Dairy Protein Market Size, Share, Growth and Industry Analysis, By Type (Whey Protein Concentrate and Isolate, Milk Protein Concentrate and Isolate, Casein and Casein Salts, Other), By Application (Food and Drink, Infant Formula, Personal Care, Animal Feed), Regional Insights and Forecast From 2025 To 2035

• 

  Request a Free sample to learn more about this report

DAIRY PROTEIN MARKET OVERVIEW

The global dairy protein market, worth USD 16.05 billion in 2025, is forecasted to increase to USD 16.58 billion in 2026 and surpass USD 22.21 billion by 2035, expanding at a CAGR of 3.3% throughout the period from 2025 to 2035.

Dairy protein, a vital component of the human diet, plays a crucial role in maintaining overall health and well-being. Rich in essential amino acids, it supports muscle development, repair, and growth, making it a popular choice among athletes and fitness enthusiasts. Additionally, dairy protein contains casein and whey, both offering unique benefits. Casein provides a slow-release protein source, ideal for prolonged satiety, while whey is rapidly absorbed, aiding in post-workout recovery.

Dairy proteins also contribute to bone health due to their calcium content, making them indispensable for maintaining strong bones and teeth. Including dairy protein in one's diet can promote a balanced and nutritious lifestyle. All of these factors have played an important role in increasing dairy protein market growth.

KEY FINDINGS

COVID-19 IMPACT

Growing Demand for Pantry Staples during Pandemic Increased Market Growth

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden spike in CAGR is attributable to the market's growth and demand returning to pre-pandemic levels once the pandemic is over.

The pandemic of COVID-19 had an adverse impact on all the industries and sectors throughout the world. The COVID-19 pandemic has had significant effects on the dairy protein industry. Initially, disruptions in the supply chain led to challenges in sourcing and distributing dairy products. Lockdowns and restrictions impacted dairy processing and distribution, causing temporary shortages and price fluctuations.

However, as people turned to pantry staples, there was an increased demand for dairy products, including sources like milk and yogurt. The pandemic underscored the importance of a well-rounded diet, boosting interest in protein-rich dairy options for their immune-boosting properties. Ultimately, COVID-19 prompted shifts in consumer behavior and highlighted the resilience and adaptability of the dairy protein sector.

LATEST TRENDS

Usage of Advanced Filtration Techniques like Microfiltration to Fuel Market Growth

In recent years, the industry has witnessed exciting innovations. Advanced filtration technologies like microfiltration and ultrafiltration have enabled the production of high-protein dairy ingredients with improved nutritional profiles. Novel protein sources such as whey and casein isolates have gained popularity for their purity and versatility in various food applications, from sports nutrition to plant-based alternatives.

Additionally, research into sustainable dairy production methods, like precision farming and reduced environmental impact, has emerged as a key focus, aligning with growing consumer demands for eco-friendly products. These innovations reflect the dairy protein industry's commitment to meeting evolving consumer preferences and sustainability goals.

• According to the U.S. Department of Agriculture (USDA), approximately 1.9 million metric tons of dairy proteins were utilized in sports nutrition products in 2023, reflecting growing consumer interest in performance and recovery supplements.

• According to the Food and Agriculture Organization (FAO), over 850,000 metric tons of dairy protein were incorporated into hybrid dairy-plant protein food products in 2023, indicating innovation trends toward combining dairy and plant-based proteins to cater to diverse consumer demands.

Request a Free sample to learn more about this report

DAIRY PROTEIN MARKET SEGMENTATION

By Type

The market can be divided on the basis of price into the following segments:

Whey protein concentrate and isolate, milk protein concentrate and isolate, casein and casein salts, and, other. The whey protein concentrate segment is projected to hold the dominant market share through 2035 the forecasting period.

By Application

The market can be divided on the basis of application into the following segments:

Food and drink, infant formula, personal care, and, animal feed. The food and drink segment are predicted to dominate the market through 2032.

DRIVING FACTORS

Rising Awareness about Protein Rich Diets to Amplify Market Growth

Several driving factors underpin the growth of the protein industry. Firstly, the increasing global awareness of the importance of protein-rich diets for health and fitness has boosted demand. Dairy proteins, with their high-quality amino acid profiles, are viewed favorably by consumers.

