Canada Protein - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026 - 2031)

Canada Protein Market Analysis

The Canada protein market is expected to grow from USD 733.24 million in 2025 to USD 772.46 million in 2026 and is forecast to reach USD 1002.39 million by 2031 at 5.35% CAGR over 2026-2031. Federal super-cluster investments, mega-facilities in the Prairies, and streamlined regulations have collectively boosted domestic processing capacity, reduced per-unit costs, and enhanced supply security. In Manitoba and Saskatchewan, renewable energy operations are curbing energy expenses. Meanwhile, provisional duties on Chinese pea protein empower domestic processors to safeguard their margins, even with rising raw-material costs. As consumers increasingly prioritize muscle preservation, satiety, and convenient nutrition, manufacturers are reformulating mainstream products. They're now blending multiple protein sources to achieve an optimal balance of taste, texture, and cost. Advances in extraction technology for canola and fava are not only enhancing yields but also diversifying the raw-material base. This diversification acts as a buffer for processors against the volatile price swings of pulses driven by climate factors. Additionally, efforts to alleviate rail bottlenecks and region-specific energy incentives bolster the nation's competitiveness in both export and domestic markets.

Canada Protein Market Trends and Insights

Rising demand for high-protein health and wellness foods

Canadians are increasingly prioritizing protein in their diets. In response, food manufacturers are reformulating everyday products like bakery items, dairy, and beverages to boost their protein content. This dietary shift caters to varied consumer needs: older adults aim to preserve muscle mass, which naturally declines with age, while younger generations are integrating protein into their routines to support active lifestyles and overall wellness, moving past its traditional link to sports nutrition. Additionally, the surging popularity of weight-management medications has heightened the demand for protein-rich foods, especially those that aid in retaining lean muscle during weight loss. Among product formats, ready-to-drink beverages are rising in popularity due to their convenience and portability, making them an ideal choice for on-the-go consumers. Meanwhile, protein bars are witnessing steady growth, although the segment is maturing as the market becomes saturated with options. The allure of protein has also extended to plant-based alternatives, which have now transcended their traditional confines in the dairy aisle and are gaining acceptance among flexitarians and vegans alike. To cater to evolving taste preferences, manufacturers are now blending multiple protein sources, such as pea, soy, and rice proteins, enhancing flavor and texture, and ensuring these products appeal to a broad spectrum of consumers.

Growth of plant-based and flexitarian diets

In North America, about 25% of consumers now identify as flexitarian. This trend fuels a sustained demand for products that blend animal and plant proteins, rather than strictly substituting one for the other. By utilizing protein blending technologies, manufacturers can combine complementary amino-acid profiles, allowing for better cost management and broader consumer appeal. In May 2024, Lactalis Canada made its move into this arena, launching its Enjoy! plant-based line. The company capitalized on its existing dairy infrastructure, ensuring capital efficiency. Similarly, foodservice operators are broadening their menus with plant-forward offerings. These dishes not only replicate familiar flavors but also demand minimal retraining in kitchens. In May 2024, the CFIA issued streamlined approvals for novel foods. This move shortens commercialization timelines, prompting ingredient developers to hasten their research and development efforts. Together, these developments solidify the presence of plant-forward proteins in mainstream Canadian diets, all while preserving the revenue streams from traditional animal proteins.

CFIA labelling and novel food approvals complexity

Filing for novel ingredients can set firms back by CAD 500,000 to 1 million. This hefty price tag often sidelines start-ups and gives an edge to companies boasting in-house regulatory teams. While the 2024 New Feeds Regulations updated certain pathways to align with modern industry needs, they also demanded more comprehensive documentation. This has led to extended review times, particularly for emerging categories like hybrid or insect proteins, which require additional scrutiny. Moreover, ongoing consultations on issues such as the naming of corn-protein meals introduce a layer of short-term uncertainty, complicating product launches and marketing strategies for businesses. To sidestep sunk compliance costs, mid-sized processors are delaying innovations, which in turn is stalling diversification in the near term. Although standardized labeling promises to ease inter-provincial trade by creating uniformity across regions, the current friction and regulatory hurdles pose significant challenges for the growth and competitiveness of smaller entities in the market.

Other drivers and restraints analyzed in the detailed report include:

1. Federal super-cluster funding (Protein Industries Canada)
2. Prairie mega-facilities lowering production cost
3. Climate-driven pulse-crop price volatility

For complete list of drivers and restraints, kindly check the Table Of Contents.

Segment Analysis

In 2025, plant proteins dominated Canada's protein market, capturing 59.48% of the total market activity. This surge was bolstered by high-capacity hubs, such as Roquette’s Manitoba plant and Louis Dreyfus’s Saskatchewan facility, which collectively process over 600,000 tonnes annually. Pea protein, benefiting from mature agronomy and cutting-edge extraction methods, emerged as the cornerstone subsegment, ensuring both volume and reliability. Meanwhile, the fava bean is garnering attention, thanks to yield enhancements from University of Alberta research, which have improved its viability as a competitive protein source. Soy protein remains a steadfast player, especially in animal feed, due to its cost-effectiveness and balanced amino acid profile, making it a reliable choice for livestock nutrition. April 2024 marked a significant milestone with Burcon’s entry, heralding the first commercial-scale rollout of hemp protein, underscoring the sector's ingredient diversification and its potential to cater to niche consumer demands. While animal-derived proteins like whey and collagen retain niche positions in infant formulas and sports nutrition, the rising functionality and competitive pricing of plant proteins are tightening their margins, signaling a shift in consumer preferences toward plant-based alternatives.

Microbial proteins and alternative platforms are the market's fastest-growing segment, with projections of a 6.99% CAGR through 2031. This growth is fueled by innovative algae and mycoprotein technologies that sidestep traditional agricultural limitations. Such advancements allow for protein production without the need for arable land, enhancing sustainability and market adaptability. A case in point is Entosystem’s CAD 58 million investment in insect-protein capacity in October 2024, marking a significant stride in scaling unconventional protein sources. This investment not only highlights the growing interest in insect protein but also reflects the broader trend of diversifying protein sources to meet evolving consumer and industry demands. The market's shift from pulse crops to fungi and insects highlights a dynamic landscape, with animal-based products becoming more specialized and catering to specific high-value applications. These developments underscore Canada's protein market as a leader in volume and a hub for technological and ingredient innovation, positioning it as a key player in the global protein industry.

The Canada Protein Market Report is Segmented by Source (Animal, Microbial, and Plant), End User (Animal Feed, Personal Care and Cosmetics, Food and Beverages, and Supplements). The Market Forecasts are Provided in Terms of Value (USD).

List of Companies Covered in this Report:

1. Agropur Dairy Cooperative
2. Saputo Inc.
3. Roquette Freres
4. Archer Daniels Midland (ADM)
5. Burcon NutraScience
6. Ingredion Canada
7. AGT Food & Ingredients
8. Cargill Ltd.
9. Glanbia PLC
10. Lactalis Canada
11. Kerry Group PLC
12. DuPont de Nemours Inc.
13. Farbest Brands
14. Sunnydale Foods
15. Enterra Corporation
16. CHS Inc.
17. Cooke Inc.
18. Nutri-Pea Ltd.
19. Avena Foods
20. Cosucra Groupe Warcoing

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support