United States Milk Protein Market Size and Share

United States Milk Protein Market Summary
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United States Milk Protein Market Analysis by Mordor Intelligence

The United States milk protein market measures USD 3.21 billion in 2026 and is projected to reach USD 4.36 billion by 2031, expanding at a 6.32% CAGR during the forecast period. Current demand reflects the ingredient’s versatility across bakery, beverage, and clinical products, while future growth stems from surging protein-rich diet adoption, steady sports-nutrition expansion, and medical-nutrition applications. Capacity additions in Texas, Kansas, and Idaho demonstrate processor confidence despite raw-milk price volatility, whereas selective plant closures tighten near-term supply. Regulatory clarity under FDA 21 CFR Parts 106, 107, and 117 sustains quality benchmarks that favor scale operators. Concurrently, sustainability concerns push processors to adopt water-efficient membrane filtration and methane-mitigation programs, reinforcing long-run competitiveness of the milk protein market.

Key Report Takeaways

  • By product type, milk protein concentrate led with 81.12% share of the United States milk protein market in 2025; Milk Protein Isolate is forecast to expand at a 7.03% CAGR through 2031.
  • By application, food and beverages held 75.21% of the United States milk protein market size in 2025; Supplements are projected to grow at a 6.75% CAGR to 2031.

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 Product Type: Concentrate Dominates, Isolate Accelerates

Milk protein concentrate accounted for 81.12% of the United States milk protein market in 2025, making it the clear leader by market share. Its dominance reflects a strong balance between cost efficiency and nutritional performance, which is highly attractive for mainstream food and beverage manufacturers. With a typical protein content of about 70% to 80%, it fits seamlessly into bakery, ready-to-drink beverages, and dairy products without significantly altering texture or taste. This level of protein content is sufficient for most everyday nutrition and fortification needs, allowing brands to meet protein claims without the premium cost of higher-purity ingredients. Its functional versatility in emulsification, water binding, and heat stability further reinforces its widespread adoption in large-scale formulations. As a result, milk protein concentrate is expected to retain its position as the core volume driver in the US milk protein market over the medium term.

Milk protein isolate, while starting from a smaller base, is projected to be the fastest growing segment, expanding at a 7.03% CAGR through 2031 in the United States. This accelerated growth is fueled by rising demand in sports nutrition products such as high-protein shakes, bars, and functional powders targeting performance-focused consumers. Its high protein purity of 90% or more allows brands to deliver dense protein doses with lower carbohydrate and fat content, which is critical in premium performance and weight-management formulations. The segment also benefits from its low lactose content, making it suitable for consumers with lactose intolerance or sensitivities who still want dairy-derived protein. Clinical nutrition and medical foods increasingly rely on milk protein isolate for tightly controlled macronutrient profiles, further expanding its application base.

United States Milk Protein Market: Market Share by Product Type
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By Application: Food and Beverages Lead, Supplements Surge

Food and beverages accounted for 75.21% of the United States milk protein market in 2025, making it by far the largest application segment. This dominance is rooted in the extensive use of milk protein across core dairy products, bakery items, and ready-to-drink beverages. These categories together consumed over 2 billion pounds of milk protein, underscoring the central role of protein fortification in everyday diets. Dairy products such as yogurts, cheese, and high-protein dairy drinks heavily rely on milk protein for texture, creaminess, and nutritional enhancement. Bakery manufacturers incorporate milk proteins to improve dough structure, moisture retention, and shelf life. Ready-to-drink beverages, including protein shakes and fortified coffees, further reinforce the scale and stability of demand from the food and beverages segment.

Supplements represent the fastest-growing application in the United States milk protein market, projected to expand at a CAGR of 6.75% through 2031. This growth is propelled by several high-value sub-segments that leverage the functional and nutritional benefits of milk proteins. Baby food and infant formula applications depend on milk proteins to deliver balanced amino acid profiles that mimic human milk more closely. Sport and performance nutrition uses milk proteins for muscle recovery, satiety, and lean mass support, driving demand for protein powders, ready-to-drink shakes, and protein bars. Elderly nutrition and medical nutrition products rely on easily digestible milk proteins to address sarcopenia, malnutrition, and recovery needs in clinical and home-care settings. 

