Pea Protein Market

Pea Protein – Green for Environment, Clean for Consumers

As modern consumers conform to the ‘health above everything else’ ideology, milk protein and animal protein tend to lose their sheen to plant-based protein, owing to their high risks associated with celiac and cardiovascular diseases. Sensing abundant opportunities in the plant-based protein market, businessmen are prioritizing their efforts in R&D activities to venture out into the untrodden meadows and broaden their product portfolios. 

Pea protein is one such innovation brought into the plant-based protein category to cater to niche demands ascending from the health-enthusiast consumer base. Manufacturers have been capitalizing on the opportunities surfacing from the growing trends of veganism and vegetarianism, which makes the dietary supplement a crucial end-user industry.

Studies have found that the carbon footprint for producing 1 Kg of pea protein is 19X lesser than that produced from the extraction of animal protein. Additionally, pea protein is marked economical than animal protein, when it comes to the usage of water. With lesser carbon and water footprint, pea protein has been gaining the favorability of regulatory bodies and manufacturers, who resort to environmental thinking for occupying a distinct position in the market.

For the landscape, where innovation becomes synonymous with business growth, Persistence Market Research (PMR) offers an exclusive study, wherein qualitative and quantitative changes in dynamics of the pea protein market are recorded and presented in the form of reliable numbers for the historical period, 2014-2018 and forecast period, 2019-2029.

Tracing the Evolution of the Pea Protein Market

As consumers make a seismic shift towards plant-based proteins, numerous end-user industries incite their scramble towards harnessing the protein in peas to introduce food products with a blend of ‘taste’ and ‘health’. Products such as chicken-free chicken and pea-based milk are well-appreciated by consumers, and ‘ready-to-eat’ trends remain influential in fostering innovation in the development of bakery products, especially in the developed countries. In 2018, pea protein recorded sales worth 336,151 tons, which corresponds to a value of US$ 852.4 Mn.

In recent times, demand for pea protein has been recorded from other industries besides food and beverages, which extend to dietary supplements and cosmetics & personal care, as consumers’ quest for chemical-free products can be completed better with plant-based protein. Since protein within the cosmetic formulations is recognized for moisturizing abilities, personal care manufacturers are expending efforts to expand their product portfolio by introducing newer protein substitutes. However, the quest for a better ingredient that offered pea protein a center stage in numerous end-user industries is likely to act as a hurdle to its leap, given the medium to high level of threat from its alternatives like rice protein, soy protein, corn protein, and wheat protein.

Sufficing the Protein Mania of Food and Beverage Industry

As bakery and confectionery industry demands good texturing agents, pea protein isolates are increasingly adopted, given their high water-binding capability, solubility, emulsification, and amino acid content. However, pea protein concentrates have been growing as the best source of nutraceuticals for the vegetarian and vegan population.

Since vegetarian and vegan population lack the recommended protein level, dietary supplement manufacturers zealously capitalize on the opportunity to enrich their product portfolio. However, food and beverages segment occupies a majority of the market share, as innovations have spawned in the landscape, given the growing consumers’ proclivity towards organic and clean label products.

Adoption of conventional pea protein remains high for facilitating numerous end-use applications, however, organic pea protein is witnessing an exponential rise as the trends of eliminating chemicals from the plate penetrates deeper into the consumers’ space.

Consumers’ drift towards veganism, as observed in the developed regions - North America and Europe - is also getting channelized in East Asia and South Asia, which surfaces sales closure opportunities for the pea protein market. Concerns pertaining to weight management has caused an exigency among consumers to follow restrictive diets, which majorly recommends high protein intake. As a result, manufacturers launch numerous pea protein induced breakfast and cereals, enriched by varied flavors.

Key Strategies to Achieve Healthy Growth in the Pea Protein Market

Aggregate Demand & Meet Supply in South East Asia

Consumption of plant-based protein has been witnessing a transition from being a subculture to being mainstream, especially in the developed countries, where consumers stay at the top of addressing their health concerns. However, a majority of the population practicing vegetarianism are seeking additional health requisites from dietary supplements in the developing regions. As the wave of veganism reaches the South East Asian region, demand for protein intensifies, which is captured well by the food and beverage manufacturers. Being home to leading food producers, sales opportunities galore for pea protein manufacturers, if taken well by setting up the launch pad for their products.

Include Transparent Products in Product Offerings

Manufacturers are being considerate of the fact that modern consumers seek value for the price. As their proclivity for organic and clean label products increase, manufacturers can leverage the opportunity to intensify their production capacity in the region to meet demand with the supply. Being the price-sensitive region that South East Asia is, manufacturers can initially launch their products by squeezing bottom lines to target the low budgetary clientele.

Gauging the Competition Intensity of the Pea Protein Market

The pea protein market remains highly fragmented with numerous players eyeing to capture limited end-use applications. Forerunners in the market such as Ingredion Incorporated, AGT Food and Ingredients, Cargill, Incorporated, DowDuPont, and Glanbia PLC hold 40-50% of the total share. While the regional players account for 25-35% and small players acquire 10-15% of the market share.

The key focus of the market forerunners is on aggregating the demand for pea protein and channelizing the supply. These players adapt to the ever-evolving demands of consumers and prioritize their investment towards manufacturing organic and natural pea protein products. As protein fortification in food and beverage is a key imperative to meet global challenges regarding the nutritional deficiencies, the market players are targeting the food and beverages applications. For instance, in December 2018, Ingredion Incorporated partnered with Verdient Foods to launch a joint venture, concentrated to produce plant-based protein concentrates for food and beverage applications.

The regional players, however, focus on intensifying their production capacity to meet the growing demand for pea protein from the food and nutraceutical industry. Additionally, the regional players team up with the farmers to offer a wide range of ingredients for diversified applications. For example, Farbest Brands entered into a strategic partnership with Naturz Organics to provide organic ingredients to the food and beverages manufacturers in North America and Europe.

Analysts’ View of the Pea Protein Market

The author(s) of the report view the pea protein market in bright light, with an estimated CAGR of 6% during the period, 2019-2029. As manufacturers operate in the frequently transmuting landscape of food and beverages, which is majorly driven by safety regulations, conformity will help them reduce their turnaround time to market. South East Asia region will offer lucrative sales opportunities for manufacturers since a large population following vegetarian and a new consumer base following veganism is concentrated in the region. Aligning the business strategies to meet the evolving demands of consumers will bode opportunities in the long run. However, the plant-based protein equivalents such as rice protein, soy protein, corn protein, and wheat protein are likely to impact the adoption trend of the pea protein market.