Milk Protein Market Trends

Growth Drivers

• New baby formulas and clinical nutrition applications: The milk protein market is growing rapidly owing to its wide application in infant formulae and clinical nutrition products. In July 2024, Arla Foods Ingredients announced the entry of a novel fraction of milk protein developed for infant formula should lead further toward achieving the overall status of infant milk to mimic human milk and support the overall development and growth of infants. With the increasing birth rate in developing countries and acceleration in early child nutrition awareness, the demand for high-quality milk protein in infant formula is likely to surge.
• Greater emphasis on health: The health benefits that protein consumption provides have become apparent. Also, consumers are increasingly looking for protein-rich food and beverages to help enrich their daily diet in pursuit of multiple health needs, starting with weight management to muscle building, amongst others. The same is true for the sports nutrition segment, where milk proteins find ready appreciation thanks to their complete amino acid profile, coupled with excellent digestibility. In October 2023, Glanbia Nutritionals added a new clear protein beverage, whey protein isolate, to the marketplace as demand for sports nutrition's functional drinks continues to rise.
• Technological advancements in protein processing:  The advancements in protein extraction and processing technologies have opened further possibilities for the dairy ingredients-producing sector to prepare a milk protein ingredient characterized by far higher functionality but even greater purity and sensory characteristics. Advanced membrane filtration makes it possible to produce milk protein concentrates with tailor-made protein profiles that fit different end-use applications. For example, in June 2023, GEA Group announced the launch modules of a new ultra-filtration system to produce milk protein to obtain an increase in yield of up to 10%, with a reduced energy consumption that benefits the economic and environmental sustainability of milk protein manufacturing.

Challenges

• Environmental sustainability concerns: The milk protein sector has seen an immense demand from environmental concerns, with dairy farming attributed to greenhouse gas emissions and water use in processing. This has impelled the industry players to make an investment in production methods that are environmentally friendly and a step towards carbon emissions reductions. However, implementation of the practices might be costly, complex, and elevate the cost of the output with rippling implications on the competitive price of products in the market.  
• Quality standards and regulatory hurdles: Navigating the complex landscape of food safety regulations and quality standards across different markets is quite a challenge for milk protein manufacturers. Strict food regulations, stringent control of labeling, food additive use, and production-related processes by governments worldwide have seen manufacturers invest heavily in such compliance measures, quality assurance systems, etc. This may be a difficult task for smaller producers or those looking to expand to new international markets.