The Asia Pacific dairy protein market is projected to register a CAGR of 5.2%, during the forecast period.
- The market is majorly driven by the increasing health care awareness and consumer’s preference toward nutritional and healthy diets in recent times. In addition, consumer perception of the high nutritional content of infant formula due to the health consciousness of their children drive the growth for infant formula consumption made from dairy proteins. Organizations such as FDA and dairy ingredient manufacturers are in R&D activities to enhance the properties such as flavor, aroma, and performance of dairy protein ingredients. This is anticipated to provide opportunities for manufacturers to offer an improved variety of dairy protein ingredients in the market to achieve a higher share.
- However, the rising adoption of veganism and high incidences of lactose intolerance are hampering the growth of the market. Additionally, fluctuations in raw material prices are a major challenge faced by the market players.
Key Market Trends
Rising Demand for Whey Protein Concentrate (WPC)
The demand for whey protein concentrates has witnessed a significant increase in recent years, owing to the cheaper price than other protein sources. The whey protein concentrates segment is majorly driven by the sports nutrition and lifestyle industry. Infant formula is one of the fastest-growing markets for whey protein specifically WPC?-35?-80 and demineralized whey powder. Demand for whey-?based infant formulas is strong in a few countries, particularly China. Moreover, the market for whey protein concentrate is growing, as whey protein concentrate is consumed as a general supplement for the body. Therefore, this form of protein is largely driven by health-conscious consumers. To meet the consumer’s preference, the companies such as Fonterra is using milk (processed at its Wynyard factory) to supply whey protein concentrate, a key ingredient in dairy products including yogurt, dairy beverages, and snack bars.
China is Expected to Have the Fastest Growing Market
The robust consumer market of China, with the constantly growing demand for dairy products such as yogurt, are the primary factors driving the market in the country. The leading food company in the country, such as Arla indicates, growing fondness of dairy with stats suggesting 84% of Chinese adults and 92% of children consuming yogurt at least once a week, which is anticipated to take over the US market in the forecast period. Additionally, the rising interest for infant milk formula in China is another factor pushing revenue records of dairy ingredients, resulting in the application to be one of the largest revenue contributing segments in the market studied. According to Danone, the Infant Milk Formula market in the country grew by four times in ten years since 2007, holding about 45% of global market share in 2017. In addition, manufacturers are offering differentiated dairy ingredients in order to address the specific requirements of varied applications. For instance, NZMP markets ingredients specially formulated for industries including Sports and Active Nutrition, Milk and Milk-Based Beverage, Yogurt and Fermented Products, etc.
The Asia-Pacific dairy protein market is competitive in nature having a large number of domestic and multinational players competing for market share. Emphasis is given on the merger, expansion, acquisition, and partnership of the companies along with new product development as strategic approaches adopted by the leading companies to boost their brand presence among consumers. Key players dominating the regional market include Fonterra Co-operative Group, Hoogwegt, Interfood Holding, and Foodchem International Corporation, among others.
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