Vegan Protein Powder Market

Transition in Consumer Nutrition Bias Fuels Demand

A key driver for the vegan protein powder market is the growing awareness and importance being given to healthy diets. Also, people are also making changes to incorporate healthy lifestyle habits, which has resulted in increased consumption of vegan protein products.

Growing awareness about health benefits of vegan protein powder and higher levels of digestibility propel adoption and consumption. Also, demand for clean label foods, and transition from synthetic to organic and natural ingredients will continue to drive demand in the long term.

The market is also likely to witness increase in profitable opportunities owing to the rising numbers of consumers with allergies such as lactose intolerance, and the rising production of new plant-based protein sources including rice, and almonds.

Demand for Allergen-Free Foods Supports Adoption

According to One Green Planet, one in every 13 children, suffer from food allergies. This issue impacts balanced nutrition among people, particularly in terms of protein. Also, allergies from animal products are hard to outgrow, creating opportunities for vegan protein powder manufacturers.

Growing concerns about lactose intolerance and glutamic disorders are driving demand for alternative protein sources including soy and pea protein powders. Other popular allergen free sources for protein powders include hemp, Chia, Pea, Spirulina, and ancient grain strains.

Multipurpose products for muscle repair, satiety, weight loss and energy sustenance, particularly among sports persons and fitness enthusiasts support the growth of the industry.  

Key Challenges

Despite steady growth of the industry during the past few years, the vegan plant protein powder market has a number of obstacles to contend with. A key challenge for the industry is low levels of consumer awareness and acceptance about plant-based protein powders, aside from those based from soy. In addition, animal protein-based powders remain more popular in comparison to vegan alternatives.

Lack of awareness about veganism in developing countries around the world and high meat consumption is likely to hinder overall growth. Also, poor balance of nutritional profiles offered by existing formulations, coupled with problems of texture, taste, and digestibility are problems. Also, a number of vegan protein powders are subjected to ultra-refined processing, which detracts such products from clean label requirements, reducing adoption prospects.

Region-wise Insights

North America Vegan Protein Powder Market

North America, led by the United States is the dominant market for vegan protein powders. Higher awareness about veganism and an expanding population of vegetarians, coupled with dedicated promotional campaigns for television and social media is propelling the market through 2027.

Also, the growing concern in the US in terms of obesity and weight management, and consumer demands to better manage hectic lifestyles have created a conducive environment for vegan protein powder sales. Also, investments into research for sports nutrition, and demand from athletes and the health and wellness sector bolsters overall demand.

As consumers steadily transition from mass produced processed foods to health products and functional foods, the potential applications for vegan protein powder are expected to rise in the long term.

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Europe Vegan Protein Powder Market

Following North America, the demand for vegan protein powder remains high in Europe, accounting for close to 30% of the global market share through the forecast period. Higher consumer awareness regarding the environmental impact of animal products and health benefits of a plant-based diet contribute to long term growth in the region.

Overall, the trend of sustainability being associated to vegan foods, is a key influencer accelerating market growth. Germany in particular is expected to witness relatively higher demand. As per the Global Agriculture Information Network, around 63 percent of the local population is making efforts to minimize meat consumption, with many opting for veganism as a lifestyle choice instead of a dietary restriction.

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South Asia & Oceania Vegan Protein Powder Market

South Asia and Oceania has proven to be a highly lucrative, albeit nascent market for vegan protein powders. Increased investments in spending for natural ingredient sources such as soy, and the trend of globalization in urban centers is promoting the consumption of vegan protein powder. Also, the rise in fitness centers and health clubs in the region are bolstering adoption rates.

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Manufacturers are increasingly associating their products to sports, to leverage the protein content towards a growing sports and fitness community in the region. Characteristics such as low sugar or no sugar, low fat, low-calorie, and low carbohydrate, in addition to a wider range of product flavors is driving up adoption, supported by the booming e-commerce industry here.

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Category-wise Insights

Consumer Bias towards Soy Protein Powder

In terms of source, vegan protein powders are largely made from soy, wheat, and pea among others. OF these, the soy protein powders will account for more than US$3.7 billion by 2027, which is more than 50 percent of the global market share.

However, wheat and pea alternatives are expected to witness higher growth rates, eating into the demand for soy vegan protein powders, owing to better nutritional profiles and cost benefits, particularly in the food processing sector.

Unflavored Vegan Protein Powders Sought After

Vegan protein powder products are available in a wide range of flavors ranging from unflavored, chocolate, vanilla, strawberry, blueberry, and others. Of these varied options, unflavored vegan protein powders remain highly sought after especially in the food and beverage industry, owing to the wider scope of application in multiple end products, accounting for more than 60% of the overall market share throughout the forecast period.

Household Applications Gain Ground

Vegan protein powders find use in a wide range of food and beverage applications, including food processing, animal feed formulation development, nutritional products, and household retail among others.

Of these options, food processing held a dominant share until 2017. However, this segment has been rapidly overtaken by the household, individual sales since then, and is expected to continue growing through 2027, supported by health and wellness awareness and growing demand for meat substitutes.

Distribution through Direct Sales Rises

Vegan protein powder manufacturers are making use of multiple channels of distribution including hypermarkets or supermarkets, direct sales, specialty stores, pharmacy & drug stores, online stores and other retail businesses.

Of these, direct will account for more than 60% of overall share in product distribution, on the back of company efforts to develop user friendly websites for marketing goals aimed towards wider geographical expansion.

Competitive Landscape

Vegan protein powder manufacturers are focusing increasingly on strategies involving product development and capacity expansions towards improving. Industry partnerships are gaining traction towards improving distribution networks.

The ongoing coronavirus pandemic is expected to generate interruptions to supply chains in the industry. However, the impact on the market is expected to remain minimal, owing to continued demand from the food and beverage sector, and demand for nutritional supplements from consumers during the crisis.

Merit Functional Foods Corp. has announced plans to open a new plant of 94,000 sq ft for vegan protein products by the end of 2020, and will primarily use canola and peas as the source for their plant-based offerings. The project will be completed with aid from the Federal Canadian Government.

Roquette Freres has collaborated with Sotexpro to develop a new pea-based protein texturizing solution, aimed towards the development and production of meat products and ready-meals in the processed food sector.

Cargill Inc. has invested US$ 75 million in Puris for vegan pea protein products, which will enable the company to double its output at its Minnesota plant. The two companies have been collaborating since January 2018 following a US$ 25 million investment by Cargill towards meat alternatives.

Aside from these players, other major producers include:

• Archer Daniels Midland Company
• AGT Food and Ingredients
• A&B Ingredients
• Ingredion Inc.
• The Scoular Company
• The Green Lab LLC
• The Kerry Group
• Vestkorn Milling AS
• Gemef Industries
• Hill Pharma Inc.
• Farbest Brands
• Glanbia plc

This list is only indicative – The full list of vegan protein powder players is available on request.

Vegan Protein Powder Industry Report: Scope

Key Questions Answered by the Report

• What is the size of the vegan protein powder market?

  The global vegan protein powder market is estimated to have reached a value of US$ 4.4 billion in 2020. The industry will rise at a 6.6% CAGR between 2019 and 2027.

• Which is the largest market for vegan protein powder?

  North America is the leading market for vegan protein powders. Growing levels of health consciousness among consumers and the expansion of vegan populations aid market growth.

• Which are the top companies in vegan protein powder market?

  Some of the leading companies operating in the market are Archer Daniels Midland Company, AGT Food and Ingredients, Cargill Inc., A&B Ingredients, Ingredion Inc., The Scoular Company, and The Kerry Group among others.

• What are the applications of vegan protein powder?

  Vegan protein powders are finding use in the food and beverages sector, and is popular among people suffering from allergies. Vegan protein powders are also increasingly playing roles in animal feedstock formulations to keep up with consumer biases.

• From what materials are vegan protein powders sourced?

  Vegan protein powders are extracted from three major plant sources. These include soy, wheat, and peas. Of these, soy protein powders are highly popular and are estimated to account for more than 50% of the overall market share by 2027.

• What is the outlook on vegan protein powder market?

  Vegan protein powder producers are benefiting from changing consumer bias towards animal welfare, the environmental impact of animal husbandry, and the growing awareness about the health risks from consumption of animal products. These factors will influence the sector through the forecast period.

• Will South Asia & Oceania exhibit higher demand for vegan protein powder?

  Countries in South Asia and Oceania are potentially lucrative markets for vegan protein powder manufacturers. The rise in health awareness coupled with a substantial vegan and vegetarian population in the region drives growth.

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• Is this research conducted by Future Market Insights?

  Yes, the research has been conducted by expert analysts of Future Market Insights through a combination of primary research and secondary research. To know more about how the research was conducted, you can speak to research analyst.

• What research methodology is followed by FMI?

  FMI follows a methodology that encompasses demand side assessment of the market, and triangulates the same through supply side analysis. This methodology is based on use of standard market structure, methods and definitions.

• Who are the respondents for primary research?

  FMI speaks to stakeholders across the spectrum, including C-level executives, distributors, product manufacturers, industry experts. For a full list of primary respondents, please reach out to us.

• What are the sources of secondary research?

  FMI conducts extensive secondary research through proprietary databases, paid databases, and information available in the public domain. We refer to industry associations, company press releases, annual reports, investor presentations, and research papers. More information about desk research is available upon request. 

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Vegan Protein Powder market Segmentation

Source

• Soy
• Wheat
• Pea
• Others

Flavors

• Unflavored
• Chocolate
• Vanilla
• Strawberry
• Blueberry
• Others

Application

• Food Processing
• Nutritional Products
• Animal Feed
• Household (Retail)
• Others

Distribution Channel

• Direct Sales
• Hypermarkets/Supermarkets
• Specialty Stores
• Pharmacy & Drug Stores
• Online Stores
• Others

Regional Outlook

• North America (U.S., Canada)
• Latin America (Brazil, Mexico, Peru, Argentina, Chile, Rest of LATAM)
• Europe (EU-4, U.K., BENELUX, Nordics, Eastern Europe, Rest of Europe)
• East Asia (China, Japan, South Korea)
• South Asia & Oceania (India, Thailand, Indonesia, Malaysia, Australia, Rest of South Asia & Oceania)
• Middle East & Africa (GCC Countries, Northern Africa, South Africa, Turkey, Rest of MEA)