Milk Protein Market Size and Share

Milk Protein Market (2026 - 2031)
Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

Milk Protein Market Analysis by Mordor Intelligence

The milk protein market size is estimated at USD 10.01 billion in 2026, and is expected to reach USD 13.74 billion by 2031, at a CAGR of 6.53% during the forecast period (2026-2031). Expanding consumer pursuit of higher-protein diets, regulatory support for hypoallergenic infant formulas, and rapid uptake of ready-to-drink fortified beverages together underpin steady volume gains in both mature and emerging regions. Technology upgrades, from enzymatic hydrolysis that reduces allergenicity to ceramic-membrane filtration that lifts protein purity, are enabling suppliers to shift mix toward higher-margin isolates and hydrolysates. At the same time, North American suppliers are countering raw-milk tightness with multi-year supply contracts, while Asia-Pacific players leverage urbanization and fitness-club growth to widen distribution through e-commerce and convenience retail. Competitive intensity remains moderate as vertically integrated dairy cooperatives and specialty processors pursue parallel strategies: the former defends cost leadership, the latter differentiates through clinical evidence and functional claims, shaping how each captures value along the milk protein market demand curve.

Key Report Takeaways

  • By type, hydrolyzed milk protein led with 45.67% milk protein market share in 2025, whereas milk protein isolate is forecast to register the fastest 7.01% CAGR through 2031.
  • By application, food and beverages accounted for 22.48% of the 2025 milk protein market size, while supplements and nutraceuticals are projected to grow at a 7.23% CAGR to 2031.
  • By geography, North America captured 40.02% of the 2025; Asia-Pacific is poised for the quickest 6.87% annual expansion over the same horizon.

Note: Market size and forecast figures in this report are generated using Mordor Intelligence’s proprietary estimation framework, updated with the latest available data and insights as of January 2026.

Segment Analysis

By type: hydrolysates dominate, isolates accelerate

Hydrolyzed milk protein generated 45.67% of 2025 revenue, underscoring its entrenched role in infant formula and clinical nutrition, where pre-digested peptides ease allergen concerns and improve absorption. Continuous R&D is pushing processing frontiers: 2024–2025 patents on ceramic-membrane systems cut energy use and increase flux rates, improving the economics of both isolates and hydrolysates. Concentrates remain the cost-efficient workhorse for bakery and processed-meat applications, but face margin pressure as plant proteins narrow the functional gap.

Milk protein isolate, while smaller in 2025, is forecast to grow at a 7.01% CAGR, illustrating how clean-label trends in ready-to-drink beverages reward formulations that deliver high purity without excessive lactose or ash. Enzymes engineered for narrow peptide ranges minimize bitterness, unlocking broader flavor profiles and reinforcing the milk protein market position in high-value functional nutrition. Meanwhile, commodity concentrates risk commoditization as alternative proteins undercut pricing, compelling processors to either scale up or pivot toward value-added fractions.

Milk Protein Market: Market Share by Type
Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

Note: Segment shares of all individual segments available upon report purchase

Get Detailed Market Forecasts at the Most Granular Levels
Download PDF

By application: supplements outpace food and beverages

Food and beverages accounted for 22.48% of the 2025, encompassing bakery mixes, dairy drinks, and convenience snacks. Performance-nutrition brands capitalize on the gym culture and active aging market to push ready-to-drink shakes and bars packed with milk protein isolate, illustrating how convenience and targeted health claims can fetch premium price points. Within traditional food channels, fortified dairy retains an edge because milk proteins integrate seamlessly without regulatory hurdles.

In contrast, supplements and nutraceuticals are projected to expand at a 7.23% CAGR through 2031, the fastest among all segments. In the Asia-Pacific region, protein-enriched beverages populate convenience stores as consumers seek on-the-go nutrition that aligns with rising fitness participation. Bakery and cereal makers employ concentrates for cost-efficient enrichment, while condiment manufacturers adopt isolates to add protein without altering viscosity. Animal feed and personal care use remain niche, together representing a low but significant part of the milk protein market, constrained by cost sensitivity and lower functional requirements.

Milk Protein Market: Market Share by Application
Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

Note: Segment shares of all individual segments available upon report purchase

Get Detailed Market Forecasts at the Most Granular Levels
Download PDF

Geography Analysis

North America commanded 40.02% of 2025 due to mature supplement channels, integrated cooperative supply chains, and the FDA’s transparent regulatory framework for infant formula. Raw-milk tightness, U.S. dairy herds slipped to 9.265 million head in January 2025, has pushed whey costs upward, prompting processors to secure multi-year farm contracts or invest in productivity programs. Canada’s proposed compositional rules on protein-fortified products add compliance costs but also discourage new entrants lacking robust quality systems, favoring incumbents that already dominate regional shelves.

Asia-Pacific is forecast to deliver a 6.87% CAGR through 2031, supported by urbanization, disposable-income gains, and the world’s fastest-growing gym membership base. Chinese per-capita dairy consumption recorded double-digit gains in 2024–2025, while Indian consumers exhibited rising demand for muscle-health solutions, underpinning a vibrant outlook for the milk protein market across the region. Regulatory harmonization inside ASEAN (Association of Southeast Asian Nations) further compresses launch timelines for new formulations, enabling global brands to scale more quickly.

Europe advances at a modest pace as sustainability directives influence production tactics. Methane-reduction mandates pressure dairy herds, yet EFSA’s 2025 hydrolysate approvals open new opportunities in specialized infant formula. Germany, France, and the United Kingdom maintain strong clinical-nutrition demand, while southern markets adopt fortified dairy beverages to meet wellness aspirations. South America, the Middle East, and Africa remain smaller contributors but show accelerating adoption, led by Brazil’s sports-nutrition boom and South Africa’s fortified-beverage launches.

Milk Protein Market CAGR (%), Growth Rate by Region
Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

Note: mordor

Get Analysis on Important Geographic Markets
Download PDF

Competitive Landscape

The milk protein market exhibits moderate fragmentation, with key players leveraging strategic advantages to maintain their positions. Vertically integrated dairy cooperatives such as Fonterra, Dairy Farmers of America, and Agropur secure raw-milk throughput, enabling them to mitigate the impact of commodity price fluctuations. These firms also utilize economies of scale to strengthen their market presence. Fonterra’s March 2025 investment in its Studholme fractionation facility underscores the industry's focus on controlling whey economics and transitioning toward higher-value isolates, reflecting a broader trend of value addition within the market. 

Specialty processors, including Glanbia, Hilmar Cheese, and Idaho Milk Products, pursue differentiation through technology and clinical validation; Glanbia’s hydrolyzed whey isolates registered strong half-year volume gains in 2025 as sports-nutrition demand flourished. White-space growth areas cluster in elderly nutrition, emerging-market infant formulas, and hybrid dairy-plant offerings that balance sustainability with functionality. Kerry Group’s June 2025 divestiture of its Irish dairy arm freed capital for enzyme platforms and bioactive hydrolysates focusing on senior health. 

Smaller innovators such as Actus Nutrition are capitalizing on organic-certified niches, carving out specialized segments within the market. Meanwhile, patent activity surrounding hypoallergenic hydrolysates and thermostable isolates is intensifying, creating intellectual-property barriers that challenge new entrants. This dynamic highlights the growing importance of innovation and exclusivity in driving competitive advantage. The interplay between cost leadership and technical proprietary claims will ultimately determine which firms capture significant portions of the milk protein market growth projected through 2031.

Milk Protein Industry Leaders

  1. Agrial Enterprise

  2. Fonterra Co-operative Group Limited

  3. Glanbia PLC

  4. Kerry Group PLC

  5. Royal FrieslandCampina NV

  6. *Disclaimer: Major Players sorted in no particular order
Milk Protein Market
Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.
Need More Details on Market Players and Competitors?
Download PDF

Recent Industry Developments

  • December 2025: FrieslandCampina Ingredients acquired Wisconsin Whey Protein, adding high-end whey protein isolate capacity and strengthening its global high-protein ingredient supply and technological base.
  • April 2025: Arla Foods Ingredients unveiled Lacprodan MicelPure micellar casein isolate designed for medical nutrition applications with improved taste and texture, expanding its clinical nutrition ingredient portfolio.
  • March 2025: Arla Foods partnered with South Dakota-based Valley Queen to manufacture its Nutrilac ProteinBoost whey protein concentrate for the U.S., expanding regional production of milk protein ingredients.

