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    Functional Protein Market

    ID: MRFR/F-B & N/1715-CR
    141 Pages
    Tejas Chaudhary
    April 2017

    Functional Protein Market Research Report Information By Type (Whey Protein Isolates, Hydrolysates, Whey Protein Concentrates, Soy Protein, and Casein), By Source (Plant and Animal), And By Region (North America, Europe, Asia-Pacific, And the Rest Of The World) – Market Forecast Till 2035

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    Functional Protein Market Infographic
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    Functional Protein Market Summary

    The Global Functional Protein Market is projected to grow from 0.06 USD Billion in 2024 to 0.09 USD Billion by 2035.

    Key Market Trends & Highlights

    Functional Protein Key Trends and Highlights

    • The market is expected to experience a compound annual growth rate (CAGR) of 3.85 percent from 2025 to 2035.
    • By 2035, the market valuation is anticipated to reach 0.09 USD Billion, reflecting a steady growth trajectory.
    • In 2024, the market is valued at 0.06 USD Billion, indicating a solid foundation for future expansion.
    • Growing adoption of functional protein products due to increasing health consciousness is a major market driver.

    Market Size & Forecast

    2024 Market Size 0.06 (USD Million)
    2035 Market Size 0.09 (USD Million)
    CAGR (2025-2035) 3.85%

    Major Players

    Glanbia Pic, Archer Daniels Midland Company, GNC Holdings Inc, Maxi Nutrition, Herbalife Ltd

    Functional Protein Market Trends

    Growing prevalence of chronic lifestyle diseases to propel the market growth

    As a result, diseases such as cholesterol, diabetes, and obesity, among others, are driving up demand for functional

    proteins

    in general. The millennial generation gravitates towards functional protein products that complement their hectic lifestyle.

    The increasing well-being and health trends among consumers due to chronic diseases will increase the demands for functional proteins in consumers' daily dietary intake. Consumers are also looking for options that provide the proper nutrition and flavor, further fueling demand for functional proteins, which is expected to contribute to overall functional protein market CAGR growth. When a human or animal consumes functional protein, it produces biological effects. For example, raw

    soybean

    contains trypsin inhibitor, which improves the ability of animals and humans to digest protein. Moreover, expanding the livestock nutrition sector in developing countries such as India, China, and Brazil owing to rising domestic demand for dairy derivatives drives the functional protein industry revenue growth during the projected timeline.

    The increasing consumer awareness regarding health and wellness is driving a notable shift towards functional proteins, which are perceived as essential components for a balanced diet and improved overall health.

    U.S. Department of Agriculture (USDA)

    Functional Protein Market Drivers

    Rising Health Consciousness

    The Global Functional Protein Market Industry is experiencing a notable surge in demand driven by increasing health consciousness among consumers. As individuals become more aware of the benefits of protein in maintaining a healthy lifestyle, the market is projected to reach 0.06 USD Billion in 2024. This trend is particularly evident in regions where dietary patterns are shifting towards higher protein intake, such as North America and Europe. Consumers are actively seeking functional protein products that support muscle growth, weight management, and overall wellness, thereby propelling the market forward.

    Market Trends and Projections

    Expansion of Sports Nutrition Sector

    The Global Functional Protein Market Industry is significantly influenced by the expansion of the sports nutrition sector. As more individuals engage in fitness activities and sports, the demand for protein supplements and functional foods tailored for athletes is increasing. This sector is projected to grow at a CAGR of 3.85% from 2025 to 2035, reflecting the rising interest in performance-enhancing nutritional products. The proliferation of fitness centers and health clubs globally is likely to further drive this demand, as consumers seek convenient protein sources to support their active lifestyles.

    Growing Demand for Plant-Based Proteins

    The Global Functional Protein Market Industry is witnessing a significant shift towards plant-based protein sources, reflecting changing consumer preferences. With a growing number of individuals adopting vegetarian and vegan diets, the demand for plant-derived proteins is on the rise. This trend is expected to contribute to the market's expansion, as plant-based proteins are perceived as healthier alternatives. By 2035, the market is anticipated to reach 0.09 USD Billion, indicating a robust growth trajectory. The increasing availability of diverse plant-based protein products, such as pea and soy proteins, further supports this trend.

    Increased Investment in Functional Foods

    The Global Functional Protein Market Industry is experiencing increased investment in the development of functional foods. Companies are recognizing the potential of functional proteins in enhancing the nutritional value of food products. This trend is evident in the rising number of product launches featuring functional protein ingredients, which cater to health-conscious consumers. The focus on innovation and product differentiation is likely to drive market growth, as consumers seek out functional foods that offer specific health benefits. This investment trend aligns with the broader movement towards healthier eating habits and lifestyle choices.

    Technological Advancements in Protein Production

    The Global Functional Protein Market Industry is benefiting from technological advancements in protein production methods. Innovations in extraction and processing techniques are enhancing the efficiency and quality of protein sources. For instance, advancements in fermentation technology are enabling the production of high-quality functional proteins from microbial sources. These developments not only improve the nutritional profile of protein products but also cater to the growing demand for sustainable and environmentally friendly protein sources. As a result, the market is poised for growth, with consumers increasingly favoring products that align with sustainability goals.

