The market of protein products - Italy (2023)

1.2 A growing global market

The global protein ingredients market was estimated at $**.** billion in **** and is expected to reach $***.* billion by ****, with a CAGR of *.*% from **** to ****. Market growth will be driven by increased consumer awareness and interest about healthy and nutritious human foods. Another factor is the increased demand for plant proteins, such as those provided by soybeans, which will help develop the global market. The increase in the number of geriatric people is also stimulating market expansion as they need to incorporate protein into their diets.

Size of the global market for protein ingredients World, ****-****, in billions of dollars Source: ****

During ****, the food and beverage sector played a predominant role in the global protein ingredients market, accounting for ** percent of its total sales. In addition, consumers are increasingly shifting toward healthy eating habits, favoring low-fat, nutrient-rich foods. This trend has led to a significant increase in the consumption of foods that offer quality protein intake. As a result, demand is expected to grow for foods that are not only tasty but also functional and provide high nutritional value.

Finally, North America is the region that accounted for the highest share, of about ** percent, of total protein ingredient sales in ****. Changing consumption patterns ...

1.3 Italian healthy food and beverage market on the rise

To analyze the protein products market, one should first look at the larger healthy food and beverage market. The latter after the initial lockdown due to the covid-** pandemic, has recovered thanks in part to the boost given by the resumption of outdoor sports activities. The end of lockdowns has therefore affected sales especially in certain categories, such as sports nutrition preparations, which recorded +**% in value, and energy drinks, with +**% in ****.

In Italy, the immagino Observatory revealed that in ****, rich-in products, i.e., those that contain a high intake of a particular nutrient, numbered **,*** out of a total of **,*** products, while in **** there were *,*** out of **,*** (***). In ****, rich-in products generated €*,*** million, up +**.* percent from the previous year when value sales were €*,*** million[***].

The drivers for market growth are the expansion of supply (***) and increased use of claims on the label. In particular, products with a claim emphasizing the presence of protein increased by +**.*% in **** compared to ****, a better percentage than the +*.*% increase in the supply of fiber-rich products. The latter saw a +*.*% increase in their sales in ****[***].

Protein products

Among rich-in products, i.e., those with a higher intake of nutritional ingredients, protein-rich products recorded the most significant increase in value ...

1.4 A trade balance for surplus protein

The following graphs show the evolution of imports and exports of:

Protein; concentrates and textured protein substances.

The graph below shows that from **** to ****, the value of exports changed. In ****, exports exceeded the dollar value of imports, albeit by a small amount. Also, in that year, both exports and imports contracted in value due to the pandemic from COVID and the subsequent restrictions that halted international trade. However, these values returned to grow by as much in **** compared to ****. Exports even surpassed pre-pandemic values and reached $** million in ****, compared with $**.* million for imports. It can be said that the domestic protein market has been quite resilient, surpassing the value of imports since ****.

The coverage rate, shown with the solid blue line, is important because it measures the percentage of exports covered by imports. it is calculated as the percentage ratio of the country's exports to imports. This value can be greater or less than ***, and means that the trade balance is in surplus or deficit, respectively. For the market of Proteins, concentrates and textured protein substances, Italy has shown a change in the trade balance that has been above *** since ****, albeit slightly, and therefore in surplus.

Exports, Imports, Coverage Rate of ...

2.1 Demographic characteristics of consumers

The demand for protein products in Italy can be influenced by various demographic characteristics of the population. Some demographic factors that may play a role in the demand for protein products are listed below.

Age.

Dietary preferences may vary with age. For example, younger people may be more inclined to follow protein diets to support an active lifestyle and to build muscle. On the other hand, older people might prefer more easily digestible sources of protein such as whey-derived protein. The following graph shows the number of Italians by age group. In ****, the largest group is individuals between ** and ** years of age.

Italian population by age group Italy, ****, in thousands of individuals Source: ****

Another significant figure concerns the projected population change in the future. According to Istat data, Italy will see a decline in population, which can be observed in the graph below.

Population change Italy, ****-****, in thousands Source: ****

Lifestyles

People who follow a balanced diet and are concerned about their health may be more likely to include protein products in their diet. At the same time, those who are vegetarian and vegan, or *.* percent of the population according to Eurispes **** data, will have a lifestyle based almost or entirely ...