Table of Contents for Milk 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 Growing preference for high‑protein daily diets
    • 4.2.2 Expanding use in infant and clinical nutrition formulations
    • 4.2.3 Innovation in whey, casein, and hydrolysate functionalities
    • 4.2.4 Increasing use in fortified beverages and dairy drinks
    • 4.2.5 Advancements in fractionation and protein processing technologies
    • 4.2.6 Growing consumer awareness of muscle and weight management benefits
  • 4.3 Market Restraints
    • 4.3.1 Growing popularity of plant‑based and alternative proteins.
    • 4.3.2 Taste and texture issues in highly fortified high‑protein products
    • 4.3.3 Fluctuating raw milk availability due to herd pressures
    • 4.3.4 Concerns over dairy allergies and milk protein intolerance
  • 4.4 Supply Chain Analysis
  • 4.5 Regulatory Landscape
  • 4.6 Porter’s Five Forces
    • 4.6.1 Threat of New Entrants
    • 4.6.2 Bargaining Power of Buyers
    • 4.6.3 Bargaining Power of Suppliers
    • 4.6.4 Threat of Substitutes
    • 4.6.5 Competitive Rivalry

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

  • 5.1 Type
    • 5.1.1 Milk Protein Concentrate
    • 5.1.2 Milk Protein Isolate
    • 5.1.3 Hydrolyzed Milk Protein
  • 5.2 Application
    • 5.2.1 Animal Feed
    • 5.2.2 Personal Care and Cosmetics
    • 5.2.3 Food and Beverages
    • 5.2.3.1 Bakery
    • 5.2.3.2 Beverages
    • 5.2.3.3 Breakfast Cereals
    • 5.2.3.4 Condiments/Sauces
    • 5.2.3.5 Dairy and Dairy Alternative Products
    • 5.2.3.6 Meat/Poultry/Seafood and Meat Alternative Products
    • 5.2.3.7 RTE/RTC Food Products
    • 5.2.3.8 Snacks
    • 5.2.4 Supplements
    • 5.2.4.1 Baby Food and Infant Formula
    • 5.2.4.2 Elderly Nutrition and Medical Nutrition
    • 5.2.4.3 Sport/Performance Nutrition
  • 5.3 By Geography
    • 5.3.1 North America
    • 5.3.1.1 United States
    • 5.3.1.2 Canada
    • 5.3.1.3 Rest of North America
    • 5.3.2 Europe
    • 5.3.2.1 Germany
    • 5.3.2.2 United Kingdom
    • 5.3.2.3 Italy
    • 5.3.2.4 France
    • 5.3.2.5 Spain
    • 5.3.2.6 Rest of Europe
    • 5.3.3 Asia-Pacific
    • 5.3.3.1 China
    • 5.3.3.2 India
    • 5.3.3.3 Japan
    • 5.3.3.4 Indonesia
    • 5.3.3.5 Australia
    • 5.3.3.6 Rest of Asia-Pacific
    • 5.3.4 South America
    • 5.3.4.1 Brazil
    • 5.3.4.2 Argentina
    • 5.3.4.3 Rest of South America
    • 5.3.5 Middle East and Africa
    • 5.3.5.1 South Africa
    • 5.3.5.2 Saudi Arabia
    • 5.3.5.3 United Arab Emirates
    • 5.3.5.4 Rest of Middle East and Africa

