Milk Protein Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Milk Protein Market is projected to expand from USD 14.53 Billion in 2025 to USD 21.77 Billion by 2031, registering a CAGR of 6.97%. These high-quality nutritional ingredients, primarily consisting of casein and whey fractions isolated via enzymatic or filtration processes, are critical to the food processing industry due to their solubility and comprehensive amino acid profiles. They are widely employed in clinical nutrition, infant formulas, and fortified beverages, with market expansion largely fueled by rising global demand for sports nutrition products and growing consumer awareness regarding the role of protein in healthy ageing and muscle maintenance.

However, the industry encounters significant hurdles related to raw milk price volatility, often triggered by fluctuating feed costs and climatic conditions that threaten supply chain stability. Despite these obstacles, the industrial shift toward high-value ingredients remains robust. For instance, the USDA Foreign Agricultural Service reported that exports of Whey Protein Concentrate with 80 percent protein content (WPC80+) increased by 17 percent year-over-year in 2024. This data highlights the enduring preference for high-purity, functional protein sources even in the face of broader market constraints.

Market Drivers

The evolution of sports nutrition and performance supplements from a niche sector to a mainstream category is significantly accelerating the global demand for milk proteins such as whey and casein. This expansion is powered by a wider consumer demographic, including lifestyle users and casual gym-goers, who increasingly seek convenient options like protein bars and ready-to-drink beverages. To cater to this audience, manufacturers are creating better-tasting formulations that retain high nutritional value, driving frequency of use among non-elite athletes; Glanbia PLC reported in their '2024 Full Year Results' in February 2025 that their flagship brand, Optimum Nutrition, saw a 7.5 percent year-over-year revenue increase to approximately 1.2 billion dollars, confirming strong momentum in this space.

Concurrently, the industry is being reshaped by the growing adoption of functional and high-protein diets, with consumers prioritizing nutrient density for healthy ageing and weight management. This shift is prompting dairy processors to innovate beyond standard offerings by fortifying common foods like yogurts with concentrated milk proteins to satisfy elevated nutritional demands. According to FrieslandCampina Ingredients' 'Nutritional Trends 2025' report from January 2025, 71 percent of global consumers actively prioritized protein in 2024; reflecting this demand, Arla Foods Ingredients noted in February 2025 within their 'Dairy protein is the trend of the decade' article that US sales of high dairy protein products rose by 17 percent in 2024.

Market Challenges

Raw milk price volatility remains a substantial barrier to the steady growth of the Global Milk Protein Market. Heavily dependent on climatic shifts and variable feed costs, these fluctuations create an unpredictable cost environment for producers of whey and casein concentrates. Sudden spikes in raw material expenses force processors to adjust pricing, which complicates financial planning for downstream food and beverage manufacturers, often leading buyers to reduce procurement volumes or hesitate in committing to long-term supply contracts to protect their margins.

Recent statistics highlight the gravity of this instability in major production areas. As reported by the Association of Milk Producers of Ukraine in January 2025, the average price of raw milk in the European Union rose by 17 percent compared to the same period the prior year. Such significant year-over-year cost inflation undermines confidence in the supply chain and accelerates the substitution of dairy proteins with more price-stable plant-based alternatives, directly limiting the market's growth potential.

Market Trends

The adoption of sustainable and carbon-neutral processing has become a defining trend, propelled by the necessity to decarbonize the upstream dairy supply chain and intense regulatory pressure. Manufacturers are now focusing on reducing Scope 3 emissions by implementing renewable energy and advanced manure management at the farm level, moving beyond basic operational efficiencies to tackle the environmental impact of raw milk production. This systemic transformation is increasingly required for market access in premium regions, with major cooperatives transparently reporting their progress; for instance, FrieslandCampina's February 2025 'Annual Report 2024' noted a 9.8 percent decrease in greenhouse gas emissions at member farms compared to the previous year.

Simultaneously, there is an accelerating shift toward specialized hydrolysates for premium infant formula as producers pivot to scientifically advanced, high-margin ingredients to combat commoditization. This trend involves developing gut-friendly and hypoallergenic protein fractions that mimic the bioactive traits of human milk, catering to parents focused on immunity and early-life digestion. By leveraging these technical innovations, dairy processors can secure higher price points and stabilize revenue; Danone highlighted this robust demand in February 2025, reporting in their '2024 Full Year Results' that sales in their specialized nutrition division grew by 5.1 percent year-over-year.

Key Players Profiled in the Milk Protein Market

• Arla Foods
• FrieslandCampina
• Saputo
• Kerry Group
• Fonterra
• Glanbia
• Lactalis
• Nestle
• Devondale Murray Goulburn
• Idaho Milk

Report Scope

In this report, the Global Milk Protein Market has been segmented into the following categories:

Milk Protein Market, by Type:

• Milk Protein Concentrates
• Milk Protein Isolates
• Milk Protein Hydrolysates
• Others

Milk Protein Market, by Livestock:

• Cow
• Buffalo & Goat

Milk Protein Market, by Form:

• Dry & Liquid

Milk Protein Market, by Application:

• Sports Nutrition
• Infant Formula
• Dairy Products
• Others

Milk Protein Market, by Functionality:

• Emulsification
• Foaming & Thickening
• Gelation
• Others

Milk Protein Market, by Processing Method:

• Pasteurization
• Creaming & Homogenization
• Filtration
• Others

Milk Protein Market, by Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Milk Protein Market.

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

• Detailed analysis and profiling of additional market players (up to five).

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