Dairy Protein Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

The Global Dairy Protein Market Report is Segmented by Product Type (Milk Protein Concentrates (MPCS), Whey Protein Concentrates (WPCS), Whey Protein Isolates (WPIS), Milk Protein Isolates (MPIS), Casein and Caseinates, and Other Ingredients), Application (Sports Nutrition, Infant Formulations, Functional Food and Beverages, Dietary Supplements, Animal Feed and Pet Food, and Other Applications), and Geography (North America, Europe, Asia-Pacific, South America, and the Middle East and Africa). The Report Offers the Market Size in Value Terms in USD for all the Abovementioned Segments.

Dairy Protein Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

Dairy Protein Market Size

Dairy Protein Market Summary
Study Period 2019 - 2030
Market Size (2025) USD 5.17 Billion
Market Size (2030) USD 6.46 Billion
CAGR (2025 - 2030) 4.53 %
Fastest Growing Market Asia Pacific
Largest Market Europe
Market Concentration Low

Major Players

Dairy Protein Market Major Players

*Disclaimer: Major Players sorted in no particular order

Compare market size and growth of Dairy Protein Market with other markets in Food & Beverage Industry

Beverages

Food

Food Ingredients and Food Additives

Food Supplements

Dairy Protein Market Analysis

The Dairy Protein Market size is estimated at USD 5.17 billion in 2025, and is expected to reach USD 6.46 billion by 2030, at a CAGR of 4.53% during the forecast period (2025-2030).

The dairy protein industry is experiencing significant transformation driven by technological advancements in processing and production methods. Leading manufacturers are investing heavily in research and development to enhance protein ingredients extraction efficiency and product quality. For instance, in March 2023, FrieslandCampina opened a new state-of-the-art facility in the Netherlands that will increase lactoferrin production from 20 metric tonnes to 80 metric tonnes annually. This technological evolution has enabled manufacturers to develop more specialized and functional dairy ingredients, meeting the diverse requirements of end-user industries while maintaining product quality and nutritional value.


The industry is witnessing a strong shift towards clean-label and organic dairy protein ingredients, reflecting changing consumer preferences and regulatory requirements. Manufacturers are increasingly focusing on transparency in sourcing and processing methods, with many adopting sustainable practices throughout their supply chains. According to USDA data, the skimmed milk powder production, a key raw material for protein ingredients extraction, reached 54.995 thousand lb in December 2022, indicating robust supply chain capabilities. This trend has led to the development of new product variants that cater to specific consumer segments, including organic, grass-fed, and GMO-free options.


The market is experiencing rapid innovation in application development, particularly in the sports nutrition and functional food sectors. Manufacturers are developing specialized dairy protein formulations that offer improved functionality, better taste profiles, and enhanced bioavailability. The industry has seen significant advancement in protein processing technologies, with new methods being developed to preserve the native structure of proteins while improving their functional properties. This innovation drive is supported by substantial investments in research and development facilities, with companies establishing dedicated innovation centers to accelerate product development.


The global dairy protein market landscape is being reshaped by strategic investments in production capacity and geographical expansion. In January 2022, Kerry Group inaugurated a new state-of-the-art facility in Saudi Arabia with an investment of EUR 80 million, demonstrating the industry's focus on expanding production capabilities in emerging markets. Companies are also forming strategic partnerships and collaborations to strengthen their market presence and enhance their technological capabilities. These investments are accompanied by efforts to optimize production processes, reduce environmental impact, and improve supply chain efficiency, reflecting the industry's commitment to sustainable growth and innovation.

Segment Analysis: By Ingredients

Whey Protein Segment in Dairy Protein Market

Whey protein dominates the dairy protein market, commanding approximately 49% of the total market share in 2024. This significant market position is attributed to whey protein's versatile applications across various industries, particularly in sports nutrition and lifestyle sectors. Whey protein concentrates are experiencing high demand due to their broad range of functional, biological, and nutritional properties, making them ideal ingredients for use in food products and medicines. The segment's growth is further supported by increasing consumer awareness about the health benefits of whey protein, including muscle recovery, weight management, and overall wellness benefits. Major manufacturers are focusing on developing innovative whey protein products with enhanced functionality and improved taste profiles to maintain their competitive edge in this lucrative segment.