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 for key companies, Products and Services, and Recent Developments)
    • 6.4.1 Agrial Enterprise
    • 6.4.2 Glanbia PLC
    • 6.4.3 Fonterra Co-operative Group
    • 6.4.4 Kerry Group PLC
    • 6.4.5 Royal FrieslandCampina NV
    • 6.4.6 Actus Nutrition
    • 6.4.7 American International Foods, Inc.
    • 6.4.8 Vitalus Nutrition Inc.
    • 6.4.9 Gay Lea Ingredients
    • 6.4.10 Idaho Milk Products, Inc.
    • 6.4.11 AMCO Proteins
    • 6.4.12 Arla Foods Ingredients Group P/S
    • 6.4.13 Darigold, Inc.
    • 6.4.14 Hiroland Dairy
    • 6.4.15 Avin Pardis Shargh
    • 6.4.16 One Dairy
    • 6.4.17 Zarrin Shad Sepahan Co.
    • 6.4.18 Palmart Co.
    • 6.4.19 Titan Biotech Limited
    • 6.4.20 Dairy Farmers of America, Inc.

7. MARKET OPPORTUNITIES AND FUTURE OUTLOOK

You Can Purchase Parts Of This Report. Check Out Prices For Specific Sections
Get Price Break-up Now

Global Milk Protein Market Report Scope

The milk protein market comprises the production, processing, and commercialization of proteins derived from milk, primarily casein, whey protein, and their derivatives, used as functional and nutritional ingredients across food and beverages, dietary supplements, infant nutrition, clinical nutrition, animal feed, and personal care applications. The milk protein market is segmented by type (milk protein concentrate, milk protein isolate, hydrolyzed milk protein, concentrates, hydrolyzed, isolates), application (animal feed, food and beverages, personal care and cosmetics, supplements), and geography (Asia-Pacific, Europe, Middle East and Africa, North America, South America). The market forecasts are provided in terms of value (USD) and volume (tons).

Type
Milk Protein Concentrate
Milk Protein Isolate
Hydrolyzed Milk Protein
Application
Animal Feed
Personal Care and Cosmetics
Food and Beverages Bakery
Beverages
Breakfast Cereals
Condiments/Sauces
Dairy and Dairy Alternative Products
Meat/Poultry/Seafood and Meat Alternative Products
RTE/RTC Food Products
Snacks
Supplements Baby Food and Infant Formula
Elderly Nutrition and Medical Nutrition
Sport/Performance Nutrition
By Geography
North America United States
Canada
Rest of North America
Europe Germany
United Kingdom
Italy
France
Spain
Rest of Europe
Asia-Pacific China
India
Japan
Indonesia
Australia
Rest of Asia-Pacific
South America Brazil
Argentina
Rest of South America
Middle East and Africa South Africa
Saudi Arabia
United Arab Emirates
Rest of Middle East and Africa
Type Milk Protein Concentrate
Milk Protein Isolate
Hydrolyzed Milk Protein
Application Animal Feed
Personal Care and Cosmetics
Food and Beverages Bakery
Beverages
Breakfast Cereals
Condiments/Sauces
Dairy and Dairy Alternative Products
Meat/Poultry/Seafood and Meat Alternative Products
RTE/RTC Food Products
Snacks
Supplements Baby Food and Infant Formula
Elderly Nutrition and Medical Nutrition
Sport/Performance Nutrition
By Geography North America United States
Canada
Rest of North America
Europe Germany
United Kingdom
Italy
France
Spain
Rest of Europe
Asia-Pacific China
India
Japan
Indonesia
Australia
Rest of Asia-Pacific
South America Brazil
Argentina
Rest of South America
Middle East and Africa South Africa
Saudi Arabia
United Arab Emirates
Rest of Middle East and Africa
Need A Different Region or Segment?
Customize Now

