Hydrolyzed Wheat Protein Market Size, Share & Trends Analysis Report By Application (Food & Beverages, Personal Care), By Distribution Channel (Online, Offline), By Region, And Segment Forecasts, 2019 - 2025

Report Overview

The global hydrolyzed wheat protein market size was valued at USD 171.6 million in 2018 and is anticipated to register a CAGR of 4.5% from 2019 to 2025. Rising demand for plant-based dietary products and technological advancements in the personal care products industry are major factors fueling market growth. Hydrolyzed wheat proteins are non-genetically modified plant derivatives and are a popular application among the vegan population segment.

Rising cases of gluten intolerance and increasing number of vegan consumers worldwide are expected to stimulate demand in the market. Growing preference for healthy, organic substitutes by consumers is a new-age trend expected to drive the market. This trend is fueled by factors such as rise in disposable income and soaring cases of malnutrition. For instance, Coeliac is an immune-mediated enteropathy against dietary gluten, majorly spread across India and parts of South America and Middle East. Hydrolyzed wheat protein is a source that is often used to treat such disorders, thus driving demand in the food and beverage segment in these regions.

Hydrolyzed wheat proteins have the ability to retain moisture within the skin, thus preventing and protecting the skin from drying out. The application can help reduce the appearance of wrinkles and fine lines caused by aging and extreme exposure to UV light; hence is often used as the main ingredient in anti-aging products. Additionally, the ingredient helps repair damaged hair follicles, thereby improving hair texture. As a result, it finds application in several hair care products.

Technological advancements in the cosmetics industry and growing appeal of natural and organic substitutes in countries like India and China are other factors driving the market. Growing acceptance of organic ingredients is a trend brought on by changing lifestyle and dietary habits of consumers, along with a rising need to stay healthy. This has been a crucial factor driving demand. A thriving e-commerce sector has enabled products and ingredients to be sold through online channels, allowing easy access and convenient payment methods.

Application Insights

Hydrolyzed wheat protein is a natural, plant-based source of protein, often used as dietary supplements for consumers seeking protein-rich applications. The formulation is also being extensively incorporated in beverages such as energy drinks, thereby augmenting the growth of the market. Considering the opportunities in the market, a number of players have been focused on exploring additional application segments that can offer long-term profitability in due course.

The personal care segment, comprising anti-aging creams, organic soaps, and hair repair shampoos and serums, is expected to register a CAGR of 4.5% over the forecast period. In countries like Brazil, India, and UAE, where the cosmetics market is undergoing frequent technological advancements, the personal care segment is expected to exhibit strong growth over the coming years.

Another vital factor fueling the hydrolyzed wheat protein market is regulatory outlook related to upcoming plant-based food applications in the consumable goods industry. For instance, the Food Safety & Standard Authority of India (FSSAI) recently launched new standards under eight different categories under “food additives”. Majority of the categories belong to the wheat protein segment. With FSSAI’s approval, manufacturers are authorized to commercially use wheat proteins in various food formulations in India, thus propelling product demand.

Distribution Channels Insights

Offline channels like supermarkets and hypermarkets as well as grocery stores have a larger share as compared to online channels, accounting for 53.8% of the market in 2018. Another source of offline distribution is the direct-to-customer (DTC) channel, which includes direct marketing focused on end users. Many companies are formulating user-friendly websites and applications, exclusively to market such applications without third-party intervention.

The online segment is expected to exhibit the fastest growth over the forecast period, registering a CAGR of 5.1% from 2019 to 2025. A booming e-commerce section across the globe is the main factor driving this segment. This, in turn, can be attributed to improving cellular network and availability of high-speed internet, rise in the number of internet users, 24/7 availability of products across websites and easy access, and availability of discounts and offers. These factors are likely to boost product sales through online channels.

Regional Insights

In terms of value, Asia Pacific is anticipated to exhibit a CAGR of 4.9% from 2019 to 2025 making it the fastest-growing regional market. This is owing to rising geriatric population, improving consumer lifestyle, and increasing awareness about healthy foods. Moreover, continued expansion of the food and beverage industry is likely to have a positive impact on the demand for wheat-based protein in developing economies over the coming years. China and India are two of the major markets in APAC, considering they are leading wheat producers.

Rise in consumption of dietary supplements, surging usage in cholesterol-free applications, and demand for baked goods with lower levels of saturated fat will augment product demand in North America, specifically in the food and beverages industry. Additionally, presence of brands like Cargill Inc. and Archer Daniels Midland will continue to strengthen the regional market over the forecast period.

Rising vegan population in Middle Eastern countries like Israel and growing number of people affected by Celiac disease or gluten-sensitive enteropathy in the African sub-continent will mark a significant opportunity to grow in this region. Europe is one of the emerging markets for hydrolyzed wheat protein, especially in the food and beverage segment.

Key Companies & Market Share Insights

The global market is moderately fragmented in nature. Some of the major players competing at various levels are Archer Daniels Midland; MGP Ingredients; Cargill Inc.; Agridient; Manildra Group; Crespel & Deiters GmbH & Co. KG; AB Amilina; and Roquette. Innovation and new product development are some of the go-to growth strategies companies resort to stay ahead of the competition. Products with a better shelf-life are in great demand and players can capitalize on this requirement to stay on top.

Hydrolyzed Wheat Protein Market Report Scope 

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2015 to 2025. For the purpose of this study, Grand View Research has segmented the global hydrolyzed wheat protein market report on the basis of application, distribution channel, and region:

• Application Outlook (Revenue, USD Million, 2015 - 2025)

  • Food & Beverages

  • Personal Care

• Distribution Channel Outlook (Revenue, USD Million, 2015 - 2025)

  • Online

  • Offline

• Regional Outlook (Revenue, USD Million, 2015 - 2025)

  • North America

    • The U.S.

  • Europe

    • Germany

    • Italy

  • Asia Pacific

    • India

    • China

  • Central & South America

  • Middle East & Africa