Algae & Fungi-Based Proteins: Emerging Opportunities in the Alternative Protein Industry

The global alternative protein ingredients market size is anticipated to reach USD 50.22 billion by 2030, according to a new report by Grand View Research, Inc. The market is projected to grow at a CAGR of 14.1% from 2025 to 2030. Product innovations and technological advancements are expected to be the major factors fueling the market’s growth. Alternative proteins are used in diverse applications; for instance, the isolates have a high dispersibility and very fine particle size, so they are widely used in dairy applications. Consumers’ belief in the health benefits associated with these products has been a key growth driver over the past few years, and the trend is anticipated to continue during the forecast period.

The fast-paced lifestyles prevalent across the globe create a demand for convenient and readily available plant-based protein options. The development of grab-and-go plant-based snacks, pre-packaged meals, and easy-to-prepare plant-based protein ingredients align with the need for convenience without compromising health. This presents a lucrative opportunity for companies to cater to modern consumers’ desire for on-the-go plant-based solutions that can be incorporated into their daily routines.

Strategic partnerships and collaborations across the supply chain offer lucrative growth opportunities for players in the alternative protein industry. Engaging with retailers, food service providers, and culinary influencers can increase the visibility and accessibility of plant-based proteins. Building alliances with agricultural suppliers, investing in sustainable sourcing practices, and ensuring transparent communication about the origins of plant-based ingredients can help build customer trust.

The growing demand for plant-based protein alternatives has paved the way for innovative market opportunities, with a particular focus on hexane-free plant proteins. Hexane, a commonly used solvent in the extraction process of some plant proteins, has raised concerns regarding its potential health and environmental impact. As a result, consumers are increasingly seeking cleaner and more sustainable options, creating a niche market for hexane-free plant protein products.

Alternative Protein Ingredients Market Report Highlights

Based on product, Plant-based protein ingredients accounted for a share of 69.3% of the global revenue in 2024. Plant-based proteins are being investigated for their role in managing chronic conditions, supporting immune health, and addressing specific nutritional deficiencies.
Based on application, the animal feed segment is projected to grow at a CAGR of 8.0 from 2025 to 2030. The increasing demand for alternative proteins in the animal feed industry is propelled by a combination of factors that match shifting consumer tastes, sustainability considerations, and advancements in nutritional studies.
North America accounted for a revenue share of 40.6% in 2024. The increasing consumer awareness of animal welfare and environmental sustainability are expected to contribute to the increased demand for alternative and plant-based protein sources.

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Alternative Protein Ingredients Market Segmentation

Grand View Research has segmented the global alternative protein ingredients market report based on product, application, and region:

Alternative Protein Ingredients Product Outlook (Volume, Kilogram; Revenue, USD Million, 2018 - 2030)

Plant Proteins
- Cereals
  - Wheat
    - Wheat Protein Concentrates
    - Wheat Protein Isolates
    - Textured Wheat Protein
    - Hydrolyzed Wheat Protein
    - HMEC/HMMA Wheat Protein
  - Rice
    - Rice Protein Isolates
    - Rice Protein Concentrates
    - Hydrolyzed Rice Protein
    - Others
  - Oats
    - Oat Protein Concentrates
    - Oat Protein Isolates
    - Hydrolyzed Oat Protein
    - Others
  - Legumes
    - Soy
      - Soy Protein Concentrates
      - Soy Protein Isolates
      - Textured Soy Protein
      - Hydrolyzed Soy Protein
      - HMEC/HMMA Soy Protein
    - Pea
      - Pea Protein Concentrates
      - Pea Protein Isolates
      - Textured Pea Protein
      - Hydrolyzed Pea Protein
      - HMEC/HMMA Pea Protein
    - Lupine
    - Chickpea
    - Others
  - Roots
    - Potato
      - Potato Protein Concentrate
      - Potato Protein Isolate
    - Maca
    - Others
  - Ancient Grains
    - Hemp
    - Quinoa
    - Sorghum
    - Amaranth
    - Chia
    - Millet
    - Others
  - Nuts & Seeds
    - Canola
      - Canola Protein Isolates
      - Hydrolyzed Canola Protein
    - Almond
    - Flaxseeds
    - Others
  - Microbe-based Protein
    - Algae
    - Bacteria
    - Yeast
    - Fungi
    - Precision Fermentation Protein
      - Dairy Proteins (Casins or Whey)
      - Egg Proteins
      - Others
    - Insect Protein
      - Coleoptera
      - Lepidoptera
      - Hymenoptera
      - Orthoptera
      - Hemiptera
      - Diptera
      - Others