Vegan Protein Market Size, Share Global Analysis Report, 2023 – 2030

Industry Insights

[201+ Pages Report] According to Facts and Factors, the global vegan protein market size was valued at USD 13.01 billion in 2022 and is predicted to surpass USD 28.80 billion by the end of 2030. The vegan protein industry is expected to grow by a CAGR of 10.45%.

Market Overview

Vegan protein is extracted from plant sources and is a popular choice for people following vegetarian or vegan diets. A few of the common sources of vegan protein include lentils, chickpeas, whole grains, nuts, seeds, soy products, and several others.

Key Insights

• As per the analysis shared by our research analyst, the global vegan protein market size is estimated to grow annually at a CAGR of around 10.45% over the forecast period (2023-2030).
• In terms of revenue, the global vegan protein market size was valued at around USD 13.01 billion in 2022 and is projected to reach USD 28.80 billion by 2030.
• Growing vegetarian population is driving the growth of the global vegan protein market.
• Based on the distribution channels, the direct sales segment is growing at a high rate and is projected to dominate the global market.
• Based on the applications, the household segment is projected to swipe the largest market share.
• Based on the flavors, the unflavoured protein powder segment is likely to swipe the larger share of the market.
• Based on the sources, the soy protein powder segment is likely to dominate the global market.
• Based on region, North America is expected to dominate the global market during the forecast period.

Growth Drivers

• Growing vegetarian population is driving the growth of the global market.

There is an increasing number of people adopting the vegetarian or vegan lifestyle. This trend is largely associated with a lot of concerns regarding animal welfare, environmental sustainability, and human health. However, it is a primary factor pushing the growth of the global vegan protein market.

Furthermore, the rising awareness regarding the health benefits associated with plant-based diets, like weight management, reduced risk of diseases, and improved digestion is further increasing the popularity of vegan products like vegan protein. Also, the ongoing innovation in the development of improved plant-based protein is further gaining traction among consumers.

Also, there is a high adoption rate of plant-based protein in the sports nutrition and fitness supplement industry, which further accentuates the demand in the market. Fitness enthusiasts and athletes are also looking forward to the plant-based alternative to traditional protein products.

For instance, Ingredion extended its production capacity in April 2022 by installing a manufacturing unit in Canada and acquiring Verdient Foods. This strategic move has helped the company extend to produce plant-based protein.

Restraints

• Cost of production is likely to hamper the growth of the global market.

Plant-based protein products are quite expensive. It takes a high upfront cost to produce plant-based protein products as compared to their animal counterparts. Therefore, it affects its affordability and mass adoption, which is likely to hinder the growth of the vegan protein industry in the coming years.

Opportunities

• Retail expansion and partnerships are expected to foster growth opportunities in the global market.

The growing accessibility of vegan protein products in mainstream retail outlets is likely to create several growth opportunities in the global vegan protein market. Also, the major investments from leading food and beverage companies are further widening the scope of the vegan protein industry. There is an increasing partnership between these traditional food producers and plant-based protein manufacturers to swipe the large market area.

For instance, Arla Foods ingredients revealed a micellar casein isolate, MicelPure™, in August 2021. This product contains a minimum of 87% of the native protein, which is low in fat and lactose.

Challenges

• Taste and texture limitation is a big challenge in the global market.

Achieving a taste and texture similar to traditional animal-based protein products is a big challenge in the vegan protein industry. Customers have different perceptions regarding vegan protein products, and therefore, they are hesitant to switch to plant-based options.

Segmentation Analysis

The global vegan protein market can be segmented into distribution channels, applications, flavors, sources, and regions.

By distribution channel, the market can be segmented into online stores, pharmacies & drugstores, specialty stores, hypermarkets, and direct sales. The direct sales segment accounts for the largest share of the vegan protein industry. The direct sales segment fosters the strongest brand loyalty and, therefore, a direct relationship with consumers. This strategy helps companies generate larger revenue from the market.

Moreover, the direct sales model also enables customization options, thereby permitting consumers to personalize their orders based on their dietary needs, flavor, preferences, and other criteria.