Market Analysis of Dairy Protein Market: Chart for By Ingredients

Milk Protein Segment in Dairy Protein Market

The milk protein segment is projected to experience the highest growth rate of approximately 5% during the forecast period 2024-2029. This accelerated growth is driven by the increasing adoption of milk proteins in various food and beverage applications, particularly in processed cheese, cream cheese, ice cream, yogurt, and fermented dairy beverages. The segment's growth is further propelled by the rising consumer demand for protein-enriched products and the expanding application scope in sports nutrition and dietary supplements. Manufacturers are investing in research and development to enhance the functional properties of milk proteins, focusing on improved solubility, heat stability, and nutritional profiles. The segment is also benefiting from the growing trend of clean-label products, as milk proteins are perceived as natural and wholesome ingredients by consumers.

Remaining Segments in Dairy Protein Market

The casein protein and caseinates segment plays a vital role in the dairy protein market, offering unique functional properties that are essential for various food applications. This segment is particularly important in the cheese manufacturing industry, where these proteins contribute to texture, melting properties, and overall product quality. Casein protein and caseinates are also gaining traction in the nutritional supplement industry due to their slow-digesting properties, making them ideal for sustained protein release. The segment continues to evolve with manufacturers developing specialized casein products for specific applications, including sports nutrition, bakery products, and pharmaceutical applications. The growing demand for clean-label ingredients and natural protein sources further supports the segment's position in the market.

Segment Analysis: Application

Food & Beverage Segment in Dairy Protein Market

The Food & Beverage segment dominates the global dairy protein market, accounting for approximately 60% of the total market share in 2024. This substantial market share is driven by the growing popularity of protein-enriched foods and increasing consumer awareness of the health benefits of dairy-rich diets. The segment's growth is particularly notable in applications such as bakery products, snack foods, beverages, and dairy alternative products. Manufacturers are actively incorporating dairy proteins in various food formulations due to their versatile functional properties, including texture enhancement, flavor improvement, and nutritional enrichment. The rising trend toward convenient and ready-to-eat snack foods and beverages with added protein content has further strengthened this segment's market position.

Dietary Supplements Segment in Dairy Protein Market

The Dietary Supplements segment is projected to experience the fastest growth in the dairy protein market, with an estimated CAGR of around 5% during 2024-2029. This accelerated growth is primarily driven by increasing consumer focus on health and wellness, particularly in sports nutrition and performance supplements. The segment's expansion is supported by growing awareness about the benefits of protein supplementation among athletes, fitness enthusiasts, and health-conscious consumers. The rising demand for specialized nutrition products, including sports performance supplements, baby food formulations, and elderly nutrition products, is fueling this growth. Manufacturers are responding to this trend by developing innovative protein-based supplement formulations that cater to specific nutritional needs and demographic preferences.

Remaining Segments in Application

The remaining segments in the dairy protein market include Animal Feed, Pharmaceutical, and Personal Care & Cosmetics applications. The Animal Feed segment plays a crucial role in livestock nutrition and dairy cattle feed formulations. The Pharmaceutical segment utilizes dairy proteins in various medical applications and drug delivery systems, benefiting from their bioactive properties. The Personal Care & Cosmetics segment, though smaller, is gaining traction due to the increasing use of dairy proteins in skincare and haircare products. These segments, while representing a smaller market share, contribute to the market's diversification and demonstrate the versatility of dairy proteins across multiple industries.

Dairy Protein Market Geography Segment Analysis

Dairy Protein Market in North America

The North American dairy protein market demonstrates a robust ecosystem supported by advanced manufacturing capabilities, strong R&D infrastructure, and increasing consumer awareness about protein-rich diets. The United States leads the regional market, followed by Canada and Mexico, with each country contributing uniquely to the market dynamics. The region benefits from well-established distribution networks, technological advancements in protein processing, and growing demand from various end-use industries, including sports nutrition, infant formula, and functional foods. The presence of major dairy protein manufacturers and processors further strengthens North America's market position in the global landscape.

