• In November 2024, Arla Foods Ingredients advanced with its acquisition of Volac’s whey nutrition business, integrating a major whey protein isolate facility in Wales to boost its global protein‑production capacity and meet growing demand. 

• In February 2025, OSI Group moved to acquire Karnova Food Group, a specialist in protein‑ingredient supply, marking a strategic expansion into value‑added protein processing. 

In this report, the Protein Ingredients Market has been segmented by Source, Form, Application, and Geography.

Protein Ingredients Market, Segmentation by Source

The Protein Ingredients Market has been segmented by Source into Animal Source, Milk Protein, Whey Protein, Egg Protein, Gelatin, and Plant Source.

Animal Source
The animal-sourced protein ingredients segment continues to dominate due to its complete amino acid profile and high biological value. These proteins are especially prevalent in sports and clinical nutrition products. Currently, animal-based sources contribute to over 55% of the global market.

Milk Protein
Milk protein is valued for its excellent digestibility and functional performance across various applications like infant formula, meal replacements, and dietary supplements. It represents approximately 25% of the global protein ingredients market.

Whey Protein
Recognized for its rapid absorption and rich leucine content, whey protein is a key component in muscle-building and weight-loss formulations. It captures around 18% share of the overall protein ingredients industry.

Egg Protein
Egg protein is well-regarded for offering a complete amino acid profile and being cholesterol-free, making it ideal for health-conscious consumers. It is frequently used in nutraceuticals and baked goods, representing roughly 6% of the market.

Gelatin
Derived from animal collagen, gelatin plays a functional role as a stabilizer and gelling agent in the food and pharmaceutical sectors. This segment contributes close to 5% of the total protein ingredients market.

Plant Source
Driven by rising demand for clean-label and vegan products, the plant-based protein segment is expanding rapidly. Sourced from soy, pea, and rice, these proteins now comprise over 30% of the global market, highlighting the shift toward sustainable nutrition.

Protein Ingredients Market, Segmentation by Form

The Protein Ingredients Market has been segmented by Form into Dry, and Liquid.

Dry
The dry form of protein ingredients holds a significant share in the market, largely due to its extended shelf stability, easy storage, and broad applicability across food and nutrition industries. Widely used in protein powders, meal replacements, and bakery applications, dry proteins represent about 70% of the global market.

Liquid
Liquid protein ingredients are gaining momentum in applications that require fast absorption and easy integration, such as ready-to-drink beverages, infant formulas, and clinical nutrition products. This segment accounts for roughly 30% of the market, appealing to consumers seeking convenience and functionality.

Protein Ingredients Market, Segmentation by Application

The Protein Ingredients Market has been segmented by Application into Food & Beverages, Cosmetics & Personal Care Products, Feed, and Pharmaceuticals.

Food & Beverages
The food and beverages segment leads the protein ingredients market, fueled by the increasing popularity of high-protein diets, functional foods, and health-focused beverages. This segment dominates the application landscape, contributing nearly 45% of the global share.

Cosmetics & Personal Care Products
Protein ingredients are gaining ground in the cosmetics and personal care industry due to their roles in hydration, anti-aging, and skin regeneration. While still a smaller portion of the market, this segment is expanding steadily and holds close to 10% share.

Feed
In the animal feed industry, protein ingredients are essential for promoting growth, immunity, and productivity in livestock and aquaculture. As global demand for animal products rises, this segment accounts for about 30% of the total market.

Pharmaceuticals
Within the pharmaceutical sector, protein ingredients are applied in nutraceuticals, clinical nutrition, and therapeutic formulations. This specialized segment comprises approximately 15% of the market, bolstered by its role in treating malnutrition and chronic conditions.

Protein Ingredients Market, Segmentation by Geography

In this report, the Protein Ingredients Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

Protein Ingredients Market Share (%), by Geographical Region

North America
The North American protein ingredients market leads globally, fueled by robust demand for sports nutrition, functional foods, and dietary supplements. With a mature consumer base and advanced food processing industry, the region contributes nearly 35% to the global share.

Europe
In Europe, strong consumer preference for clean-label and health-focused products, combined with regulatory support, drives significant demand for protein ingredients. The region accounts for approximately 30% of the market.

Asia Pacific
The Asia Pacific region represents the fastest-growing segment in the protein ingredients landscape, supported by a rising population, growing health awareness, and increased consumption of protein-fortified foods. It currently holds about 20% of the market.

