North American Wheat Protein Market was worth USD 520 million in 2016, so it is estimated to reach USD 680 million by 2021, growing at a CAGR of 5.4%. Wheat protein is a high-protein natural protein derived from wheat and wheat flour after starch is removed. Wheat protein contains 75-90 percent protein and is used in a variety of industries. For example, wheat protein has extensively been used as an ingredient in the baking industry, providing viscoelastic properties and resistance to baked goods.
Recent Developments
To establish the largest wheat protein manufacturing facility in North America, Summit Agricultural Group acquired a biorefinery in Kansas in July 2021.
In July 2021, Analysts predicted that millers in the United States would face the dual whammy of a reduced protein hard red winter wheat crop coupled with dramatically reduced spring wheat production.
With an extra USD 75 million investment in PURIS, the largest North American producer of pea protein, Cargill has increased its commitment to the company. As a result, PURIS can more than double its pea protein output in Dawson, Minnesota, by investing in this project. In addition, due to its vertically integrated and transparent supply chain, PURIS will be able to meet the growing demand for its essential proteins and starches, as well as pea fiber.
After announcing its new sustainable fuels, packaging, and food products strategy at the beginning of 2018, Cargill stated in January 2018 that its Krefeld, Germany maize processing plant would be converted into a wheat processing unit.
Market Growth
Drivers
The growing health consciousness of consumers in developing and developed countries as an alternative to meat and other animal products drives the growth of the North America Wheat Protein Market. Meat consumption has been linked to a lower life expectancy and the progression of type 2 diabetes. Wheat protein is preferred by health-conscious consumers leading to growth in the wheat protein market. Wheat proteins are becoming popular among bodybuilders and athletes to gain muscle and develop strength contributing to the market's expansion rate. There is also a strong need for wheat protein in the cosmetics industry due to gluten, which functions as an emulsifier. Another factor that is predicted to contribute to the growth of the wheat protein market is the usage of hydrolyzed wheat proteins in cosmetic products such as lipsticks, fillers, and powders. Weight control has always been considered a significant issue in a population. The obesity rate has doubled in the last 30 years thereby, making it a serious health problem. National Institutes of Health (NIH) reported that 300,000 people died from obesity combined with other health issues in the United States. There were more than 2 billion overweight adults and 650 million obese individuals among them in 2014. Due to this, Consumption has shifted to healthier options, with wheat protein being the most popular option among consumers. As a result of these cases, today's wheat protein demand has increased significantly.
Restraints
Studies on the detrimental effects of wheat proteins and derivatives have slowed the market's expansion. Wheat consumption beyond a specific limit has been linked to several health issues, including an increased risk of cancer, intestinal damage, and osteoporosis. Wheat protein's market is also severely constrained by the desire for meat and low health consciousness in developing countries. It's also believed that a restricted supply of wheat for protein extraction may impede the market's expansion.
Market Segmentation
The North America Wheat Protein market is segmented based on product, application, and form.
By Product
The market is divided into hydrolyzed wheat protein, wheat gluten, wheat protein isolate, textured wheat protein, and others based on product type. Wheat gluten held the largest market share, both in terms of revenue and in terms of quantity. Wheat gluten is often used in baked goods because of its wide variety of functions such as foaming, texturing, viscoelasticity, binding, and emulsification. Consumption is likely to increase in the coming years as customers who prefer vegetarian food products look for meat alternatives.
By Application,
The market is categorized into animal feeds, meat analogs, nutritional bars & beverages, processed meat, bakery & snacks. Pet food or animal feeds is anticipated to witness the fastest growing sector in the marketplace. The growth in the pet food segment is likely to be driven by the increasing Consumption of pet food items and pet humanization in countries such as India and the United States. In addition, as people become more aware of meat procurement techniques, environmental effects, and animal-borne diseases, they prefer less meat consumption. As a consequence of this transformation, consumers' inclinations for animal-based nutrients have switched to plant-based substitutes.
By Form
The market is bifurcated based on the form into dry and liquid. During the projected timeframe, the dry segment is anticipated to lead the market. In the manufacturing of wheat protein isolates, the protein is processed dryly, resulting in a powder. As the process phase, raw materials are ground into fine particulates using a dry milling process. Using this procedure, wheat is processed according to its particular tissue topology and grinding characteristics. Heterogeneous particles and density in the milled flour are used in this method. Smaller protein fragments are separated by air classification from bigger starch-rich, or fiber-rich granules once milled rice.
Regional Analysis
The North American market has been segmented into the United States and Canada in terms of geographical location. Global Wheat Protein Market revenue in 2016 was dominated by North America, attributed to a notable increase in Consumption and robust sales channels. In 2017, the North American wheat protein market was worth more than $810 million. A fast-paced lifestyle and long work hours, particularly in the United States and Canada, encourage the Consumption of RTE food products, thereby supporting regional growth. As a result of the diet change, vegan food products are more adopted for nutritional benefits. Increased awareness of the health benefits among health-conscious consumers is driving up demand for organic dietary supplements containing a high concentration of wheat protein.
Impact of COVID-19 on North America Wheat Protein Market
COVID-19 has resulted in a diminished food supply chain and issues associated with food consumption. Since external dining has historically provided the highest margin, therefore, covid-19 will have a direct impact on the income statement. Supply chains have been disrupted by quick changes in customer behavior and demand. It will not be enough to compensate for missed revenue in the following days until the situation normalizes. In addition, there will be negative consequences on the food and beverage industry due to the global economic slump.
Key Players
Major Players in the North America Wheat Protein Market are
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