The Global Dairy Protein Market size is expected to reach $17.6 billion by 2031, rising at a market growth of 4.9% CAGR during the forecast period.
North America has a strong tradition of dairy consumption, with products like milk, cheese, yogurt, and butter staples in many consumers' diets. Therefore, the North American region will capture 34.8% revenue share by 2031. This high consumption contributes to the demand for dairy proteins in the region. The sports nutrition sector in North America has also contributed to their growing demand, with athletes and fitness enthusiasts seeking protein supplements to support muscle recovery and growth.
The major strategies followed by the market participants are Mergers & Acquisition as the key developmental strategy to keep pace with the changing demands of end users. For instance, In November, 2021, Archer Daniels Midland Company completed the acquisition of Sojaprotein. Through this acquisition, Archer Daniels Midland broadened its alternative protein expertise and enhanced its capacity to satisfy the increasing market demand for plant-based food and beverage options. Additionally, In May, 2023, Archer Daniels Midland Company completed the acquisition of D.C.A. Finance B.V. Through this acquisition, the companies expanded their commodity brokerage expertise and solutions.
Sports nutrition products often include protein supplements to aid muscle repair and growth after exercise. These, including casein and whey, are significantly esteemed in nutritional supplements on account of their superior quality and comprehensive amino acid composition, which efficiently facilitates muscle growth and recovery. Therefore, the growth in sports nutrition has created a favourable environment for the market, with increasing demand driven by factors such as health awareness, product innovation, scientific support, and expanded distribution channels.
The market competition in the Dairy Protein Market is intense, characterized by the presence of numerous players offering a wide range of dairy protein products. Major dairy companies, as well as new entrants and niche players, compete vigorously to capture market share and expand their customer base. Key factors driving competition include product quality, innovation, pricing strategies, distribution channels, and brand reputation. Large dairy protein manufacturers leverage their economies of scale and extensive distribution networks to maintain a competitive edge.
North America has a strong tradition of dairy consumption, with products like milk, cheese, yogurt, and butter staples in many consumers' diets. Therefore, the North American region will capture 34.8% revenue share by 2031. This high consumption contributes to the demand for dairy proteins in the region. The sports nutrition sector in North America has also contributed to their growing demand, with athletes and fitness enthusiasts seeking protein supplements to support muscle recovery and growth.
The major strategies followed by the market participants are Mergers & Acquisition as the key developmental strategy to keep pace with the changing demands of end users. For instance, In November, 2021, Archer Daniels Midland Company completed the acquisition of Sojaprotein. Through this acquisition, Archer Daniels Midland broadened its alternative protein expertise and enhanced its capacity to satisfy the increasing market demand for plant-based food and beverage options. Additionally, In May, 2023, Archer Daniels Midland Company completed the acquisition of D.C.A. Finance B.V. Through this acquisition, the companies expanded their commodity brokerage expertise and solutions.
Cardinal Matrix - Market Competition Analysis
Based on the Analysis presented in the Cardinal matrix; Archer Daniels Midland Company is the forerunner in the market. In December, 2023, Archer Daniels Midland Company completed the acquisition of Revela Foods, LLC, a diversified food ingredients company. Through this acquisition, Archer Daniels Midland Company incorporated the dairy flavour ingredients and solutions of Revela to strengthen its global dairy and Savory flavours portfolio. Companies such as Fonterra Co-operative Group Limited, Kerry Group PLC, Saputo, Inc. are some of the key innovators in the market.
Market Growth Factors
As people become more conscious of their dietary choices and the role of nutrition in overall health and wellness, there has been a growing demand for protein-rich foods and beverages, including those derived from dairy sources. Thus, the increasing health awareness among consumers has been a significant driving force behind the growth of the market, fuelling demand for protein-rich dairy products and driving innovation in the industry.Sports nutrition products often include protein supplements to aid muscle repair and growth after exercise. These, including casein and whey, are significantly esteemed in nutritional supplements on account of their superior quality and comprehensive amino acid composition, which efficiently facilitates muscle growth and recovery. Therefore, the growth in sports nutrition has created a favourable environment for the market, with increasing demand driven by factors such as health awareness, product innovation, scientific support, and expanded distribution channels.
Market Restraining Factors
Plant-based alternatives, such as pea, soy, and rice protein, directly compete with dairy proteins in various applications, including beverages, protein powders, meat substitutes, and dairy alternatives like plant-based milk and yogurts. As consumer interest in plant-based diets grows, these alternatives capture market share that would otherwise go to these proteins. Thus, the rise of plant-based alternatives challenges the market.By Form Analysis
On the basis of form, the market is classified into solid and liquid. The solid segment witnessed 85.8% revenue share in the market in 2023. The solid form segment encompasses a variety of protein-rich products such as cheese, yogurt, and milk powders. These solid forms of this protein are crucial in meeting consumer demand for convenient and nutritious food options.By Type Analysis
Based on type, the market is characterized into whey protein, milk protein concentrate, and casein & derivatives. In 2023, the milk protein concentrate segment recorded 28.9% revenue share in the market. Increased consumer consciousness regarding the significance of protein in promoting immune health and general wellness has contributed to a surge in the desire for products that contain milk protein concentrate (MPC).By Application Analysis
By application, the market is fragmented into nutrition, food & beverages, personal care & cosmetics, feed, and others. The food & beverages segment procured 40.5% revenue share in the market in 2023. These products include dairy-based foods such as yogurt, cheese, ice cream, and butter and dairy protein-fortified beverages like protein shakes, smoothies, and functional drinks.
