Whey Protein Market Size, Share & Trends Analysis Report By Type (Whey Protein Isolates, Whey Protein Concentrates, Whey Protein Hydrolysates), By Application, By Region, And Segment Forecasts, 2020 - 2027

Report Overview

The global whey protein market size was estimated at USD 8.7 billion in 2019 and is expected to expand at a compound annual growth rate (CAGR) of 9.8% from 2020 to 2027. Rising incidences of chronic illnesses due to changing lifestyles, particularly among the millennial population, is one of the key factors driving the adoption of protein-rich diets, which, in turn, is likely to augment demand for whey protein.

The product is majorly preferred by the manufacturers of sports nutritional products owing to its wide availability, strong amino profile, and easy digestibility. Thus, the increasing demand for sports nutritional supplements is expected to offer lucrative opportunities to the manufacturers in the coming years.

Furthermore, per the article published by the Institute of Food Technologists in 2019, nearly 55.0% of consumers in the U.S. agreed that high protein content played a pivotal role in their food purchasing decisions. Besides, nearly half of the population in the U.S. is attempting to lose weight owing to the risk of chronic diseases due to obesity.

The changing consumer behavior in the U.S. is prompting food and beverage companies to include functional whey protein in their packaged foods as it can replace high fat and costly ingredients such as milk, butter, cream cheese while maintaining the same flavor, texture, and appearance as that of original formulations. In addition, increased competition within the packaged food industry is also prompting companies to incorporate functional ingredients to strengthen product labels.

The product has significant usage in the formulation of personal care products such as hair care and skincare products owing to its skin-hydrating and hair conditioning properties. The positive outlook of the global beauty and personal care industry on account of the rising population of working women and increasing penetration of e-commerce is expected to favor the penetration of the product in the personal care application segment.

However, it is derived from milk and thus people allergic to milk are typically allergic to the product as well. The major allergens in whey are alpha-lactalbumin and beta-lactoglobulin. Herein, people suffering from milk allergy typically prefer other protein types, which restricts the penetration of the product.

Type Insights

The Whey Protein Concentrate (WPC) segment led the market and accounted for more than 48.0% share of the global revenue in 2019. WPCs are a group of whey proteins that remain soluble in whey after the precipitation of casein at pH 4.6 and temperature 20°C. These concentrates are a heterogeneous grouping of various dissimilar proteins and contain minerals, lipids, and lactose.

WPCs are used in numerous applications including in the manufacturing of dairy desserts, beverages, and yogurt products. Furthermore, these concentrates are employed as a source of protein fortification for infant food and nutritional products. WPC exhibits gelling property when dissolved in water and heated. This property is extremely beneficial for nutritional and meat industry applications.

Whey Protein Hydrolysate (WPH) exhibits prebiotic, antimicrobial, antioxidant, and hypertensive properties. They are used to manufacture infant nutrition, clinical nutrition, and sports nutrition products. However, hydrolyzed whey proteins are more expensive as compared to their counterparts; hence, a majority of the whey supplement manufacturers add a very small quantity of the same to their respective formulas.

WPH is also used in the manufacturing of bakery products, low-fat food products, protein-fortified beverages, and dietetic foods. Favorable support from the regulatory bodies including the U.S. Food and Drug Administration (FDA) for whey protein hydrolysate to be used in a variety of food applications is likely to drive the segment growth over the forecast period.

Application Insights

The food and beverage application segment led the whey protein market and accounted for more than 48.0% share of the global revenue in 2019. The product is preferred for bakery and confectionery products due to its ability to emulsify, brown, foam, and thicken products. These ingredients also increase the solubility, nutritional fortification, gelation, and water-binding properties of bakery and confectionery products.

The market has witnessed various developments in the beverage space. For instance, in February 2019, Arla Foods amba, a Denmark-based manufacturer of dairy products, introduced a new beverage based on the whey protein medical beverage concept. This new product was targeted at patients who require nutrition in a low-volume. Such developments in the beverages space are expected to fuel the growth of the product in the beverages segment over the forecast period.

In the personal care and cosmetic industry, it is utilized to produce various products such as hair conditioners, wave sets, hair dyes and colors, shampoos, eye care, and face and body moisturizing products. Therefore, the demand for whey protein in the application is likely to witness significant growth on account of its various characteristics including skin-hydrating, skin-conditioning, and hair conditioning properties.

Shifting consumer preference for herbal and natural ingredient-based premium personal care products is anticipated to accelerate the demand for the product in the personal care and cosmetics application. Moreover, the increasing demand for moisturizers and creams owing to the growing consumer awareness and high disposable income in economies such as the U.S., Canada, France, and China is expected to augment the industry growth.

Regional Insights

North America dominated the market and accounted for over 39.0% share of global revenue in 2019. The region has a vast population facing increased obesity levels and lifestyle-related diseases on account of their dietary habits, high disposable income, and availability of several processed and ready-to-eat foods, which are not necessarily good for consumer health. The ‘transitioning face’ of food has evolved into functional foods and supplements, which can provide numerous health benefits beyond basic nutrition.

North America is projected to witness steady growth on account of the increasing use of food supplements with reduced calorie levels and high nutritional content. Furthermore, increasing awareness about the consumption of supplement products in Mexico and Canada on account of new product launches is expected to promote the application scope of whey protein ingredients in the region over the forecast period.

In Asia Pacific, the market was valued at USD 1.6 billion in 2019 and is anticipated to witness the fastest growth over the forecast period on account of growing exports and domestic demand for dairy-based protein ingredients such as whey and casein. China is one of the largest producers of dairy-based proteins owing to the easy availability of raw materials.

In addition, a rise in health awareness among people, coupled with an increasing number of fitness clubs in India, is predicted to drive the market of the product over the next few years. The remarkable growth of the food and beverage industry in India and the increase in purchasing power parity of consumers are expected to boost the demand for healthy and functional foods rich in protein content. Augmented demand for nutritional food and beverages among Indian customers is projected to positively impact the market over the forecast period.

Key Companies & Market Share Insights

Key companies are focusing on R&D as they are periodically launching new products to stay abreast in competition. The manufacturers in the market space have established partnerships with milk supplying companies to ensure continuous raw material supply and efficient logistics networks. Moreover, acquisition emerged as a key business strategy in the market for the expansion of geographical footprint as well as product portfolio.

For instance, in April 2019, Saputo Inc. acquired Dairy Crest Group P.L.C., the U.K. based dairy products manufacturer. The former undertook the acquisition to expand its international presence. Key players are increasingly focusing on consolidation in order to strengthen their market position. Thus, the whey protein industry is anticipated to witness several mergers and acquisitions in the coming years. Some of the prominent players in the whey protein market include:

• Hilmar Cheese Company, Inc.

• Saputo Inc.

• Glanbia plc

• Fonterra Co-operative Group Ltd

• Arla Foods

• Alpavit

• Wheyco GmbH

• Milk Specialties

• Carbery Group

• LACTALIS Ingredients

• Olam International

• Davisco Foods International, Inc.

• Milkaut SA

• Leprino Foods Company

• Maple Island Inc.

Whey Protein Market Report Scope

Segments Covered in the Report

This report forecasts revenue and volume growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global whey protein market report on the basis of type, application, and region:

• Type Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

  • Whey Protein Isolates

  • Whey Protein Concentrates

    • Whey Protein Concentrate 35

    • Whey Protein Concentrate 50

    • Whey Protein Concentrate 60-80

  • Whey Protein Hydrolysates

• Application Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

  • Nutritional Supplements

  • Personal Care

  • Food & Beverages

  • Animal Feed & Pet Food

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • U.K.

    • France

    • Italy

    • Spain

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

  • Central & South America

    • Brazil

    • Argentina

  • Middle East & Africa

    • Saudi Arabia