Australia Animal Protein - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)

The australia animal protein market size was valued at USD 102.65 million in 2025 and estimated to grow from USD 107.86 million in 2026 to reach USD 138.16 million by 2031, at a CAGR of 5.07% during the forecast period (2026-2031). This report is Segmented by Protein Type (Casein and Caseinates, Collagen, Egg Protein, Gelatin, Insect Protein, Milk Protein, and More), Form (Isolates, Concentrates, Hydrolyzed, and More), Category (Conventional and Organic), Application (Animal Feed, Personal Care and Cosmetics, Food and Beverages, and Supplements). The Market Forecasts are Provided in Terms of Value (USD).

Australia Animal Protein Market Trends and Insights

Growing fitness culture driving protein demand

Australia's fitness industry is experiencing significant growth, with strength training becoming increasingly popular across different age groups, driving the demand for animal-based proteins. According to The Australian Sports Commission (ASC), in the 2023 financial year, 50.2% of Australians aged 18-24 and 48% of those aged 25-35 utilized gyms, fitness clubs, or sports and leisure centers. The active nutrition market encompasses protein powders and performance supplements, including pre-workout formulas, amino acids, creatine, and other sports nutrition products designed for athletic performance and recovery. The market continues to expand through product development. In May 2024, the Commonwealth Scientific and Industrial Research Organisation (CSIRO) launched "Just Meat," a red meat protein powder, in Australia. This product transforms red meat into a nutrient-rich, allergen-free protein supplement suitable for protein balls, shakes, and energy drinks. The powder retains red meat's complete amino acid profile while offering enhanced digestibility and versatility. The product addresses consumer demand for natural, minimally processed protein sources that maintain whole foods' nutritional value. Market growth is further supported by increased protein supplementation among GLP-1 medication users seeking to maintain lean mass during calorie restriction. The Australian sports nutrition market has evolved through product innovation, with manufacturers focusing on clean-label formulations, sustainable sourcing practices, and improved bioavailability to align with consumer preferences.

Rising demand for functional dairy proteins in sports nutrition manufacturing

The demand for functional dairy proteins is increasing as sports nutrition manufacturers emphasize bioavailability and complete amino acid profiles in their formulations. This growth is driven by consumers' enhanced understanding of protein quality and its role in athletic performance and recovery. Fonterra's strategic investments in September 2024, including a new protein plant at Studholme and a USD 150 million cool store expansion at Whareroa, indicate the expected long-term demand for functional dairy ingredients. These investments aim to boost production capacity and meet the increasing global demand for specialized dairy protein ingredients. In July 2024, Fonterra partnered with Nourish Ingredients to develop precision fermentation-based fats for dairy applications. This collaboration focuses on creating sustainable and nutritionally optimized dairy alternatives while maintaining the functional properties of traditional dairy proteins. The rising costs of whey protein isolate have driven innovation in alternative processing methods and hybrid protein formulations that maintain performance characteristics while managing costs. Companies are exploring membrane filtration technologies and enzyme treatments to improve protein yield and functionality. The price variations create opportunities for Australian manufacturers to develop efficient, high-performance protein solutions that compete with imports while supporting local dairy farmers. These manufacturers are investing in research and development to enhance protein extraction processes and create value-added products for domestic and international markets.

Accelerating shift toward plant-based alternatives

Plant-based protein alternatives are gaining market share as consumers prioritize environmental sustainability and health considerations in their protein choices. In 2023, four of Australia's six state governments implemented initiatives to strengthen their local alternative protein industries through targeted public investments supporting farmers and food producers. The Western Australian government allocated AUD 5 million to support the construction of a factory producing oat milk enriched with lupin protein from locally-grown crops. While consumer acceptance of flexitarian and plant-based diets is increasing, significant resistance remains toward full adoption of alternative proteins due to concerns about taste, texture, and potential health risks. Additionally, manufacturers continue to develop innovative plant protein products, impacting traditional animal protein market growth. For example, in May 2024, NiHTEK launched NiHPRO, a hydrolyzed protein isolate targeting consumers seeking alternatives to whey protein isolate due to lactose intolerance, demonstrating market demand for dairy-free alternatives that maintain performance characteristics. Animal protein producers face the challenge of addressing consumer concerns regarding processing methods, environmental impact, and ethical sourcing while maintaining competitive pricing against increasingly sophisticated plant-based alternatives.

