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

The Europe Dairy Protein Market is Segmented by Ingredient (Milk, Whey, Casein and Caseinates), Form (Powder and Liquid), Nature (Conventional and Organic), Application (Foods and Beverage, Sports and Performance Nutrition, Infant and Early-Life Nutrition, and More), and Geography (North America, Europe, Asia-Pacific, South America and Middle East and Africa). The Market Forecasts are Provided in Terms of Value (USD).

Europe Dairy Protein Market Size and Share

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Europe Dairy Protein Market Analysis by Mordor Intelligence

The European Dairy Protein Market is valued at USD 1.10 billion in 2025 and is projected to reach USD 1.42 billion by 2030, registering a CAGR of 5.24% during the forecast period (2025-2030). The rising adoption of high-protein diets among the aging population and increasing demand for functional and sports nutrition products are driving the European dairy protein market. The market's expansion is supported by the growing middle-class population and increased consumption of health drinks and protein-based diets. The European dairy industry maintains a strong position in meeting consumer demands for clean labels and convenience in production, while adapting to sustainability initiatives through hybrid formulations that combine dairy and plant proteins. However, the market faces challenges from the growing popularity of plant-based alternatives and increasing instances of lactose intolerance. The industry's response to these challenges includes investment in research and development to improve protein digestibility and reduce allergenicity in dairy products. Additionally, manufacturers are focusing on innovative processing technologies to enhance the functional properties of dairy proteins, making them more suitable for various food applications. European dairy protein producers are also emphasizing transparency in their supply chains and implementing sustainable practices to maintain consumer trust and market competitiveness. Despite the challenges, the market is expected to maintain its growth trajectory, driven by continuous innovation, increasing health consciousness among consumers, and the adaptability of manufacturers to evolving market demands.

Key Report Takeaways

  • By ingredient, whey protein concentrates held 35.66% of the European dairy protein market share in 2024; milk protein isolates are projected to expand at a 8.23% CAGR through 2030.
  • By form, powder format captured 79% of the European dairy protein market size in 2024, whereas liquid (RTD) offerings are growing at a 10.40% CAGR to 2030.
  • By nature, the conventional segment commanded 93% of the market in 2024; while the organic segment is advancing at an 11.26% CAGR between 2025-2030.
  • By application, food and beverage accounted for 54.66% share in 2024, while sports and performance nutrition leads future growth at a 9.13% CAGR.
  • By geography, Germany led with 25% of the European dairy protein market share in 2024, and Spain records the fastest projected CAGR of 7.20% to 2030

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.

Market Analysis
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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.

Market Size
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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.

Competitive Landscape

The European dairy protein market exhibits moderate fragmentation, with mid-sized cooperatives and multinational corporations like Agrial Group, Arla Foods Amba, Kerry Group Plc, and Glanbia Plc holding significant market positions. These companies are implementing vertical integration strategies to secure raw material supply while developing specialized products for high-growth application segments.

Market participants are investing in proprietary processing technologies to enhance product differentiation, particularly in areas of heat stability, solubility, and sensory attributes. This focus on technological advancement is exemplified by FrieslandCampina's March 2024 announcement of a EUR 30 million investment in its German production facilities, aimed at developing innovative dairy protein products and implementing sustainable manufacturing processes.

The market presents opportunities in hybrid protein formulations that combine dairy and plant sources, as well as specialized ingredients for the clinical nutrition segment. Industry consolidation continues as companies seek economies of scale and broader geographic presence to address margin pressures. Technological capabilities have become a crucial factor in maintaining competitive advantage in this evolving market landscape.

Europe Dairy Protein Industry Leaders

  1. Glanbia plc

  2. Agrial Group

  3. Arla Foods Amba

  4. FrieslandCampina Ingredients

  5. Kerry Group Plc

  6. *Disclaimer: Major Players sorted in no particular order
Europe Dairy Protein Market
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Recent Industry Developments

  • May 2025: Fonterra launched MyNZMP Link, a digital sales platform that provides 24-hour access to dairy ingredients for European buyers. The e-commerce platform allows European ingredient buyers to purchase whey protein concentrate and lactose directly from the company's regional warehouses.
  • March 2025: Verley launched three animal-free whey protein powders: FermWhey Native for sports nutrition, FermWhey MicroStab for beverages and dairy, and FermWhey Gel for dairy and cheese products.
  • November 2024: Arla Foods Ingredients developed Lacprodan DI-3092, a whey protein hydrolysate containing 10g of protein per 100ml, compared to the standard 6-7g in similar products, for use in peptide-based medical nutrition applications.
  • November 2024: Arla Foods Ingredients acquired Volac's Whey Nutrition business, which provided the company with additional whey supply capacity to address increasing market demand.

Table of Contents for Europe Dairy Protein Industry Report

1. INTRODUCTION

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

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET LANDSCAPE

  • 4.1 Market Overview
  • 4.2 Market Drivers
    • 4.2.1 Rising adoption of high-protein diets among aging europeans
    • 4.2.2 Clean-label demand in infant and clinical nutrition
    • 4.2.3 Growth of hybrid (plant-dairy) formulations driving protein innovation
    • 4.2.4 Rising demand for functional and sports nutrition
    • 4.2.5 Technological advancements in protein processing
    • 4.2.6 Sustainable production practices supporting market growth
  • 4.3 Market Restraints
    • 4.3.1 Growing popularity of plant-based and vegan alternative proteins
    • 4.3.2 Rising lactose intolerance and allergies
    • 4.3.3 Price fluctuations and raw material volatility
    • 4.3.4 Supply chain disruptions impact european dairy protein market
  • 4.4 Supply-Chain Analysis
  • 4.5 Regulatory and Technological Outlook
  • 4.6 Porter's Five Forces
    • 4.6.1 Bargaining Power of Suppliers
    • 4.6.2 Bargaining Power of Buyers
    • 4.6.3 Threat of New Entrants
    • 4.6.4 Threat of Substitute Products
    • 4.6.5 Intensity of Competitive Rivalry

5. MARKET SIZE AND GROWTH FORECASTS (VALUE AND VOLUME)

  • 5.1 By Ingredient
    • 5.1.1 Milk
    • 5.1.1.1 Isolate
    • 5.1.1.2 Concentrates
    • 5.1.1.3 Hydrolyzed
    • 5.1.2 Whey
    • 5.1.2.1 Concentrates
    • 5.1.2.2 Isolates
    • 5.1.2.3 Hydrolyzed
    • 5.1.3 Casein and Caseinates
  • 5.2 By Form
    • 5.2.1 Powder
    • 5.2.2 Liquid
  • 5.3 By Nature
    • 5.3.1 Conventional
    • 5.3.2 Organic
  • 5.4 By Application
    • 5.4.1 Food and Beverage
    • 5.4.1.1 Bakery and Confectionery
    • 5.4.1.2 Dairy Products and Desserts
    • 5.4.1.3 Beverages
    • 5.4.2 Sports and Performance Nutrition
    • 5.4.3 Infant and Early-Life Nutrition
    • 5.4.4 Elderly Nutrition and Medical Nutrition
    • 5.4.5 Other Applications
  • 5.5 Geography
    • 5.5.1 Germany
    • 5.5.2 France
    • 5.5.3 United Kingdom
    • 5.5.4 Spain
    • 5.5.5 Netherlands
    • 5.5.6 Italy
    • 5.5.7 Sweden
    • 5.5.8 Poland
    • 5.5.9 Belgium
    • 5.5.10 Rest of Europe

6. COMPETITIVE LANDSCAPE

  • 6.1 Market Concentration
  • 6.2 Strategic Moves
  • 6.3 Market Share Analysis
  • 6.4 Company Profiles (includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share, Products and Services, Recent Developments)
    • 6.4.1 Arla Foods amba
    • 6.4.2 Glanbia plc
    • 6.4.3 Kerry Group plc
    • 6.4.4 FrieslandCampina Ingredients
    • 6.4.5 Agrial Group
    • 6.4.6 Saputo Inc.
    • 6.4.7 Lactalis Ingredients
    • 6.4.8 Fonterra Co-operative Group
    • 6.4.9 Carbery Group
    • 6.4.10 Volac International Ltd.
    • 6.4.11 Hilmar Cheese Company Europe
    • 6.4.12 Idaho Milk Products
    • 6.4.13 Milk Specialties Global
    • 6.4.14 LAITA Group
    • 6.4.15 Sachsenmilch Leppersdorf GmbH
    • 6.4.16 Euroserum SAS
    • 6.4.17 Ornua Ingredients Europe
    • 6.4.18 Agropur Cooperative
    • 6.4.19 Milcobel n.v.
    • 6.4.20 Leprino Foods Company
    • 6.4.21 Davisco Foods International
    • 6.4.22 Meggle Group
    • 6.4.23 Tatura Milk Industries Pty Ltd
    • 6.4.24 Ingredia SA
    • 6.4.25 Armor Proteines

7. MARKET OPPORTUNITIES AND FUTURE OUTLOOK

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Europe Dairy Protein Market Report Scope

The European dairy protein market has been segmented based on ingredient, form, nature, application, and Geography. The market is segmented based on ingredient into milk and whey. They are further divided into isolates, concentrates, and hydrolyzed. By form, the market is segmented into powder and liquid. By nature, it is divided into conventional and organic. By application, the market is segmented into food & beverage (bakery & confectionery, dairy products & desserts, and beverages), sports & performance nutrition, infant & early-life nutrition, and other applications. Also, the study provides an analysis of the dairy protein market in the emerging and established markets across the region, including Germany, the United Kingdom, France, Spain, Italy, Belgium, the Netherlands, Russia, and the Rest of Europe. The market sizing has been done in value terms in USD for all the abovementioned segments.

By Ingredient Milk Isolate
Concentrates
Hydrolyzed
Whey Concentrates
Isolates
Hydrolyzed
Casein and Caseinates
By Form Powder
Liquid
By Nature Conventional
Organic
By Application Food and Beverage Bakery and Confectionery
Dairy Products and Desserts
Beverages
Sports and Performance Nutrition
Infant and Early-Life Nutrition
Elderly Nutrition and Medical Nutrition
Other Applications
Geography Germany
France
United Kingdom
Spain
Netherlands
Italy
Sweden
Poland
Belgium
Rest of Europe
By Ingredient
Milk Isolate
Concentrates
Hydrolyzed
Whey Concentrates
Isolates
Hydrolyzed
Casein and Caseinates
By Form
Powder
Liquid
By Nature
Conventional
Organic
By Application
Food and Beverage Bakery and Confectionery
Dairy Products and Desserts
Beverages
Sports and Performance Nutrition
Infant and Early-Life Nutrition
Elderly Nutrition and Medical Nutrition
Other Applications
Geography
Germany
France
United Kingdom
Spain
Netherlands
Italy
Sweden
Poland
Belgium
Rest of Europe
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Key Questions Answered in the Report

What is the current Europe dairy protein market size and how fast is it growing?

The Europe dairy protein is valued at USD 1.10 billion in 2025 and is forecast to reach USD 1.42 billion by 2030, advancing at a 5.24% CAGR.

Which country leads the Europe dairy protein market in revenue?

Germany contributes 25.00% of the total revenue in 2024. The country's strong industrial base and technological advancement drive significant market growth.

Why are Liquid (RTD) gaining share in Europe dairy protein form?

The liquid (Ready-to-Drink) segment is expected to grow at a CAGR of 10.40%, driven by increasing consumer demand for convenient, ready-to-consume products.

Which Ingredient type is expected to grow at a fastest CAGR?

Milk Protein Isolates is expected to grow at a CAGR of 8.23% for the forecast period.

Page last updated on: June 20, 2025

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