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DESCRIPTION
Plant Proteins Procurement Market Size
The global plant proteins market will likely continuously grow exponentially over 2024-2030, according to the latest data from ELINT Market Research on its plant proteins procurement market research report. However, during 2023, the overall plant protein commodity export unit might fall due to fewer soy exports from South America and fewer wheat exports from Russia. Such a fall is driven by factors like the ongoing drought in Argentina, which led the government to allow exporters to postpone soy shipments by up to 60 days. The developments in Canada offer a very optimistic view of the plant proteins market. In this league, the investment of $19.2 million announced in a project to develop Canadian plant-based ingredients by Protein Industries Canada is supplemented by another investment of $6.2 million to expand the lupin industry in Canada.
All crucial investments show further commitment to the diversification and strengthening of the supply chain within the plant proteins market. It places Canada and the region in a strong position on the world market for plant proteins due to investments in alternative protein sources, such as lupin. All such measures support the local agricultural economy but follow the general trend toward increasing demand for plant proteins in the diet, which is associated with consumer preferences for sustainable food requirements that are sensitive to maintaining human health. Overall, these developments make the plant proteins market robust and resilient.
Market Definition
Plant proteins are a set of plant-based food products, including proteins from soy, pea, rice, and hemp, intended for human nutrition, beverages, and animal feeds. Strong growth hinges on consumers’ changing preferences for healthy and sustainable diets, increasing plant food consumption.
Plant Proteins Procurement Market Drivers
- Rising Consumer Awareness
The major driving force is the rising awareness about the health benefits of plant-based diets; consumers are decreasing their intake of animal proteins and saturated fats.
- Trend of Flexitarianism
The demand from the market went up due to an increased vegan and vegetarian population and a demographic called flexitarians, generally consuming plant-based foods but once in a while eating meat.
Plant Proteins Procurement Market Challenges
- Challenge to Meet Flavor Preferences
The flavor and texture are the most serious concerns for plant-based protein foods, which differ from animal-based foods. Consequently, good palatability has encouraged a flurry of effort to improve the flavor and texture, with which plant-based protein is usually at a disadvantage.
- High Cost Ingredients
While plant proteins show great potential to replace conventional sources of protein, their high price, in principle, severely limits wider marketplace adoption, especially in price-sensitive regions.
Plant Proteins Procurement Market Opportunities
- Advances in Food Technology
Advancements in food technology are currently making it feasible to introduce to the market new sources of plant proteins, including algal and insect proteins, which are both nutritious and highly sustainable.
- Rising R&D Investments
Novel formulations and applications are bound to increase interest in the market, with expectations for increased investment in research and development from key industry players.
Plant Proteins Procurement Market Segmentation
- The plant proteins procurement market research report segments the market into soy, pea, rice, hemp, and others based on the source.
- The plant proteins procurement market research report divides the market into isolates, concentrates, and textured proteins based on plant protein types.
- The plant proteins procurement market research report classifies the market by applications, including food and beverages, dietary supplements, animal feed, and others.
Regional Outlook of the Plant Proteins Procurement Market
Demand is growing in the North American and European plant proteins markets due to increased consumer awareness and consumption of plant-based diets. The Asia-Pacific region is proliferating, with increasing urbanization rates, rising disposable incomes, and growing consumer health consciousness. In the Latin American Middle Eastern and African markets, an emerging middle class and improving economic conditions have boosted the respective demand rates for plant-based protein products.
Cost Component in the Plant Proteins Procurement Market
The costing structure depends on the availability of the raw material, the nature of the production processes, and the logistics in the supply chain. The cost of raw materials differs widely between the different types of plant proteins and their locations. An important factor in determining the production costs is the technology of extraction and processing, with, in most cases, the more refined the technique, the more expensive and the better the quality.
Engagement Strategies in the Plant Proteins Procurement Market
Engagement practices toward the plant proteins market stipulate a robust construction of relationships with all the stakeholders across the entire supply chain, from the land farmers to the retailers. Lately, the provisions have shifted focus toward sourcing practices that guarantee sustainability and ensure a steady supply of good quality raw materials.
Contract Period in the Plant Proteins Procurement Market
Contract periods for the plant proteins market can range from short to quite lengthy in some cases. It depends on the relationship and the market dynamics. Spot buying or trying new vendors or products leads to small contracts. Most long-term contracts range from a year to multiple years and set up stable quality and price point supply lines. Such longer-term contracts progressively include clauses on volume commitments, price adjustment clauses linked to raw materials, and requirements on sustainability.
Negotiation Factors in the Plant Proteins Procurement Market
Several crucial factors are always at stake in negotiations, for instance, contracts in the plant proteins market. Among such is the price, and although this is the first, a buyer would wish to get the best terms without compromising quality. Consideration could also be given to the factors of volume commitments and delivery schedules concerning the efficiency and dependability of a supply chain.
Leading Players in the Plant Proteins Procurement Market
ADM (Archer Daniels Midland) Company, Cargill, DuPont Danisco, Roquette Freres, Ingredion Inc., and Axiom Foods are key players operating in the plant proteins market. The companies have already established their strong position with an established portfolio of products, considerable investments in R&D activities, and partnering practices that signify the acquisition of companies.
