Wood Protein Market

Global Wood Protein Market Snapshot

The global wood protein market is estimated at USD 24.1 Billion in 2022 and is forecast to surpass USD 61.7 Billion by 2032, growing at a CAGR of 9.8% from 2022 to 2032.

Report Attributes	Details
Base Year Value (2021A)	USD 22.1 Billion
Estimated Year Value (2022E)	USD 24.1 Billion
Projected Year Value (2032F)	USD 61.7 Billion
Global Growth Rate (2022-2032)	CAGR 9.8%
North America Market Share in 2021	~27%
North America Growth Rate (2022-2032)	CAGR ~10.2%
Collective Value Share (US, China, India) 2022: Top 3 Countries	~35%
Top 5 Companies Market Share in 2021	~23%
Key Companies Profiled	Arbiom Cargill, Incorporated Glanbia Plc Corbion NV Danone Wilmar International Kerry Group Plc Other Market Players

The global wood protein market is likely to create an absolute dollar opportunity of USD 37.6 Billion by the end of 2032. The global wood protein market holds ~46% of the global animal and plant based protein market.

2017-2021 Global Wood Protein Market Outlook in Comparison to 2022-2032 Growth Forecast

The proliferating use of natural resources in the animal feed industry is proving to be detrimental in the long run. Manufacturers have been working towards addressing the dire situations that might arise with their long-term use. Research for sustainable sources has been the main focus in the recent past.

One such successful development in the organic animal feed industry is the use of wood protein. Wood protein has shown significant advantages in comparison to conventional protein sources. The usage of wood protein is likely to spell new developments in the functional feed industry.

Fact.MR projects the wood protein market is expected to witness exhibiting growth at 9.8% CAGR during 2022 and 2032 in comparison to a CAGR of 7.2% with which it grew from 2017 and 2021.

Organic Trend to Augment the Future of Wood Protein

Feed ingredients account for a prominent part of the cost involved in the production of poultry- and livestock-derived goods. Owing to the rapidly increasing demand for functional feed, key players involved in the production of animal feed have been showing a change of orientation towards the usage of organic ingredients. Demand garnered by organic ingredients such as agar agar is likely to help the growth of the wood protein market.

The sustainable usage of multiple wood residues for the production of feed has been the major attraction of wood protein. Wood protein can be used in animal feed for swine, cattle, aquaculture and poultry,. The usage of wood protein for aquaculture has undergone evaluations and comparisons with conventional protein sources.

Trials have showcased the success of wood protein and equivalent nutritional performance. Wood protein is likely to be the answer to the 'food or fuel' question, as it does not compete with food crops or the resources needed to produce food.

Inception of Wood Protein

Arbiom, an agriculture-biotechnology-based company, is a pioneer in the development of wood protein. The company has showcased its enzymes for wood protein production in multiple entrepreneurial competitions and conventions, and has received multiple grants and investments in recent years.

The company recently reported the production of wood protein in tonnage. An increase in production capacity has attracted multiple new grants for increasing the production and execution of wood protein projects.

New Protein in Vegan Diets from the Woods

Wood protein is also being pitched to be used as human edible protein. Research for this application is still ongoing. Trials and test results will determine the feasibility of this idea. If the trials are successful and approved, wood protein may emerge as one of the most viable options for functional foods. Current plant- and animal-based protein foods have experienced substantial growth due to increasing awareness.

Wood protein can potentially help reduce the gap of demand and supply in functional foods. Human edible wood protein is likely to be one of the most sustainable and much needed source of protein for vegan and similar experimental diets.

One similar new product introduced in the market is plant-based meats. Introduced as vegan meat, the product quickly gained acceptance from the masses. A similar inclusion of wood protein can be expected over the next few years.

Reforestation - New Blessing for Wood Protein

Existing industrial supply chains will help wood protein producers. Wood protein is likely to fill in the gap of the ever-increasing demand for functional feeds. The most recent disruption of forest loss has been countered by heavy reforestation in the United States, Europe, and China. Similar projects and movements have been noticed in Latin America.

Efforts are likely to be accelerated due to the recent fire in the Amazon forest. The main advantage that wood protein will present is the usage of waste and excess wood, without disruption and deforestation.

Competitive Landscape: Top Companies in Wood Protein Market

The global wood protein market is highly fragmented and competitive owing to the existence of many domestic and regional players. Various marketing strategies are adopted by key players such as mergers and acquisitions, expansions, collaborations and partnerships.

Also, new product development as a strategic approach is adopted by the leading companies to upscale their market presence among consumers. These strategies have resulted in the growth of wood protein.

Fact.MR has provided detailed information about price points of key manufacturers in wood protein market positioned across regions, sales growth, production capacity, and speculative technological expansion in the recently published report.

For instance:

• ARBIOM in 2022 received a grant of €12 million and it launched ‘Protein Independence’ industrial project. The company which specializes in the production of high-quality proteins for food and feed applications received the grant from the France Relance investment program
• Glanbia Plc in 2019 acquired a non-dairy ingredient solution business i.e. Watson which will help in broadening the capabilities of the company in the ingredients sector

Global Wood Protein Market by Category

• By Type, Global Wood Protein Market is segmented as:

  • Lignin
  • Protein Concentrate
  • Others

• By Application, Global Wood Protein Market is segmented as:

  • Food & Beverages
  • Nutrition & Health Supplements
  • Animal Feed
  • Aquaculture & Poultry
  • Pharmaceuticals
  • Others

• By Region, Global Wood Protein Market is segmented as:

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • MEA