Market Definition

  • End User - The Protein Ingredients Market operates on a B2B basis. Food, Beverages, Supplements, Animal Feed, and Personal Care & Cosmetic manufacturers are considered to be end-consumers in the market studied. The scope excludes manufacturers buying liquid/dry whey to be used for application as a binding agent or thickener or other non-protein applications.
  • Penetration Rate - Penetration Rate is defined as the percentage of Protein-Fortified End User Market Volume in the Overall End User Market Volume.
  • Average Protein Content - Average protein content is the average protein content present per 100 g of product manufactured by all end-user companies considered under the scope of this report.
  • End User Market Volume - End-user market volume is the consolidated volume of all types and forms of end-user products in the country or region.
Keyword Definition
Alpha-lactalbumin (α-Lactalbumin) It is a protein that regulates the production of lactose in the milk of almost all mammalian species.
Amino acid It is an organic compound that contains both amino and carboxylic acid functional groups, which are required for the synthesis of body protein and other important nitrogen-containing compounds, such as creatine, peptide hormones, and some neurotransmitters.
Blanching It is the process of briefly heating vegetables with steam or boiling water.
BRC British Retail Consortium
Bread improver It is a flour-based blend of several components with specific functional properties designed to modify dough characteristics and give quality attributes to bread.
BSF Black Soldier Fly
Caseinate It is a substance produced by adding an alkali to acid casein, a derivative of casein.
Celiac disease Celiac disease is an immune reaction to eating gluten, a protein found in wheat, barley, and rye.
Colostrum It is a milky fluid that’s released by mammals that have recently given birth before breast milk production begins.
Concentrate It is the least processed form of protein and has a protein content ranging from 40-90% by weight.
Dry protein basis It refers to the percentage of "pure protein" present in a supplement after the water in it is completely removed through heat.
Dry whey It is the product resulting from drying fresh whey which has been pasteurized and to which nothing has been added as a preservative.
Egg protein It is a mixture of individual proteins, including ovalbumin, ovomucoid, ovoglobulin, conalbumin, vitellin, and vitellenin.
Emulsifier It is a food additive that facilitates the blending of foods that are immiscible with one another, such as oil and water.
Enrichment It is the process of addition of micronutrients that are lost during the processing of the product.
ERS Economic Research Service of the USDA
Extrusion It is the process of forcing soft mixed ingredients through an opening in a perforated plate or die designed to produce the required shape. The extruded food is then cut to a specific size by blades.
Fava Also known as Faba, it is another word for yellow split beans.
FDA Food and Drug Administration
Flaking It is a process in which typically a cereal grain (like corn, wheat, or rice) is broken down into grits, cooked with flavors and syrups, and then pressed into flakes between cooled rollers.
Foaming agent It is a food ingredient that makes it possible to form or maintain a uniform dispersion of a gaseous phase in a liquid or solid food.
Foodservice It refers to the part of the food industry which includes businesses, institutions, and companies which prepare meals outside the home. It includes restaurants, school and hospital cafeterias, catering operations, and many other formats.
Fortification It is the deliberate addition of micronutrients that are not found in them naturally or which are lost during processing, to improve a food product's nutritional value.
FSANZ Food Standards Australia New Zealand
FSIS Food Safety and Inspection Service
FSSAI Food Safety and Standards Authority of India
Gelling agent It is an ingredient that functions as a stabilizer and thickener to provide thickening without stiffness through the formation of gel.
GHG Greenhouse Gas
Gluten It is a family of proteins found in grains, including wheat, rye, spelt, and barley.
Hemp It is a botanical class of Cannabis sativa cultivars grown specifically for industrial or medicinal use.
Hydrolysate It is a form of protein manufactured by exposing the protein to enzymes that can partially break the bonds between the protein's amino acids and break down large, complicated proteins into smaller pieces. Its processing makes it easier and quicker to digest.
Hypoallergenic It refers to a substance that causes fewer allergic reactions.
Isolate It is the purest and most processed form of protein which has undergone separation to obtain a pure protein fraction. It typically contains ≥ 90% of protein by weight.
Keratin It is a protein that helps form hair, nails, and the outer layer of skin.
Lactalbumin It is the albumin contained in milk and obtained from whey.
Lactoferrin It is an iron‑binding glycoprotein that is present in the milk of most mammals.
