addition to cell cultures. These are prebiotic, anti-microbial, antioxidant, and hypertensive protein products intended for use in the production of infant and clinical nutrition products.
Sources have bifurcated the functional protein market data into plant and animal. The animal segment dominated the market in 2022 and is projected to be the faster-growing segment during the forecasted period 2022-2030. Animal protein is more popular than plant-based proteins owing to its superior nutritional and flavor profile. Moreover, the growing use of animal protein in end-use applications such as sports nutrition and the scarcity of egg and gelatin substitutes in various food products—influenced by lifestyle and demographic shifts—are key market drivers. This is attributed to the acceptance of protein supplements made from milk, their advantages, and the popularity of meat and seafood items like pork, fish, and other animal meat. Animal proteins, such as meat, eggs, and dairy, are complete as they contain all the essential amino acids the body requires. Animal products are always high-quality protein sources. The market's three main functional animal protein types are hydrolysates, concentrates, and isolates. Functional protein is essential in the food, beverage, and animal feed industries. Protein supplement powder made from animal protein is becoming increasingly popular among health-conscious consumers worldwide, positively impacting functional protein market growth.
By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The European Functional Protein market accounted for USD 0.025 billion in 2022 and will likely exhibit significant CAGR growth over the study period. Growing geriatric populations, supportive government regulations, and increased awareness of diet and healthy eating practices contribute to this region's growth. The presence of major market players within the region, higher disposable income, changing lifestyles, and increased cases of diseases linked to a sedentary lifestyle have all increased the demand for functional proteins. Whey protein concentrates are gaining popularity in the region as consumers turn to dairy proteins to meet their nutritional needs.
Further, the major countries studied in the market report are the U.S., Germany, Canada, France, the UK, Spain, Italy, Japan, India, Australia, China, South Korea, and Brazil.
Figure 2: FUNCTIONAL PROTEIN MARKET SHARE BY REGION 2022 (%)
Source: Primary Research, Secondary Research, MRFR Database, and Analyst Review
The North American functional protein market holds the second-largest market share owing to changes in lifestyle habits, an unbalanced diet, and improved research and development to create new forms of functional plant-protein-enriched products. The regional market for plant-based functional protein has been made possible by consumer demand for processed and low-cholesterol foods. Nowadays, North American consumers are shifting to alternative products such as green-label food products, which, combined with rising awareness of healthy and plant-based products, is propelling the functional protein market forward. Further, the U.S. functional protein market held the largest market revenue share, and the Mexico functional protein market was the fastest-growing market in the North American region.
The Asia-Pacific Functional Protein Market is expected to grow at the fastest CAGR from 2022 to 2030. The growing popularity of functional food and nutritional supplements has led to a significant increase in the consumption of plant-based proteins like soy and pea protein in the Asia Pacific region in recent years. In addition to rising demand from population growth, market growth in Asia Pacific is driven by socioeconomic changes such as increasing disposable incomes, increased spending capacity, aging populations, and increased urbanization. A new trend developing in the region is the awareness of the significance of protein in a healthy diet. Transformation in dietary patterns in low and middle-income families in developing countries can be seen as indicators of the region's economic development. This trend is expected to encourage dietary supplement manufacturers to locate regional production facilities, opening new functional protein industry opportunities. Moreover, China’s functional protein market held the largest market share, and the Indian functional protein market was the fastest-growing market in the Asia-Pacific region.
Major market players are working to enhance the flavor of products containing plant functional proteins to draw in more customers. Many new startup companies across multiple regions compete with major players regarding innovation. Several innovations in high-throughput sequencing protein production have been observed in recent years. With the launch of new startups, many mainstream companies compete for market revenue share in the functional protein industry. The functional protein market major players, such as Maxi Nutrition, Glanbia Pic, Herbalife Ltd., and others, are working to increase market demand by funding research and development for plant-based proteins.
Production locally to reduce operating costs is one of the essential business strategies manufacturers adopt in the functional protein industry to benefit customers and expand the market sector. Market participants are also undertaking many strategic initiatives to expand their reach. Key market developments include new product launches, increased R&D investments, mutual supply chain arrangements, acquisitions and mergers, and collaborative efforts with other organizations. Marketing and advertising activities, financially rewarding monetary benefits, and appealing subscription plans offered by market participants to boost the sales of weight reduction and weight management supplements all further contribute to the growth of the functional protein industry.
The Archer-Daniels-Midland Company, or ADM, is one of the world's largest nutrition companies. It has been a leader in plant protein innovation for over 75 years and has grown to become a functional protein industry player. The company runs over 270 plants and 420 crop procurement operations worldwide, producing cereal grains and oilseeds into products used in the food, beverage, industrial, nutraceutical, and livestock feed markets. ADM expanded their functional protein portfolio with textured wheat and pea proteins in 2020. Proteins with high functionalities improved the meat-like texture of alternate solution meats.
Also, Cargill Inc is an agribusiness company that provides food, agricultural, financial, industrial, and risk management products and services. It markets, processes, and distributes cotton, salt, sugar, oilseeds, grains, meat, and other food products. It also offers natural ingredients for cosmetics, pet food, and bio-industrial products. Cargill planned to add pea protein to its European ingredient portfolio in December 2020. With the introduction of this pea protein product, Cargill gained access to the European functional protein market.
Functional Protein Industry Developments
December 2020: Ocean Spray (US) collaborated with Amai Proteins to add healthy, sweet functional proteins to its product line. The joint venture increased the company's visibility and helped it establish a well-known brand identity.
May 2020: Ingredion invested in NorQuin (CA), expanding its plant-based functional protein portfolio to include Quinoa flours ly. The investment expanded the company's protein portfolio by incorporating Quinoa flour.
January 2020: Nestlé partnered with Burcon and Merit to create and manufacture plant functional proteins. Nestlé will be able to speed up the production of plant-based dairy and meat alternatives due to this collaboration.
© 2024 Market Research Future ® (Part of WantStats Reasearch And Media Pvt. Ltd.)