Market Trends of south america protein Industry
Increasing preference for protein rich diet to influence consumption
- The graph depicts the per capita consumption of animal protein in all countries of the South America region. In South America, there is an increasing demand for health and wellness products, despite the economic crisis. Mobility-related health issues like osteoporosis, bone health, and joint health problems are among the most important concerns among consumers, thereby influencing collagen manufacturers to target dietary supplement manufacturers to cater to market demand. In 2018, Brazil had the highest consumption of health and wellness products accounting for over USD 21.7 billion. There is a rising prevalence of diseases, such as cardiovascular issues and diabetes. These factors are motivating consumers to opt for animal-based dietary supplements.
- South American consumers have a greater understanding of the relationship between diet and health, which is fueling the market's growth. The market's sales of protein-rich foods are being driven by the increased demand for functional and fortified foods. Consumers are inclined toward natural and organic foods to include in their daily diet. As of 2022, organic packaged food and beverage consumption in Argentina increased by almost 125% from 2020.
- Brazilian consumers have a strong preference for cosmetics, which is driving industry participants to boost their investments in the production of collagen and gelatin peptides for varied of uses, such as dietary supplements and cosmetics. In terms of skin health, an intake of 2.5 grams of collagen peptides is advisable in Brazil. Over the decade, the mortality rate increased by 16% in 2020 due to health concerns like rheumatoid arthritis, osteoporosis, and bone health. Thus, collagen peptide-based supplements are expected to witness significant demand over the forecast period.
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Milk and meat production contributes majorly as raw material for animal protein ingredients manufacturers
- The graph depicts the production data for raw materials such as meat of cattle and pigs with bone, fresh or chilled, raw milk from cattle and goats, skim milk from cows, and dry whey powder, excluding Meat of chickens, fresh or chilled, for all South American countries. Major animal protein forms use milk as their ultimate raw material for forming proteins, such as milk proteins, whey proteins, casein, and caseinates. After seeing volumes contract in 2019 due to unfavorable weather and economic conditions, milk production returned to a decisive growth rate in 2020. This achievement is being counteracted by the tremendous uncertainty brought about by the COVID-19 pandemic. In Argentina and Uruguay, year-to-date growth clocked in at 8.7% and 3.9%, respectively, during the first six months of 2020. Significant increases also have been witnessed by net importing countries along the continent’s Pacific coast, namely Colombia and Chile.
- Argentina is also one of the major producers of milk in the region. Government policies, including trade interventionism and a heavy tax burden, continue to generate uncertainty and complicate operational planning resulting in reduced investment in the sector. However, a 4% increase in 2021 total milk output was observed as compared to 2020. Animal proteins such as collagen and gelatin are derived from meat slaughtering activities in the region. Beef production throughout Brazil continues to increase, with investments leading to improved production efficiency, disease management, and supply chain traceability. Much of beef productivity gains can be attributed to the increase in the size of their national herd, growing by almost 17 million heads over 20 years.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Organic food and incorporation of omega-3 trends are highly gaining traction
- Alcohol alternatives are boosting the market
- Growing consumer demand for naturally healthy sauces and dressings is benefitting multinational companies
- Increasing lactose intolerance to support dairy alternative sales
- Rising popularity of plant-based food products
- Consumer shift toward diet-based food drove the market growth
- Compound feed to support the market growth
- Brazil contributes the largest share in the regional plant protein consumption across region
- International key players to expand their footprint
- Consumer shift toward low-carb diet poses threat to market growth
- Brazil holds major share in South America chocolate market
- Increasing elderly population is changing the market dynamics
- The demand for clean label products is increasing
- Increased health and wellness trends driving the market
- South America forms a lucrative market for cosmetics
- Soy and pea production will witness significant growth during forecast period