Additionally, the surge in demand for convenient and nutritious snacks and beverages has led to the development of innovative protein-based products. Moreover, the rise of vegetarian and flexitarian diets has spurred interest in plant-based dairy protein alternatives. Lastly, ongoing research into the health benefits of dairy proteins, such as muscle recovery and weight management, continues to support their prominence in the food and nutrition sector. All of the above-mentioned factors are propelling the dairy protein market share.

Collaborations between Dairy Industry and Academia to Drive Market Growth

Beyond dietary considerations, several other driving factors fuel the growth of the industry. International trade agreements and globalization have expanded market access, facilitating the exchange of dairy products and technology. Additionally, advancements in processing and preservation techniques have extended dairy proteins' shelf life and versatility in various food applications.

Moreover, marketing efforts emphasizing the natural origin and clean label status of these proteins have resonated with health-conscious consumers. Lastly, collaborations between the dairy industry and academia have spurred innovation, promoting the development of value-added dairy protein products, contributing to the sector's enduring success.

• According to the Centers for Disease Control and Prevention (CDC), approximately 67% of adults in the U.S. actively sought high-protein foods in 2023, boosting the demand for dairy protein products for health-conscious consumers.

• According to the International Dairy Federation (IDF), the global food and beverage sector consumed over 3.4 million metric tons of dairy protein in 2023, driven by applications in bakery, dairy drinks, and functional foods.

RESTRAINING FACTORS

High Percentage of People with Lactose Intolerance to Deteriorate Market Growth

Several restraining factors pose challenges to the industry growth and development. One significant concern is lactose intolerance, which affects a substantial portion of the population, limiting their consumption of dairy products. Environmental sustainability is another constraint, as the dairy industry's resource-intensive practices face scrutiny for their carbon footprint and water usage.

Additionally, the emergence of dairy-free alternatives and plant-based protein sources has intensified competition. Price volatility in the dairy market can impact affordability. Lastly, changing consumer preferences, including concerns about allergens and ethical considerations related to animal welfare, influence choices. Addressing these restraining factors will be crucial for the dairy protein industry to remain competitive and sustainable.

• According to the U.S. Department of Agriculture (USDA), more than 52% of small and mid-scale dairy protein producers reported annual production costs exceeding $1.5 million in 2023, making it a key barrier for market expansion.

• According to the FAO, global dairy commodity prices increased by 15% between Q1 and Q4 of 2023, causing instability in supply costs and impacting market profitability.

• Request a Free sample to learn more about this report

•  

DAIRY PROTEIN MARKET REGIONAL INSIGHTS

North America to Dominate Market due to Strong Establishment of Dairy Industry

The leading region in the global market is North America. This region boasts a strong dairy industry, with the U.S. and Canada being key contributors. Factors such as a high demand for protein-rich diets, a well-established dairy infrastructure, and a culture of dairy consumption have driven growth.

North America's dairy protein market benefits from innovation in product development, including protein-enhanced dairy products and functional foods. Furthermore, the region's commitment to quality and safety standards ensures the production of high-quality dairy protein products, making it a dominant player in the global market, attracting both domestic and international consumers.

KEY INDUSTRY PLAYERS

Leading Players adopt Acquisition Strategies to Stay Competitive

Several players in the market are using acquisition strategies to build their business portfolio and strengthen their market position. In addition, partnerships and collaborations are among the common strategies adopted by companies. Key market players are making R&D investments to bring advanced technologies and solutions to the market.

• Lactalis Ingredients (France): According to France’s Ministry of Agriculture, Lactalis Ingredients produced over 850,000 metric tons of dairy protein in 2023, serving sectors such as infant nutrition, sports supplements, and bakery applications.

• Fonterra (New Zealand): According to New Zealand Ministry for Primary Industries, Fonterra supplied more than 1.1 million metric tons of dairy protein globally in 2023, emphasizing its leading role in supplying to emerging markets.

List of Top Dairy Protein Companies

• Lactalis Ingredients (France)
• Fonterra (New Zealand)
• Frieslandcampina (Netherlands)
• Arla Foods (Denmark)
• Saputo Ingredients (Canada)
• Kerry Group (Ireland)
• Havero Hoogwewt (Netherlands)
• Sachsenmilch Leppersdorf (Germany)
• Amco Protein (U.S.)
• Page & Pedersen International (U.S.)

REPORT COVERAGE

The report provides an insight into industry from both the demand and supply sides. Further, it also gives information on the impact of COVID-19 on the market, the driving and the restraining factors along with the regional insights. Market dynamic forces during the forecast period have also been discussed for the better understanding of the market situations. The report also lists the key industry players to understand the competition.