United States Milk Protein Market: Market Share by Application
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Geography Analysis

The United States milk protein market shows strong concentration in regions with well-established dairy infrastructure, particularly the Upper Midwest and Western states. Wisconsin, California, Idaho, and Minnesota remain core production hubs due to large milk output, advanced processing facilities, and proximity to dairy farms. These states host major milk protein manufacturers supplying whey protein, milk protein concentrates, and isolates for food, beverage, and nutrition applications. Strong logistics networks and cold-chain capabilities further support large-scale distribution across domestic and export markets.

Demand for milk protein is highest in urban and health-conscious regions, including the Northeast, West Coast, and parts of the Southeast, where consumption of protein-enriched foods, sports nutrition, and functional beverages is growing rapidly. Metropolitan areas such as California, Texas, New York, and Florida drive volume growth due to rising fitness culture, busy lifestyles, and increasing adoption of high-protein diets. These regions also show strong uptake in clinical nutrition, ready-to-drink protein beverages, and fortified dairy alternatives.

From a trade and expansion perspective, the United States benefits from its role as both a major producer and exporter of milk proteins, with Western states supporting access to Asia-Pacific and Latin American markets. Investments in processing capacity are increasing in regions with favorable milk supply economics and sustainability initiatives. At the same time, regulatory oversight, environmental concerns, and water availability influence regional production decisions. Overall, the geographic landscape reflects a balance between dairy-rich production states and consumption-driven metropolitan markets.

Competitive Landscape

The United States milk protein market is characterized by a moderate level of concentration, with several global and domestic dairy companies holding significant market share while a long tail of regional players serves niche segments. Major dairy ingredient producers compete primarily on product quality, technological capability, and breadth of protein offerings including milk protein concentrates (MPC), and isolates (MPI). Companies with advanced fractionation and processing technology tend to secure larger contracts with food, beverage, and nutritional manufacturers due to consistent functionality and high purity levels.

Innovation and product differentiation are key competitive factors, as firms invest in research and development to tailor milk protein functionalities for specific end‑use applications. These include sports nutrition, infant formula, functional foods, and specialty beverages. Strategic partnerships with food OEMs (Original Equipment Manufacturers) and co‑manufacturers help larger players maintain long‑term supply agreements while smaller and mid‑tier companies often compete on agility, customer service, and customization. Brand reputation and quality certifications (e.g., non‑GMO, organic, clean‑label) also influence buyer preferences, especially in premium segments.

Competition extends beyond traditional dairy producers to include ingredient companies that blend milk proteins with plant proteins or develop novel dairy‑based fractions, responding to shifting consumer trends. Pricing pressure and raw material cost volatility drive firms to optimize supply chains and enhance operational efficiencies. Additionally, mergers, acquisitions, and capacity expansions shape competitive dynamics, as larger corporations seek to consolidate capabilities and expand geographic reach. Overall, while larger established companies dominate key segments, there remains ample opportunity for differentiated players to carve out specialized market niches.

United States Milk Protein Industry Leaders

  1. Arla Foods amba

  2. Fonterra Co-operative Group Limited

  3. Kerry Group PLC

  4. Dairy Farmers of America, Inc.

  5. Agropur Cooperative

  6. *Disclaimer: Major Players sorted in no particular order
United States Milk Protein Market Concentration
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Recent Industry Developments

  • June 2025: Darigold, Inc. opened a USD 600 million processing facility in Pasco, Washington, capable of processing 8 million pounds of milk per day into butter and milk powders, strengthening the U.S. supply base for milk protein–derived ingredients used in food, nutrition, and industrial applications.
  • September 2024: Idaho Milk Products completed a USD 200 million expansion at its Jerome, Idaho facility, enhancing ice-cream mix production and powder-blending capabilities that support the growing demand for milk protein–rich ingredients across regional food manufacturers and Asian export markets.
  • April 2024: Glanbia acquired Flavor Producers, a U.S.-based flavor and ingredient company, to strengthen its value-added capabilities by integrating custom flavor systems with its milk protein portfolio. This acquisition enables Glanbia to offer bundled, application-ready solutions for bakery and beverage customers

