Milk Protein Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Type (Milk Protein Concentrates, Milk Protein Isolates, Milk Protein Hydrolysates, Others), By Livestock (Cow, Buffalo & Goat), By Form (Dry & Liquid), By Application (Sports Nutrition, Infant Formula, Dairy Products, Others), By Functionality (Emulsification, Foaming & Thickening, Gelation, Others), By Processing Method (Pasteurization, Creaming & Homogenization, Filtration, Others), By Region and Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 14.53 Billion
CAGR (2026-2031)	6.97%
Fastest Growing Segment	Milk Protein Concentrates
Largest Market	Europe
Market Size (2031)	USD 21.77 Billion

Market Overview

The Global Milk Protein Market will grow from USD 14.53 Billion in 2025 to USD 21.77 Billion by 2031 at a 6.97% CAGR. Milk proteins are high-quality nutritional ingredients derived from bovine milk, primarily comprising casein and whey fractions isolated through filtration or enzymatic processes. These concentrates are essential in food processing due to their solubility and complete amino acid profiles, utilized extensively in infant formula, clinical nutrition, and fortified beverages. The primary drivers supporting market growth include escalating global demand for sports nutrition products and increasing consumer awareness regarding the role of protein in muscle maintenance and healthy ageing.

However, the sector faces a significant challenge regarding the price volatility of raw milk, which fluctuates due to climatic conditions and feed costs, potentially disrupting supply chain stability. Despite these constraints, the industrial shift toward high-value ingredients remains strong. According to the USDA Foreign Agricultural Service, in 2024, exports of Whey Protein Concentrate containing 80 percent protein content (WPC80+) grew 17 percent year-over-year. This statistic underscores the sustained preference for functional, high-purity protein sources even amidst broader market pressures.

Key Market Drivers

The expansion of the sports nutrition and performance supplements sector has transitioned from a niche market to a mainstream category, significantly fueling global demand for milk proteins like whey and casein. This growth is driven by a broadening consumer base, including casual gym-goers and lifestyle users, seeking convenient formats such as ready-to-drink beverages and protein bars. Manufacturers are responding by developing superior tasting formulations that maintain high nutritional value, thereby increasing consumption frequency among non-elite athletes. According to Glanbia plc, February 2025, in the '2024 Full Year Results', the company's flagship sports nutrition brand, Optimum Nutrition, delivered a revenue increase of 7.5 percent year-over-year, reaching approximately 1.2 billion dollars, highlighting the robust commercial momentum in this segment.

Concurrently, the rising consumer adoption of high-protein and functional diets is reshaping the industry, as individuals increasingly prioritize nutrient density for weight management and healthy ageing. This trend compels dairy processors to innovate beyond traditional offerings, fortifying everyday foods like yogurts with concentrated milk proteins to meet heightened nutritional expectations. According to FrieslandCampina Ingredients, January 2025, in the 'Nutritional Trends 2025' report, 71 percent of global consumers actively prioritized protein in their diets in 2024, a significant rise from previous years. This pervasive shift drives retail performance; according to Arla Foods Ingredients, February 2025, in the 'Dairy protein is the trend of the decade' article, sales of products with high dairy protein content in the United States grew by 17 percent in 2024, demonstrating the market's strong trajectory.

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Key Market Challenges

The volatility of raw milk prices constitutes a significant impediment to the consistent expansion of the Global Milk Protein Market. This fluctuation, heavily influenced by variable feed costs and climatic shifts, creates an unpredictable cost structure for manufacturers of casein and whey concentrates. When raw material expenses spike, processors are compelled to adjust pricing, which disrupts the financial planning of downstream food and beverage companies. This uncertainty often leads buyers to hesitate in securing long-term supply agreements or to reduce procurement volumes to manage their own margins.

Recent data underscores the severity of this instability within key production regions. According to the Association of Milk Producers of Ukraine, in January 2025, the average price of raw milk in the European Union increased by 17 percent compared to the same period in the previous year. Such stark year-over-year cost inflation erodes supply chain confidence and encourages the substitution of dairy proteins with more price-stable plant-based alternatives, thereby directly constraining market growth potential.

Key Market Trends

The implementation of carbon-neutral and sustainable processing has emerged as a definitive trend, driven by intense regulatory pressure and the need to decarbonize the upstream dairy supply chain. Manufacturers are prioritizing the reduction of Scope 3 emissions through advanced manure management and renewable energy adoption at the farm level, moving beyond simple operational efficiency to address the environmental footprint of raw milk production. This systemic shift is becoming a prerequisite for market access in premium regions, compelling major cooperatives to quantify and report their reductions transparently. According to FrieslandCampina, February 2025, in the 'Annual Report 2024', greenhouse gas emissions at member dairy farms decreased by 9.8 percent in comparison to the previous year, illustrating the scale of industrial commitment to climate targets.

Simultaneously, the growth of specialized hydrolysates for premium infant formula is accelerating as producers pivot toward high-margin, scientifically advanced ingredients to counter commoditization. This trend is characterized by the development of hypoallergenic and gut-friendly protein fractions that closely mimic the bioactive properties of human milk, catering to an increasingly sophisticated demographic of parents concerned with early-life digestion and immunity. Dairy processors are leveraging these technical advancements to command higher price points and stabilize revenue streams against volatile commodity markets. According to Danone, February 2025, in the '2024 Full Year Results', sales within the company's specialized nutrition division increased by 5.1 percent year-over-year, highlighting the robust commercial demand for these functionally optimized formulations.

Segmental Insights

The Milk Protein Concentrates segment is emerging as the fastest-growing category in the global milk protein market due to its widespread adoption in sports nutrition and dietary supplements. This growth is propelled by the ingredient's ability to provide a complete protein profile while maintaining excellent heat stability and solubility in beverages. Furthermore, recognition by regulatory bodies such as the United States Food and Drug Administration regarding safety standards facilitates their extensive use in food processing. As a result, manufacturers prioritize these concentrates to enhance the texture and nutritional value of yogurts, nutritional bars, and fortified drinks.

Regional Insights

Europe maintains a dominant position in the global milk protein market, driven by a robust manufacturing sector and high consumption of dairy-based nutritional products. The region's leadership is supported by stringent quality regulations from the European Food Safety Authority, which maintain high standards for food ingredients and encourage widespread adoption in infant formula and sports nutrition. Additionally, Germany and France serve as major production hubs, allowing manufacturers to meet the growing demand for functional ingredients in the bakery and confectionery sectors. This consistent supply chain and regulatory clarity ensure Europe's continued market stability.

Recent Developments

• In September 2025, Lactalis Ingredients announced the expansion of its protein portfolio with the launch of the Pronativ B2C range, a native whey protein designed for the end-consumer market. This new product line was showcased in conjunction with the company's exhibition at SupplySide West 2025 in Las Vegas. The range features native whey proteins extracted directly from milk using minimal processing methods to preserve the protein's structure and nutritional integrity. Available in various natural flavors, the launch signified the company's strategic move to offer its high-purity, traceable protein solutions directly to health-conscious individuals beyond its traditional business-to-business offerings.
• In June 2025, Fonterra highlighted its strategic research focus on "next generation dairy solutions" designed to support healthy aging and combat frailty in older populations. The Director of the company's R&D Centre discussed the development of innovative high-protein ingredients that deliver essential nutrition without increasing the viscosity of the final beverage, a significant technical hurdle in medical nutrition. This breakthrough allows for the creation of easier-to-consume fortified products for seniors. The initiative underscored the cooperative's commitment to using scientific innovation to meet the specific dietary needs of an aging global demographic through functional protein solutions.
• In October 2024, FrieslandCampina Ingredients introduced a novel bar concept featuring its Biotis Fermentis ingredient, specifically targeting the performance and active nutrition sectors. This innovation involved a unique process of fermenting proteins, prebiotics, and probiotic cultures together to create a solution that supports the gut-muscle axis. The company unveiled this concept ahead of the Fi Europe exhibition, highlighting its potential to address the growing consumer interest in holistic health products that combine gut health benefits with effective protein supplementation. The Global Marketing Director at the company noted that this solution enables brands to develop nutritious, on-trend snacks.
• In September 2024, Arla Foods Ingredients launched a new initiative titled "Go High in Protein" alongside the release of its patented Nutrilac ProteinBoost range. This development was aimed at assisting dairy manufacturers in creating innovative high-protein products that satisfy consumer demands for both nutritional quality and sensory appeal. The newly introduced microparticulated whey proteins were designed to overcome common technical challenges, such as compromising texture or taste in high-protein formulations. The company emphasized that these ingredients are rich in essential amino acids and facilitate the production of convenient, shelf-stable dairy products without sacrificing flavor.

Key Market Players

• Arla Foods
• FrieslandCampina
• Saputo
• Kerry Group
• Fonterra
• Glanbia
• Lactalis
• Nestlé
• Devondale Murray Goulburn
• Idaho Milk

By Type	By Livestock	By Form	By Application	By Functionality	By Processing Method	By Region
Milk Protein Concentrates Milk Protein Isolates Milk Protein Hydrolysates Others	Cow Buffalo & Goat	Dry & Liquid	Sports Nutrition Infant Formula Dairy Products Others	Emulsification Foaming & Thickening Gelation Others	Pasteurization Creaming & Homogenization Filtration Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Milk Protein Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Milk Protein Market, By Type:

• Milk Protein Concentrates
• Milk Protein Isolates
• Milk Protein Hydrolysates
• Others

• Milk Protein Market, By Livestock:

• Cow
• Buffalo & Goat

• Milk Protein Market, By Form:

• Dry & Liquid

• Milk Protein Market, By Application:

• Sports Nutrition
• Infant Formula
• Dairy Products
• Others

• Milk Protein Market, By Functionality:

• Emulsification
• Foaming & Thickening
• Gelation
• Others

• Milk Protein Market, By Processing Method:

• Pasteurization
• Creaming & Homogenization
• Filtration
• Others

• Milk Protein Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE