THE DAIRY INGREDIENT SECTOR remains a dynamic and crucial source of proteins for foods and beverages. The global market for dairy proteins includes many mature ingredients. “However, it is the newer ingredients, such as native whey, micellar casein and peptides, that are creating added value in the sector,” said Tage Aﬀertsholt, MSc, Owner, 3A Business Consulting, in his presentation titled “Global Market for Whey and Other Dairy Proteins.”
First, let’s look at the whey category. The more concentrated protein products, such as whey protein concentrate 80% (WPC80) and whey protein isolate (WPI), have been driving category growth and value, and this trend is expected to continue through 2022.
The global market value of whey ingredients was approximately 6 billion USD in 2017 and is expected to grow to 7.1 billion by 2022. While the EU is the dominant producer of whey powder and demineralized whey, production of whey protein concentrates in the ranges of 35-89% protein is equally distributed between North American and Europe.
The U.S. dominates production of WPC80 and WPI to fuel its protein-hungry sports nutrition market. Asia relies heavily on exports from North America and Oceania to meet their demand for these ingredients. Demand from the nutrition sector for higher protein ingredients is divided into four major usage categories: obesity; child and infant nutrition; healthy active lifestyles; and aging populations.
The sports nutrition category represents more than 15 billion USD annually and is growing by 10%. One of the biggest companies in sports nutrition is Glanbia, which has acquired many sports nutrition brands.
Milk proteins dominate the 12 billion USD clinical and adult nutrition category, which is also an opportunity area for whey protein hydrolysates.
The infant formula markets in Asia and the EU are major users of 90% demineralized whey powder, while whey powders with lower levels of demineralization are utilized in bakery and confectionery products. Lower protein WPCs are used in sports powders, infant formula and dairy. Key markets for whey hydrolysates include sports nutrition, infant formula and clinical nutrition.
The infant formula industry, valued at over 50 billion USD, continues to be a major market for higher value whey protein ingredients, including those enriched with alpha-lactalbumin or lactoferrin. The Chinese market is driving growth in this category.
Whey proteins are produced by a wide range of suppliers, some with limited portfolios and market scope. In contrast, larger companies have both a wide portfolio and a global scope.
A similar growth story is seen in the milk protein industry. The global market value of milk proteins was approximately 3.5 billion USD in 2018 and is forecast to reach almost 4 billion by 2022. Production of MPC with protein levels above 85% has increased in recent years, as has production of newer ingredients like micellar casein concentrates (MCC), micellar casein isolates (MCI) and native whey.
The EU and Oceania are the major suppliers of casein and caseinates, while North America is both a major producer and supplier of milk protein concentrates (MPC). Asia is a key user of milk proteins, and there is growing demand from developing countries.
Milk proteins are used primarily in infant, clinical and sports nutrition products, but they are also used in processed foods, including dairy and cheese. MCC, MCI and native whey are used almost exclusively in sports nutrition. MPC is seen in a wide range of new product launches, while MPI is used primarily in sports nutrition. Micellar casein in powdered sports nutrition products is touted as being “less processed.”
Clinical nutrition is a relatively small (12 billion USD) but growing market for milk proteins in sophisticated markets, such as the U.S., EU and China. Milk proteins are valued for their slower absorption rates.
Other examples of emerging dairy ingredients include casein phosphopeptides and osteopontin. Galactooligosaccharides (GOS), which are derived from lactose, also show growth potential.
A number of dairy ingredient companies are starting to produce organic whey and milk protein ingredients. The forecast is for continued steady and significant growth in the dairy protein industry.
“Global Market for Whey and Other Dairy Proteins,” Tage Affertsholt, MSc, Owner, 3A Business Consulting
This presentation was given at the 2019 Protein Trends & Technologies Seminar. To download presentations from this event, go to https://foodproteins.globalfoodforums.com/category/food-protein-rd-academy/
See past and future Protein Trends & Technologies Seminars at https://foodproteins.globalfoodforums.com/food-protein-events/