Plant Based Protein Supplements Market Size, Share & COVID-19 Impact Analysis, By Type (Soy Protein, Pea Protein, and Wheat Protein), Distribution Channel (Mass Merchandisers, Pharmacies/Drugstores, Specialty Stores, Online Retail, and Others), and Regional Forecast, 2021-2028

The global plant based protein supplements market size was USD 5.11 billion in 2020. The global impact of COVID-19 has been unprecedented and staggering, with plant-based protein supplements witnessing a negative impact on demand across all regions amid the pandemic. Based on our analysis, the global market will exhibit a lower growth of 6.7% in 2020 as compared to the average year-on-year growth during 2017-2019. The market is expected to grow from USD 5.40 billion in 2021 to USD 7.84 billion in 2028 at a CAGR of 5.5% in the 2021-2028 period. The rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.

The growing popularity of veganism primarily drives this market. Plant-based products are perceived to be healthier and safer as compared to animal-based products. Rising concerns regarding animal welfare have significantly contributed to the growth of the plant protein supplements industry. The increasing interest in food safety and better-for-you products is expected to fuel market growth. The leading manufacturers are focused on investing in research of innovative protein sources, which will further propel the growth of the market. 

High Consumption of Vegan Protein Supplements to Fuel Growth amid COVID-19 Pandemic

The sale of plant-based foods has significantly increased amidst the outbreak of the COVID-19 pandemic. According to a Plant-Based Foods Association survey, the U.S. retail plant-based foods sale was 35% higher than total retail food amid the panic buying period around March & April 2020. The pandemic has considerably transformed consumer buying patterns, with a steady shift being witnessed toward health-improving products. People are buying supplements owing to their healthier & safer properties as compared to their animal-based counterparts. However, the supply chain disruption has affected the availability of raw materials required for the production of plant-based supplements. The growing concerns surrounding food safety amidst the pandemic are expected to boost the demand for these supplements in the upcoming years.

LATEST TRENDS

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Rising Trend of Dietary Supplements to Heavily Contribute to Market Growth

Growing awareness about the benefits of daily consumption of concentrated nutrients has significantly increased dietary supplements’ demand. Urbanization and hectic lifestyles have augmented the prevalence of lifestyle-related health conditions. According to the Global Diabetes Community, U.K., it is estimated that 415 million people had diabetes in 2018 across the world and is expected to rise to 642 million people living with the disease worldwide by 2040.

The rising prevalence of obesity, diabetes, and cardiovascular diseases is projected to drive the demand for a variety of dietary supplements. Studies have shown that the moderate consumption of proteins on a daily basis helps prevent various lifestyle-related chronic conditions. There is a wider acceptance among consumers about the importance of protein supplements in preventing deteriorating health conditions. Protein-based dietary supplements are also gaining popularity among fitness enthusiasts for muscle-building purposes. Furthermore, the rising popularity of protein supplements among pregnant women and children is expected to fuel the market growth.

DRIVING FACTORS

Increasing Preference for Plant-based Diets to Fuel the Market

Growing awareness about animal welfare as well as environmental sustainability has been pushing consumers towards adopting plant-based diets. The evolving perception of consumers that plant-based products are safer & healthier than animal-originated products fuels the plant based protein supplements market growth. The growing vegan population and preference for vegetarian diets have forced manufacturers to innovate novel sources of plant proteins. The increasing prevalence of lactose intolerance and lactose allergies has further contributed to plant proteins' sales growth. Lastly, rising interest in natural, organic, and clean-label products is projected to boost plant-based protein supplements' demand.

Robust Demand for Protein Supplements to Propel Market Growth

The rising demand for protein supplements to improve health and wellness significantly fuel the growth of the vegan protein supplements market. Modern-day hectic lifestyles and busy schedules have surged the demand for instant sources of proteins. Protein powder supplements are also becoming very popular among fitness enthusiasts for muscle development due to their higher amino acid content. Aggressive marketing and promotional activities by companies across fitness centers and the introduction of several ready-to-drink protein supplements are expected to expand the sale of plant protein supplements in the upcoming years. These supplements are also widely popular among vegan-diet followers, which is expected to further drive market growth.

RESTRAINING FACTORS

Challenges Faced in Improvement of Palatability of Plant based proteins to Hamper Growth

The sensory parameter, i.e., the flavor profiles of plant based proteins, is the area where some serious improvements are required to increase the finished products' palatability and acceptability. Proteins extracted from plants generally impart off-flavors and unacceptable tastes when added to the product. Although formulating with functional ingredients addresses consumer demand for customized health and wellness, these products' purchase is often driven by taste and flavor.

The challenges faced in improving the palatability of plant based proteins are acting as a key restraint for market growth. Various technologies such as microencapsulation, polymer coating, and flavor solutions can be applied to mask and modify these unpleasant tastes and produce better tasting final products. Flavour addition to reducing bitterness or masking flavors is one of the most significant protein supplement industry trends. Flavors that complement plant proteins are mainly used for masking purposes. For instance, natural fruit and vegetable flavors such as orange, strawberry, fungi, pods, and seeds are generally used in plant based proteins owing to their natural origin.

