Plant-Based Protein Supplements Market by Type (Soy Protein, Rice Protein), Form (Powder, RTD), Application (Sports Nutrition, Additional Nutrition), and Distribution Channel (Hypermarket/Supermarket, E-Commerce, Pharmacies) – Global Forecast To 2027

The Plant-Based Protein Supplements Market is expected to reach $9.57 billion by 2027, at a CAGR of 7.8% during the forecast period of 2020 to 2027. Rising interest in plant-based nutrition, positive outlook towards sports and health nutrition industry, increasing inclination towards a vegan diet, and increasing demand for personalized nutrition are the key factors driving the plant-based protein supplements market's growth. Moreover, growing demand from emerging economies in Asia-Pacific, Latin America, and the Middle East and Africa and the increasing availability of innovative plant-based protein supplements are expected to create lucrative opportunities for players operating in this market.

Surging Demand for Immunity Boosting Diet amid COVID-19 Pandemic

The COVID-19 outbreak has put tremendous pressure on functional food as well as the nutraceutical industry. Several frontline workers such as doctors, nurses, other medical professionals, hygiene workers or sweepers, and others are battling hard to contain the novel coronavirus's spread. The government agencies have advised the citizens to follow a healthy and nutritious diet regime to fight the disease. This is expected to boost the demand for plant-based protein supplements that promote the body's good health and optimum functioning by providing the necessary nutrients. Plant-based protein supplements are essential proteins for the growth and repair of human body cells and tissues. Besides providing the building blocks for healthy muscles and tissues, plant protein is also beneficial for weight loss. Plant-based proteins tend to be lower in calories and fat than animal proteins but higher in fiber and essential nutrients attributing to its rising preference.

Even though protein supplements are habitually associated with animal products, many plants are also good protein sources. As long as protein comes from various plant sources, vegans and vegetarians can easily meet their protein needs through these supplements. According to The Good Food Institute, the plant-based protein products market witnessed a spike in sales during Q1 2020. More than 50% of consumers have increased their consumption levels, and over 30% have planned to increase in the latter half of 2020.

In addition, considering its parent market, dietary supplements sales are increasing during coronavirus pandemic as the dietary supplements help comb or enhance the immune system against COVID-19, according to the article published by Nutrition Outlook. During the last week of March 2020, the sales growth for overall dietary supplements skyrocketed to more than 35.0% in the U.S. As well, according to Glanbia Plc., dietary supplements purchase in retail outlets has increased during April 2020.

Rising Interest in Plant-Based Nutrition

Alongside the growing risk profile of livestock production, many well-established animal-based product interests feel increasingly under attack from civil society groups and new food business players that market their plant ingredient-based products as more ethical and sustainable sources of protein. Across society over the last few years, there’s been a real shift and growth in consumer awareness of plant-based nutrition. According to the Food and Health Survey of American consumers from the International Food Information Council Foundation, more than 70% said they perceived protein from plant sources as healthy in 2019. This protein diversification has the potential to transform a food company’s principal business and value proposition due to its growth, profitability, risk exposure, and ability to compete and innovate.

Companies across the food value chain, from producers to retailers, are already investing in these opportunities. Some companies are hedging against or preparing for the decline of demand for animal products by investing in other companies that produce alternatives. In the plant protein value chain space, the plant protein ingredient manufacturers have received investment or funding from several high-profile individuals, financial investors, and companies in the past few years. Some of these developments are:

• In May 2020, Danone announced the commercial availability of its Vega One plant-based protein products in China, with the Vega One Sport designed for sports enthusiasts. This product contains a mix of proteins derived from different sources, including pumpkin seeds, alfalfa, sunflower, and peas.
• In May 2019, Burcon NutraScience Corporation entered into a joint venture partnership with an investor group to build a new C$65 million pea-protein and canola-protein commercial production facility in Western Canada. The plant will deliver Burcon's Peazac and Peazazz pea proteins and Nutratein, Puratein, and Supertein canola proteins.
• In June 2018, Roquette Frères Le Romain announced to invest €40 million in its facility in Vic-sur-Aisne to increase its pea processing capacity and respond to a fast-growing global demand for pea protein.

 
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Thus, growing venture capital investments, which support the growth of plant-based protein industry and increasing focus of leading milk protein-based supplements producers to build a portfolio of investments in plant protein space, drive the plant-based protein supplements market.

Preference for Whey Based Protein Supplements

Whey protein represents the most popular product type, holding the largest share in the global protein market. It is a fast-absorbing source of pure protein that comprises low levels of fat as well as cholesterol. It finds numerous applications in the nutraceutical and food industry for preparing salads, health food supplements, soups, infant formula, protein beverages and bars, dairy, and meat products. The numerous health benefits associated with whey protein consumption, such as lowering blood pressure and cholesterol level, reducing inflammation, and promoting fat loss, have increased its demand worldwide. Apart from this, the protein is highly recommended for sportsperson, athletes, and bodybuilders since it helps build stronger muscles and repair muscle tissue.

Further, technological advancements have been made to expand the shelf life of the whey protein. Moreover, the European Whey Protein Association (EWPA) promotes the interests of the whey processing industry and its products, which is expected to positively impact the growth of the whey protein market in the region.

