Pea Protein Ingredients Alter Production Dynamics as Global Demand Escalates

The United States and China emerge top players, the former as a producer and the latter as a consumer

Jul 15, 2015, 08:00 ET from Frost & Sullivan

MOUNTAIN VIEW, Calif., July 15, 2015 /PRNewswire/ -- While whole yellow pea continues to find significant end-application in direct consumption, animal feed ingredients and starch, the demand for dry pea protein concentrate is skyrocketing in China, North America and Western Europe. Canada and the United States are currently the top producers and major global exporters of whole yellow pea. However, the recent spurt in demand for plant protein in the United States, Western Europe and China will alter the global production and trade flow of whole yellow pea.

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Recent analysis from Frost & Sullivan, Whole Yellow Peas and Pea Protein Ingredients: A Close Supply and Value Chain Relationship (http://www.frost.com/nf42), finds that the global production in 2014 amounted to 9 million metric tons, valued at $3.05 billion. The same year, the value-added dry pea protein market was worth $29.9 million and its sales touched 20.7 thousand metric tons.

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The year to year production of whole yellow peas can vary greatly based on the weather, planting times, supply, demand, forecast price and performance of other commodity products. Its production growth rates have been largely stable at commodity levels of 2 percent to 4 percent. In contrast, the revenues of dry pea protein ingredients are expected to grow at around 10 percent annually.

"While the soaring demand for pea protein ingredients could threaten the producers of whole yellow peas, it could also present them with several opportunities," said Frost & Sullivan Chemicals, Materials & Food Research Analyst Reuben Sequeira.

The emergence of pea protein as a value-added product from a traditionally direct consumption market will considerably enhance the growth prospects of pea processors and food manufacturers in North America and China. They will have to find the adequate balance between operating in this market and catering to the direct consumption or pea flour and starch markets.

From a global standpoint, both whole yellow pea processing and pea protein ingredient manufacturing have large markets in the United States, China, India, Ukraine, Russia and Canada. While the United States is a top-rung producer and exporter of yellow peas, China is a major importer of yellow peas, and like the United States, is experiencing high growth in the demand for pea proteins.

"Once companies acknowledge the swelling demand for clean pea protein, companies in China and the United States will be in a race to set up processing plants to serve consumers close to home," observed Sequeira. "It is also likely to affect the production and import-export balances of these two countries."

Whole Yellow Peas and Pea Protein Ingredients: A Close Supply and Value Chain Relationship is part of the Food and Agriculture (http://ww2.frost.com/research/industry/chemicals-materials-food-ppe/food-agriculture) Growth Partnership Service program. Frost & Sullivan's related studies include: Review of the Bakery Products Market in Europe, US Prebiotic Ingredients Market Overview, Review of the Dairy, Egg, and Meat Product Market in Asia-Pacific, and Review of the Confectionery Product Market in the United States. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

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Whole Yellow Peas and Pea Protein Ingredients: A Close Supply and Value Chain Relationship
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