Table of Contents for United States 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 Rising demand for protein-rich diets and health/wellness trends
    • 4.2.2 Growth of sports nutrition products and fitness participation
    • 4.2.3 Increasing adoption in clinical and medical nutrition products
    • 4.2.4 Technological advancements in protein extraction and processing
    • 4.2.5 Rising consumer awareness of the benefits of milk protein’s amino acid profile
    • 4.2.6 Expansion of the packaged and convenience food sector incorporating milk proteins
  • 4.3 Market Restraints
    • 4.3.1 Fluctuating raw milk prices and input cost volatility
    • 4.3.2 Competition from plant-based protein alternatives and vegan diets
    • 4.3.3 Stringent food safety and regulatory compliance requirements
    • 4.3.4 Supply chain disruptions affecting milk protein availability
  • 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 Substitute Products
    • 4.6.5 Intensity of Competitive Rivalry

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

  • 5.1 By Product Type
    • 5.1.1 Milk Protein Concentrate
    • 5.1.2 Milk Protein Isolate
    • 5.1.3 Hydrolyzed Milk Protein
  • 5.2 By 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

6. COMPETITIVE LANDSCAPE

  • 6.1 Market Concentration
  • 6.2 Strategic Moves
  • 6.3 Market Positioning 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 Dairy Farmers of America, Inc.
    • 6.4.2 Arla Foods AMBA
    • 6.4.3 Agropur Cooperative
    • 6.4.4 Kerry Group PLC
    • 6.4.5 Fonterra Co?operative Group Limited
    • 6.4.6 Glanbia PLC
    • 6.4.7 Saputo Inc.
    • 6.4.8 Milk Specialties Global
    • 6.4.9 AMCO Proteins
    • 6.4.10 Leprino Foods Company
    • 6.4.11 Cargill, Incorporated
    • 6.4.12 Hilmar Cheese Company
    • 6.4.13 Groupe Lactalis
    • 6.4.14 Royal FrieslandCampina N.V
    • 6.4.15 Darigold, Inc.
    • 6.4.16 Idaho Milk Products
    • 6.4.17 Actus Nutrition
    • 6.4.18 Carbery Group
    • 6.4.19 Grassland Dairy Products Inc.

7. MARKET OPPORTUNITIES AND FUTURE OUTLOOK

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United States Milk Protein Market Report Scope

Milk proteins are proteins derived from milk in a variety of forms and protein levels. Milk protein ingredients include milk protein concentrates (MPC) at varying protein levels and milk protein isolates (MPI), which contain the typical 80% casein and 20% whey protein found in milk. The United States milk protein market size is segmented by product type and application. By product type, the market is segmented into milk protein concentrate, milk protein isolate, and hydrolyzed milk protein. By application, the market is segmented into animal feed, personal care and cosmetics, food and beverages, and more. The market forecasts are provided in terms of value (USD).

