The global dairy protein market size was valued at USD 11 billion in 2021 and is anticipated to reach USD 17 billion by 2030, at a CAGR of 5% during the forecast period (2022-2030). Dairy proteins are nutritional ingredients used to prepare a range of food products. They have many functionalities and bioactivities which are helpful in the processing of food products. Dairy proteins such as whey protein, casein, and milk protein work as gelling agents, thickening agents, carriers, foaming agents, and texture modifiers in preparing a wide range of food products. They are also widely used in various industries, including animal feed, personal care, nutrition, and textiles. Food & beverages ingredient manufacturers have invested a lot in R&D to enhance the taste, characteristics, or nutritional value of dairy protein. Whey and casein protein are consumers' most preferred sources of protein supplements, which is likely to drive the demand for the dairy protein market.
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Proteins are the building blocks of bones, skin, muscles, and blood. The human body requires protein to produce hormones, enzymes, and other body chemicals. Currently, protein supplements are used on a large scale due to the rise in healthcare awareness among people and obesity concerns. Consumers are altering their focus to nutritional and healthy diets and increasing their protein consumption to receive extra nutrients from protein supplements made with dairy protein, which in turn feeds the rise of dairy protein. This, in turn, fuels the growth of dairy protein. Whey and casein protein are consumers' most preferred sources of protein supplements, which is likely to drive the demand for the dairy protein market.
With the rise in health care concerns and surge in fitness trends among youth, the shift toward healthy products such as protein supplements is expected to experience significant growth. Consumers vastly prefer dairy protein due to its high nutritional benefits. Moreover, economic conditions and a rise in the GDP of various developing countries are expected to fuel the growth of the dairy protein market.
Non-vegetarian consumers are gradually reducing the consumption of animal-based food such as beef, pork, and poultry and are significantly accepting a vegetarian lifestyle. This shift is observed due to consumer preferences for a healthy diet. As meat and meat products often contain harmful pesticides through the food they eat and chemicals used for their fast growth, their high consumption can be risky. In addition, consumers are concerned about the hygiene practices adopted in the rearing of animals on farms. Thus, consumers are in search of alternatives to animal-based proteins. Plant-based proteins offer a practical and eco-friendly alternative to animal proteins, which will likely restrain the growth of the dairy protein market for the period under consideration.
Protein supplements and protein-based food products are still in nascent stages in various regions of Africa, such as Zimbabwe, Burundi, Liberia, Eritrea, and other developing regions. These are still untapped, which presents an excellent opportunity for manufacturers of protein supplements. Moreover, these regions are still unaware of the benefits of protein supplements, which are expected to provide lucrative opportunities for market growth.
The global dairy protein market share is segmented on type, application, form, and region.
By type, the global dairy protein market is bifurcated into casein & derivatives, whey protein, and milk protein concentrates. Whey protein is likely to lead the dairy market globally, owing to its widespread application in the personal care & cosmetics industry. Moreover, the demand for whey protein will grow at a CAGR of 4.4% during the forecast period. Whey protein is traditionally used among athletes and bodybuilders to promote overall body growth and muscle building. The surge in demand for sports nutrition products and their value-added tag as clean label ingredients are the two main factors contributing to the market's overall growth. Asia-Pacific and LAMEA are expected to witness significant growth rates in value sales during the forecast period.
The casein and derivatives segment is the fastest-growing segment. Casein protein is a slow-digesting dairy protein that customers often take as supplements. The factor affecting the growth of the casein & derivatives proteins are surging demand for dietary supplements, expansion of prominent dairy-based vendors, and increasing consumption of proteins, vitality bars, and caffeinated drinks. Moreover, a rise in health ailments, owing to the hectic busy work schedule of consumers, is anticipated to nudge the market's growth during the forecast period. Asia-Pacific and LAMEA are expected to witness significant growth rates during the forecast period.
Milk protein concentrate is the second largest segment. It is used mainly in the food & beverages, personal care & cosmetics industries. In addition, it has also been used in nutrition industries recently and is likely to experience incremental demand in the future. Asian countries are significant producers and exporters of milk protein concentrate and cream. China and Japan are the leading exporters of milk protein concentrate, followed by India and Australia, creating immense potential for the segment's growth.