By Regional Analysis
Region-wise, the market is analysed across North America, Europe, Asia Pacific, and LAMEA. The Europe segment held 30.8% revenue share in the market in 2023. By prioritizing sustainability, health, and quality, Europe continues to be a significant participant in the worldwide industry. Europe has a long-standing dairy production and consumption tradition, with products like cheese, yogurt, and milk integral to the European diet.Market Competition and Attributes
The market competition in the Dairy Protein Market is intense, characterized by the presence of numerous players offering a wide range of dairy protein products. Major dairy companies, as well as new entrants and niche players, compete vigorously to capture market share and expand their customer base. Key factors driving competition include product quality, innovation, pricing strategies, distribution channels, and brand reputation. Large dairy protein manufacturers leverage their economies of scale and extensive distribution networks to maintain a competitive edge.
Recent Strategies Deployed in the Market
- Dec-2023: Archer Daniels Midland Company completed the acquisition of Revela Foods, LLC, a diversified food ingredients company. Through this acquisition, Archer Daniels Midland Company incorporated the dairy flavour ingredients and solutions of Revela to strengthen its global dairy and savory flavours portfolio.
- Dec-2023: Saputo, Inc. introduced fresh offerings under its Montchevre and Frigo Cheese Heads labels. Montchevre presents a novel goat cheese variation: Thai Sweet Chili Topped Goat Cheese. This innovative blend incorporates sweet red peppers, lime, garlic, and spices, imparting a zesty twist to the traditional goat cheese flavour profile. On the other hand, Frigo Cheese Heads is debuting a new whole milk edition of its string cheese, providing a rich source of calcium and boasting 5g of protein per serving.
- Dec-2023: Arla Foods, Inc. formed a partnership with Solinest French distributor Solinest, a major player on the French and European sweet distribution market. Under this partnership, two brands, Arla Skyr and Arla Protein, were launched in French retail. Additionally, the partnership helped in increasing its relevance and ability to meet the needs of consumers.
- May-2023: Archer Daniels Midland Company completed the acquisition of D.C.A. Finance B.V., an investment firm. Through this acquisition, the companies expanded its commodity brokerage expertise and solutions. Additionally, the acquisition assisted in adding value and growth opportunities to the customer offerings.
- Mar-2023: Kerry Group PLC launched the SucculencePB, a revolutionary innovation designed for plant-based meat substitutes, offering consumers the savory and succulent taste reminiscent of traditional meat. The new product not only replicates the sought-after juiciness of meat but also enhances the nutritional value and reduces the environmental footprint of plant-based alternatives. Additionally, the new product effectively addresses the common challenge of the dry mouth sensation often experienced with cooked plant-based meat substitutes.
List of Key Companies Profiled
- Archer Daniels Midland Company
- Arla Foods, Inc.
- Kerry Group PLC
- Saputo, Inc.
- Fonterra Co-operative Group Limited
- Royal FrieslandCampina N.V.
- Schreiber Foods, Inc.
- Lactalis Group
- DANA Dairy Group Ltd.
- Agri-Mark, Inc.
Market Report Segmentation
By Form
- Solid
- Liquid
By Type
- Whey protein
- Milk Protein Concentrate
- Casein & derivatives
By Application
- Food & Beverages
- Nutrition
- Personal Care & Cosmetics
- Feed
- Others
By Geography
- North America
- US
- Canada
- Mexico
- Rest of North America
- Europe
- Germany
- UK
- France
- Russia
- Spain
- Italy
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- South Korea
- Australia
- Malaysia
- Rest of Asia Pacific
- LAMEA
- Brazil
- Argentina
- UAE
- Saudi Arabia
- South Africa
- Nigeria
- Rest of LAMEA
Table of Contents
Chapter 1. Market Scope & Methodology
Chapter 2. Market at a Glance
Chapter 3. Market Overview
Chapter 4. Competition Analysis - Global
Chapter 5. Global Dairy Protein Market by Form
Chapter 6. Global Dairy Protein Market by Type
Chapter 7. Global Dairy Protein Market by Application
Chapter 8. Global Dairy Protein Market by Region
Chapter 9. Company Profiles
Companies Mentioned
- Archer Daniels Midland Company
- Arla Foods, Inc.
- Kerry Group PLC
- Saputo, Inc.
- Fonterra Co-operative Group Limited
- Royal FrieslandCampina N.V.
- Schreiber Foods, Inc.
- Lactalis Group
- DANA Dairy Group Ltd.
- Agri-Mark, Inc.
Methodology
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