Protein Supplements Market 2022-2028

Protein Supplements Market 2022-2028

Current Industry Analysis and Growth Potential Outlook

The global protein supplement market is anticipated to grow at a CAGR of 5.8% during the forecast period (2021-2028). The protein supplement market was valued at around $19.8 billion in 2021 and is projected to reach nearly $29.3 billion in 2028. The market is driven by demographics such as increasing income and the rise of a middle class in many emerging markets. Further, the increasing number of health-conscious consumers and the benefits of incorporating protein in the diet in developed as well as developing economies are contributing to the demand for protein supplements across the globe. Primarily, protein supplements are taken by athletes and fitness enthusiasts. According to the Bureau of Labor Statistics, 19.3% of the US population was engaged in sports and exercise each day in 2021. Male participation was higher (20.7%) than the participation rate of women (18%). This included participation in sports, exercise, and other active leisure activities. This share is projected to increase in the next few years which will contribute to the demand for protein supplements.

Current Industry Analysis and Growth Potential Outlook

The global protein supplement market is anticipated to grow at a CAGR of 5.8% during the forecast period (2021-2028). The protein supplement market was valued at around $19.8 billion in 2021 and is projected to reach nearly $29.3 billion in 2028. The market is driven by demographics such as increasing income and the rise of a middle class in many emerging markets. Further, the increasing number of health-conscious consumers and the benefits of incorporating protein in the diet in developed as well as developing economies are contributing to the demand for protein supplements across the globe. Primarily, protein supplements are taken by athletes and fitness enthusiasts. According to the Bureau of Labor Statistics, 19.3% of the US population was engaged in sports and exercise each day in 2021. Male participation was higher (20.7%) than the participation rate of women (18%). This included participation in sports, exercise, and other active leisure activities. This share is projected to increase in the next few years which will contribute to the demand for protein supplements.

COVID-19 Impact on Emerging Markets

In China, the economic output fell significantly in the first quarter of 2021 which recovered dynamically in the second quarter of 2021 and continued throughout the next year. China was the only major global economy to report growth in 2021 under pandemic, of 2.3% (2021: +6.0%). In contrast, economic output fell by 8.0% (2021: +4.2%) after a series of lockdowns in India. Whereas Japan and South Korea recorded comparatively low infection rates overall. However, both observed a decline in GDP growth due to a significant temporary drop in domestic and foreign demand. In Japan, GDP sank by 4.8% (2021: +0.3%) and in South Korea, GDP fell by 3% (2.04%). There was considerable variation from country to country. GDP in the remaining emerging markets of Asia dropped by an average of 3% in 2021.
 
INDUSTRY SEGMENT OUTLOOK

By product, the protein supplement market is segmented into powder, bar, RTD, and others which include protein gels, capsules, cakes, cookies, and bites. Protein powder held the highest market share of 59.0% in 2021. The global protein powder market was valued at around $11.7 billion in 2021 and is projected to reach nearly $16.5 billion in 2028, growing at a CAGR of 5.1% during the forecast period. Whey protein powder held the highest market share in the protein powder market. The demand for protein power is driven by increasing demand from bodybuilders, elite athletes, and casual exercisers. Abbott Laboratories, Optimum Nutrition, Quest Nutrition, BSN, NOW Foods, Body Fortress, and MusclePharm are some companies that are manufactured using a variety of sources such as whey, casein, soy, pea, and egg proteins. RTD protein is growing at the highest CAGR of 8.9% during the forecast period. The introduction of flavored RTD protein shakes and drinks is contributing to the market growth. For instance, in 2021, Labrada Nutrition has released its newest delicious flavor of its best-selling Lean Body Protein Shake RTD, Mint Chocolate, into its beverage line of seven other flavors: Vanilla, Chocolate, Salted Carmel, Cookies and Cream, Strawberry, Banana, & Café Mocha. The global RTD protein market was valued at around $2.4 billion in 2021 and is projected to reach nearly $4.3 billion in 2028.