2.2 Determinants of demand

Demand for alternative protein foods

Italians are now aware that animal protein, derived mainly from red meat, can present significant personal health risks in the long term if consumed in excess.

In recent years, the plant-based food market has seen a significant increase in demand due to consumer food preferences. Consumers' reasons for seeking plant-based food are to want a healthier diet, less dependence on animal products, and a more sustainable lifestyle.

In the first half of ****, products containing plant-based protein were the best performers with +*.*% in value sales compared to ****. Animal proteins recorded +*.*%. Also in ****, among the best-performing products were burgers, sandwiches, and meatballs with plant proteins, which recorded an overall value growth of **% compared to ****. Tofu and seitan also increased, but by +**% compared to ****[***].

Italians' preferences and household consumption forecast

I of the graph below refer to Italians' preferences regarding purchase alternatives to meat. Synthetic meat, chosen by **% of respondents and produced in a laboratory, represents a futuristic prospect involving the production of meat in vitro, without the need for animal farms. In Italy, such a product is encountering quite a few obstacles[***], while in the rest of Europe it seems to be attracting some interest. The option of ...

3.1 Market structure

The protein products market, to facilitate its analysis, can be segmented by protein source (***) and by market sector or end user. Its development stems, as seen above, from the fact that Italians are looking for alternative foods to meat that provide a high protein intake. Moreover, the idea of consuming a food rich in substances, perceived as beneficial, mainly affects two categories of consumers; athletes, to increase their muscle mass, and those who want to lose weight[***].

The largest segment is plant proteins, as there is a large availability and they have lower average prices. Plant protein refers to those obtained from: oats, peas, potato, rice, soy, wheat, etc. The fastest growing segment, however, is animal protein (***), which has recently seen its applications expanded by EU approval of insect proteins in human foods. The protein products market is dominated by whey and egg protein products. The food and beverage industry dominates the protein products market. Another high-growth sector is personal care and cosmetics, where protein-enriched skin, body and hair care products are on the rise.

Below, the number of enterprises active in the production of homogenized preparations and diet foods, as well as the number of employees employed by these enterprises ...

3.2 The legal form of companies

The data in the graph represent the shares of enterprises producing homogenized preparations and diet foods broken down by legal form. Out of a total of *** enterprises in ****, the limited liability company is the legal form with the highest share at **.* percent, accounting for *** companies. Limited liability companies (***) are characterized by members' limited liability to the invested share capital. This legal form is very common for small and medium-sized enterprises, of which Italy is characterized. The second form, with the highest share of **.* percent, or ** companies, is the sole proprietor, freelancer and self-employed. It often takes the form of family business, and is characterized by direct and personal management of economic activity without the presence of a limited liability company or other corporate structures.

Shares of enterprises producing homogenized preparations and dietetic foods by legal form Italy, ****, in percent Source: ****

3.3 Distribution channels

Protein and protein-rich products in Italy are distributed through a variety of channels to reach consumers. Supermarkets and hypermarkets are the most popular and accessible distribution channels for protein products, with a wide range of foods, including protein products such as meat, fish, dairy, legumes, cereals, and protein snacks. They can also host sections dedicated to protein supplements and diet products.

Some large retail brands have responded to the success of protein foods and products by creating an ad hoc area for these products. Esselunga, for example, has dedicated an entire shelf for products with a high protein content, as was already the case with gluten-free products, which have had their own fixed space in stores for a few years now[***].

Pharmaciesand parapharmacies, in Italy, also offer a selection of diet products, including protein products. These channels are often chosen by people looking for protein supplements or products for specific diets, such as sports supplements or weight loss products[***].

Specialized channels are also an established distribution channel in Italy, which would focus on a particular type of protein product. For example, there might be stores that specialize in soy, seitan, or alternative plant-based protein products.

By searching with ateco code **.**.**, the ...

3.4 Potential obstacles

Some analyses state to be careful, from many points of view, because:

The intake of protein foods should be regulated by consumers according to the type of diet they choose and not in an unregulated manner. Protein intake, for example, is recommended if a high-protein diet is chosen because one is on a weight-loss regimen. This type of diet gives a sense of satiety that allows you to lose weight, without losing muscle mass, only fat. However, the consequences of an unregulated high-protein diet are often underestimated and underestimated. In fact, a high amount of protein can lead to the development of disorders and serious diseases, such as chronic renal failure. This is because when protein is in excess, it must be broken down, through a balanced diet in the other nutrients, and the waste product that is generated is eliminated through the urine[***]. The actual protein intake must be checked, as it was found that in many products the protein intake was actually almost irrelevant.

