Functional Proteins Market Size, Trends and Growth Analysis by 2027

The global market for functional proteins was valued at approximately US$ 10,297.91 million in 2019 and is anticipated to reach around US$ 17,767.48 million by 2027, reflecting a compound annual growth rate (CAGR) of 7.2% from 2020 to 2027.

There is a growing consumer preference for wellness, health, and nutrition, prompting the food industry to continuously innovate and introduce new products that align with the increasing adoption of healthy lifestyles. Among the various functional food ingredients, protein stands out as a vital component sourced from both animal and plant origins. Proteins play an essential role in the body, contributing to the structure, function, and regulation of tissues and organs. The rising awareness among consumers regarding the numerous benefits of functional proteins is significantly driving the growth of this market. Additionally, the increasing disposable income in emerging economies across the Asia Pacific, Middle East, Africa, and South America is further propelling market expansion.

The global functional proteins market is categorized based on form into dry and liquid segments. In 2019, the dry segment led the market. Dry protein concentrates are widely utilized in nutritional supplements, as protein is a crucial macronutrient that aids in muscle building, tissue repair, and the production of enzymes and hormones. Protein powders are also beneficial for weight management and muscle toning. Whey protein concentrates, in particular, are incorporated into a variety of food applications, including confectionery, snacks, baked goods, yogurts, dips, desserts, meat products, ice creams, soups, pasta, sauces, beverages, and processed cheese products.

Geographically, the functional proteins market is divided into regions: North America, Europe, Asia Pacific, South America, and Middle East and Africa. In 2019, the Asia Pacific region held the largest market share. Countries in this region are experiencing a rise in the middle-class population and urbanization, creating lucrative opportunities for key market players. The substantial consumption of functional proteins in Asia Pacific is driven by a growing population and increasing disposable income. The market's growth in this region is primarily fueled by heightened healthcare awareness and a rising consumer interest in nutritional and healthy diets. Furthermore, the demand for infant formula enriched with functional proteins is on the rise in Asia Pacific, as more working women seek healthy and convenient food options for their infants, thereby supporting market growth.

The COVID-19 pandemic, which was first identified in Wuhan, China, in December 2019, has had a profound impact on global economies and industries. By February 2021, countries such as the US, India, Brazil, Russia, the UK, France, Spain, Italy, Turkey, Germany, Colombia, and Argentina were among the hardest hit in terms of confirmed cases and fatalities. According to the World Health Organization (WHO), there were approximately 108,579,352 confirmed cases and 2,396,408 total deaths worldwide. The pandemic has severely disrupted various sectors, including the food and beverage industry, due to lockdowns, travel restrictions, and business closures. The global supply chains have faced significant challenges, with many plants and factories in key regions like North America, Europe, Asia Pacific, South America, and the Middle East and Africa being shut down, which has hindered manufacturing activities, delivery schedules, and sales of goods. Transportation issues have also arisen, as many borders remain closed due to travel bans, disrupting business collaborations and partnership opportunities. These factors have collectively restrained the growth of the functional protein market.

Key players in the global functional proteins market include AMCO Proteins, APC INC, FrieslandCampina, Abbott Nutrition, Archer Daniels Midland Company, Arla Foods Ingredients Group, Cargill, Incorporated, Glanbia plc, DSM, Real Dairy Australia Pty Ltd., Fonterra Co-operative Group Limited, Kerry, and Saputo Ingredients.

The overall size of the global functional proteins market has been determined through a combination of primary and secondary research methods. The research process begins with extensive secondary research utilizing both internal and external sources to gather qualitative and quantitative data related to the market. Additionally, numerous primary interviews are conducted with industry participants and experts to validate and analyze the data. Participants in this research include industry professionals such as VPs, business development managers, market intelligence managers, national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in the functional proteins market.