Lupin It is the yellow legume seeds of the genus Lupinus.
Millenial Also known as Generation Y or Gen Y, it refers to the people born from 1981 to 1996.
Monogastric It refers to an animal with a single-compartmented stomach. Examples of monogastric include humans, poultry, pigs, horses, rabbits, dogs, and cats. Most monogastric are generally unable to digest much cellulose food materials such as grasses.
MPC Milk protein concentrate
MPI Milk protein isolate
MSPI Methylated soy protein isolate
Mycoprotein Mycoprotein is a form of single-cell protein, also known as fungal protein, derived from fungi for human consumption.
Nutricosmetics It is a category of products and ingredients that act as nutritional supplements to care for skin, nails, and hair natural beauty.
Osteoporosis It is a medical condition in which the bones become brittle and fragile from loss of tissue, typically as a result of hormonal changes, or deficiency of calcium or vitamin D.
PDCAAS Protein digestibility-corrected amino acid score (PDCAAS) is a method of evaluating the quality of a protein based on both the amino acid requirements of humans and their ability to digest it.
Per-capita consumption of animal protein It is the average amount of animal protein (such as milk, whey, gelatin, collagen, and egg proteins) that is readily available for consumption by each person in an actual population.
Per-capita consumption of plant protein It is the average amount of plant protein (such as soy, wheat, pea, oat, and hemp proteins) that is readily available for consumption by each person in an actual population.
Quorn It is a microbial protein manufactured using mycoprotein as an ingredient, in which the fungus culture is dried and mixed with egg albumen or potato protein, which acts as a binder, and then is adjusted in texture and pressed into various forms.
Ready-to-Cook (RTC) It refers to food products that include all of the ingredients, where some preparation or cooking is required through a process that is given on the package.
Ready-to-Eat (RTE) It refers to a food product prepared or cooked in advance, with no further cooking or preparation required before being eaten.
RTD Ready-to-Drink
RTS Ready-to-Serve
Saturated fat It is a type of fat in which the fatty acid chains have all single bonds. It is generally considered unhealthy.
Sausage It is a meat product made of finely chopped and seasoned meat, which may be fresh, smoked, or pickled and which is then usually stuffed into a casing.
Seitan It is a plant-based meat substitute made out of wheat gluten.
Softgel It is a gelatin-based capsule with a liquid fill.
SPC Soy protein concentrate
SPI Soy protein isolate
Spirulina It is a biomass of cyanobacteria that can be consumed by humans and animals.
Stabilizer It is an ingredient added to food products to help maintain or enhance their original texture, and physical and chemical characteristics.
Supplementation It is the consumption or provision of concentrated sources of nutrients or other substances that are intended to supplement nutrients in the diet and is intended to correct nutritional deficiencies.
Texturant It is a specific type of food ingredient that is used to control and alter the mouthfeel and texture of food and beverage products.
Thickener It is an ingredient that is used to increase the viscosity of a liquid or dough and make it thicker, without substantially changing its other properties.
Trans fat Also called trans-unsaturated fatty acids or trans fatty acids, it is a type of unsaturated fat that naturally occurs in small amounts in meat.
TSP Textured soy protein
TVP Textured vegetable protein
WPC Whey protein concentrate
WPI Whey protein isolate
Need More Details on Market Definition?
Ask a Question

Research Methodology

Mordor Intelligence follows a four-step methodology in all our reports.

  • Step-1: Identify Key Variables: The quantifiable key variables (industry and extraneous) pertaining to the specific product segment and country are selected from a group of relevant variables & factors based on desk research & literature review; along with primary expert inputs. These variables are further confirmed through regression modeling (wherever required).
  • Step-2: Build a Market Model: In order to build a robust forecasting methodology, the variables and factors identified in Step-1 are tested against available historical market numbers. Through an iterative process, the variables required for market forecast are set and the model is built on the basis of these variables.
  • Step-3: Validate and Finalize: In this important step, all market numbers, variables and analyst calls are validated through an extensive network of primary research experts from the market studied. The respondents are selected across levels and functions to generate a holistic picture of the market studied.
  • Step-4: Research Outputs: Syndicated Reports, Custom Consulting Assignments, Databases & Subscription Platforms
research-methodology
Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.
Get More Details On Research Methodology
Download PDF