There is also another factor to consider that is equally important, which is that the labels of such products are created in such a way as to draw consumers' attention to the amount and presence ...

4.1 Supply analysis

The different protein sources available are as diverse as the variety of people who require these protein products. Of course, each type of product offers different benefits. Whey protein, for example, is a key source of protein for protein products aimed at body building and gym exercise. It is one of the most popular proteins as it can be most easily absorbed by the human body. However, because whey protein contains dairy, vegans and those with dietary restrictions must look for other sources of protein. As a result, plant-based and soy-based ones are the main meat substitute source for these types of consumers.

Analyzing the supply of protein products, it can be seen that these are sometimes marketed as "protein-rich" or "with protein." In this regard, it should be mentioned that there are two macro types on the market. On the one hand, products are marketed that by their intrinsic characteristics have a high protein content, such as some cereals and legumes. On the other hand, there are all those foods in which the protein content has been increased, for example through the use of protein concentrates, for specific purposes[***].

Source: ****

4.2 The prices

High-protein products cost more than their conventional counterparts. According to Gfk data, they cost more than * euros, without any kind of difference between discount stores and mid- to high-end supermarkets. this is how * million Italian families spend ** euros a year on products with a higher protein intake, such as desserts, yogurt and drinking analogues,pasta, cookies, milk, soy drinks, breakfast cereals, vegan alternatives to meat, and spreads [***].

The table below contains some product categories and shows the price range at which they are sold in the retail market.

Prices are also strongly influenced by the distribution channel where they are sold. The chart below, for example, shows that pharmacies offer prices much higher than the market average, while supermarkets and hypermarkets go so far as to offer supplements at almost half the price for dietary supplements. The chart also shows how the trend in supplement prices has generally increased over the three years under consideration.

Price of dietary supplements by distribution channel Italy, ****-****, in € Source: ****

4.3 Supply trends in the food industry

The year of plant-based products

The data presented below concerns the outlook of managers in the food and beverage industry in Italy regarding the foods/meals that will be most trending. interestingly, plant-based food comes out on top with ** percent of managers' responses. This indicates a high regard for plant-based diets and growing interest in plant-based alternatives to meat and animal products. Environmentally friendly food ranks second with ** percent of managers' responses. This indicates a clear focus by the food industry on environmental sustainability and the adoption of practices that reduce impact on the environment. This could include reducing packaging use, optimizing production chains, and adopting sustainable agricultural practices. Comfort food occupies the third position, with ** percent of managers' responses. This finding suggests that despite the increasing focus on healthy and sustainable diets, there is still significant demand for foods that provide comfort and emotional satisfaction. Comfort food can include dishes that are rich in flavor and associated with positive experiences.

Foods/culinary preparations that will be trending Italy, ****, in percent Source: ****

Regarding the products that will be trending according to managers in the food and beverage industry, alternative plant-based flours rank at the top with ** percent of managers' responses. This ...

5.1 Current regulations

In Italy, the protein food market is governed by several laws and regulations that deal with food safety, labeling, hygiene and health standards, and proper business practices. Below are some of the main laws and regulations that affect the protein food market.

Marketing

Self-Regulatory Code of Food Advertising (***) regulates the advertising of foods, including protein foods, by establishing rules on ethics, fairness and truthfulness of commercial communications. The Self-Regulatory Code is a "law" whose purpose is to ensure that advertising, in fulfilling its particularly useful role in the economic process, is carried out as a service for informing the public, with special regard to its influence on the consumer. The first edition of the Code dates back to May **, ****, while the latest, or the seventy-sixth is in effect as of June *, ****. Some key points concern Article *, which declares that commercial communication must be honest, truthful, and fair. It must avoid anything that would discredit it. Article **, on the other hand, specifies that marketing communication claiming or evoking environmental or ecological benefits must be based on truthful, relevant and scientifically verifiable data.

At the European level, Regulation (***) ****/**** on consumer information establishes labeling requirements for foods, including protein products. The label must provide ...

6.1 Segmentation

Source: ****

• Enervit
• Danone Groupe
• Granarolo
• Decathlon Italie
• Carrefour Italia
• Nestlé Italia
• Nutramis - Vitaminstore