A Functional Protein Market Forecasts to 2028 – Global Analysis By Form (Dry, Liquid), Source (Animal, Plant, Other Sources), Type (Casein & Caseinates, Whey Protein Concentrates (WPC), Hydrolysates, Soy Protein, Whey Protein Isolates (WPI), Other Types)

Functional Protein Market Forecasts to 2028 – Global Analysis By Form (Dry, Liquid), Source (Animal, Plant, Other Sources), Type (Casein & Caseinates, Whey Protein Concentrates (WPC), Hydrolysates, Soy Protein, Whey Protein Isolates (WPI), Other Types), Application (Animal Nutrition, Dietary Supplements, Functional Foods, Functional Beverages, Other Applications) and Geography

According to Stratistics MRC, the Global Functional Proteins Market is accounted for $5.32 billion in 2022 and is expected to reach $8.26 billion by 2028 growing at a CAGR of 7.6% during the forecast period. Biochemical substances called functional proteins are involved in almost every cell activity. These include polypeptides that carry out biological functions. Although other proteins provide structural support, others are involved in germ defence. Functional proteins are essential to maintaining the body's functionality. Every aspect of our body, from the skin and hair towards the digestive enzymes or immune systems, is supported in its growth, development, and maintenance.

Market Dynamics

Driver:

Demand for Plant-based Alternative Protein Sources

During the last ten years, consumer preference for alternate protein sources such plant-based choices has increased. This is mostly due to the expanding veganism trend, which has affected both the functional food industry and the food and beverage industry. Athletes and fitness experts are becoming more and more enamoured with plant-based sources of functional protein including oat, soy, and nuts. Also, lactose-intolerant athletes, people, and gym professionals use plant-based functional proteins and other non-dairy products. This should establish a solid foundation for the market for functional proteins to expand. In addition to the emphasis on health, other variables, such as feelings towards animal welfare and ethical concerns, are anticipated to influence the development of plant-based functional proteins and the worldwide functional proteins market.

Restraint

Regulatory influence

The strict regulatory laws governing proteins obtained from animals are expected to make it difficult for the market for functional proteins to expand. Animal-derived proteins are allowed in functional foods under the US Federal Meat and Poultry Inspection Program. Processed animal proteins from ruminants are subject to a number of laws. The US Veterinary Permit to Import and Transport Controllable Materials permits the import of processed functional proteins from animal sources. In regards to the growing concern about lowering greenhouse gas emissions, the European Commission as well as the EPA has created requirements for the synthesis of functional proteins. Regulations governing the use of allergens like soy concentrate into functional foods and beverages are also anticipated to impede the development of certain proteins.

Opportunity

Growing Instance of Chronic Diseases Coupled with Increasing Consumers Awareness

Throughout the projected period, the demand for nutraceuticals is expected to rise along with consumer awareness of the need of eating nutritious foods and enhancing the body's nutritional worth. Health supplements known as nutraceuticals are said to support enhancing health, fending off chronic illnesses, extending life expectancy, or assisting with the structure or function of the body. Combinations of physiologically active proteins known as functional proteins maintain and regulate regular immune activity. At the moment, people all over the world are probably moving towards a healthy lifestyle and investing a lot of money on dietary supplements. Declining blood pressure, a significant contributor to strokes, heart attacks, and chronic renal illnesses, is supported by functional proteins.

Threat

High Price for the Functional Proteins

Technological advances and science are assisting consumers in making food selections that will improve their overall health and ability to manage their weight. The extraordinarily high costs of functional protein food products and dietary supplements may act as a barrier on the market's expansion. The market for functional proteins may be hampered by these less affordable products, particularly in price-sensitive nations like South Africa and Mexico. Also, the growing vegan population and the growing popularity of vegetarianism among consumers are putting a strain on animal-based proteins. The sales and consuming of animal-based proteins are suffering due to the rising demand for plant-based proteins, which is preventing the market for functional proteins from expanding.

Covid-19 Impact

The global spread of the Covid-19 epidemic caused a significant pause in the growth of the market for functional proteins. Yet, in the post- Covid era, eating patterns have changed, and functional proteins are no exception. There is a growing trend for health and wellness, fortified foods, an increase in demand for functional foods, and a convenience trend. Also, the global food and beverage sector is among the major businesses experiencing negative disruptions due to technological event cancellations, supply chain failures, workplace closures, etc. The closure of several buildings and factories in important areas limits worldwide supply chains and hinders manufacturing processes, delivery schedules, and sales of various items. Due to the worldwide travel restrictions put in place by economies across Europe, Asia, and North America, transportation is another major worry. Several borders are blocked as a result. This obstructs chances for corporate collaborations and acquisitions. These issues collectively have slowed the market's expansion for functional proteins.

The Casein & Caseinates segment is expected to be the largest during the forecast period

The Casein & Caseinates segment is estimated to have a lucrative growth. Many functional peptides, including those with the potential to form structures, bind to water, foam, be heat stable, and emulsify, may be found in casein. Moreover, casein derivatives are used in culinary and non-food application areas, such as animal nutrition, where they have practical advantages.

The dietary supplement segment is expected to have the highest CAGR during the forecast period

The dietary supplement segment is anticipated to witness the fastest CAGR growth during the forecast period. Dietary supplements are taken as pills, liquids, powders, or capsules to make up for vitamin deficits in the diet. One of the emerging trends in dietary supplements is the usage of nutritional supplements like protein powder. Currently, to maintain their health and fitness, customers of all ages prefer to use functional dietary protein supplements. In addition to providing various nutritional advantages, nutritional supplements help promote muscle growth and fat reduction.

Region with highest share:

Asia Pacific is projected to hold the largest market share during the forecast period owing to rising urban populations, busy lifestyles, and increased disposable income. This pattern is expected to entice companies that make nutritional supplements to locate their facilities nearby, which will open up new business opportunities. Consumption of soy protein, which is inexpensive and widely available in Asia Pacific nations, has increased as a result of the region's customers having a greater average level of economic power. Moreover, taking into mind the generated health advantages, nations like Japan, Australia, and New Zealand are concentrating on providing quality components for functional proteins.

Region with highest CAGR

North America is projected to have the highest CAGR over the forecast period, owing to chronic illnesses are prevalent in regions like the US. As people turn to dairy proteins to meet their nutritional demands, whey protein concentrates are gaining popularity, growing use of dietary supplements and functional foods. The market for functional proteins is expanding in this area because to the changing lifestyles of consumers, the quick increase in the middle-class population, and the growing consumer awareness of health and fitness.

Key players in the market

Some of the key players profiled in the Functional Proteins Market include DuPont, Amai Proteins, Omega Protein Corporation, Roquette, Merit Functional Foods, Fonterra, DSM, Arla Foods, ADM, Cargill, BASF, Plantible Foods, Archer Daniels Midland, Abbott Nutrition, Darling Ingredients and SunOpta Inc.

Key Developments

In December 2020, DSM announced a collaboration agreement with VALIO to develop sustainable dairy products. Purpose-led by global science-based companies active in nutrition, health, and sustainable living, has signed a collaboration agreement to significantly reduce the carbon footprint of dairy production in Finland.

In November 2020, ADM and InnovaFeed, announced plans to collaborate on the construction and operation of the world’s largest insect protein production site, in Decatur, Illinois. The facility will be owned and operated by InnovaFeed and will co-locate with ADM’s Decatur corn processing complex, with ADM supplying feedstocks.

In September 2020, ADM augmented its protein portfolio with textured wheat and pea proteins. These high-functionality proteins enhance the meat-like texture of substitute’s meats. This introduction ensured ADM's leadership in the plant protein market.

Forms Covered:
• Dry
• Liquid

Sources Covered:
• Animal
• Plant
• Other Sources

Types Covered:
• Casein & Caseinates
• Whey Protein Concentrates (WPC)
• Hydrolysates
• Soy Protein
• Whey Protein Isolates (WPI)
• Other Types

Applications Covered:
• Animal Nutrition
• Dietary Supplements
• Functional Foods
• Functional Beverages
• Other Applications

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements