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

Europe Dairy Protein Market Trends and Insights

Rising adoption of high-protein diets among aging europeans

The aging demographic trend in Europe is a significant driver of dairy protein market expansion. Research demonstrates that elderly individuals have increased protein requirements, with the European Food Safety Authority (EFSA) establishing a Population Reference Intake (PRI) of 0.83 g protein/kg body weight per day. The PROT-AGE Study Group, supported by the European Union Geriatric Medicine Society, recommends even higher protein consumption: 1.0-1.2 g per kilogram daily for individuals over 65, and 1.2-1.5 g/kg for those with existing health conditions. According to recent Eurostat data from January 2024, the EU population stands at 449.3 million, with more than one-fifth being 65 years or older^{[1]Source: Eurostat, "Population Structure and Ageing," ec.europa.eu}. The European Commission has identified sedentary elderly populations as particularly vulnerable to protein deficiency, creating substantial opportunities for protein-fortified dairy products. This demographic shift has prompted dairy manufacturers to develop specialized product lines targeting older consumers' nutritional needs. The increasing awareness of protein's role in maintaining muscle mass and preventing sarcopenia in older adults has further stimulated market growth.

Clean-label demand in infant and clinical nutrition

Clean-label dairy proteins are experiencing increasing demand in the European market, particularly in infant nutrition products. Parents seek products with simple, recognizable ingredients, prompting manufacturers to reformulate with clean-label dairy proteins. The trend also influences clinical nutrition products, where healthcare providers and patients prefer transparent ingredient declarations and natural protein components. The European Commission's regulations on infant formula composition provide specific guidelines for ingredients and additives. With 3.67 million babies born in the European Union in 2023, according to Europe's Fertility Statistics, this substantial infant population drives demand for natural, minimally processed dairy protein ingredients in baby formula and infant nutrition products^{[2]Source: European Commission, "Fertility Statistics", ec.europa.eu}. Manufacturers are responding to this demand by investing in research and development to create innovative dairy protein formulations that meet both regulatory requirements and consumer preferences for clean-label products. Additionally, the growing awareness of the nutritional benefits of dairy proteins continues to support the expansion of the clean-label dairy protein market in infant nutrition.

Growth of hybrid (plant-dairy) formulations

Hybrid formulations that combine dairy and plant proteins allow dairy manufacturers to embrace sustainability trends while utilizing their established production capabilities. Kerry Group's Smug hybrid range, introduced in July 2024, features blended dairy products that deliver reduced saturated fat content and lower CO2 emissions^{[3]Source: Kerry Group, “Kerry Group Half Year Results 2024,” kerrygroup.com}. These innovative hybrid products appeal to health-conscious consumers and address the declining dairy consumption trends in Europe. The products enable dairy companies to engage with younger demographics while delivering the functional benefits and familiar taste profiles that purely plant-based alternatives struggle to achieve. The hybrid approach represents a strategic middle ground, allowing companies to maintain their dairy heritage while adapting to evolving consumer preferences.

Rising demand for functional and sports nutrition

Increasing consumer focus on functional and sports nutrition products is driving significant growth in the European dairy protein market. The rising health consciousness among Europeans, coupled with a growing fitness culture, has led to higher consumption of protein-rich supplements and functional foods. Athletes, fitness enthusiasts, and health-conscious individuals are incorporating dairy protein products into their daily routines for muscle recovery and maintenance. The market is further strengthened by the expanding demographic of active aging populations seeking protein-rich nutrition, as well as the superior digestibility and complete amino acid profile of dairy proteins. In response to this market demand, FrieslandCampina Ingredients launched Nutri Whey ProHeat in March 2025, specifically designed to meet the performance and active nutrition market needs. This trend is particularly evident in major European markets such as Germany, the UK, and France, where sports participation and gym memberships continue to rise.

Growing popularity of plant-based and vegan alternative proteins

The shift toward plant-based and vegan protein alternatives presents a significant challenge to the dairy protein market. Consumer adoption of vegan and flexitarian diets, especially among younger demographics, has reduced the demand for traditional dairy proteins. This transition is driven by environmental sustainability concerns, animal welfare considerations, and the perceived health advantages of plant-based options. Food manufacturers have responded by developing protein alternatives from soy, pea, and other plant sources. Improvements in plant protein processing technology have enhanced the taste and texture of these alternatives. The increased retail availability and competitive pricing of plant-based proteins create additional pressure on traditional dairy protein products in the European market. This market shift represents a significant restraint for dairy protein manufacturers, requiring them to adapt their strategies to maintain their market position.

Price fluctuations and raw material volatility

Price volatility in the European dairy protein market continues to escalate, driven by supply shortages in whey protein concentrates and isolates. The Euro's appreciation has diminished profit margins for European dairy producers, affecting their global market position. According to USDA there was a significant dairy herd reductions in France, Germany, the Netherlands, and Belgium during 2024, primarily due to elevated input costs, drought conditions, and bluetongue virus outbreaks. Price volatility has created challenges for manufacturers who face uncertain cost structures while maintaining product quality and meeting delivery obligations. The situation is further complicated by China's anti-subsidy investigation into European Union dairy exports, which could disrupt established trade patterns. Price instability has compelled manufacturers to diversify their sourcing strategies and enhance production efficiency. Additionally, market participants have increased their emphasis on long-term contract negotiations and risk management approaches.

Segment Analysis

By Ingredient: Whey Dominates While Milk Isolates Surge

Whey Protein Concentrates maintain the largest market share at 35.66% in 2024. This dominance stems from their versatility in food applications and cost-effectiveness compared to isolates. The segment's position is strengthened by its integration with cheese production, providing operational efficiencies for dairy processors. Milk Protein Isolates represent the fastest-growing segment with a projected CAGR of 8.23% (2025-2030). This growth is attributed to their superior amino acid profile and functional properties in premium applications. Improvements in filtration and separation technologies have enhanced product quality while reducing production costs for high-purity isolates.

The Casein and Caseinates segment maintains significant market presence, particularly in cheese analogues and processed foods, though with slower growth than whey and milk protein segments. Hydrolyzed proteins are increasing in demand across categories, particularly in clinical nutrition and infant formula applications, due to their enhanced digestibility and reduced allergenicity. The market for hydrolyzed proteins benefits from increasing consumer awareness about protein absorption rates and digestive health. Manufacturers are responding to this trend by expanding their hydrolyzed protein product portfolios and investing in research and development to improve production processes.

Note: Segment Shares of all individual segments will be available upon report purchase

By Form: Powder Versatility Meets Liquid Convenience

Powder formats account for 79.00% of the European dairy protein market in 2024. This dominance is attributed to their longer shelf life, efficient transportation, and versatile applications. The powder segment maintains its market leadership through cost-effective formulation processes and accurate protein concentration control in end products. The Liquid (RTD) segment is expected to grow at a CAGR of 10.40% during 2025-2030, emerging as the fastest-growing format. This growth is driven by increasing consumer demand for convenient, ready-to-consume products, particularly in sports nutrition and functional beverages.

Manufacturers are implementing advanced technologies to overcome protein stability challenges in liquid formats. These innovations enable the production of ready-to-drink beverages with enhanced texture and reduced viscosity at neutral pH. The technological advancements address traditional formulation constraints in ready-to-drink applications, supporting the liquid segment's growth. As technology continues to evolve, liquid formats are gradually expanding their market presence alongside traditional powder formats.

By Nature: Organic Growth Outpaces Conventional Base

The conventional segment holds 93.00% of the European dairy protein market in 2024, supported by established supply chains and cost-effective traditional dairy production methods. This segment maintains its position through economies of scale and efficient processing technologies that ensure consistent quality at competitive prices. The organic segment, while smaller, is growing at a CAGR of 11.26% (2025-2030), exceeding the market's overall growth rate. This expansion stems from heightened consumer focus on environmental sustainability, animal welfare, and organic products' health advantages.

The organic segment maintains strong growth momentum despite challenges from higher prices and inflationary pressures on consumer purchasing power. Research demonstrates that organic milk contains higher concentrations of beneficial fatty acids and antioxidants compared to conventional milk, supporting the premium pricing of organic dairy proteins. The EU's robust regulatory framework for organic agriculture, combined with these documented quality differences, provides a strong foundation for the organic segment's continued expansion.

By Application: Food and Beverage Base Supports Sports Nutrition Growth

The food and beverage segment holds 54.66% market share in 2024, leading the European dairy protein market. Dairy products and desserts represent the largest sub-segment, where dairy proteins serve functional and nutritional purposes. The bakery and confectionery sector incorporates dairy proteins to enhance texture, extend shelf life, and increase nutritional value. The beverage category, particularly protein-enriched milk and yogurt drinks, exhibits significant growth as manufacturers respond to consumer demand for convenient protein delivery formats.

Sports and performance nutrition is projected to grow at a CAGR of 9.13% during 2025-2030, driven by increasing consumer awareness of protein's role in muscle recovery and athletic performance. The segment's growth reflects improvements in protein quality and absorption efficiency, as manufacturers develop specialized dairy protein ingredients for sports nutrition products. The market has diversified beyond protein powders to include ready-to-drink options and protein-enhanced hydration products combining electrolytes with dairy proteins. 

In September 2024, Arla Foods launched the 'Go High in Protein' campaign to support dairy manufacturers in developing high-protein products. The campaign features the Arla Foods Ingredients Nutrilac® ProteinBoost range of patented microparticulated whey proteins, containing essential amino acids. This initiative addresses technical challenges in creating high-protein dairy products while maintaining taste and texture quality.

Note: Segment Shares of all individual segments will be available upon report purchase

Geography Analysis

Germany maintains its position as the largest market for dairy proteins in Europe with a 25% share in 2024, leveraging its robust dairy processing infrastructure and strong domestic demand for protein-enriched products. The country's leadership stems from investments in processing technology and an established distribution network that connects producers with domestic and export markets. The German market demonstrates high innovation in specialized protein ingredients for clinical nutrition and sports applications, supported by its food technology research capabilities.

Spain is emerging as the fastest-growing market with a projected CAGR of 7.20% (2025-2030), driven by increasing consumer awareness of protein's health benefits and the expansion of the sports nutrition segment. The Spanish market benefits from rising health consciousness and the growing adoption of high-protein diets for weight management and active lifestyles. Local production capacity investments and expanded distribution channels for specialized protein products support this growth.

The United Kingdom and France represent substantial markets with diverse application profiles, with the UK focusing on sports nutrition and France specializing in infant formula and clinical nutrition applications. Italy integrates dairy proteins into traditional food products, while the Netherlands and Belgium function as processing and distribution hubs for the European market. Russia shows growth potential in conventional dairy proteins, despite regulatory and geopolitical market access challenges. These regional variations reflect different consumer preferences, regulatory environments, and industrial capabilities across Europe.