By application, the global dairy protein market is divided into food & beverages, nutrition, personal care & cosmetics, feed, and others. Food & beverages is the leading segment globally owing to the rise in the use of whey protein and milk protein concentrate in the food & beverages industry. It is estimated to grow at a CAGR of 4.4% during the forecast period. The rise in demand for dairy protein and other milk-extracted protein drives the global market for dairy protein. Increasing consumer demand for high nutritional drinks in the U.S. and Canada is anticipated to increase the demand for food & beverages in the region. The need for dairy protein products has been growing recently, owing to the growth of health-conscious consumers. Consumers get attracted to product offerings with attractive packaging and innovative flavors of dairy protein in the market, which, in turn, augments the growth of the food & beverages segment in the market.
The nutrition dairy protein market is the fastest-growing segment. Active and health-conscious consumers have shifted their preference toward nutritional drinks and products. Hence, the demand for dairy protein as an energy drink is increasing in developed countries due to its excellent nutritional properties such as electrolytes and nutrients. The need for dairy protein in the nutrition industry is also growing worldwide. Manufacturers are offering new flavors of milk protein concentrates and casein & derivatives due to the changing taste preference of customers. Such factors are anticipated to boost the growth of the segment.
The personal care and cosmetics dairy protein market is the third-largest segment. Demand for high protein content in cosmetics & personal care products is gaining significant traction in various emerging nations such as the U.S., Germany, and China. The strong desire among adults to retain youthful appearances has nurtured the cosmetics & personal care industry globally. Various manufacturers have observed growth in the trend of using protein ingredients in cosmetics. This trend has increased customers' demand for natural & organic cosmetics products. Moreover, consumer awareness regarding health, coupled with growth in cosmetics & personal care applications, spurs the market growth.
By form, the global dairy protein market is bifurcated into solid and liquid. The solid form of the products dominated the market. It is estimated to grow at a CAGR of 4.7% during the forecast period. This is attributed to its better stability and ease of handling and storage in liquid form. A solid protein format is the preferable way of consumption for its target customers. The solid form of proteins influences the physical bulk state characteristics of the formulation. These forms of protein are gaining popularity in the food & beverages sector as it is high in calcium, protein, and vitamins. Moreover, it can be easily transported.
The liquid dairy protein market is the fastest-growing segment. The liquid form of protein is a mixture of raw materials and supplements derived from animals or plants and various sources as by-products. The liquid form offers a concentrated source of protein for people with increased protein needs. Liquid dairy protein is used for involuntary weight loss, pre-and post-surgery, anorexia, stress, and trauma. Increasing demand for liquid protein functionalities, consumer awareness about healthy diet & nutritional food, and innovations in product development in the dairy protein industry are likely to drive the market growth during the forecast period.
Region-wise, the global dairy protein market share is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
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North America was the highest revenue contributor and is estimated to grow with a CAGR of 4.8% during the forecast period. According to International Health, Racquet & Sports club Association (IHRSA), the U.S. health and fitness industry is valued at US$ 94 billion in 2019. The fitness industry is expected to grow faster during the forecast and shows no signs of slowing down. This is attributable to a rise in U.S. consumers adopting a healthy lifestyle or indulging in activities promoting active and healthy lifestyles. Presently, about 20% of American adults have fitness club memberships, and the number is expected to increase. In addition, an increase in demand for protein-rich food, owing to the number of health-conscious customers, is anticipated to propel market growth. Consumers are gradually shifting their preference from convenience food to dairy protein products, further boosting the market growth.
Europe is the second-largest region. It is estimated to reach USD 5310 million by 2030 at a CAGR of 4.2%. The market for dairy protein such as milk protein concentrate is likely to grow significantly, owing to their increasing consumption in many foods & beverages preparations such as bakery products, snacks, and confectioneries. Milk protein concentrate and whey protein have witnessed increased demand from the personal care & cosmetics industry in Europe. Furthermore, the rise in demand for refreshment/sports drinks, along with the growth in sports participation from youth in the region, leads to increased consumption of casein & derivatives, which is anticipated to grow at the highest growth rate during the forecast period.
Asia-pacific is the fastest-growing region. Dairy Protein is widely used in the food & beverages and nutrition industries in many Asian countries. With the growth in awareness about casein & derivatives and whey protein as sports or refreshment drinks, the market for casein & derivatives and whey protein is also growing in the region at a significant rate. Milk protein concentrate is widely used as an ingredient in skincare products, which has gained popularity in the recent past and is expected to drive the market for milk protein concentrate in the future. China is the major consumer of dairy protein in Asia-Pacific, followed by Japan and Australia.