By Product Type
Milk Protein Concentrate
Milk Protein Isolate
Hydrolyzed Milk Protein
By Application
Animal Feed
Personal Care and Cosmetics
Food and BeveragesBakery
Beverages
Breakfast Cereals
Condiments/Sauces
Dairy and Dairy Alternative Products
Meat/Poultry/Seafood and Meat Alternative Products
RTE/RTC Food Products
Snacks
SupplementsBaby Food and Infant Formula
Elderly Nutrition and Medical Nutrition
Sport/Performance Nutrition
By Product TypeMilk Protein Concentrate
Milk Protein Isolate
Hydrolyzed Milk Protein
By ApplicationAnimal Feed
Personal Care and Cosmetics
Food and BeveragesBakery
Beverages
Breakfast Cereals
Condiments/Sauces
Dairy and Dairy Alternative Products
Meat/Poultry/Seafood and Meat Alternative Products
RTE/RTC Food Products
Snacks
SupplementsBaby Food and Infant Formula
Elderly Nutrition and Medical Nutrition
Sport/Performance Nutrition
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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.
KeywordDefinition
Alpha-lactalbumin (α-Lactalbumin)It is a protein that regulates the production of lactose in the milk of almost all mammalian species.
Amino acidIt 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.
BlanchingIt is the process of briefly heating vegetables with steam or boiling water.
BRCBritish Retail Consortium
Bread improverIt is a flour-based blend of several components with specific functional properties designed to modify dough characteristics and give quality attributes to bread.
BSFBlack Soldier Fly
CaseinateIt is a substance produced by adding an alkali to acid casein, a derivative of casein.
Celiac diseaseCeliac disease is an immune reaction to eating gluten, a protein found in wheat, barley, and rye.
ColostrumIt is a milky fluid that’s released by mammals that have recently given birth before breast milk production begins.
ConcentrateIt is the least processed form of protein and has a protein content ranging from 40-90% by weight.
Dry protein basisIt refers to the percentage of "pure protein" present in a supplement after the water in it is completely removed through heat.
Dry wheyIt is the product resulting from drying fresh whey which has been pasteurized and to which nothing has been added as a preservative.
Egg proteinIt is a mixture of individual proteins, including ovalbumin, ovomucoid, ovoglobulin, conalbumin, vitellin, and vitellenin.
EmulsifierIt is a food additive that facilitates the blending of foods that are immiscible with one another, such as oil and water.
EnrichmentIt is the process of addition of micronutrients that are lost during the processing of the product.
ERSEconomic Research Service of the USDA
ExtrusionIt 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.
FavaAlso known as Faba, it is another word for yellow split beans.
FDAFood and Drug Administration
FlakingIt 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 agentIt 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.
FoodserviceIt 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.
FortificationIt 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.
FSANZFood Standards Australia New Zealand
FSISFood Safety and Inspection Service
FSSAIFood Safety and Standards Authority of India
Gelling agentIt is an ingredient that functions as a stabilizer and thickener to provide thickening without stiffness through the formation of gel.
GHGGreenhouse Gas
GlutenIt is a family of proteins found in grains, including wheat, rye, spelt, and barley.
HempIt is a botanical class of Cannabis sativa cultivars grown specifically for industrial or medicinal use.
HydrolysateIt 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.
HypoallergenicIt refers to a substance that causes fewer allergic reactions.
IsolateIt 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.
KeratinIt is a protein that helps form hair, nails, and the outer layer of skin.
LactalbuminIt is the albumin contained in milk and obtained from whey.
LactoferrinIt is an iron‑binding glycoprotein that is present in the milk of most mammals.
LupinIt is the yellow legume seeds of the genus Lupinus.
MillenialAlso known as Generation Y or Gen Y, it refers to the people born from 1981 to 1996.
MonogastricIt 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.
MPCMilk protein concentrate
MPIMilk protein isolate
MSPIMethylated soy protein isolate
MycoproteinMycoprotein is a form of single-cell protein, also known as fungal protein, derived from fungi for human consumption.
NutricosmeticsIt is a category of products and ingredients that act as nutritional supplements to care for skin, nails, and hair natural beauty.
OsteoporosisIt 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.
PDCAASProtein 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 proteinIt 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 proteinIt 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.
QuornIt 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.
RTDReady-to-Drink
RTSReady-to-Serve
Saturated fatIt is a type of fat in which the fatty acid chains have all single bonds. It is generally considered unhealthy.
SausageIt 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.
SeitanIt is a plant-based meat substitute made out of wheat gluten.
SoftgelIt is a gelatin-based capsule with a liquid fill.
SPCSoy protein concentrate
SPISoy protein isolate
SpirulinaIt is a biomass of cyanobacteria that can be consumed by humans and animals.
StabilizerIt is an ingredient added to food products to help maintain or enhance their original texture, and physical and chemical characteristics.
SupplementationIt 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.
TexturantIt is a specific type of food ingredient that is used to control and alter the mouthfeel and texture of food and beverage products.
ThickenerIt 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 fatAlso called trans-unsaturated fatty acids or trans fatty acids, it is a type of unsaturated fat that naturally occurs in small amounts in meat.
TSPTextured soy protein
TVPTextured vegetable protein
WPCWhey protein concentrate
WPIWhey protein isolate
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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
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