Milk Protein Market Report 2026

The milk protein market size has grown strongly in recent years. It will grow from $13.61 billion in 2025 to $14.5 billion in 2026 at a compound annual growth rate (CAGR) of 6.6%. The growth in the historic period can be attributed to growth of dairy processing industries, increasing consumption of protein-rich diets, expansion of sports nutrition markets, availability of advanced dairy fractionation technologies, rising use of milk proteins in packaged foods.

The milk protein market size is expected to see strong growth in the next few years. It will grow to $18.97 billion in 2030 at a compound annual growth rate (CAGR) of 6.9%. The growth in the forecast period can be attributed to increasing demand for personalized nutrition products, growing focus on muscle health and aging populations, expansion of ready-to-drink protein beverages, rising innovation in protein hydrolysates, increasing penetration of online nutrition channels. Major trends in the forecast period include increasing demand for high-protein functional foods, rising use of milk proteins in sports nutrition, expansion of infant formula applications, growing adoption of protein-enriched beverages, enhanced focus on clean-label dairy proteins.

The expansion of the food and beverage industry is expected to drive the growth of the milk protein market in the coming years. The food and beverage industry is a broad and multifaceted sector that includes the production, processing, distribution, and sale of food and drink products. Milk protein is being increasingly incorporated into food and beverage applications due to its functional and nutritional attributes, which help improve texture, flavor, and overall nutritional value across a wide range of products. For example, in July 2025, Agriculture and Agri-Food Canada, a Canada-based government department, reported that in 2024 the food and beverage processing sector continued to be Canada’s largest manufacturing industry by production value, generating $173.4 billion in goods. This accounted for 20.3% of total manufacturing sales and contributed 1.6% to national GDP. Exports of processed food and beverage products reached a record $59.8 billion, reflecting a 3.8% increase from 2023 and representing 34.5% of the sector’s total production value. As a result, the continued expansion of the food and beverage industry is supporting the growth of the milk protein market.

Key players in the milk protein market are focusing on developing new technological advancements, such as the fractionation process, to boost their competitiveness. Fractionation is a technique that separates a mixture into its individual components based on differences in physical or chemical properties. For example, in November 2023, Valio Ltd, a Finland-based dairy product manufacturer, introduced Valio Eila MPC 65. Valio Eila MPC 65 is an innovative concentrate designed to improve the flavor and texture of high-protein foods, addressing common challenges like gritty textures and unpleasant tastes often associated with protein powders. This versatile ingredient can be used in a variety of products, including protein puddings, shakes, ice creams, and drinks. It enables manufacturers to offer high-protein products that are both fresh-tasting and enjoyable to consume, ultimately enhancing the quality of protein-rich food items. Valio Eila MPC 65 is a standout solution for improving consumer satisfaction in high-protein options.

In December 2023, Butterfly, a U.S.-based private equity firm specializing in the food sector, acquired Milk Specialties for an undisclosed sum. This acquisition aligns with Butterfly's strategy to expand its portfolio in both human and animal nutrition. Milk Specialties, recognized as the world’s largest producer of whey protein isolate, complements Butterfly's focus on delivering high-quality nutrition products. Milk Specialties, based in the U.S., specializes in converting raw dairy inputs into high-quality functional ingredients for human and animal nutrition, further strengthening Butterfly's presence in the nutritional ingredients market.

Major companies operating in the milk protein market are Royal FrieslandCampina N.V., Fonterra Co-operative Group Limited, Arla Foods amba, Amco Proteins Company, Saputo Inc., Glanbia plc, Kerry Group plc, Havero Hoogwegt Group B.V., Lactalis Ingredients, Sachsenmilch Leppersdorf GmbH, Charotar Casein Company, Hilmar Ingredients, Milk Specialties Global, Idaho Milk Products, Agropur Dairy Cooperative, Carbery Group Limited, Davisco Foods International Inc., Leprino Foods Company, Lactose Limited, Erie Foods International Inc., Grande Custom Ingredients Group, Milkaut S.A., Armor Proteines, Agri-Mark Inc., Arion Dairy Products B.V.

North America was the largest region in the milk protein market share in 2025. The regions covered in the milk protein market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the milk protein market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

The milk protein market consists of sales of protein powder, protein bars, and protein milk. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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