Whey Permeate Market Report 2025

The whey permeate market size has grown strongly in recent years. It will grow from $0.68 billion in 2024 to $0.74 billion in 2025 at a compound annual growth rate (CAGR) of 8.9%. The growth in the historic period can be attributed to rising demand for cost-effective dairy ingredients, increasing use in animal feed, the growth of the processed food industry, rising awareness of lactose-rich nutrition, expansion of functional food markets, and the need to reduce dairy production waste.

The whey permeate market size is expected to see strong growth in the next few years. It will grow to $1.04 billion in 2029 at a compound annual growth rate (CAGR) of 8.6%. The expected increase in market value over the forecast period is driven by growing demand for affordable dairy ingredients, expanding applications in infant nutrition and sports supplements, and the rise of pet food usage. Additionally, the growth is fueled by the increasing prominence of functional and fortified foods, initiatives aimed at reducing food waste through byproduct utilization, and greater adoption in emerging economies. Key trends shaping the market include advancements in lactose recovery technology, innovations in animal feed, development of clean-label and sustainable products, enhanced use in bakery and confectionery formulations, and improved processing techniques that yield higher purity and efficiency.

The increasing demand for health-conscious food products is expected to propel the growth of the whey permeate market going forward. Health-conscious food products are planned and formulated with ingredients and nutritional profiles that promote or enhance overall health and well-being. The demand for health-conscious food is on the rise due to several factors, including the emergence of diverse dietary habits such as veganism, vegetarianism, gluten-free, and paleo. Whey permeate is considered a health food due to its natural lactose content, essential minerals, and ability to enhance nutritional profiles without added sugars. For instance, in April 2025, according to the Office for National Statistics, a UK-based national statistics organization, in 2024, the UK’s healthcare expenditure reached around $428.33 billion (£317 billion), reflecting a 6.5% increase compared to 2023. Therefore, the increasing demand for health-conscious food products is driving the growth of the whey permeate market.

Major companies operating in the whey permeate market are focusing on launching new products, such as 100% dairy whey permeate, to meet the growing demand for clean-label ingredients, enhance nutritional value, and support cost-effective formulation in food and feed applications. 100% dairy whey permeate is a milk-based ingredient rich in lactose and nutrients, obtained after most proteins are removed from whey during processing. For instance, in May 2022, Arla Foods Ingredients Group P/S, a Denmark-based dairy company, launched Variolac, a 100% dairy whey permeate designed to help Brazilian manufacturers meet new sugar labeling laws by replacing added sugar with naturally occurring dairy sugars. The ingredient boosts taste and texture while enabling "no added sugar" claims, aligning with growing consumer demand for healthier products and simplified labels.

In November 2024, Arla Foods Ingredients Group P/S, a Denmark-based dairy company, acquired Volac’s Whey Nutrition business for an undisclosed amount. With this acquisition, it aims to consolidate its position in the whey nutrition space, expand its market reach, and strengthen its supply chain. Volac International Limited is a UK-based dairy nutrition company that specializes in providing whey protein and permeate.

Major players in the whey permeate market are Groupe Lactalis S.A., Dairy Farmers of America Inc., Yili Group, Arla Foods Ingredients Group P/S, Agropur Ingredients, Hilmar Ingredients Inc., Milk Specialties Global, Havero Hoogwegt B.V., Euroserum, Volac International Ltd., Idaho Milk Products, Armor Proteines, Proliant Dairy, Pacific Dairy Ingredients Inc., American Dairy Products Institute (ADPI), Agri-Dairy Products Inc., Melkweg Holland BV, Sloan Valley Dairies Ltd, Arion Dairy Products B.V., and Murray Goulburn Co-operative Co. Limited.

North America was the largest region in the whey permeate market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in whey permeate report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the whey permeate market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The accelerated imposition of U.S. tariffs and the emerging trade conflicts in spring 2025 are significantly influencing the food and beverage sector by raising the costs for imported ingredients including olive oil, cheese, and tropical fruits, forcing food brands to reformulate products or accept lower margins. Beverage makers face similar pressures, with aluminum can tariffs increasing packaging expenses. Retaliatory tariffs on U.S. agricultural exports (e.g., soybeans, pork) have also disrupted farm-to-processing supply chains. Companies are reformulating recipes, sourcing locally where possible, and hedging commodity purchases to manage volatility.

Whey permeate, also known as deproteinized whey or whey filtrate, is a dairy ingredient obtained during the production of whey protein concentrate or isolate. It contains lactose, minerals, and small amounts of protein, with most of the protein removed. Whey permeate is commonly used in food products for its sweet, milky flavor and functional properties, such as browning and moisture retention.

The main types of whey permeate are powder and liquid. Powdered whey permeate is a dry, free-flowing ingredient produced by evaporating and spray-drying the liquid whey permeate that remains after whey protein has been filtered out. It is widely used in various applications, including bakery products, confectionery, dairy products, beverages, swine feed, cattle feed, poultry feed, protein supplements, and others, and finds usage across multiple industries such as food and beverage, animal feed, nutraceuticals, personal care and cosmetics, and others.

The whey permeate market research report is one of a series of new reports that provides whey permeate market statistics, including the whey permeate industry global market size, regional shares, competitors with the whey permeate market share, detailed whey permeate market segments, market trends, and opportunities, and any further data you may need to thrive in the whey permeate industry. This whey permeate market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The whey permeate market consists of sales of bakery products, chocolate and confectionery, dairy products, instant soups, sauces, seasonings and powdered beverages, and vending mixes. 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 and 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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