April 15, 2024

Functional Protein Market is Estimated to Witness High Growth Owing to Technological Advancement in Protein Concentration and Isolation

The functional protein market has witnessed significant growth in the past few years due to the diversified health benefits associated with their consumption. Proteins are an integral part of the human diet as they aid in building muscles, provides energy and boost immunity. Manufacturers are focusing on developing highly concentrated and isolated protein through advanced extraction and purification technologies which has simplified & diversified their incorporation in a wide range of dietary supplements, functional beverages, infant formulas, sports nutrition and other applications. The highly functional properties of proteins have made them a popular ingredient across various end-use verticals.

The Global Functional Protein Market Size is estimated to be valued at US$ 5.6 Bn in 2024 and is expected to exhibit a CAGR of 5.6% over the forecast period 2024 to 2031.

Key Takeaways
Key players operating in the Functional Protein market are ADM, Cargill, Ingredion, Arla Foods, Roquette, BASF, Glanbia, Fonterra, DSM, FrieslandCampina, Essentia Protein Solutions, Amai Proteins, Mycorena, Merit Functional Foods, Plantible Foods, BENEO, ProtiFarm, Omega Protein.

The key opportunities in the functional protein market include rising demand for vegan proteins due to increasing instances of lactose intolerance and milk allergies. In addition, growing health consciousness has also augmented the demand for proteins from plant-based sources like peas, soy, wheat and rice. Technological advancements like microencapsulation have enabled improved solubility, stability and taste of proteins which has facilitated their uptake in various food and beverage formulations.

Market drivers
The major market driver for growth in the functional protein market is increasing consumer preference for protein-enriched food and beverages. Proteins play a key role in building and repairing muscle mass which has led to the burgeoning demand for protein supplements among sports athletes and gym enthusiasts. Growing health consciousness coupled with busy lifestyles have promoted the consumption of convenient packaged food products rich in proteins. Rising incomes also provide tailwinds to premium functional proteins.

Current Challenges in the Functional Protein Market
The functional protein market faces several challenges currently. One major challenge is the higher cost of production for functional proteins compared to regular proteins. Producing high quality and bioavailable functional proteins requires extensive R&D and advanced production processes which drive up costs. Secondly, there is lack of consumer awareness about the benefits of functional proteins. Marketing and education efforts are required to promote the health advantages of functional proteins over regular proteins. Thirdly, competition from cheaper alternatives like plant-based proteins pose a threat. More innovation is needed to establish the value proposition of functional proteins clearly. Lastly, maintaining consistency in quality attributes is challenging due to the complexity involved in production processes for functional proteins. Overcoming these challenges will be key to the future growth prospects of this market.

SWOT ANALYSIS
Strength: High nutrition value and associated health benefits of functional proteins. Wide range of product offerings as per consumer needs.

Weakness: Higher costs compared to regular proteins. Complex production processes.

Opportunity: Growing consumer health awareness driving demand. Expanding into new product segments like sports nutrition.

Threats: Competition from cheaper plant-based proteins. Stringent regulations around new product development and claims.

North America and Europe account for over 60% of the global functional protein market value currently. This is due to high consumer spending power, strong health consciousness and demand for functional foods with added wellness benefits. However, Asia Pacific region is emerging as the fastest growing market with annual growth rate exceeding 7% during the forecast period. Rising living standards, growing health awareness and expanding food and beverage industry in countries like China, India are fueling demand in Asia.

The global functional protein market is expected to cross $10 billion by 2031. While North America and Europe will continue to dominate in terms of value, Asian countries will represent the new growth frontier with burgeoning demand for nutritional and healthy products.

Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile