Market Size of China Milk Protein Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 5.21 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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China Milk Protein Market Analysis
The China milk protein market size is expected to grow from USD 121.46 million in 2023 to USD 156.58 million by 2028, at a CAGR of 5.21% during the forecast period (2023-2028).
- The China milk protein market is majorly driven by the growing dairy sector and increasing consumer demand for convenient and healthy dairy products. Owing to rising health concerns like digestive and gut disorders, consumers are inclined toward dairy products that aid gut health, which is supporting the market's growth. Additionally, the demand for milk protein ingredients from infant formula manufacturers is on the rise as awareness regarding the benefits of infant formula across the country. The increasing imports into the country can depict the demand for infant milk formula.
- For instance, according to the Food and Agriculture Organization (FAO), in 2022, the volume of infant milk formula imported to China amounted to 280 thousand metric tons, up from 273 thousand tons in the previous year.
- Additionally, due to its delightful taste and extensive variety, yogurt effortlessly integrates into one's diet, with dairy producers placing a strong emphasis on promoting the probiotic advantages of their yogurt products. These factors, combined with the introduction of versatile ingredients by industry players, are not only fueling demand but also propelling the market's expansion.
- Moreover, new rules and regulations by Chinese authorities in reforming the protein requirements for milk and formulated milk powder products designed for children, adults, and older people are expected to create more opportunities for the players in the market to develop more innovative and good quality milk protein ingredients.
- In February 2023, China's introduction of the world's strictest nutrient standards for infant formula forced infant formula makers to invest heavily to re-make, test, certify, and re-register their products for China before potentially conducting new marketing campaigns. This reform is further expected to bring significant changes in the industry, with bigger domestic and international brands likely to increase their spending on research and developmental activities, resulting in the introduction of more quality ingredients.
- Similarly, small and medium players are expected to have more innovative opportunities to tap into. However, the rise in the acceptance of alternative proteins like plant proteins among consumers and manufacturers considering them as a significant alternative to be incorporated in their products is expected to have the potential to hamper the market's growth during the forecast period.
China Milk Protein Industry Segmentation
Milk protein is a type of protein that is derived from filtered milk and is formed from whey and casein proteins.
The China milk protein market is segmented based on the form and end-user. Based on the form, the market is segmented as concentrates, hydrolyzed, and isolates. By end-users, the market is segmented as animal feed, personal care and cosmetics, food and beverages, and supplements. The food and beverages segment is further sub-segmented into bakery, beverages, breakfast cereals, condiments/sauces, dairy and dairy alternative products, RTE/RTC food products, and snacks. Similarly, the supplements segment is also sub-segmented into baby food and infant formula, elderly nutrition and medical nutrition, and sport/performance nutrition.
The market sizing has been done in value terms in USD and for volume terms in volume in tons for all the above mentioned segments.
| Form | |
| Concentrates | |
| Hydrolyzed | |
| Isolates |
| End-User | |||||||||
| Animal Feed | |||||||||
| Personal Care and Cosmetics | |||||||||
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China Milk Protein Market Size Summary
The China milk protein market is experiencing significant growth, driven by the expanding dairy sector and increasing consumer demand for convenient and health-oriented dairy products. The rising awareness of health benefits, particularly in gut health, is steering consumers towards dairy products enriched with milk proteins. This trend is further bolstered by the growing demand from infant formula manufacturers, as the benefits of milk protein in infant nutrition gain traction. The market is also witnessing a surge in yogurt consumption, with its probiotic benefits being heavily promoted by dairy producers. Regulatory changes in China, aimed at enhancing the nutritional standards of milk-based products, are expected to create new opportunities for innovation and quality improvement in milk protein ingredients. However, the growing acceptance of alternative proteins, such as plant-based options, poses a potential challenge to the market's expansion.
The demand for nutritious food, particularly infant formulas, is on the rise across all age groups in China, fueling the market's growth. The increasing number of working mothers is contributing to the heightened demand for convenient and nutritious baby food, prompting manufacturers to innovate and enhance their milk protein offerings. The market is also benefiting from the rising interest in health and fitness, with milk proteins being incorporated into various products like protein bars and ready-to-drink beverages. Milk protein concentrates are gaining popularity due to their high protein content and functional properties, making them ideal for lactose-free and protein-fortified products. The market is characterized by a fragmented landscape with numerous national and international players, who are actively engaging in strategic partnerships and product innovations to maintain a competitive edge.
China Milk Protein Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Drivers
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1.1.1 Increasing Consumer Demand for Nutritious Food
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1.1.2 Functional and Processing Benefits of Milk Protein
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1.2 Market Restraints
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1.2.1 Rising Demand and Popularity of Plant-based Proteins
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1.3 Industry Attractiveness - Porter's Five Forces Analysis
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1.3.1 Bargaining Power of Suppliers
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1.3.2 Bargaining Power of Buyers
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1.3.3 Threat of New Entrants
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1.3.4 Threat of Substitute Products and Services
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1.3.5 Intensity of Competitive Rivalry
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2. Market Segmentation
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2.1 Form
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2.1.1 Concentrates
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2.1.2 Hydrolyzed
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2.1.3 Isolates
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2.2 End-User
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2.2.1 Animal Feed
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2.2.2 Personal Care and Cosmetics
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2.2.3 Food and Beverages
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2.2.3.1 Bakery
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2.2.3.2 Beverages
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2.2.3.3 Breakfast Cereals
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2.2.3.4 Condiments/Sauces
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2.2.3.5 Dairy and Dairy Alternative Products
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2.2.3.6 RTE/RTC Food Products
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2.2.3.7 Snacks
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2.2.4 Supplements
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2.2.4.1 Baby Food and Infant Formula
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2.2.4.2 Elderly Nutrition and Medical Nutrition
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2.2.4.3 Sport/Performance Nutrition
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China Milk Protein Market Size FAQs
What is the current China Milk Protein Market size?
The China Milk Protein Market is projected to register a CAGR of 5.21% during the forecast period (2024-2029)
Who are the key players in China Milk Protein Market?
Arla Foods amba, Fonterra Co-operative Group Limited, Groupe Lactalis, Kerry Group PLC and Morinaga Milk Industry Co. Ltd are the major companies operating in the China Milk Protein Market.