Market Analysis of Dairy Protein Market: Forecasted Growth Rate by Region

Dairy Protein Market in United States

The United States dominates the North American dairy protein market, holding approximately 70% of the regional market share. The country's market leadership is driven by its extensive dairy farming infrastructure, technological advancements in protein processing, and the strong presence of major market players. The US market benefits from increasing health consciousness among consumers and growing demand for protein-enriched products. The country's robust food and beverage industry continues to innovate with new protein-fortified products, while the sports nutrition segment shows sustained growth. The presence of stringent quality standards and regulatory frameworks ensures high-quality dairy protein products, making the US a benchmark for dairy protein production globally.

Dairy Protein Market in Mexico

Mexico emerges as the fastest-growing market in North America, with a projected growth rate of approximately 4% during 2024-2029. The country's dairy protein market is experiencing rapid evolution driven by increasing urbanization and growing awareness about protein-rich diets. Mexico's food processing industry is increasingly incorporating dairy proteins in various applications, particularly in functional foods and beverages. The country's strategic location and trade agreements facilitate both import and export opportunities. Rising health consciousness among consumers and growing demand for protein supplements in the sports nutrition segment are further catalyzing market growth. The government's initiatives to improve the dairy sector infrastructure are expected to strengthen the market position in the coming years.

Dairy Protein Market in Europe

The European dairy protein market showcases a mature and sophisticated landscape characterized by advanced processing technologies and stringent quality standards. The region encompasses major markets, including Germany, the United Kingdom, France, Italy, Spain, and Russia, each contributing significantly to the overall market dynamics. Europe's dairy protein industry benefits from strong research and development capabilities, innovative product development, and growing consumer preference for protein-enriched products. The region's focus on sustainable production methods and organic dairy proteins aligns well with evolving consumer preferences and regulatory requirements.

Dairy Protein Market in Germany

Germany maintains its position as the largest dairy protein market in Europe, commanding approximately 17% of the regional market share. The country's market leadership is underpinned by its advanced dairy processing infrastructure, strong research and development capabilities, and innovative product development. German manufacturers are particularly focused on developing specialized protein ingredients for various applications, including sports nutrition, infant formula, and clinical nutrition. The country's robust food and beverage industry continues to drive demand for dairy proteins, while increasing health consciousness among consumers fuels market growth.

Dairy Protein Market in Spain

Spain emerges as the fastest-growing market in Europe, with a projected growth rate of approximately 4% during 2024-2029. The Spanish market is witnessing significant evolution driven by increasing consumer awareness about protein-rich diets and growing demand for functional foods. The country's dairy protein industry is experiencing rapid modernization, with manufacturers investing in advanced processing technologies. Spain's growing sports nutrition segment and increasing demand for protein-enriched products in various applications are driving market growth. The country's strategic focus on dairy sector development and increasing export opportunities are expected to further boost market expansion.

Dairy Protein Market in Asia-Pacific

The Asia-Pacific dairy protein market demonstrates dynamic growth potential driven by rapid urbanization, increasing disposable incomes, and growing awareness about protein-rich diets. The region encompasses key markets, including China, India, Japan, and Australia, each contributing uniquely to the market landscape. The APAC market is characterized by evolving consumer preferences, growing health consciousness, and increasing demand for protein-enriched products. The region's rapid industrialization and modernization of dairy processing infrastructure are creating new opportunities for market expansion.

Dairy Protein Market in China

China stands as the largest dairy protein market in the Asia-Pacific region, driven by its massive population base and growing demand for protein-enriched products. The country's dairy protein industry is experiencing rapid modernization with significant investments in processing infrastructure and technology. China's growing middle class, increasing health consciousness, and rising demand for infant formula and sports nutrition products are key growth drivers. The government's focus on improving dairy sector efficiency and food safety standards further strengthens the market position.

Dairy Protein Market in India

India emerges as the fastest-growing market in the Asia-Pacific region, driven by its large population base and increasing awareness about protein-rich diets. The country's dairy protein market is witnessing significant transformation with modernization of processing infrastructure and growing demand from various end-use industries. India's traditional dairy culture, combined with growing urbanization and rising disposable incomes, creates favorable conditions for market growth. The country's focus on value-added dairy products and increasing health consciousness among consumers are expected to drive future market expansion.

Dairy Protein Market in South America

The South American dairy protein market demonstrates significant growth potential, with Brazil and Argentina emerging as key markets in the region. The market is characterized by increasing modernization of dairy processing infrastructure and growing demand for protein-enriched products. Brazil stands as the largest market in the region, while Argentina shows the fastest growth potential. The region's dairy protein industry benefits from abundant raw material availability and growing consumer awareness about protein-rich diets. Increasing investments in processing technology and growing demand from various end-use industries, including sports nutrition and functional foods, are driving market growth.

Dairy Protein Market in Middle East & Africa

The Middle East & Africa dairy protein market showcases evolving growth dynamics, with the United Arab Emirates, Saudi Arabia, and South Africa emerging as key markets. The region's market is characterized by increasing investments in dairy processing infrastructure and growing demand for protein-enriched products. Saudi Arabia emerges as the largest market in the region, while the United Arab Emirates demonstrates the fastest growth potential. The market benefits from growing health consciousness among consumers and increasing demand for functional foods and beverages. The region's focus on food security and self-sufficiency in dairy production is expected to drive future market growth.

Dairy Protein Industry Overview

Top Companies in Dairy Protein Market

The dairy protein market is characterized by intense innovation and strategic developments from major players like Fonterra Co-operative Group, FrieslandCampina, and Glanbia PLC. Companies are heavily investing in research and development to create novel dairy ingredients solutions, particularly focusing on functional claims such as clean-label, organic, and non-GMO certified products. Operational agility is demonstrated through the establishment of new manufacturing facilities and technology centers across multiple geographies, enabling faster responses to regional market demands. Strategic partnerships and joint ventures, especially in emerging markets, have become increasingly common as companies seek to expand their geographical presence and strengthen market positions. The industry has also witnessed significant expansion activities, with companies building new production facilities, particularly in regions like the Middle East, Asia-Pacific, and Africa, to capitalize on growing dairy protein demand and establish a stronger local presence.

Fragmented Market with Strong Regional Players

The global dairy protein market exhibits a fragmented structure with a mix of large multinational corporations and regional specialists competing across different segments. Major global players leverage their extensive research capabilities, established distribution networks, and broad product portfolios to maintain market leadership, while regional players capitalize on their local market knowledge and specialized product offerings. The market is characterized by the presence of both dairy cooperatives and private companies, with cooperatives having a significant advantage in raw material sourcing and supply chain integration.


The industry has witnessed moderate consolidation through strategic acquisitions and partnerships, particularly focused on expanding product portfolios and geographical reach. Companies are increasingly pursuing vertical integration strategies to ensure better control over raw material supply and quality standards. The competitive landscape is further shaped by the presence of ingredient specialists who focus on specific protein categories like the whey protein industry or casein, alongside diversified dairy companies that offer a broader range of dairy ingredients products.

Innovation and Sustainability Drive Future Success

Success in the protein ingredients industry increasingly depends on companies' ability to innovate while maintaining sustainable practices throughout their operations. Market leaders are focusing on developing new processing technologies to improve protein extraction efficiency and product quality, while also investing in sustainable sourcing practices to appeal to environmentally conscious consumers. The ability to offer customized solutions for different applications, particularly in high-growth segments like sports nutrition and infant formula, has become crucial for maintaining a competitive advantage.


Companies looking to gain market share must navigate several challenges, including high buyer concentration in certain segments and increasing competition from plant-based protein ingredients alternatives. Success factors include developing strong relationships with key customers, ensuring consistent product quality, and maintaining cost competitiveness through operational efficiency. Regulatory compliance, particularly regarding food safety and labeling requirements, continues to be critical for market participation. Future market positions will be significantly influenced by companies' ability to adapt to changing consumer preferences while maintaining efficient production processes and strong supply chain relationships.

Dairy Protein Market Leaders

  1. Fonterra Co-operative Group Limited

  2. Royal FrieslandCampina NV

  3. Glanbia PLC

  4. Groupe Lactalis

  5. Arla Foods

  6. *Disclaimer: Major Players sorted in no particular order
Dairy Protein Market Concentration
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Dairy Protein Market News

  • August 2024: Fonterra and Superbrewed Food partnered to develop biomass protein technology. This collaboration aims to meet the rising consumer demand for protein. By merging Superbrewed's biomass protein platform with Fonterra's expertise in dairy processing and ingredient applications, the two companies aim to create a nutrient-rich, functional biomass protein.
  • August 2024: Fonterra invested USD 75 million to expand its Studholme Site to boost protein ingredient production. This strategic move aligns with Fonterra's overarching goal of enhancing its premium ingredients business, capitalizing on its dairy science and innovation expertise.
  • July 2024: PT Frisian Flag Indonesia (FFI), a subsidiary of Friesland Campina, officially opened a new factory in Sukamahi village, located in the Cikarang district of Bekasi regency. Spanning 25.4 hectares and boasting an investment of EUR 257 million (equivalent to IDR 3.8 trillion), this facility marked the largest production investment globally for Friesland Campina, the parent entity of PT FFI.

Dairy Protein Market Report - Table of Contents

1. INTRODUCTION

  • 1.1 Study Assumptions and Market Definition
  • 1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. MARKET DYNAMICS

  • 3.1 Market Drivers
    • 3.1.1 Consumer Inclination Toward Protein-Rich Food Products
    • 3.1.2 Increasing Milk Production Supporting The Dairy Protein Demand
  • 3.2 Market Restraints
    • 3.2.1 Surging Market Penetration Of Dairy Protein Alternatives
    • 3.2.2 Increase In Lactose Intolerance Hampering Market Growth
  • 3.3 Porter's Five Forces Analysis
    • 3.3.1 Threat of New Entrants
    • 3.3.2 Bargaining Power of Buyers/Consumers
    • 3.3.3 Bargaining Power of Suppliers
    • 3.3.4 Threat of Substitute Products
    • 3.3.5 Intensity of Competitive Rivalry

4. MARKET SEGMENTATION

  • 4.1 Product Type
    • 4.1.1 Milk Protein Concentrates (MPCs)
    • 4.1.2 Whey Protein Concentrates (WPCs)
    • 4.1.3 Whey Protein Isolates (WPIs)
    • 4.1.4 Milk Protein Isolates (MPIs)
    • 4.1.5 Casein and Caseinates
    • 4.1.6 Other Ingredients
  • 4.2 Application
    • 4.2.1 Sports Nutrition
    • 4.2.2 Infant formulations
    • 4.2.3 Functional Food and Beverages
    • 4.2.4 Dietary Supplements
    • 4.2.5 Animal Feed and Pet Food
    • 4.2.6 Other Applications
  • 4.3 Geography
    • 4.3.1 North America
    • 4.3.1.1 United States
    • 4.3.1.2 Canada
    • 4.3.1.3 Mexico
    • 4.3.1.4 Rest of North America
    • 4.3.2 Europe
    • 4.3.2.1 United Kingdom
    • 4.3.2.2 Germany
    • 4.3.2.3 France
    • 4.3.2.4 Russia
    • 4.3.2.5 Italy
    • 4.3.2.6 Spain
    • 4.3.2.7 Rest of Europe
    • 4.3.3 Asia Pacific
    • 4.3.3.1 India
    • 4.3.3.2 China
    • 4.3.3.3 Japan
    • 4.3.3.4 Australia
    • 4.3.3.5 Rest of Asia-Pacific
    • 4.3.4 South America
    • 4.3.4.1 Brazil
    • 4.3.4.2 Argentina
    • 4.3.4.3 Rest of South America
    • 4.3.5 Middle East & Africa
    • 4.3.5.1 South Africa
    • 4.3.5.2 Saudi Arabia
    • 4.3.5.3 Rest of Middle East & Africa

5. COMPETITIVE LANDSCAPE

  • 5.1 Strategies Adopted by the Leading Players​
  • 5.2 Market Positioning Analysis
  • 5.3 Company Profiles
    • 5.3.1 Fonterra Co-operative Group Limited
    • 5.3.2 Glanbia PLC
    • 5.3.3 Groupe Lactalis
    • 5.3.4 Kerry Group PLC
    • 5.3.5 Royal FrieslandCampina NV
    • 5.3.6 Prolactal GmbH
    • 5.3.7 Groupe Sodiaal
    • 5.3.8 Hoogwegt International BV
    • 5.3.9 Arla Foods Amba​
    • 5.3.10 (Butterfly Equity) Milk Specialities Global
  • *List Not Exhaustive

6. MARKET OPPORTUNITIES AND FUTURE TRENDS

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Dairy Protein Industry Segmentation

Dairy protein encompasses the proteins present in milk and its derivatives, including cheese, yogurt, and whey protein supplements. The primary dairy proteins are casein and whey. Casein is slow-digesting and constitutes roughly 80% of the protein content in milk. In contrast, whey, accounting for about 20% of the protein in milk, is fast-digesting.

The global dairy protein market has been segmented based on product type, applications, and geography. The market has been segmented based on product type into milk protein concentrates (MPCs), whey protein concentrates (WPCs), whey protein isolates (WPIs), milk protein isolates (MPIs), casein and caseinates, and other ingredients. Based on application, the market has been segmented into sports nutrition, infant formulations, functional food and beverages, dietary supplements, animal feed and pet food, and other applications. Also, the study provides an analysis of the dairy protein market in emerging and established markets across the world, including North America, Europe, Asia-Pacific, South America, and the Middle East and Africa. The market sizing has been done in value terms in USD for all the abovementioned segments.

For each segment, the market sizing and forecasts have been done based on value (USD).

Product Type Milk Protein Concentrates (MPCs)
Whey Protein Concentrates (WPCs)
Whey Protein Isolates (WPIs)
Milk Protein Isolates (MPIs)
Casein and Caseinates
Other Ingredients
Application Sports Nutrition
Infant formulations
Functional Food and Beverages
Dietary Supplements
Animal Feed and Pet Food
Other Applications
Geography North America United States
Canada
Mexico
Rest of North America
Europe United Kingdom
Germany
France
Russia
Italy
Spain
Rest of Europe
Asia Pacific India
China
Japan
Australia
Rest of Asia-Pacific
South America Brazil
Argentina
Rest of South America
Middle East & Africa South Africa
Saudi Arabia
Rest of Middle East & Africa
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Dairy Protein Market Research FAQs

How big is the Dairy Protein Market?

The Dairy Protein Market size is expected to reach USD 5.17 billion in 2025 and grow at a CAGR of 4.53% to reach USD 6.46 billion by 2030.

What is the current Dairy Protein Market size?

In 2025, the Dairy Protein Market size is expected to reach USD 5.17 billion.

Who are the key players in Dairy Protein Market?

Fonterra Co-operative Group Limited, Royal FrieslandCampina NV, Glanbia PLC, Groupe Lactalis and Arla Foods are the major companies operating in the Dairy Protein Market.

Which is the fastest growing region in Dairy Protein Market?

Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2025-2030).

Which region has the biggest share in Dairy Protein Market?

In 2025, the Europe accounts for the largest market share in Dairy Protein Market.

What years does this Dairy Protein Market cover, and what was the market size in 2024?

In 2024, the Dairy Protein Market size was estimated at USD 4.94 billion. The report covers the Dairy Protein Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Dairy Protein Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.

Dairy Protein Market Research

Mordor Intelligence provides a comprehensive analysis of the dairy protein market. We leverage extensive expertise in protein ingredients research and consulting. Our detailed examination covers the full range of dairy ingredients, including segments like whey protein, casein protein, milk protein concentrate, and milk protein isolate. The report offers in-depth insights into dairy nutrition trends and dairy derivatives, along with emerging applications in sports nutrition protein. This is available as an easy-to-download report PDF.

Stakeholders across the protein ingredients industry benefit from our thorough analysis of dairy protein supplements and developments in milk protein hydrolysate. The report examines various aspects of dairy amino acids and their applications. It also tracks innovations in milk protein concentrate market dynamics. Our research includes a detailed evaluation of dairy ingredients market trends, providing valuable insights for manufacturers, investors, and industry participants. The report offers comprehensive data on whey protein industry developments and dairy nutrition market opportunities.