Other drivers and restraints analyzed in the detailed report include:

• Innovation in insect protein for aquaculture feed reducing reliance on fishmeal
• Premiumization trend in pet food elevating animal protein inclusion rates
• Stringent biosecurity and traceability regulations increasing compliance costs

Segment Analysis

Whey protein maintains a 49.35% share of the Australia animal protein market, supported by established filtration infrastructure, proven clinical research, and consumer recognition of its rapid absorption properties. Casein and caseinates are expected to grow at a 6.05% CAGR through 2031, driven by increased demand for slow-digesting proteins in night-time recovery products and infant formula. This growth is supported by All G's development of precision-fermented human casein micelles in May 2025. Collagen products derived from beef hides are expanding into gummies, beverages, and topical applications, creating value from processing by-products while enhancing meat processing economics. While insect protein represents a small market volume, it maintains premium pricing and attracts significant attention, positioning it as a long-term diversification opportunity.

Australian manufacturers with multi-protein production capabilities in a single facility protect against market fluctuations and expand their customer reach. The adaptable nature of microfiltration and spray-drying equipment enables efficient transitions between whey, casein, and collagen production, optimizing facility utilization throughout the year. Emerging companies can access established processing facilities through partnerships, reducing initial capital requirements for new protein development. These operational advantages help maintain stable revenue across the Australian animal protein market as consumer preferences shift.

Whey protein concentrates maintain a 34.45% market share in 2025 due to their cost-effective processing, sufficient protein purity, and compatibility with bakery, beverage, and confectionery applications. Hydrolyzed whey proteins are expected to grow at a 6.61% CAGR through 2031, driven by their rapid absorption properties that appeal to sports nutrition, clinical nutrition, and senior nutrition manufacturers seeking low-lactose and low-allergen solutions. Whey protein isolates maintain their premium position with protein purity exceeding 90% and the highest unit prices, with growth driven by elite sports nutrition and bariatric care applications.

Enhanced enzymatic hydrolysis techniques improve flavor profiles and solubility, addressing previous challenges with bitterness and expanding market acceptance. The combination of inline chromatography and membrane filtration technology produces higher-quality isolates with improved yields, maintaining profit margins despite increased electricity costs. Processors located in renewable energy zones reduce energy expenses, strengthening their competitive position in the Australian animal protein market.

Complete Report Scope:

• By Protein Type
  • Casein and Caseinates
  • Collagen
  • Egg Protein
  • Gelatin
  • Insect Protein
  • Milk Protein
  • Whey Protein
  • Other Animal Protein
• By Form
  • Isolates
  • Concentrates
  • Hydrolyzed
  • Marine Based
  • Animal Based
  • Others
• By Category
  • Conventional
  • Organic
• By Application
  • Animal Feed
  • Personal Care and Cosmetics
  • Food and Beverages
    • Bakery
    • Beverages
    • Breakfast Cereals
    • Condiments/Sauces
    • Confectionery
    • Dairy and Dairy Alternative Products
    • RTE/RTC Food Products
    • Snacks
  • Supplements
    • Baby Food and Infant Formula
    • Elderly and Medical Nutrition
    • Sports/Performance Nutrition

List of Companies Covered in this Report:

• Fonterra Co-operative Group Limited
• Saputo Inc.
• Groupe Lactalis (Lactalis Australia)
• Kerry Group plc
• GELITA AG
• Glanbia PLC
• Goterra Pty Ltd
• Noumi Limited
• Bega Cheese Limited (Bega Bionutrients)
• Royal FrieslandCampina N.V.
• Tatua Co-operative Dairy Company Ltd
• Tessenderlo Group nv (PB Liner)
• Milligans Food Group Limited
• Rogers & Company Foods Pty Ltd
• Cottee Group Pty Ltd.
• Pace Farm Pty Ltd
• Beston Global Food Company Ltd
• Arla Foods Ingredients
• Univar Solutions LLC
• Made Group Pty Ltd

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support