Animal Protein Ingredients Market Size (2025-2030)

The Animal Protein Ingredients Market was valued at USD 250 billion in 2024. Over the forecast period of 2025-2030, it is projected to reach USD 382.89 billion by 2030, growing at a CAGR of 8.9%.

Protein plays a vital role in supporting key physiological functions in animals, including weight gain, growth efficiency, and overall well-being. Plant-based proteins are distinct from those derived from animals. Animal protein refers to the protein components sourced from animals, such as eggs, dairy, fish, and more. It is extensively used in various industries, including food and beverages, cosmetics, and nutraceuticals, where it serves as a foaming agent, emulsifier, and other additives. The market offers several forms of animal protein, such as egg protein, fish protein, gelatin, and dairy protein. The rising demand for infant formulas is driving market expansion, particularly for dairy protein. Additionally, the growing need for animal proteins within the cosmetics and personal care sectors is expected to create substantial growth opportunities for the animal protein ingredients market during the forecast period. Protein derived from rendered animals enhances the flavor of meals while simultaneously reducing animal production costs.

Key Market Insights:

The growing demand for infant formula is driving market growth, particularly for dairy proteins. Additionally, the heightened demand for animal proteins in the cosmetics and personal care industries is expected to create considerable growth opportunities for the animal protein ingredients market throughout the forecast period. Protein sourced from rendered animals enhances the flavor of meals while simultaneously reducing production costs in animal farming.

Animal Protein Ingredients Market Drivers:

The increasing focus on healthy diets is fueling market growth.

Increasing consumer awareness about health and the understanding that nutrition directly impacts well-being have contributed to the rise of nutritious foods, which have become key to promoting healthy behaviors in recent years. According to a study funded by the NIH, a balanced diet enhances overall health and reduces the risk of heart disease, stroke, and type 2 diabetes. Consequently, the growing trend toward healthy eating, especially protein-rich diets, is gaining significant attention and driving the advancement of nutritious food formulations. Animal protein ingredients are emerging as crucial components in the food processing industry for creating healthier food products. For instance, dairy ingredients support key food formulations, such as calcium fortification, fat reduction, and salt reduction. Milk mineral concentrates are utilized to boost calcium content in products like yogurt, dairy drinks, and cheese spreads. Additionally, whey protein helps to stabilize fat globules, leading to the production of low-fat yogurts, cheese, candies, and ice creams. As a result, the increasing consumer awareness of food's nutritional value is accelerating the growth of the animal protein ingredients market.

Animal Protein Ingredients Market Restraints and Challenges:

The adoption of substitutes has led to constraints on market growth.

Modernization has led to a significant shift in eating habits and consumer behavior. As a result of the wide variety of options available, consumers are moving away from dairy products and opting for non-dairy alternatives. Each type of non-dairy milk offers a unique nutritional profile, varying in protein, carbohydrate, fat content, and the presence of vitamins and minerals. Plant-based milk is also considered easier to digest than regular milk, promoting better digestive health. Furthermore, non-dairy milk is gluten-free, making it especially beneficial for individuals with celiac disease or non-celiac gluten sensitivity. Due to personal dietary preferences and limitations, consumers are increasingly choosing dairy substitutes over traditional dairy products, which has somewhat hindered the demand for animal protein sources.

Animal Protein Ingredients Market Opportunities:

The increasing focus on animal health and the demand for nutrition-rich feed presents a significant opportunity for market participants. Additionally, the widespread use of chemical fertilizers in agriculture has led to the production of inferior fodder, which lacks certain essential nutrients. As a result, livestock growers are seeking protein-rich animal feed additives, creating opportunities for market players to develop and introduce new animal feed products. Recent outbreaks of animal diseases have had a negative impact on both developed and developing economies. To reduce the occurrence of such outbreaks in the future, various governments are investing in research and development initiatives aimed at improving the quality of animal feed. These efforts are expected to strengthen animal immunity and enhance overall performance, thereby opening up further opportunities for market participants.

ANIMAL PROTEIN INGREDIENTS MARKET REPORT COVERAGE:

Animal Protein Ingredients Market Segmentation:

Animal Protein Ingredients Market Segmentation By Product:

• Egg Protein
• Dairy Protein

The Dairy Protein Concentrates (MPC) segment holds the largest share of the overall milk protein ingredients market. This growth can be attributed to the extensive use of MPC in products like cheese, yogurt, and soups, where its distinct dairy flavor is highly valued. Additionally, MPC is a concentrated protein source that is in high demand for healthy food applications and food fortification.

The dairy protein ingredients segment is expected to experience the fastest growth rate (CAGR) during the forecast period. Its increasing use in protein bars, meal replacement powders, high-protein therapeutic formulations, and dietetic products is driving this rapid growth.

