Milk Protein Market size was over USD 12.5 billion in 2023 and is expected to reach USD 28.3 billion by the end of 2036, growing at a CAGR of 6.5% during the forecast period, i.e., 2024-2036. In 2024, the industry size of milk protein is estimated at USD 13.3 billion.
The global milk protein market is expected to thrive, supported by an array of favorable factors boosting consumer awareness of health and wellness, demand for functional foods, and sports nutrition products. Due to this increasing demand, milk protein companies are busy innovating products and expanding their portfolios. Several milk protein manufacturers invest in research and development to introduce new milk protein formulations answering to the detailed needs of consumers, be it regarding plant-based or clean-label products. For instance, in August 2024, Fonterra partnered with Superbrewed to introduce a new line of milk protein concentrates made for ready-to-drink products.
Government and regulatory bodies also play an important role in shaping the milk protein market. There are policies now in place in most countries to support home dairy industries and promote the production of value-added dairy products such as milk proteins. According to the U.S. Department of Agriculture, exports of milk protein concentrate from the United States increased by 15% in 2023 over the previous year, documenting the growing demand worldwide. Companies are also shifting toward food safety and quality standards; investments in advanced processing technologies and traceability systems.
Growth Drivers:
Challenges:
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
6.5% |
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Base Year Market Size (2023) |
USD 12.5 billion |
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Forecast Year Market Size (2036) |
USD 28.3 billion |
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Regional Scope |
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Product Type (Concentrates, Hydrolyzed, Isolates, Others)
Among the product types, the hydrolyzed segment accounts for a 42% share in 2024. Hydrolyzed milk proteins are well consumed due to their relative digestibility and less allergenicity compared to other types of milk protein, and therefore, find a deep application in baby food and sports materials. Companies are investing in the research and development of hydrolyzed milk proteins. For example, in July 2024, Arla Foods Ingredients obtained FDA approval of high-nutrition hydrolyzed whey protein. These proteins are hydrolyzed into smaller peptides for enhanced absorption, easier digestion, and rapid nutrient uptake, especially in people with digestive sensitivities. Increasing demand for clean-label, easily digestible protein sources further drive the segment's growth.
Form (Powder, Liquid)
By form, the powder segment dominates the milk protein market and is estimated to hold a 65% share in 2024. Powdered milk proteins, on the other hand, not only extend shelf life but are also easily transportable and storable until the need arises for such products in food formulation. Powdered milk proteins can be easily included in many types of food and beverage products, thereby being an ideal choice for manufacturers across industries. This convenience factor for the consumers is an additional contributing factor in segments like sports nutrition and dietary supplements. The ability to exactly set protein content and the easy, convenient reconstitution of the powder, with active interest, pointed more toward industrial use than consumer applications.
Application (Food & Beverages, Nutraceuticals & Dietary Supplements, Pharmaceutical, Cosmetics & Personal Care, Infant Formula, Pet Care Industry, Others)
By application, the food & beverage segment leads the milk protein market and is likely to contribute over 25% of the share by 2037. All these dairy-based foods can, therefore, use any form of milk protein to develop wide product lines, from bakery to confectionery and beverages. This increasingly furthers the use of milk proteins for food and beverage formulation due to the push for clean labels and natural ingredients.
The increased popularity of high-protein diets alongside the never-ending awareness of health-related properties linked to milk proteins has fueled this segment. In January 2024, Nestle developed a technique to reduce the fat present in milk sugar to capture the opportunity around increased consumer interest in meals and snacks in the dairy and beverages category.
Our in-depth analysis of the milk protein market includes the following segments:
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Form |
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Form |
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Asia Pacific Market Analysis:
Asia Pacific's milk protein market is predicted to hold 35% revenue share in 2024. This is attributed to numerous factors, such as rising disposable income, dietary modification, and increasing awareness of health benefits accompanied by protein consumption. In India, the milk protein market is growing at a rapid rate, with an increasing product base as a result of the increasing population and urbanization, as well as an increase in the sale of protein-based processed food and drinks.
India’s milk protein market is growing due to an increase in government efforts to ensure the nutrition and safety of food, as well as the growth in intake of Western-style dairy comprising a great volume of milk protein. In Japan, the market is growing due to an increasing geriatric population as well as functional and nutritional food consumers.
Companies in Asia Pacific are quite aggressive in their innovation pursuits to cater to the varied needs of consumers from different countries. Many players are now developing products that although locally favored, get the nutritional mandates from milk proteins. For instance, in March 2024, Yili Group launches into the Chinese milk protein market with a new line of high-protein milk products with some milk protein fractions available to help maintain immune health. Together with the national nutrition guidelines, the Chinese government is also improving stimulation for the consumption of milk and milk products, which stimulates the demand for milk proteins.
North America Market Analysis:
The milk protein market in North America is poised for steady growth from 2024 to 2036 due to increasing consumer sophistication in health and wellness and increased demand for functional food and sports nutrition products. This is based on the region's strong food and beverage market, coupled with a growing trend toward protein-enriched products that can create huge opportunities for milk protein manufacturers. Additionally, the rapidly increasing market for clean-label and natural ingredients serves to boost the demand for milk proteins in various applications.
Companies in North America's milk protein market invest continuously in the development of innovative products that cater to changing consumer preferences. Meantime, the government has been proactive in supporting the dairy industry in Canada in various means. In recent data by Agriculture and Agri-Food Canada, the eagerness of other countries for Canadian dairy ingredients made the country escalate its exportation of milk protein products to 12% more in 2023 than in past years. As a result, several manufacturers are focusing on launching functional and nutritionally specialized innovative milk protein ingredients.
The global milk protein market is significantly competitive, with players such as Nestlé SA, Danone, and Arla Foods at the leading position. These companies maintain an edge in the competition due to their extensive availability of resources and innovation capabilities. Other players like Fonterra Co-operative Group and Lactalis Group are also key participants contributing through continuous product launches and geographical expansions. Industry leaders are refreshing their product lines due to the increasing consumer demand for more high-protein, health-oriented, and sustainable food options.
In March 2024, Haven, New Zealand's premium infant nutrition company, launched the world's first 100% oat-based toddler drink: Heaven Oat. This new product is specially designed for dairy-intolerant children and plant-based parenting. It is an indication of the trend in the industry toward alternative and plant-based feeding solutions. This development mirrors a growing trend among firms to broaden their product offerings in line with the changing dietary preferences of the world consumer base.
Here are some leading companies in the milk protein market:
Author Credits: Parul Atri
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