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.
A recent analysis from Frost & Sullivan, Whole Yellow Peas and Pea Protein Ingredients: A Close Supply and Value Chain Relationship, finds that 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.
Click here for complimentary access to an executive summary of this research.
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 Reuben Sequeira, a research analyst for Frost & Sullivan Chemicals, Materials & Food.
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 direct consumption.