Milk Protein Market Segmentation:
Product Type Segment Analysis
Among the product types, the hydrolyzed segment will account for 42% share by 2035. 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 Segment Analysis
By form, the powder segment dominates the milk protein market and is estimated to hold a 65% share by 2035. 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 Segment Analysis
By application, the food & beverage segment leads the milk protein market and is likely to contribute over 25% of the share by 2035. 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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