By application, the market can be segmented into household, animal feed, nutritional products, food processing, and others. The household segment is poised to witness significant growth in the forthcoming years. An increasing number of people are adopting vegan diets, thereby incorporating more plant-based options into their daily lives, which is boosting the demand for vegan protein powder at household levels. A growing number of people are adopting vegan diets, thereby incorporating more plant-based options into their daily lives, which is boosting the demand for vegan protein powder at household levels.

By flavors, the market can be segmented into blueberries, strawberries, vanilla, chocolate, unflavoured, and others. Unflavoured protein powder is the fastest-growing segment in the global vegan protein market. Unflavoured protein powder is associated with clean label terms showcasing that the product is made without any sweeteners, artificial flavors, or additives and contains the minimal required ingredients. Consumers who look forward to transparent and simple ingredients always go for the unflavored option, which is a major reason for the segment's high growth rate.

Moreover, the unflavoured protein powder is versatile in nature. These can be incorporated into different recipes without affecting the taste. Moreover, people prefer the flexibility of complimenting these unflavoured protein powders with beverages, recipes, and smoothies of their choice. Therefore, such a landscape is expected to propel the growth of the segment in the forthcoming years.

By source, the market can be segmented into wheat, soy, pea, and others. The soy protein powder segment is expected to dominate the global market. Soy protein is considered a complete protein as it is perceived to contain all the essential amino acids needed by the human body. The complete nutritional profile makes it a comprehensive source of plant-based protein and a major reason for the domination of soy protein in the market.

Also, these can be substituted in different food and beverage products like meat substitutes, dairy alternatives, protein powder, and others.

Furthermore, the surging transition of people to plant-based diets is increasing consumers' interest in vegan protein. This trend is also fostering a huge demand for high-quality plant-based protein sources like soy. Therefore, all these factors contribute significantly to the growth of the segment.

Report Scope

Regional Analysis

• North America to dominate the global market

North America accounts for the largest share of the global vegan protein market. The region is witnessing huge growth because a growing number of people are adopting plant-based diets for various reasons like environmental awareness, ethical considerations, and health concerns.

Moreover, fitness enthusiasts and athletes are also adopting the vegan lifestyle, which is further making these proteins more popular. Furthermore, the regional market is witnessing a significant surge in vegan protein products like plant-based protein powder, bars, and other meat substitutes. Therefore, this landscape is expected to propel the growth of the regional market significantly in the coming years.

Asia Pacific is likely to experience huge developments in the coming years. People in the region are more aware of the environmental impact, and therefore, many people have transitioned to plant-based diets. Their consciousness of food choices is significantly contributing to the high demand for plant-based protein alternatives.

The wide availability of vegan protein products in mainstream retail outlets and e-commerce platforms is also contributing to the high growth rate of the regional market. For instance, ADM (US) invested USD 300 million in April 2022 to increase the production of alternative protein at its plant in Decatur. This facility is aimed at extending the soy extrusion capacity.

Competitive Analysis

The key players in the global vegan protein market include:

• Riff Enterprises Inc. and Orgain Inc.
• Prevention LLC
• Archon Vitamin LLC’s Sequel Natural Ltd.
• Archon Vitamin LLC
• Manitoba Harvest Hemp Foods
• Vitamer Laboratories
• ALOHA Genuine Health Inc.
• LLC Reliance Private Label Supplements
• Garden of Life
• Ghost LLC Puris
• Australian Natural Protein Company
• Country Life LLC
• Hammer Nutrition Direct

For instance, Darling Ingredients Inc. came up with X-Pure® GelDAT – Gelatin Desaminotyrosine under the Rousselot brand in May 2021. The brand extended its product range of pharmaceutical grade, purified, and modified gelatins with the product launch.

The global vegan protein market is segmented as follows:

By Distribution Channel Segment Analysis

• Online Stores
• Pharmacy & Drugstores
• Specialty Stores
• Hypermarkets
• Direct Sales

By Application Segment Analysis

• Household
• Animal Feed
• Nutritional Products
• Food Processing
• Others

By Flavors Segment Analysis

• Blueberries
• Strawberry
• Vanilla
• Chocolate
• Unflavoured
• Others

By Source Segment Analysis

• Wheat
• Soy
• Pea
• Others

By Regional Segment Analysis

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America