Moreover, as incomes increase, demand for greater food variety grows. Demand for major ingredients for protein supplements such as whey ingredients includes demineralized whey powder, whey protein concentrate (WPC), sweet whey powder (SWP), with various protein concentrations, whey protein isolate (WPI), and whey protein hydrolysate (WPH) rise, compared with food of plant origin. Together with sizeable population growth, these changes in consumption have led to a large increase in the total demand for milk protein-based supplements in many developing countries, and this trend will continue to grow. All these factors increase the milk protein-based supplements consumption over alternative protein-based products, thereby hindering the plant-based protein supplements market's growth.

Key Findings in the Plant-based protein supplements market Study:

Soy protein segment accounted the largest share of the overall plant-based protein supplements market in 2020

Based on type, this market is majorly segmented into soy protein, rice protein, pea protein, spirulina protein, pumpkin seed protein, hemp protein, wheat protein, and others. The soy protein segment commanded the largest share of the plant-based protein supplements market in 2020, primarily due to the consumer acceptance level for soy protein with its cost-effectiveness and superior nutritional value compared to other sources of plant protein supplements. However, the pea protein segment is expected to grow at the fastest CAGR during the forecast period, supported by the growing demand for pea protein supplements globally with its growing popularity among the vegetarian and vegan population, greater nutritional qualities, and allergen-free, gluten-free, and lactose-free properties.

Ready to drink plant-based protein supplements to grow at the fastest CAGR during the forecast period

The plant-based protein supplements market is divided into protein powder, ready-to-drink, protein bars, and others based on product. The powdered protein supplements segment dominated the overall plant-based protein supplements market with the largest share in 2020. The major share of this segment is mainly attributed to their adoption with ease in handling & transport, cost efficiency, ability to avoid expensive formulation mistakes, and competence to maintain the stability of the ingredient. However, the ready-to-drink segment is expected to grow at the fastest CAGR during the forecast period due to its growing convenience.

The sports nutrition segment accounted for the largest share of the overall plant-based protein supplements market in 2020

Based on application, the plant-based protein supplements market is segmented into sports nutrition and additional nutrition. The sports nutrition segment accounted for the largest share of the overall plant-based protein supplement market in 2020. This segment's large share is mainly attributed to increased new product development, increasing number of youngsters choosing a career in sports, and rise in national and international sports events. This segment is also expected to grow at the fastest CAGR during the forecast period due to increasing consciousness regarding the benefits of a balanced and nutrient-rich diet in miniating the muscle tone and stamina required in athletes.

The online retail segment to grow with the fastest CAGR during the forecast period

Based on distribution channel, the plant-based protein supplements market is mainly segmented into modern groceries; natural and specialty retail; online retail; health food store; pharmacies and drug store; convenience store; and others. The modern grocery segment held the largest share of the overall plant-based protein supplements market in 2020. The large share of this market is mainly attributed to the increased number of supermarkets and hypermarkets.

However, the online retail segment is expected to grow at the fastest CAGR during the forecast period. Online plant-based protein supplements sales are growing faster than other offline distribution channels as they allow to purchase anytime, convenience for doorstep delivery, higher food consumption outside of the home, lower price than in-store, greater product selection experience, and easier to compare prices.

Asia-Pacific: The fastest growing regional market

At the regional level, North America accounted for the largest share of the overall plant-based protein supplements market in 2020, majorly due to the higher adoption of nutritional supplements by the consumers in this region with higher health consciousness and high living standards, well-established nutraceutical and functional food industry, a large number of highly established gyms and sports clubs, higher focus on healthy living, and growing clean label trends in the region supporting demand for plant-based products.

However, among other regional markets, Asia-Pacific is projected to exhibit robust growth during the forecast period owing to rising awareness on the consumption of healthy diets covering rich protein due to urbanization and growing income level; and the rising indulgence of the large population base in the region in sports & recreational activities; and rising number of fitness centers and sports clubs in the region.

Key Players

The plant-based protein supplements market is highly fragmented with the presence of many small private vendors in the market. Some of the key players operating in the plant-based protein supplements market are Glanbia plc. (Ireland), Now Health Group, Inc. (U.S.), Nutiva Inc (U.S.), The Simply Good Food Co (U.S.), Iovate Health Sciences International Inc. (Canada), MusclePharm Corporation (U.S.), Kerry Group Plc (Ireland), CytoSport, Inc. (U.S.), The Nature's Bounty Co. (U.S.), Reliance Vitamin Company, Inc. (U.S.), Herbalife Nutrition, Inc. (U.S.), Danone SA (France), General Nutrition Centers (GNC) Holdings, Inc. (U.S.), Orgain Inc. (U.S.), and True Nutrition (U.S.).

Scope of the report

Plant-based Protein Supplements Market, by Type

• Soy protein
• Rice protein
• Pea protein
• Spirulina protein
• Pumpkin seed protein
• Hemp Protein
• Wheat Protein
• Others

Plant-based Protein Supplements Market, by Form

• Protein Powder
• Ready to Drink
• Protein Bars
• Others

Plant-based Protein Supplements Market, by Application

• Sport Nutrition
• Additional Nutrition

Plant-based Protein Supplements Market, by Distribution Channel

• Modern Groceries
• Natural and Specialty Retail
• Online Retail
• Health Food Store
• Pharmacies and Drug Store
• Convenience Store
• Others

Plant-based Protein Supplements Market, by Geography

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • France
  • U.K.
  • Italy
  • Spain
  • RoE
• Asia-Pacific (APAC)
  • China
  • Japan
  • India
  • RoAPAC
• Latin America
• Middle East and Africa

Key questions answered in the report: