Protein Supplements Market Size, Share & COVID-19 Impact Analysis, By Source (Plant-Based, Animal-Based, and Others), By Product (Protein Powder, RTD, Protein Bars, and Others), Distribution Channel (Supermarkets and Hypermarkets, Pharmacies/Drug Stores, Online Retail, and Others), and Regional Forecast, 2021-2028

The global protein supplements market size was USD 11.92 billion in 2020. The market is projected to grow from USD 14.05 billion in 2021 to USD 25.91 billion by 2028 at a CAGR of 9.1% during the forecast period (2021-2028). The global impact of COVID-19 has been unprecedented and staggering, with witnessing a positive impact on demand across all regions amid the pandemic. Based on our analysis, the global market exhibited a higher growth of 28.19% in 2020 as compared to the average year-on-year growth during 2017-2019. The rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.

Increasing purchasing power parity (PPP) is likely to propel ready-to-drinks (RTD) demand in the coming years. In addition, the rising consumption of dried fruit snacks due to changing lifestyles is anticipated to fuel the segment growth over the next seven years. Furthermore, surging demand for protein bars, RTD, and powders among bodybuilders, elite athletes, and casual exercisers is anticipated to drive the market. The presence of a large number of brands, including Optimum Nutrition, Inc., Quest Nutrition, Bio-Engineered Supplements and Nutrition, Inc. (BSN), NOW Foods, United States Nutrition, Inc., MusclePharm, MuscleTech, and Met-Rx Substrate Technology, Inc. is expected to further boost the protein supplements market growth.

COVID-19 IMPACT

Supply Chain Disruptions amid COVID-19 to Hamper Performance

The global market is impacted highly due to uncertain pandemic circumstances that occurred across the globe. Since most of the countries experienced nationwide lockdown, the purchasing power of the consumers has impacted the growth of food products. The global market is expected to witness hurdles in its growth owing to the restrictions imposed on trade, operations of production facilities at reduced workforce & capacity, nationwide lockdown, and closure of international borders. The coronavirus (COVID-19) pandemic has severely impacted global industrial production owing to lockdowns in major economies. This has negatively impacted the production, manufacturing, and transport of several goods across the globe. However, unlike other industries, the food & beverage and pharmaceutical industries have witnessed minimal influence. Major markets for dietary supplements are concentrated in North America and European countries. Furthermore, these regions have observed coronavirus outbursts in most of their economies, including the U.S., Italy, Spain, France, the U.K., and others. This, in turn, led to the growing demand for immune-boosting supplements across various channels, such as supermarkets, hypermarkets, food stores, and drug stores & pharmacies.

LATEST TRENDS

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Rising Trend of Eating Healthy Food to Foster Market Growth of Dietary Supplement

The consumption of a diet rich in protein content has significantly increased in the past few years due to rising health awareness among consumers across the world. Moreover, the rising geriatric population and an increasing number of lifestyle-related diseases, such as diabetes & obesity, directly contribute to the increased consumption of dietary supplements. The region is also expected to witness an increase in dietary supplement demand in sports nutrition as more consumers opt to maintain a healthy lifestyle by engaging in sports activities or playing sports professionally.

DRIVING FACTORS

Augmented Demand for Sports Nutrition Supplements to Drive the Market

Sports nutrition involves the consumption of nutrients, such as vitamins, proteins, supplements, fats, carbohydrates, minerals, and organic substances. Sports nutritional products consist of sports beverages, sports supplements, and sports foods targeted at strength & endurance athletes and bodybuilders to increase their overall performance, enhance stamina, promote muscle growth, and improve health. Nano-encapsulation and microencapsulation technologies have gained popularity over the past few years, owing to controlled release and minimum utilization of ingredients. Increasing distribution channel of encapsulation technologies in the fortification of food & beverage products is expected to tap new markets for sports nutrition ingredients. Furthermore, the growing naturally-derived ingredients in light of increasing health concerns related to synthetic ingredients are expected to fuel the penetration of protein supplements in the sports nutrition industry.

Rising Consumer Awareness Concerning Health & Nutrition to Usher Innovation

Numerous awareness campaigns run by non-governmental organizations, government agencies, and companies have increased consumer understanding about nutritious benefits of protein supplements, which, in turn, is expected to fuel market growth. Moreover, the consumption of premium protein powders and bars is regarded as a symbol of one’s social status in many countries. Some companies engaged in producing nutritional supplements also include natural and organic products, which are further fueling the market. The use of attractive packaging techniques has led to surged consumer awareness, thereby triggering the spending on protein & nutritional supplements.

RESTRAINING FACTORS

High Cost of Production Due to Volatile Raw Material Prices

Volatility in the prices of raw materials, including soybean and milk, due to demand and supply constraints, is projected to result in fluctuations in the prices of protein supplements. Milk is the major raw material used for manufacturing whey and casein proteins. Milk can be compared to crude oil as it goes into refineries and emerges in the form of various products (whey concentrates, isolates, casein concentrates/isolates, cheese, yogurt, and milk powder), which are traded across the globe. Milk prices are expected to boom or crash depending on political and economic factors. Furthermore, milk supply is subject to seasonal patterns; the milk supply is greater during spring owing to the calving patterns of cows. Consumers also tend to have a seasonal pattern in terms of their consumption; for instance, the demand for fluid milk is maximum in the fall when the schools are back in session. The political scenario also has a considerable impact on price volatility.

SEGMENTATION

By Source Analysis

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Animal-Based to Hold Largest Protein Supplements Market Share due to Increasing Expenditure on Research Pertaining to Human Health

The demand for animal protein supplements is expected to witness significant growth over the next few years owing to strong scientific evidence regarding the health benefits offered by them. For instance, whey proteins enhance immunity and nutritional status as well as help increase glutathione (GSH) levels in cancer patients undergoing chemotherapy.

On the other hand, plant-based proteins, such as rice, pumpkin, and sunflower, are usually combined with other plant-based protein & sport supplements, such as pea or soy, to provide complete and balanced protein contents for a human body, together with the inclusion of all the essential amino acids. Consumption of additives-free and 100% organic & natural soy and pea-based protein supplements among lactose intolerant consumers is projected to drive the overall market demand.

By Product Analysis

Protein Powder to Hold Largest Market Share Owing to Growing Preference Toward Snacking Options

Protein powder emerged as the dominant product segment in 2018 and accounted for 64.1% of the overall market revenue share. Strong online sales and mass channels of distribution by various companies, including Glanbia, the Nature's Bounty Co., and Iovate Health Sciences International Inc. are expected to fuel the demand for protein powders. Further, increasing demand for these powders from bodybuilders, elite athletes, and casual exercisers is anticipated to boost the protein powder segment growth. The presence of a large number of brands, including Optimum Nutrition, Quest Nutrition, Bio-Engineered Supplements and Nutrition, Inc., NOW Foods, Body Fortress, MusclePharm, Pure Protein, and MET-Rx is also expected to contribute to the segment growth.

By Distribution Channel Analysis

Supermarkets and Hypermarkets to hold Significant Market Share due to Convenience of Shopping and Availability of Multiple Brands

Supermarkets and hypermarkets emerged as the dominant product segment in 2018. Major retailers in the U.S., including Walmart are moving into this protein and are investing in private label varieties to promote the sale of protein products. However, the retail sale of protein products is anticipated to witness a slower growth rate over the forecast period due to strong competition from other distribution channels such as online stores and DTC channels.

REGIONAL INSIGHTS

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North America to Exhibit Highest Growth due to Emerging Plant-Based Protein Industry

In terms of revenue, North America protein supplements market was valued at USD 4.19 billion in 2020 and is projected to witness significant growth over the forecast period. Functional foods and sports nutrition are the major distribution channel segments of the North American market. This can be attributed to the rising fitness awareness among consumers in the U.S., Canada, and Mexico, which is expected to drive the demand for functional food and beverages. Moreover, the growing health benefits of protein bars and shakes coupled with the increasing adoption of protein bars and cookies by millennials as a healthy snacking option are expected to further propel the demand for protein supplements in North America in the coming years.

Rising health awareness in Europe is also anticipated to augment the demand for functional foods over the next few years. The presence of major manufacturers, such as Glanbia plc, Bulk Powders Co., Ultimate Nutrition, Inc., and PowerBar Europe GmbH, in the region is expected to surge the demand for protein supplement products further.

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The demand for protein & nutrition supplements in Asia Pacific will be fueled by the trend for on-the-go snacking options across developing economies, such as India and China. Besides, a notable shift in consumer lifestyle could further foster the protein and nutrition supplement products market in the Asia Pacific and South America over the forecast period.

KEY INDUSTRY PLAYERS

Companies to Focus on Growth in Production Capacity to Meet Global Demand

This market is consolidated owing to the presence of limited number of established and regional players. Key companies, such as Glanbia Plc, RSP Nutrition, BRF, and Muscle Pharm, are the prominent players in this market. These players are focusing on the increase of their production capacity in order to meet the global demand.

LIST OF KEY COMPANIES PROFILED:

• Glanbia Plc (Kilkenny, Ireland)


• MusclePharm (California, U.S.)


• Abbott (Illinois, U.S.)


• CytoSport, Inc (California, U.S)


• Quest Nutrition (California, U.S)


• The Bountiful Company (New York, U.S.)


• The Himalaya Drug Company (Bengaluru, India)


• NOW Foods (Illinois, U.S.)


• RSP Nutrition (Florida, U.S.)


• BPI Sports LLC. (Florida, U.S.)

KEY INDUSTRY DEVELOPMENTS:

• March 2019: Quest Nutrition entered into distribution deals with Sam’s Club and BJ’s Wholesale to provide products in conventional grocery stores, convenience stores, and specialty supplement stores.


• April 2018: Abbott launched Ensure Max protein to target consumers above the age group of 50 and the product aimed to provide all the protein to maintain or rebuild muscle with the right nutrition.

REPORT COVERAGE

An Infographic Representation of Protein Supplements Market

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The market research report provides qualitative and quantitative insights into the market. It also offers a detailed analysis of the market size and growth rate for all possible segments in the market. Various key insights presented in the report are an overview of related markets, recent industry developments, such as mergers & acquisitions, the regulatory scenario in critical countries, and key protein supplements industry trends.

Report Scope & Segmentation