Based on the source, the market is segmented into animal-based and plant-based. Protein powder is manufactured by both animal and plant sources such as whey, casein, soy, pea, and egg proteins. Whey protein is one of the most popular types which is included in animal protein. Animal-based protein supplements held the highest market share of 73.2% in 2021. The global animal-based protein supplement market was valued at around $14.5 billion in 2021 and is projected to reach nearly $20.7 billion in 2028, growing at a CAGR of 5.2% during the forecast period. Plant-based is anticipated to grow at the highest CAGR of 7.3% as pea protein and other plant-based protein powders are steadily gaining popularity. The plant-based protein supplement market was valued at around $5.3 billion in 2021 and is projected to reach nearly $8.7 billion in 2028, owing to their increased popularity for this product.

Based on application, the market is segmented into sports nutrition and functional food. Among the application, the sports nutrition segment held the highest market share of 68.4% attributed to the growth of the segment including the increasing demand for sports nutritional products to get lean muscle growth, and to boost stamina. Further, the increase in the number of sports enthusiasts and other physical activities is likely to increase the demand for protein supplements during the forecast period. The global sports nutrition market was valued at around $13.5 billion in 2021 and is projected to reach nearly $19.2 billion in 2028, growing at a CAGR of 5.2% during the forecast period. Functional beverages products such as dairy alternative beverages, sports protein RTD/meal replacement have gained a significant market. Functional beverages are the most acceptable functional foods due to facilities in the logistics and their distribution as well as the easiness of incorporating bioactive compounds as functional ingredients. The global functional food market was valued at around $6.2 billion in 2021 and is projected to reach nearly $10.1 billion in 2028, growing at a CAGR of 7.1% during the forecast period.

Based on distribution channels, the market is segmented into supermarkets and hypermarkets, and online distribution channels. Among the distribution channel, the offline distribution channel segment held the highest market share of 75.0% attributed to the increasing number of supermarkets and hypermarkets in developing and developed economies owing to increased popularity is expected to benefit product sales. The offline distribution channel market was valued at around $14.8 billion in 2021 and is projected to reach nearly $20.2 billion in 2028, growing at a CAGR of 4.5% during the forecast period. Further, the online distribution channel is growing at the highest CAGR of 9.2% during the forecast period. The online distribution channel market was valued at around $4.9 billion in 2021 and is projected to reach nearly $9.2 billion in 2028. The attributable factor for the growth of the segment is growing internet penetration for online shopping.
 
REGIONAL OUTLOOK

Geographically, the market is segmented based on the major regions that include North America (the US and Canada), Europe (UK, Germany, France, Italy, Spain, and Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, and Rest of Asia-Pacific), and Rest of the World (RoW). North America held a major market share of 49.5% in the global protein supplements market in 2021. The North American protein supplement market was valued at around $9.8 billion in 2021 and is projected to reach nearly $14.2 billion in 2028, growing at a CAGR of 5.5% during the forecast period. The growth factors for the regional market include the high consumer awareness regarding health coupled with the rising demand for dietary supplements. Further, high disposable income and modernization are other factors driving the growth of the market. In addition, the growing health and fitness industry in the region especially in the US is propelling the market growth. Asia-Pacific region is projected to grow at the highest CAGR of 7.9% during the forecast period. China, South Korea, Japan, and the Rest of the Asia-Pacific are the major economies primarily contributing to the growth of the protein supplements market in the region. The regional growth of the market is accredited to the changing consumer lifestyle coupled with rising disposable income in the economies such as China and India.

MARKET PLAYER OVERVIEW

Some prominent players in the market include Abbott, Glanbia PLC, Herbalife International, MusclePharm Corp., CytoSport, Inc., and Amway Corp, among others. The market players are adopting various strategies such as new product launches and approvals, mergers and acquisitions, partnerships and collaborations, and many others to thrive in a competitive environment. For instance, in May 2021, GNC stores announced that it will be launching MusclePharm's protein crisp bars and USDA organic plant-based protein bars under the partnership agreement between both companies. Further, MusclePharm's products are initially available in over 2,500 GNC stores in the US. Further, in October 2021, Glanbia Nutritionals’ new $470 million state-of-the-art cheese and whey plant in St. Johns, Michigan started operations for the facility and began the commissioning phase. When fully operational, the 375,000 square foot facility based on a 120-acre site will process 3.6m liters of milk per day (8m pounds) into a range of superior quality block cheese and value-added whey products for US and international markets.