Plant-based proteins, derived from plants, insects, microbes, and even genetically modified organisms, offer cost advantages and cater to dietary trends such as veganism and plant-based eating. Consumer demand for plant-based proteins is being driven by health consciousness and the desire to prevent chronic diseases. Ingredients like soy, canola, and wheat are used to create texturized protein ingredients, which find applications across a wide range of food and beverage products.

Sustainability and eco-friendly production methods are becoming increasingly important in the production of protein ingredients, as consumers continue to prioritize environmentally responsible products. Major market players include companies that specialize in animal-based proteins, such as dairy and animal feed, as well as those focused on plant-based proteins, like soy protein isolates and concentrates. The protein ingredients market is projected to expand as consumers seek high-protein, low-fat, and low-carbohydrate options for weight loss and muscle repair. Additionally, the aging population represents a significant market opportunity, as they require nutrient-dense foods to maintain muscle mass and overall health. Amino acids, which are the building blocks of proteins, play a vital role in satiety and muscle repair, making them a key area of focus for ongoing research and development.

Animal Protein Ingredients Market Segmentation By Form:

• Solid
• Liquid

The solid segment holds the largest market share and is expected to continue growing throughout the forecast period. In this form, protein ingredients are dried and converted into a solid state, commonly referred to as powder. The solid form is primarily preferred due to its improved handling properties in food applications. Compared to the liquid form, solid protein components are easier to store and manage. Additionally, the solid form has a longer shelf life and better handling characteristics, making it the most widely used form across various applications.

For consumers with higher protein requirements, the liquid form of protein ingredients offers a concentrated protein dose. The factors expected to drive market growth during the forecast period include the increasing demand for liquid protein components, rising consumer awareness of healthy diets and nutrition-rich foods, and ongoing innovations within the protein ingredients market sector.

Animal Protein Ingredients Market Segmentation By Application:

• Food & Beverages,
• Cosmetic & Personal care

The food and beverage segment holds the largest share of the global animal protein ingredients market. This dominant market share is primarily driven by the growing acceptance of sugar-free, nutritious, and functional ingredient-based processed food products, as well as the increasing awareness and demand for protein-rich food and beverage options.

The nutritional health supplements segment is expected to experience rapid growth during the forecast period, fueled by the expanding fitness industry, broader distribution channels for sports nutrition, and the rising popularity of protein bars, energy drinks, and other healthy snack options.

The personal care and cosmetics segment is also witnessing significant growth. This expansion is largely attributed to the increasing use of protein-enriched ingredients in personal care products, especially in skincare formulations. Rising consumer awareness of the benefits of animal protein-based ingredients in beauty and personal care products is driving this growth. Collagen has emerged as a key ingredient in this segment, with manufacturers innovating in applications for skincare, hair care, and beauty supplements. The trend is further reinforced by the growing consumer preference for natural and protein-enriched skin, body, and hair care products, as individuals seek effective and scientifically-supported beauty solutions.

Animal Protein Ingredients Market Segmentation- by region

• North America
• Europe
• Asia Pacific
• South America
• Middle East & Africa

The Asia Pacific region is expected to hold a significant share of the market, driven by the high demand for animal protein ingredients across various applications. Additionally, the growing demand for animal feed in the region will further support market growth during the forecast period. For example, China, one of the largest consumers of food and beverages and animal feed globally, is experiencing a notable shift in consumption patterns, leading to an increased demand for animal protein. According to the CHINAGRO Model II from the International Institute of Applied System Analysis, by 2030, China will need to produce an additional 200 million pigs, 3 billion poultry, and several billion fish to meet rising demand. This growth in animal husbandry is expected to significantly boost the demand for animal protein ingredients, positively impacting market growth in the region during the forecast period.

North America is the fastest-growing region in the market, with increasing beef consumption and supportive government policies contributing to positive growth in the animal feed protein ingredients market.

The Europe region is also expected to see steady growth in the animal feed protein ingredient market during the forecast period. The rising demand for pork and poultry products is fueling market expansion. Additionally, the growing popularity of ready-to-eat and ready-to-bake meat products is expected to further drive the demand for animal feed protein ingredients in the region.

COVID-19 Pandemic: Impact Analysis

The Animal Protein Ingredients market has faced a dual impact on product demand in recent months, primarily due to the lockdown measures implemented in various countries in response to the COVID-19 pandemic. At the onset of the pandemic, packaging manufacturers encountered several challenges that were initially expected to be temporary. These challenges included disruptions in supply chains, shortages of raw materials critical to the manufacturing process, labor shortages, fluctuating pricing dynamics that could lead to increased production costs, and logistical obstacles such as shipping delays, among others.

Latest Trends/ Developments: