Wheat Gluten market overview 2025 [Global Report]

The year 2025 brought dramatic changes to the wheat gluten market that surprised even experienced producers and distributors of plant-based proteins. After dynamic growth from 2021 to 2023, driven by a boom in plant-based products and record-high wheat prices, the industry entered a period of cooling. Within a few months, the market shifted from a period of shortages and high margins to a situation of clear oversupply, and prices fell to levels not seen since the pandemic.

For many producers, this was a year of reevaluating business models, as well as proof of just how dependent the gluten market remains on global fluctuations in raw material prices, energy costs, and sentiment in the plant-based protein sector.

Global Analysis of the Wheat Gluten Market

After three years of rapid growth, 2025 proved to be a year of sharp correction.

Prices for vital wheat gluten (VWG), which as recently as 2023 remained above $2,200 per metric ton, fell in Europe by mid-2025 to around $1,650/mt—nearly 25–30% lower than a year earlier. This was the result of a simultaneous weakening of demand and an increase in product availability in key regions.

On the supply side, pressure was driven by record wheat harvests in the U.S., Canada, and Australia, as well as the restoration of full production at European plants, which had curtailed capacity in previous years due to energy costs. New investments, particularly in North America, increased global production capacity and thereby shifted the market balance. The most notable example was the Amber Wave plant in Kansas, which reached full production capacity in 2025, supplying over 30,000 metric tons of VWG annually and reducing the U.S.’s dependence on European and Australian imports.

On the demand side, the situation was less optimistic. The plant-based products segment, which had been one of the main drivers of growth between 2020 and 2023, experienced a marked slowdown in 2025. Consumers are increasingly opting for simpler products, while manufacturers are cutting costs and reformulating recipes, in many cases reducing the proportion of wheat gluten. As a result, demand in this segment has stabilized but has ceased to grow at a double-digit rate.

Traditional customers, such as bakeries, pasta manufacturers, and pet food and animal feed producers, are benefiting from lower raw material prices. In many countries across Europe and Asia, increased consumption of wheat gluten was recorded in the pet food and aquafeed segments, where gluten is valued for its high digestibility and binding properties. This trend became one of the pillars of demand in 2025, offsetting declines in other segments.

Regional Analysis of the Wheat Gluten Market

Europe

Europe remains the most important producer and exporter of wheat gluten; however, 2025 was a period of growing competition and margin pressure for the region. Leading processors in the European Union had to adjust their prices to lower global market rates while grappling with high energy and labor costs.

Domestic demand remained stable, but exports—particularly to North America and Asia—became more challenging. The euro’s appreciation against the dollar widened the competitive gap, and oversupply from other regions limited expansion opportunities.

The baking sector showed a slight rebound, supported by stabilizing flour prices and increased interest in products with higher protein content, while the plant-based industry saw a decline in orders.

North America

The year 2025 marked a turning point for North America—after years of dependence on imports, the region moved closer to self-sufficiency. Over the past two years, several new wheat processing facilities have come online, significantly increasing production capacity and shifting the supply balance.

Greater availability of local products has reduced the need for imports from Europe and Oceania, stabilizing domestic prices but also putting pressure on margins. U.S. producers are increasingly directing their exports to Asia and South America, where demand continues to grow.

However, the U.S. administration’s trade policy remains a source of uncertainty. Higher tariffs on select agricultural products from Europe, introduced in mid-2025, may indirectly affect wheat gluten flows, although the market hopes that the trade conflict will not extend to the processed protein segment.

Oceania

Oceania remains one of the leading exporters of wheat gluten, supplying the product primarily to Asian countries. In 2025, the situation in the region was stable, although lower export prices and a decline in demand in China reduced sales profitability.

Processors are investing in improving energy efficiency and reducing emissions by gradually transitioning to renewable energy sources. This is an increasingly important factor in international trade competitiveness.

Asia

China, previously the engine of global demand, slowed significantly in 2025. The growth in domestic production capacity limited imports, and importers began to plan their purchases more cautiously.

The baking sector remains a major consumer of VWG, while the meat alternatives sector is showing signs of stagnation.

In Southeast Asian countries such as Indonesia, Malaysia, and Vietnam, demand is growing, but at a moderate pace, driven by urbanization and the development of modern retail.

In India, Bangladesh, and Pakistan, gluten remains a niche product, displaced by local protein sources such as soy and legumes.

The Middle East and North Africa

The MENA region remains heavily dependent on wheat gluten imports. The main suppliers continue to be Europe, Australia, and, increasingly, the United States.

Price pressures and the region’s high sensitivity to the dollar exchange rate mean that supply sources often shift depending on current market conditions. Demand from the baking and food industries remains stable but is not growing rapidly.

Trends and Forecasts for 2026

The most significant development in the wheat gluten market in 2025 is normalization following years of growth. The market has shifted from a phase of shortage to one of oversupply, and producers are learning to operate in a new reality of low margins and fierce competition.

In 2026, the industry will enter a period of modest stabilization. Forecasts indicate that global demand will grow moderately, by 3–4% annually, driven primarily by the pet food, bakery, and select protein applications segments. At the same time, VWG prices are expected to rebound slightly in the second half of 2026 if the wheat market remains tight, particularly in the Black Sea region and Australia.

In the long term (2027–2030), the wheat gluten sector has the potential to gain momentum again, driven by growing demand for sustainable proteins and high-protein products. However, striking a balance between costs and added value will remain a key challenge. Producers who prioritize quality, innovation, and energy efficiency will maintain their competitive edge.

“In 2025, the wheat gluten market behaved exactly as commodity markets do after a boom period. Too much new production capacity emerged too quickly. The result is price pressure and shrinking margins throughout the entire supply chain, from processors to exporters. However, it is worth noting a lasting shift in the supply structure. The launch of production in the U.S. reduces North America’s dependence on imports, which in the coming years may shift trade toward Asia and the Middle East. A key factor for 2026 will be the relationship between wheat prices and energy costs. If harvests in the Black Sea region turn out to be weaker and freight rates remain high, VWG prices may rebound. But this will not be a return to record highs”

Piotr Wieczorek

Partner at Foodcom S.A.

Foodcom S.A. Global Reports

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