Dairy Protein Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 4.95 Billion |
| Market Size (2029) | USD 6.18 Billion |
| CAGR (2024 - 2029) | 4.53 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Europe |
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*Disclaimer: Major Players sorted in no particular order |
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Dairy Protein Market Analysis
The Dairy Protein Market size is estimated at USD 4.95 billion in 2024, and is expected to reach USD 6.18 billion by 2029, at a CAGR of 4.53% during the forecast period (2024-2029).
As consumers increasingly prioritize healthier food choices, protein has emerged as a key component linked to wellness, muscle health, weight management, and satiety. Dairy proteins, especially whey and casein, are valued for their high biological value and comprehensive amino acid profiles, making them sought-after ingredients in various food products. This global trend of integrating more protein into diets highlights the surging demand for dairy proteins. Notably, the U.S. Department of Agriculture reported that in fiscal year 2023, India alone consumed over 17 million metric tons of protein meals.
High-protein diets have gained immense popularity, lauded for their benefits in weight management, muscle maintenance, and overall fitness. As a result, dairy proteins, including milk protein concentrates and isolates, have seamlessly integrated into protein bars, beverages, and other functional foods. In light of the surging demand for dairy proteins in fortified foods, companies specializing in dairy proteins have been tailoring their offerings. For instance, in October 2022, Arla Foods Ingredients, based in Denmark, launched a functional drink targeting rehydration and recovery. This ready-to-drink sports nutrition solution featured Lacprodan SP-9213, a whey protein isolate, with Arla highlighting its functionality even when mixed with electrolytes.
In conclusion, the global dairy protein market is on an upward trajectory, driven by health trends, heightened protein awareness, the sports nutrition surge, and relentless product innovations. Companies are capitalizing on this momentum, introducing a wide range of dairy protein-enriched products designed to cater to the diverse needs of consumers across different demographics and regions.
Dairy Protein Market Trends
Protein Is Widely Used In Functional Dairy Products
As consumers become more aware of the health benefits associated with a dairy-rich diet, there is a notable surge in the popularity of protein-enriched foods. At the same time, there is a rising trend towards convenient, ready-to-eat functional foods, driving the demand for dairy proteins. Consumers are increasingly demonstrating heightened nutritional awareness. A snacking guide from Glabia PLC highlights that “snacks high in Protein” emerged as a dominant global trend in 2023, particularly in the United States, Europe, and Asia. This swift expansion in consumer interest towards higher protein diets has led to the incorporation of dairy proteins into bakery products, enhancing their protein content.
Notably, whey protein concentrates and isolates are being utilized for their superior emulsification and foaming/whipping properties. Dairy staples such as yogurt and cheese are immensely popular across Asian, European, and Western markets. Cheese, made from coagulated casein (a milk protein) separated from whey, stands out as another globally cherished dairy product. The steady demand for these items not only supports the growth of dairy proteins but also underscores their significance in both traditional and alternative dairy products worldwide. The appetite for high-protein, ready-to-drink dairy beverages is on the rise. Celebrated for their rich vitamin and mineral content, these high-protein ready-to-drink (RTD) beverages boast a diverse array of indulgent flavors.
Europe Dominates The Dairy Protein Industry
Europe dominates the global dairy protein market, holding the largest market share. In Germany, milk protein has transitioned from a mere appealing ingredient to a central component in health and wellness-focused food products. This shift significantly propels the growth of dairy ingredients, which find applications in diverse industries such as dairy, confectionery, sports, and clinical nutrition. Additionally, in the United Kingdom, heightened investments in the sports nutrition sector, driven by a surge in consumer interest in fitness and recreational sports, bolster the demand for dairy protein ingredients. In recent years, manufacturers of ready-to-drink protein shakes and high-protein meal replacements have increasingly favored whey protein concentrates (WPC), whey protein isolates (WPI), and dairy-derived whey as their primary ingredients.
Moreover, the rising emphasis on holistic wellness further underscores the pivotal role of dietary supplements in daily routines. Over time, ingredients like whey protein concentrates (WPC), whey protein isolates (WPI), and dairy-derived whey have emerged as favorites for crafting ready-to-drink protein shakes and high-protein meal replacements. In Spain, the robust milk production, with 2022 figures hitting approximately 7,323.6 thousand metric tons according to the Ministry of Agriculture, Food and Environment, supports the widespread application of dairy proteins. These proteins are extensively utilized in sectors like bakery and confectionery, infant milk formulas, and both sports and clinical nutrition, highlighting their significance in the Spanish market.
