Milk Protein Global Market Opportunities and Strategies to 2033

This report describes and explains the milk protein market and covers 2018-2023, termed the historic period, and 2023-2028, 2033F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.

The global milk protein market reached a value of nearly $12.1 billion in 2023, having grown at a compound annual growth rate (CAGR) of 6.09% since 2018. The market is expected to grow from $12.1 billion in 2023 to $16.7 billion in 2028 at a rate of 6.81%. The market is then expected to grow at a CAGR of 7.29% from 2028 and reach $23.8 billion in 2033.

Growth in the historic period resulted from growing consumption of healthy products, increase in disposable income, increased consumer awareness about the health benefits of milk and milk products. Factors that negatively affected growth in the historic period were increasing prevalence of milk protein allergies and the rise of veganism and plant-based diets, environmental concerns.

Going forward, rise in population, growing food and beverage industry, growing health-conscious consumers, growing need for protein supplements, increasing demand for convenience food, increasing aging populations will drive the market growth. Factor that could hinder the growth of the milk protein market in the future include supply chain disruptions, increasing competition from plant-based dairy alternatives.

The milk protein market is segmented by type into milk protein concentrate, milk protein isolate (MPI), milk protein hydrolysates, casein and caseinates, whey protein concentrate, whey protein isolate and other types. The milk protein concentrate market was the largest segment of the milk protein market segmented by type, accounting for 25.6% or $3.08 billion of the total in 2023. Going forward, the casein and caseinates segment is expected to be the fastest growing segment in the milk protein market segmented by type, at a CAGR of 8.39% during 2023-2028.

The milk protein market is segmented by physical form into dry and liquid. The dry market was the largest segment of the milk protein market segmented by physical form, accounting for 62% or $7.5 billion of the total in 2023. Going forward, the liquid segment is expected to be the fastest growing segment in the milk protein market segmented by physical form, at a CAGR of 7.31% during 2023-2028.

The milk protein market is segmented by livestock into cow, buffalo and other livestock. The cow market was the largest segment of the milk protein market segmented by livestock, accounting for 81% or $9.7 billion of the total in 2023. Going forward, the other livestock segment is expected to be the fastest growing segment in the milk protein market segmented by livestock, at a CAGR of 8.43% during 2023-2028.

The milk protein market is segmented by distribution channel into online and offline. The offline market was the largest segment of the milk protein market segmented by distribution channel, accounting for 69.4% or $8.4 billion of the total in 2023. Going forward, the online segment is expected to be the fastest growing segment in the milk protein market segmented by distribution channel, at a CAGR of 8.33% during 2023-2028.

The milk protein market is segmented by application into dairy products, infant formulas, beverages and dietary supplements, bakery and confectionery, snacks and other products. The dairy products market was the largest segment of the milk protein market segmented by application, accounting for 32.8% or $3.9 billion of the total in 2023. Going forward, the beverages and dietary supplements segment is expected to be the fastest growing segment in the milk protein market segmented by application, at a CAGR of 7.68% during 2023-2028.

Asia Pacific was the largest region in the milk protein market, accounting for 36.9% or $4.4 billion of the total in 2023. It was followed by North America, Western Europe and then the other regions. Going forward, the fastest-growing regions in the milk protein market will be Asia Pacific and North America where growth will be at CAGRs of 7.6% and 7.1% respectively. These will be followed by South America and Western Europe where the markets are expected to grow at CAGRs of 7% and 6% respectively.

The global milk protein market is highly concentrated, with large players operating in the market. The top ten competitors in the market made up 52% of the total market in 2022. The market concentration can be attributed to the presence of large players in different geographies. Royal FrieslandCampina N.V. was the largest competitor with a 9.6% share of the market, followed by Fonterra Co-Operative Group Limited with 8.1%, Arla Foods Amba with 6.4%, Saputo Inc. with 5.6%, Lactalis Ingredients with 5.3%, Dean Foods Company with 3.9%, Glanbia PLC with 3.7%, Archer-Daniels-Midland Company with 3.4%, Agrial Enterprise with 3.2% and Cargill Inc. with 2.9%.

The top opportunities in the milk protein market segmented by type will arise in the whey protein concentrate segment, which will gain $1.2 billion of global annual sales by 2028. The top opportunities in the milk protein market segmented by physical form will arise in the dry segment, which will gain $2.7 billion of global annual sales by 2028. The top opportunities in the milk protein market segmented by livestock will arise in the cow segment, which will gain $3.7 billion of global annual sales by 2028. The top opportunities in the milk protein market segmented by application will arise in the dairy products segment, which will gain $1.5 billion of global annual sales by 2028. The top opportunities in the milk protein market segmented by distribution channel will arise in the offline segment, which will gain $2.9 billion of global annual sales by 2028. The milk protein market size will gain the most in China at $1.2 billion.

Market-trend-based strategies for the milk protein market include focusing on introducing new protein solutions to enable better-tasting protein products, developing heat-stable whey protein produced from whole milk, for medical nutrition products, focusing on technological advancements, such as fractionation process, to improve efficiencies, focusing on strategic partnerships and collaborations to improve their financial strength, strengthen their product portfolio, focusing on developing whey protein bars with high protein and low sugar content.

Player-adopted strategies in the milk protein market include focus on improving its portfolio through product launches, focus on research and development (R&D), focus on the merger and acquisitions of manufacturing facility.

To take advantage of the opportunities, the analyst recommends milk protein companies to focus on innovation in milk protein solutions, focus on heat-stable whey protein solutions for medical nutrition, focus on technological advancements in milk fractionation, focus on high-protein, low-sugar whey protein bars, focus on milk protein concentrate and whey protein isolate segments, focus on liquid market segment, focus on cow market segment for growth, expand in emerging markets, continue to focus on developed markets, focus on strategic partnerships and collaborations, focus on online market segment for growth, provide competitively priced offerings, continue to use B2B promotions, prioritize digital marketing channels, implement promotional events and sampling programs, focus on beverages and dietary supplements market segments and focus on urban populations.