The global dairy market is projected to grow with a CAGR of 5% over the forecast period (2021 – 2026). The market is primarily dominated by the milk segment, followed by the butter and cheese segments. Lactose dairy products are expected to drive market growth. Products with less lactose content and lactose-free dairy products are gaining traction in the market.

Moreover, the concentrated form of cheddar cheese is rich in high milk protein content, milk fats, minerals, and vitamins. Protein content in cheddar cheese is the most demanding flavoring ingredient in different food products, which is boosting the cheddar cheese market.

Health claims, like higher protein content and relatively lower fat and sugar contents, as compared to conventional yogurt, have enhanced the popularity of Greek yogurt. Gluten-free Greek yogurt also helps with digestive health problems, weight management and has high protein content.

Growing Awareness Towards Healthy Food

Dairy proteins are now being used in a variety of novel and tasty applications to help consumers achieve the benefits of higher-protein diets, such as satiety, weight management, and muscle health. With lifestyle diseases and obesity incidences on the rise, manufacturers of dairy proteins are motivated to innovate and deliver products meeting the discerning needs of health-conscious consumers.

Widespread Applications of Dairy Protein in Performance Nutrition to Boost Revenues

Dairy proteins are uniquely positioned to add nutrition to food products with low protein content. North American dairy protein manufacturers are finding ways to provide consumers with more options, and are developing innovative products that incorporate dairy proteins into various snacks, baking mixes, beverages, sports nutrition products, and more. Whey protein-based products are increasingly being used in the sports nutrition industry. This includes products such as whey protein bars, powders, and drinks.

The primary dairy protein products include whey protein concentrates and isolates, milk protein concentrates and isolates, casein and caseinates, as the major products. Researchers suggest that whey protein and milk proteins can also act as an anti-aging agents. They might also help to decrease stress and reduce cortisol concentration levels. Furthermore, millennial consumers and gym enthusiasts are focusing on increasing strength and enhancing recovery. This factor is providing the ingredient manufacturers the opportunity to introduce high-protein products with multiple benefits, which appeal to athletes and gym enthusiasts.

Rising Demand for Whey Protein Isolates

Isolates are a form of whey protein that is high in protein content and are lactose-free, carbohydrate-free, fat-free, and cholesterol-free. They are dietary supplements and food ingredients made by separating components from milk. Isolates are the purest form of whey and are a complete protein since they contain all the essential amino acids that the human body needs to repair muscles after a workout. Isolates provide aeration in baked goods, such as muffins or cakes, and can be added into mousses and toppings.

Rising Wave of Dairy Delights across Europe and Americas

Europe holds the largest market share in the global dairy protein market. European Union has one of the largest dairy markets in terms of volume consumption, where the region is the number one producer of cheese and therefore, the largest producer of whey according to the European Whey Processor Association.

Following Europe, the North American dairy protein market holds the second-largest market share. North America is a highly matured market for whey protein, with over 1,000 whey-containing products, entering the market every year. Argentina is a major market in the South American region in terms of the dairy sector. Additionally, parents are also getting concerned about the health of their babies and opting for the best infant formulas to provide the right amount of protein as required, thus providing an opportunity to the protein manufacturers to develop compatible products.

Asia-Pacific Consumers’ Preferences for Protein

Infant formula is one of the fastest-growing markets for whey protein specifically WPC-35-80 and demineralized whey powder. Demand for whey-based infant formulas is strong in a few countries, particularly China. The leading food company in the China region, such as Arla indicates, growing fondness of dairy with stats suggesting 84% of Chinese adults and 92% of children consume yogurt at least once a week, which is anticipated to take over the US market in the forecast period.

Future Scope

The consumers in the current marketplace are affected more by interactive labeling. Manufacturers in the sports nutrition industry are focusing more on the packaging of the products, including appealing labeling, making it easy for the consumers to know what ingredients they are consuming, and ensuring the safety of the product to themselves. Thus, the rising sports nutrition, fitness industries, application in the food industry, and others are propelling the demand for dairy protein products globally.

This report was contributed by knowledge partner: