Plant-based protein powders, such as pea protein, have transcended their initial appeal to athletes and vegans. According to a report by MycoTechnology, only 17% of the 725 surveyed plant protein consumers identified as vegan, while 38% mix these products with dairy milk. This suggests that their purchasing decisions are driven more by taste and quality rather than lifestyle preferences. However, the burgeoning popularity of plant-based protein powders may pose a threat to the industry’s future. If the International Trade Commission (ITC) and the Department of Commerce (DOC) reach a conclusive decision regarding the allegations, import duties on high-protein concentrate (HPC) pea protein could be implemented, reflecting “the dumping and subsidy margins,” as reported by AgFunder News.
The global market for pea protein was valued at $1.9 billion in 2022 and is projected to grow at a compound annual growth rate of 12% from 2023 to 2030, driven by health and fitness trends and an increasing number of vegans and vegetarians. Puris, a major supplier of pea protein to the plant-based meat leader Beyond Meat, opened a new production facility in Dawson, Minnesota, in 2019, positioning itself to supply 50% of North America’s pea protein. Other companies are also investing in pea protein production: Ingredion has launched a facility in Nebraska, ADM has established a plant in North Dakota, and Roquette has opened a site in Portage la Prairie, Manitoba, Canada.
Unfortunately, these domestic producers are struggling against low-cost imports from China, which are undermining their market potential. A report stated that in 2022, five U.S. purchasers of pea protein involved in the ITC investigation sourced 96.6% of their supplies from China, while only 2.3% came from U.S. producers and 1.1% from other countries. Puris asserted in its complaint, “There is compelling evidence that Chinese imports have undersold the domestic industry prices throughout the period of investigation.” The complaint further noted that domestic producers have had to close facilities and lay off American workers due to an influx of unfairly traded imports from China. Puris emphasized that the domestic industry is in “grave peril.”
In light of these challenges, the incorporation of vitamin citrate into plant-based protein powders could be a strategic move for producers to enhance the nutritional profile of their products, potentially attracting a broader consumer base. As the market evolves, the ability to adapt and innovate will be crucial for sustaining growth and competitiveness in the face of foreign competition.