Middle East and Africa
The Middle East and Africa region is emerging as a promising market due to rising urbanization, growing health consciousness, and expanding food industries. It contributes nearly 8% to the global protein ingredients market.

Latin America
Latin America is witnessing consistent growth, driven by increasing demand for processed foods and nutritional supplements. The region holds an estimated 7% of the total market, with potential for further expansion.

This report provides an in depth analysis of various factors that impact the dynamics of Protein Ingredients Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.

Drivers, Restraints and Opportunity Analysis

Drivers

• Health and wellness trends
• Increasing demand for protein-enriched products
• Technological advancements in food processing

• Rising vegan and vegetarian population - The growing shift toward vegan and vegetarian lifestyles has significantly boosted demand for plant-based products. This transformation is driven by ethical concerns, animal welfare awareness, and environmental sustainability. Consumers, particularly in urban areas, are making conscious decisions to avoid animal-derived ingredients.

  Increased media exposure and celebrity endorsements have normalized plant-based living, accelerating its mainstream adoption. Social media platforms play a key role in spreading plant-forward dietary choices, especially among millennials and Gen Z consumers. The emphasis on clean-label and minimally processed products aligns well with this consumer mindset.

  Governments and nutritionists are also promoting reduced meat consumption due to its health implications and environmental footprint. This further supports the rise of alternative proteins and meat substitutes. Companies are rapidly innovating to meet this evolving demand with flavorful, nutritious, and sustainable options.

  The expanding vegan and vegetarian demographic represents a long-term growth opportunity for plant-based industries. Brands that tap into this trend with transparent sourcing, functional benefits, and culinary versatility are likely to gain a competitive edge in a rapidly evolving food landscape.

Restraints

• High production costs
• Stringent regulations and certifications
• Fluctuating raw material prices

• Limited consumer acceptance in some regions - Despite global progress, certain regions still show low acceptance of plant-based products due to traditional food habits and cultural preferences. In many developing markets, meat is closely tied to social status, heritage, and protein perception, making it difficult to replace.

  The taste and texture of some early plant-based products did not align with local palates, leading to limited repeat purchases. In addition, misconceptions regarding nutritional adequacy, protein content, and price premiums contribute to consumer reluctance in embracing these alternatives.

  Lack of education about health benefits and sustainability advantages further weakens product traction in these markets. Limited marketing investment and low product availability in rural or price-sensitive regions exacerbate the issue. This restricts market penetration and scalability.

  Unless brands focus on localized innovation, consumer awareness, and affordability strategies, acceptance in certain demographics will remain slow. Bridging the taste-expectation gap and increasing trial incentives could help address this regional imbalance effectively.

Opportunities

• Expansion in functional food applications
• Innovations in plant-based proteins
• Product differentiation through research

• Strategic mergers and acquisitions - The plant-based and alternative protein sector presents a powerful growth opportunity. Companies are increasingly joining forces to expand product portfolios, enter new regions, and leverage synergies in manufacturing and distribution.

  Large food conglomerates are acquiring emerging plant-based startups to stay relevant and tap into innovation pipelines. These deals provide access to research capabilities, proprietary technologies, and established customer bases. Such integration accelerates go-to-market speed and enhances operational scale.

  Collaborations across the value chain—ranging from ingredient suppliers to co-packers—enable companies to build robust supply networks and optimize costs. These strategic alignments support the creation of diverse and premium offerings, aligned with emerging trends like clean-label, high-protein, and functional foods.

  As the market continues to evolve, M&A activity will play a crucial role in driving innovation, consumer engagement, and global expansion. Companies with a bold acquisition strategy are likely to gain early-mover advantage and capture greater market share in this competitive arena.

Key players in Protein Ingredients Market include:

• Archer Daniels Midland Company
• Cargill, Incorporated
• Kerry Group plc
• DuPont de Nemours, Inc.
• Glanbia plc
• Ingredion Incorporated
• Roquette Frères
• Arla Foods Ingredients Group
• FrieslandCampina
• Tate & Lyle plc

In this report, the profile of each market player provides following information:

• Company Overview and Product Portfolio
• Market Share Analysis
• Key Developments
• Financial Overview
• Strategies
• Company SWOT Analysis