SEGMENTATION

By Type Analysis

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Soy Protein Segment to Emerge as the Dominant Segment

Based on type, the market is segmented into soy protein, pea protein, wheat protein, and others. Soy protein, albeit exhibiting a slowdown in its sales, remains a dominating segment in this market, according to the plant proteins industry analysis. The superior nutritional value and easy availability of raw materials are some of the driving factors for soy protein.

However, the pea protein segment (particularly concentrates & isolates) is expected to surpass the soy protein segment both by value and volume-based sales due to its robust popularity and increasing utilization in various dietary supplements. The market has recently witnessed companies exploiting novel sources for plant protein such as spirulina, pumpkin seeds, and hemp. Such industry trends are predicted to boost revenue further.

By Distribution Channel Analysis

Mass Merchandisers to be the Primary Leading Distribution Channels

The market is segmented into supermarkets/hypermarkets, pharmacies/drugstores, specialty stores, online retail, and others by distribution channel. Mass merchandisers viz. supermarkets/hypermarkets are continuously changing, and investors capitalize on buyers’ comfort to offer an easy shopping experience. The adoption of technological advancements and equipment on the floor will help retailers provide adequate quality products to the consumers. According to the Food Industry Association 2018, 43% of the total grocery in 2017 was sold through supermarkets/ hypermarkets, representing a major share of plant protein sales every year. Mass merchandisers' dominance in the supplements market is being overshadowed by the rapidly growing online retail platforms and the increasing presence of specialty stores.

REGIONAL INSIGHTS

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The developed markets of North America and Europe contribute more than half of the global revenue in this market and are thus leading the plant based protein supplements market share. This is ascribed to the heightened consumer awareness in these regions regarding the ecological impact of animal-based proteins, the health benefits from the plant based proteins, and the overall sustainability factor associated with such vegan sources. The vegan trend in these markets is expected to stay strong during the foreseeable future, and the growing demand for healthy and nutritional products is expected to further fuel the demand for natural protein supplements.

Asia Pacific is expected to witness growth rates higher than the global average during the forecast period. Consumers are gradually showing interest in dietary supplements in vegan proteins as the sports nutrition sector becomes mainstream. Developing markets such as China, India, and Indonesia are projected to propel plant based protein supplements' sales growth due to the increasing aging population and growing interest in dietary supplements to improve overall health.

The South American market for plant-based protein supplements is projected to exhibit substantial growth owing to the growing popularity of healthy eating. According to a survey conducted by the leading nutrition company DuPont Nutrition & Biosciences, Colombia, Brazil, and Argentina are leading the way in South America with 78%, 67%, and 65% consumers respectively showing interest in plant proteins. The market is further fuelled by the rising trend of flexitarian diets among millennials in the region. The growing popularity of on-the-go proteins among these individuals is expected to considerably drive the market growth in the upcoming years.

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The market is still at the nascent stage in the Middle East and Africa region. Dairy proteins have been popular in the region. However, rising awareness regarding vegan and flexitarian diets has contributed to recognizing plant proteins among consumers. The growing interest in consuming protein supplements to maintain health is expected to propel the market growth in the region in the forthcoming years.

KEY INDUSTRY PLAYERS

Danone S.A. to Focus on Geographical Expansion to Strengthen Global Presence

Danone S.A. is focused on investing in geographically expanding its plant protein business to strengthen its position in the global market. For instance, in May 2020, the company introduced its sports nutrition brand Vega One in China. The brand range also includes plant protein series.

The market exhibits a moderately consolidated structure, dominated by large multinational companies. The key players such as Glanbia Plc, Kerry Group, and Roquette focus on strategic mergers, acquisitions, and partnerships to gain a competitive edge that comes from such synergies. Growing demand for plant-based products supports the companies to launch various products with innovative ingredients to meet the consumer-specific demand.

LIST OF KEY COMPANIES PROFILED:

• Danone S.A. (Paris France)


• Roquette Frères (Lestrem, France)


• Kerry Group plc (Listowel, Ireland)


• BENEO GmbH (Mannheim, Germany)


• Glanbia plc (Kilkenny, Ireland)


• Iovate Health Sciences International Inc. (Ontario, Canada)


• Amway (Michigan, U.S.)


• MusclePharm Corporation (California, U.S.)


• Sakara Life, In (New York, U.S.)


• Tiba Starch & Glucose Manufacturing Company (Ash Sharqia Governorate, Egypt)


• Nuzest Life Pty Ltd. (New South Wales, Australia)

KEY INDUSTRY DEVELOPMENTS:

• May 2019 – Canada’s Burcon NutraScience Corporation launched new pea and canola protein blends. The firm also announced plans to enter into a joint venture to build a new commercial plant protein production facility.


• January 2019 – Amazing Glass launched a new ‘Amazing Protein Glow’, an alternative to animal-derived collagen supplements.

REPORT COVERAGE

An Infographic Representation of Plant Based Protein Supplements Market

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The plant based protein supplements market research report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and leading distribution channels of the product. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the market over recent years.

Report Scope & Segmentation: