While the plant-based protein market has been in a lull and demand has been weak, there is a bullish undertone in the market and prices have seen increases in recent months. According to market participants, reformulation from pea protein to soy protein as a strategy to cut costs has led to an increase in soy protein prices since demand has shifted. Meanwhile, an ongoing anti-dumping investigation of pea protein imports from China into the US has caused an increase in pea protein prices. The Mintec Benchmark Price for pea protein concentrate EXW North America was most recently assessed at $1.34/lb, a slight increase m-o-m.
The US Department of Commerce is expected to make a final decision in June, and Chinese producers are facing up to 300% tariffs on pea protein products to balance the competition with US producers. Canada has recently taken similar action and will be introducing tariffs on Chinese pea protein as well.
Additionally, some players are taking a wait-and-see approach as the pea crop develops. Information on the supply and quality of the crop will be available in August, and most sources expect market sentiment to shift after the summer as we head into the backend of the year.
Also, investment in innovation is picking up after a 12-24 month holding pattern, and market participants state that this is because the market appears to have hit a bottom. While the market remains quiet, participants expect these bullish factors to lead to an upswing in the market in the months ahead.