Dairy Protein Industry Overview
The global dairy protein market is highly competitive, featuring regional and international players. Key players include Fonterra Co-operative Group Limited, Glanbia PLC, Royal FrieslandCampina NV, Lactalis Group, and Arla Foods. To secure a competitive advantage, these companies are employing diverse strategies, including product launches, market expansion, partnerships, and mergers and acquisitions. Besides, the leading companies are also taking necessary measures to increase their business operations in terms of geography and production capacity to boost sales and enhance brand presence. Such tactics not only bolster their market share but also fortify their standing in the industry.
Dairy Protein Market Leaders
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Fonterra Co-operative Group Limited
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Royal FrieslandCampina NV
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Glanbia PLC
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Groupe Lactalis
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Arla Foods
*Disclaimer: Major Players sorted in no particular order
Dairy Protein Market News
- August 2024: Fonterra and Superbrewed Food partnered to develop biomass protein technology. This collaboration aims to meet the rising consumer demand for protein. By merging Superbrewed's biomass protein platform with Fonterra's expertise in dairy processing and ingredient applications, the two companies aim to create a nutrient-rich, functional biomass protein.
- August 2024: Fonterra invested USD 75 million to expand its Studholme Site to boost protein ingredient production. This strategic move aligns with Fonterra's overarching goal of enhancing its premium ingredients business, capitalizing on its dairy science and innovation expertise.
- July 2024: PT Frisian Flag Indonesia (FFI), a subsidiary of Friesland Campina, officially opened a new factory in Sukamahi village, located in the Cikarang district of Bekasi regency. Spanning 25.4 hectares and boasting an investment of EUR 257 million (equivalent to IDR 3.8 trillion), this facility marked the largest production investment globally for Friesland Campina, the parent entity of PT FFI.
Dairy Protein Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. MARKET DYNAMICS
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3.1 Market Drivers
- 3.1.1 Consumer Inclination Toward Protein-Rich Food Products
- 3.1.2 Increasing Milk Production Supporting The Dairy Protein Demand
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3.2 Market Restraints
- 3.2.1 Surging Market Penetration Of Dairy Protein Alternatives
- 3.2.2 Increase In Lactose Intolerance Hampering Market Growth
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3.3 Porter's Five Forces Analysis
- 3.3.1 Threat of New Entrants
- 3.3.2 Bargaining Power of Buyers/Consumers
- 3.3.3 Bargaining Power of Suppliers
- 3.3.4 Threat of Substitute Products
- 3.3.5 Intensity of Competitive Rivalry
4. MARKET SEGMENTATION
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4.1 Product Type
- 4.1.1 Milk Protein Concentrates (MPCs)
- 4.1.2 Whey Protein Concentrates (WPCs)
- 4.1.3 Whey Protein Isolates (WPIs)
- 4.1.4 Milk Protein Isolates (MPIs)
- 4.1.5 Casein and Caseinates
- 4.1.6 Other Ingredients
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4.2 Application
- 4.2.1 Sports Nutrition
- 4.2.2 Infant formulations
- 4.2.3 Functional Food and Beverages
- 4.2.4 Dietary Supplements
- 4.2.5 Animal Feed and Pet Food
- 4.2.6 Other Applications
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4.3 Geography
- 4.3.1 North America
- 4.3.1.1 United States
- 4.3.1.2 Canada
- 4.3.1.3 Mexico
- 4.3.1.4 Rest of North America
- 4.3.2 Europe
- 4.3.2.1 United Kingdom
- 4.3.2.2 Germany
- 4.3.2.3 France
- 4.3.2.4 Russia
- 4.3.2.5 Italy
- 4.3.2.6 Spain
- 4.3.2.7 Rest of Europe
- 4.3.3 Asia Pacific
- 4.3.3.1 India
- 4.3.3.2 China
- 4.3.3.3 Japan
- 4.3.3.4 Australia
- 4.3.3.5 Rest of Asia-Pacific
- 4.3.4 South America
- 4.3.4.1 Brazil
- 4.3.4.2 Argentina
- 4.3.4.3 Rest of South America
- 4.3.5 Middle East & Africa
- 4.3.5.1 South Africa
- 4.3.5.2 Saudi Arabia
- 4.3.5.3 Rest of Middle East & Africa
5. COMPETITIVE LANDSCAPE
- 5.1 Strategies Adopted by the Leading Players
- 5.2 Market Positioning Analysis
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5.3 Company Profiles
- 5.3.1 Fonterra Co-operative Group Limited
- 5.3.2 Glanbia PLC
- 5.3.3 Groupe Lactalis
- 5.3.4 Kerry Group PLC
- 5.3.5 Royal FrieslandCampina NV
- 5.3.6 Prolactal GmbH
- 5.3.7 Groupe Sodiaal
- 5.3.8 Hoogwegt International BV
- 5.3.9 Arla Foods Amba
- 5.3.10 (Butterfly Equity) Milk Specialities Global
- *List Not Exhaustive
6. MARKET OPPORTUNITIES AND FUTURE TRENDS
** Subject To AvailablityDairy Protein Industry Segmentation
Dairy protein encompasses the proteins present in milk and its derivatives, including cheese, yogurt, and whey protein supplements. The primary dairy proteins are casein and whey. Casein is slow-digesting and constitutes roughly 80% of the protein content in milk. In contrast, whey, accounting for about 20% of the protein in milk, is fast-digesting.
The global dairy protein market has been segmented based on product type, applications, and geography. The market has been segmented based on product type into milk protein concentrates (MPCs), whey protein concentrates (WPCs), whey protein isolates (WPIs), milk protein isolates (MPIs), casein and caseinates, and other ingredients. Based on application, the market has been segmented into sports nutrition, infant formulations, functional food and beverages, dietary supplements, animal feed and pet food, and other applications. Also, the study provides an analysis of the dairy protein market in emerging and established markets across the world, including North America, Europe, Asia-Pacific, South America, and the Middle East and Africa. The market sizing has been done in value terms in USD for all the abovementioned segments.
For each segment, the market sizing and forecasts have been done based on value (USD).
| Product Type | Milk Protein Concentrates (MPCs) | |
| Whey Protein Concentrates (WPCs) | ||
| Whey Protein Isolates (WPIs) | ||
| Milk Protein Isolates (MPIs) | ||
| Casein and Caseinates | ||
| Other Ingredients | ||
| Application | Sports Nutrition | |
| Infant formulations | ||
| Functional Food and Beverages | ||
| Dietary Supplements | ||
| Animal Feed and Pet Food | ||
| Other Applications | ||
| Geography | North America | United States |
| Canada | ||
| Mexico | ||
| Rest of North America | ||
| Geography | Europe | United Kingdom |
| Germany | ||
| France | ||
| Russia | ||
| Italy | ||
| Spain | ||
| Rest of Europe | ||
| Geography | Asia Pacific | India |
| China | ||
| Japan | ||
| Australia | ||
| Rest of Asia-Pacific | ||
| Geography | South America | Brazil |
| Argentina | ||
| Rest of South America | ||
| Geography | Middle East & Africa | South Africa |
| Saudi Arabia | ||
| Rest of Middle East & Africa |
Dairy Protein Market Research FAQs
How big is the Dairy Protein Market?
The Dairy Protein Market size is expected to reach USD 4.95 billion in 2024 and grow at a CAGR of 4.53% to reach USD 6.18 billion by 2029.
What is the current Dairy Protein Market size?
In 2024, the Dairy Protein Market size is expected to reach USD 4.95 billion.
Who are the key players in Dairy Protein Market?
Fonterra Co-operative Group Limited, Royal FrieslandCampina NV, Glanbia PLC, Groupe Lactalis and Arla Foods are the major companies operating in the Dairy Protein Market.
Which is the fastest growing region in Dairy Protein Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Dairy Protein Market?
In 2024, the Europe accounts for the largest market share in Dairy Protein Market.
What years does this Dairy Protein Market cover, and what was the market size in 2023?
In 2023, the Dairy Protein Market size was estimated at USD 4.73 billion. The report covers the Dairy Protein Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Dairy Protein Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Dairy Protein Industry Report
Statistics for the 2024 Dairy Protein market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Dairy Protein analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