    Market Segment Insights

    Segment Insights

    Functional Protein Type Insights

    Based on type, the  functional protein market segmentation includes whey protein isolates, hydrolysates, whey protein concentrates, soy protein, and

    The whey protein concentrates segment held the majority share in 2022, contributing to around ~35-37% of the market of functional protein revenue. Whey protein is a critical ingredient in the production of many milk-based products. Many food and beverage manufacturers use it as a protein source for product development. They are used in functional food and beverages as emulsifiers, viscosity enhancers, binding, foaming, and flavor enhancers. Whey protein concentrates are commonly used in developing protein-based products due to their versatility.

    Key players like DSM (Netherlands) and Arla Foods (UK) invest in whey protein regularly and focus on developing innovative formulas and products.

    Further, the hydrolysates segment is expected to account for the fastest CAGR of the functional protein industry share over the forecast period. Protein hydrolysate is helpful in sports medicine as it allows amino acids to be absorbed more quickly by the body than intact proteins, maximizing nutrient transfer to muscle tissues. Additionally, it is utilized in the biotechnology sector as an addition to cell cultures. These are

    , anti-microbial, antioxidant, and hypertensive protein products intended for use in the production of infant and clinical nutrition products.

    Functional Protein Source Insights

    Get more detailed insights about Functional Protein Market Research Report- Forecast to 2030

    Regional Insights

    By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The European Functional Protein market accounted for USD 0.025 billion in 2022 and will likely exhibit significant CAGR growth over the study period. Growing geriatric populations, supportive government regulations, and increased awareness of diet and healthy eating practices contribute to this region's growth. The presence of major market players within the region, higher disposable income, changing lifestyles, and increased cases of diseases linked to a sedentary lifestyle have all increased the demand for functional proteins.

    Whey protein concentrates are gaining popularity in the region as consumers turn to dairy proteins to meet their nutritional needs.

    Further, the major countries studied in the market report are the U.S., Germany, Canada, France, the UK, Spain, Italy, Japan, India, Australia, China, South Korea, and Brazil.

    The North American functional protein market holds the second-largest market share owing to changes in lifestyle habits, an unbalanced diet, and improved research and development to create new forms of functional plant-protein-enriched products. The regional market for plant-based functional protein has been made possible by consumer demand for processed and low-cholesterol foods. Nowadays, North American consumers are shifting to alternative products such as green-label food products, which, combined with rising awareness of healthy and plant-based products, is propelling the functional protein forward.

    Further, the U.S. functional protein industry held the largest market revenue share, and the Mexico market of functional protein was the fastest-growing market in the North American region.

    The Asia-Pacific Functional Protein Market is expected to grow at the fastest CAGR from 2022 to 2030. The growing popularity of functional food and nutritional supplements has led to a significant increase in the consumption of plant-based proteins like soy and pea protein in the Asia Pacific region in recent years. In addition to rising demand from population growth, market growth in Asia Pacific is driven by socioeconomic changes such as increasing disposable incomes, increased spending capacity, aging populations, and increased urbanization.

    A new trend developing in the region is the awareness of the significance of protein in a healthy diet. Transformation in dietary patterns in low and middle-income families in developing countries can be seen as indicators of the region's economic development. This trend is expected to encourage dietary supplement manufacturers to locate regional production facilities, opening new functional protein industry opportunities. Moreover, China’s functional protein held the largest market share, and the Indian functional protein industry was the fastest-growing market in the Asia-Pacific region.

    Key Players and Competitive Insights

    Major market players are working to enhance the flavor of products containing plant functional proteins to draw in more customers. Many new startup companies across multiple regions compete with major players regarding innovation. Several innovations in high-throughput sequencing protein production have been observed in recent years. With the launch of new startups, many mainstream companies compete for market revenue share in the functional protein industry. The functional protein market major players, such as Maxi Nutrition, Glanbia Pic, Herbalife Ltd., and others, are working to increase market demand by funding research and development for plant-based proteins.

    Production locally to reduce operating costs is one of the essential business strategies manufacturers adopt in the functional protein industry to benefit customers and expand the market sector. Market participants are also undertaking many strategic initiatives to expand their reach. Key market developments include new product launches, increased R&D investments, mutual supply chain arrangements, acquisitions and mergers, and collaborative efforts with other organizations.

    Marketing and advertising activities, financially rewarding monetary benefits, and appealing subscription plans offered by market participants to boost the sales of weight reduction and weight management supplements all further contribute to the growth of the functional protein industry.

    The Archer-Daniels-Midland Company, or ADM, is one of the world's largest nutrition companies. It has been a leader in plant protein innovation for over 75 years and has grown to become a functional protein industry player. The company runs over 270 plants and 420 crop procurement operations worldwide, producing cereal grains and oilseeds into products used in the food, beverage, industrial, nutraceutical, and livestock feed markets. ADM expanded their functional protein portfolio with textured wheat and pea proteins in 2020. Proteins with high functionalities improved the meat-like texture of alternate solution meats.

    Also, Cargill Inc is an agribusiness company that provides food, agricultural, financial, industrial, and risk management products and services. It markets, processes, and distributes cotton, salt, sugar, oilseeds, grains, meat, and other food products. It also offers natural ingredients for cosmetics, pet food, and bio-industrial products. Cargill planned to add pea protein to its European ingredient portfolio in December 2020. With the introduction of this pea protein product, Cargill gained access to the European market of functional protein .

    Key Companies in the Functional Protein Market market include

    Industry Developments

    December 2020:

    Ocean Spray (US) collaborated with Amai Proteins to add healthy, sweet functional proteins to its product line. The joint venture increased the company's visibility and helped it establish a well-known brand identity.

    May 2020:

    Ingredion invested in NorQuin (CA), expanding its plant-based functional protein portfolio to include Quinoa flours ly. The investment expanded the company's protein portfolio by incorporating Quinoa flour.

    January 2020:

    Nestlé partnered with Burcon and Merit to create and manufacture plant functional proteins. Nestlé will be able to speed up the production of plant-based dairy and meat alternatives due to this collaboration.

    Future Outlook

    Functional Protein Market Future Outlook

    The Global Functional Protein Market is projected to grow at a 3.85% CAGR from 2024 to 2035, driven by rising health awareness, demand for plant-based proteins, and innovations in food technology.

    New opportunities lie in:

    • Develop personalized protein supplements targeting niche consumer segments.
    • Invest in sustainable sourcing of plant-based proteins to enhance brand loyalty.
    • Leverage technology for protein fortification in functional foods and beverages.

    By 2035, the Functional Protein Market is expected to achieve substantial growth, reflecting evolving consumer preferences and innovation.

    Market Segmentation

    Functional Protein Type Outlook

    • Whey Protein Isolates
    • Hydrolysates
    • Whey Protein Concentrates
    • Soy Protein
    • Casein

    Functional Protein Source Outlook

    • Plant
    • Animal

    Functional Protein Regional Outlook

    North America
    • US
    • Canada
    Europe
    • Germany
    • France
    • UK
    • Italy
    • Spain
    • Rest of Europe
    Asia-Pacific
    • China
    • Japan
    • India
    • Australia
    • South Korea
    • Rest of Asia-Pacific
    Rest of the World
    • Middle East
    • Africa
    • Latin America

    Report Scope

    Attribute/Metric Details
    Market Size 2022 USD 0.055 billion
    Market Size 2023 USD 0.057 billion
    Market Size 2030 USD 0.072 billion
    Compound Annual Growth Rate (CAGR) 4.1% (2023-2030)
    Base Year 2022
    Market Forecast Period 2023-2030
    Historical Data 2019-2021
    Market Forecast Units Value (USD Billion)
    Report Coverage Market Competitive Landscape, Revenue Forecast, Growth Factors, and Trends
    Segments Covered Type, Source, and Region
    Geographies Covered Europe, Asia Pacific, North America, and the Rest of the World
    Countries Covered The U.S., Germany, Canada, the UK, Italy, France, Spain, Japan, India, Australia, China, South Korea, and Brazil
    Key Companies Profiled Glanbia Pic, Archer Daniels Midland Company, GNC Holdings Inc, Maxi Nutrition, Herbalife Ltd
    Key Market Opportunities Increasing consumption of plant-based proteins like pea and soy proteins Growing demands for nutraceuticals across the globe
    Key Market Dynamics Rising incidence of chronic diseases in conjunction with growing consumer awareness Increased  usage of functional proteins in dietary supplements

    Market Highlights

    Author
    Tejas Chaudhary
    Research Analyst Level II

    I have a degree in Engineering (Civil), with masters in Business Administration (Marketing). With more than 4 years of experience in market research and consulting, I am involved in end-to-end process of market research, proposals, project kickoffs and delivery. I have research knowledge and expertise in consumer goods/packaging domain. Also I have worked for various other domains like construction & equipment. Effectively managed and delivered more than 60 report studies for regional as well as global clientele.

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    FAQs

    How much is the functional protein market?

    The functional protein market size was valued at USD 0.057 Billion in 2023.

    What is the growth rate of the functional protein market?

    The market is projected to grow at a CAGR of 4.1% during the forecast period, 2023-2030.

    Which region held the largest market revenue share in the functional protein market?

    North America had the largest revenue share of the market.

    Who are the key players in the functional protein market?

    The key players in the market are Glanbia Pic, Archer Daniels Midland Company, GNC Holdings Inc, Maxi Nutrition, and Herbalife Ltd.

    Which type led the functional protein market?

    The whey protein concentrates category dominated the market in 2022.

    Which source had the largest market share in the functional protein market?

    The animal had the most significant market share.

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