Functional proteins are used in various applications such as dietary supplements and food & beverages due to the rising demand for food products with improved functionalities. The ability of functional protein manufacturers to develop distinct isolates, concentrates, and other forms of protein ingredients for different food products, such as dairy products, beverages, dietary supplements, infant formula, bakery products, and confectionery products, is expected to drive the growth of the functional proteins market during the forecast period.
The global functional proteins market is projected to reach USD 5.70 billion by 2022, at a CAGR of 6.6% from 2017. The growth of the functional proteins market is driven by consumer awareness about a healthy diet, increasing instances of chronic diseases, and technological upgradation in the functional proteins market. The key drivers for the market are the shift in demand from processed to healthy and functional food.
Based on type, the market has been segmented into hydrolysates, whey protein concentrates, whey protein isolates, casein & caseinates, soy protein, and others. The whey protein concentrates segment dominated the market in 2017. Whey protein is one of the major ingredients used for manufacturing several milk-based products and is used by many food & beverage manufacturers as a protein source for product innovation. They are commonly used as a source of protein in functional food & beverages, owing to their easy availability or ease of production and less cost, as compared to hydrolysates and isolates.
In terms of application, the dietary supplements segment, the market has been segmented into functional foods, functional beverages, dietary supplements and animal nutrition Dietary supplements come in the form of capsules, liquids, powders, or tablets and are consumed to make up for the deficiencies of certain nutrient components in diets. In dietary supplements, one of the upcoming trends is the intake of nutritional supplements such as protein powder; which promotes muscle gain, fat loss, and also provides nutritional benefits. There is a growing consumption of different types of functional dietary protein supplements among consumers of all ages.
Based on source, the animal segment accounted for the largest share of the global functional proteins market in 2017. The demand for animal protein is driven by its better nutritional and flavor profile compared to plant-derived proteins. Further, the increasing use of animal protein in end-use applications, such as sports nutrition and the limited availability of substitutes for egg and gelatin in various food products—which, in turn, is influenced by lifestyles and demographic shifts—are the key market drivers.
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Asia Pacific is projected to be the fastest-growing market for functional proteins during the forecast period. The consumption of plant-sourced proteins such as soy protein and pea protein in the Asia Pacific region has been experiencing robust growth due to the increasing consumption of functional foods and dietary supplements. The higher economic power among consumers in the region has led to an increase in the consumption of soy protein, which is cheap and abundant in these countries. Countries such as Japan, Australia, and New Zealand are focusing on offering premium functional proteins ingredients, considering the derived health benefits. The major factors driving the Asia Pacific functional proteins market are the changing lifestyles of consumers, the rapid growth of the middle-class population, and the increasing consumer awareness about health & fitness. Also, investments and expansions in the region have driven the growth of the Asia Pacific functional proteins market.
Key participants in the functional proteins market are the functional proteins manufacturers, suppliers, and regulatory bodies. The key players that are profiled in the report include Archer Daniels Midland Company (US), Koninklijke DSM N.V. (Netherlands), Cargill, Incorporated (US), BASF SE (Germany), Ingredion Incorporated (US), Roquette Frères (France), SunOpta (Canada), Darling Ingredients Inc. (US), Omega Protein Corporation (US), DowDuPont Inc. (US), Kemin Industries, Inc. (US), InVivo (France), and John Pointon & Sons Ltd. (UK).
