Whey Permeate Market Report 2026

The whey permeate market size has grown strongly in recent years. It will grow from $0.74 billion in 2025 to $0.81 billion in 2026 at a compound annual growth rate (CAGR) of 9.5%. The growth in the historic period can be attributed to expansion of cheese and whey protein production, availability of surplus liquid whey streams, growing use of dairy derivatives in processed foods, rising demand for lactose-based ingredients, improvements in whey filtration technologies.

The whey permeate market size is expected to see strong growth in the next few years. It will grow to $1.12 billion in 2030 at a compound annual growth rate (CAGR) of 8.4%. The growth in the forecast period can be attributed to increasing demand for clean-label dairy ingredients, rising application in sports and protein nutrition, expansion of animal nutrition markets, growing focus on dairy waste valorization, increasing adoption in emerging food markets. Major trends in the forecast period include increasing utilization of whey permeate in bakery and confectionery, rising demand for cost-effective dairy ingredients, growing adoption in animal feed formulations, expansion of powdered whey permeate applications, enhanced focus on functional dairy byproducts.

The rising demand for health-conscious food products is anticipated to drive the growth of the whey permeate market in the coming years. Health-conscious food products are designed and formulated with ingredients and nutritional profiles that support or improve overall health and well-being. Demand for such foods is increasing due to multiple factors, including the adoption of varied dietary lifestyles such as vegan, vegetarian, gluten-free, and paleo diets. Whey permeate is regarded as a health-supporting ingredient because of its natural lactose content, essential minerals, and its ability to improve nutritional value without the addition of refined sugars. For instance, in April 2025, according to the Office for National Statistics, a UK-based national statistics organization, healthcare spending in the UK reached approximately $428.33 billion (£317 billion) in 2024, representing a 6.5% rise compared to 2023. Therefore, the growing preference for health-conscious food products is contributing to the expansion of the whey permeate market.

Leading companies operating in the whey permeate market are concentrating on developing innovative offerings such as optimized dairy solid permeates to improve nutritional value, enhance functional performance, and reduce dependence on imported ingredients. Optimized dairy solid permeates are whey-derived powders with a balanced mix of lactose, minerals, and trace proteins, processed to improve solubility and functionality, enabling manufacturers to enhance taste, texture, and nutritional quality in food and beverage applications while lowering costs compared to conventional milk powders. For instance, in January 2023, Molvest Group, a Russia-based manufacturing company, expanded its Kalach plant with new facilities for intensive milk processing to produce whey permeate alongside milk protein concentrate, marking one of Russia’s first large-scale domestic whey permeate production initiatives. The produced whey permeate contains essential lactose and minerals, is suitable for use in confectionery, bakery products, dairy blends, and functional foods, and helps reduce import dependency while lowering manufacturing costs. This development supports domestic supply chains and addresses rising demand for dairy ingredients in infant nutrition, sports nutrition, and dietetic food products.

In November 2024, Arla Foods Ingredients Group P/S, a Denmark-based dairy company, acquired Volac’s Whey Nutrition business for an undisclosed amount. Through this acquisition, the company aims to strengthen its position in the whey nutrition segment, expand its global market presence, and enhance its supply chain capabilities. Volac International Limited is a UK-based dairy nutrition company specializing in the production and supply of whey protein and whey permeate products.

Major companies operating 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, Murray Goulburn Co-operative Co. Limited.

North America was the largest region in the whey permeate market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the whey permeate market report are Asia-Pacific, South East Asia, 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, Taiwan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

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 that 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.

This product will be delivered within 1-3 business days.