The global protein ingredients market was valued at USD 77.69 billion in 2022 and is projected to grow at a compound annual growth rate (CAGR) of 5.8% from 2023 to 2030. The market is gaining significant momentum due to the increasing demand for food products like margarine, cold cuts, bakery items, spreads, yogurt, and milk sausages, all of which are produced using protein ingredients. The rising consumption of these protein-rich products among health-conscious consumers, particularly the elderly, is further fueling market growth. Additionally, manufacturers are innovating and developing various proteins with a broad range of amino acids that serve specific functions, such as promoting satiety, muscle repair, weight loss, and energy balance, which opens up more growth opportunities for the market in the forecast period.

The industry has witnessed a notable increase in the consumption of animal-based products recently, and animal protein is expected to see continued growth, especially in the U.S. The strong domestic demand for animal-derived products is expected to drive the need for protein ingredients further. Companies involved in the production and supply of these ingredients are strengthening their distribution networks to ensure better market penetration, a factor that is expected to boost the industry's growth over the next several years.

Gather more insights about the market drivers, restrains and growth of the Protein Ingredients Market

Product Segmentation Insights:

In terms of product types, the animal/dairy protein segment dominated the market, accounting for a revenue share of 78.94% in 2022. This segment's growth is primarily driven by the high demand for premium-quality proteins across sectors such as food and beverages, animal feed, and personal care. Animal proteins are considered complete sources of protein because they contain all the essential amino acids the human body requires, making them a preferred choice for consumers aiming to maintain a healthy lifestyle. The numerous health benefits of animal protein ingredients have been well-supported by scientific research and endorsed by regulatory authorities. For example, whey protein has been shown to boost glutathione (GSH) levels, which enhances nutritional status and immune function in cancer patients undergoing chemotherapy.

The animal protein segment is expected to grow at a moderate CAGR of 4.4% during the forecast period, driven by its use in the animal feed industry, where it is employed as a supplement to promote the health and growth of livestock. In the personal care sector, animal proteins are incorporated into hair and skincare products to improve the texture and appearance of hair and skin. Among animal proteins, egg protein held the largest share (43.28%) in 2022, as eggs are a rich source of high-quality protein. Each egg contains approximately 6-7 grams of protein, with both the whites and yolks contributing to this amount. Eggs also offer numerous other health benefits, such as being low in calories and high in essential nutrients like choline, iron, and vitamins A, D, E, and B12. The versatility of egg protein, which can be incorporated into a wide range of food products (e.g., baked goods, sauces, and dressings), further drives its popularity among consumers.

Plant Proteins -

Plant proteins are expected to grow at a significant CAGR of 9.1% during the forecast period. This growth is driven by the increasing preference for plant-based diets, which are seen as healthier and more sustainable than animal-based diets. Plant proteins are also relatively inexpensive, which is expected to further boost demand in the coming years. The growing trend of veganism, particularly in North America and Europe, is also contributing to the rise in consumption of plant-based protein ingredients. Soy and wheat proteins are particularly popular as they are perceived to offer numerous health benefits.

Cereal-based proteins are also expected to see significant growth, particularly in the personal care and cosmetics industries. For example, corn-based ingredients are used as skin and hair conditioning agents, abrasives, absorbents, and binders in a variety of products, including facial makeup, fragrances, hair care products, hair dyes, and even oral care products.

Insect Proteins -

Insect proteins represent the fastest-growing segment in the market, with a projected CAGR of 26.4% over the forecast period. Protein derived from insects, such as crickets, has found increasing use in various applications, particularly in nutritional bars where it is added in powder form to boost nutritional value and flavor. Companies like Crik Nutrition source insect proteins from farms that adhere to strict guidelines, ensuring that the crickets used are of the highest quality for human consumption.

Research at Wageningen University suggests that waste generated from insect-rearing could be used to promote sustainable agriculture. The exoskeletons of insects are rich in chitin, a compound that can be metabolized by certain bacteria to enhance plant resilience against pests and diseases. Insects are highly efficient to farm, producing ten times as much edible protein per kilogram of grass compared to traditional livestock. This ability to produce more protein with fewer resources positions insect-rearing as an integral component of a circular food system, one in which waste is minimized and sustainability is maximized.

The combination of rising health-conscious consumer behaviors, innovations in protein ingredient development, and the drive for sustainable, eco-friendly food sources will continue to fuel the growth of the global protein ingredients market over the forecast period.

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