Press release
Dairy Protein Market to Reach USD 25.1 Billion by 2031, Growing at 9.55% CAGR
Dairy Protein Market
The global dairy protein market, valued at USD 12.1 billion in 2023, is projected to reach USD 25.1 billion by 2031, expanding at a CAGR of 9.55% during 2024-2031, according to DataM Intelligence. The surge in consumer demand for protein-rich, functional, and natural foods is driving growth globally, as dairy proteins such as whey, casein, and milk protein concentrates gain traction across food, beverage, and personal care industries.
North America leads the market with a 37.4% share, bolstered by a mature dairy industry, continuous product innovations, and a strong sports nutrition culture. Meanwhile, Asia-Pacific emerges as the fastest-growing region, powered by urbanization, increasing disposable incomes, and a growing preference for health and wellness products among middle-class consumers.
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Key Highlights from the Report
➤ Global dairy protein market expected to reach USD 25.1 billion by 2031 at a 9.55% CAGR
➤ North America leads the market with 37.4% share, driven by functional food and sports nutrition adoption
➤ Milk protein segment dominates with 38.5% market share, supported by strong demand in infant formula and health foods
➤ Rising technological advancements in dairy processing enhance protein purity, digestibility, and application versatility
➤ Growing preference for clean-label and natural protein ingredients amplifies global demand
➤ Asia-Pacific region poised for fastest growth due to urbanization, rising incomes, and awareness of nutritional benefits
Market Segmentation
The dairy protein market is segmented by type, content, form, and application.
By type, the milk protein segment dominates with a 36-38% market share due to its wide application in infant formulas, sports nutrition, and functional foods. Whey and casein proteins continue to gain traction for their digestibility, amino acid content, and muscle recovery benefits.
By form, the dry protein segment holds the largest share, supported by its extended shelf life and ease of transport. Dry formulations remain a preferred choice for inclusion in dietary supplements, protein bars, and infant food formulations, while the liquid segment sees growing adoption in ready-to-drink products.
By application, bakery products lead global use due to growing demand for protein-enriched snacks and high-nutrition functional foods. Dairy proteins are also integral to beverages, confectionery, and meal replacement products for their nutritional enrichment and texture-enhancing properties.
Regional Insights
North America: Market Leader with Innovation and Established Infrastructure
North America dominates the global dairy protein market with 37.4% share, driven by increased consumer demand for high-protein diets, clean-label products, and sustainable food innovations. The U.S. maintains a stronghold, leveraging its established dairy industry, distribution networks, and consumer preference for functional nutrition.
Europe: Focused on Clean Label and Sustainable Proteins
Europe's dairy protein market continues expanding, supported by a growing aging population and demand for protein-enriched functional foods. Consumer preference for sustainable and traceable ingredients promotes innovation in eco-friendly dairy protein production and animal welfare practices.
Asia-Pacific: Fastest-Growing Regional Market
Asia-Pacific is expected to record the highest CAGR through 2031 due to rapidly changing diets, income growth, and rising demand for premium, protein-rich foods across China, India, and Southeast Asia. Urbanization and health awareness campaigns further boost demand, encouraging foreign and local dairy processors to invest in the region.
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Market Dynamics
Market Drivers
The growing focus on health, fitness, and balanced diets accelerates global demand for dairy proteins. They are widely recognized for their complete amino acid profile, muscle repair capabilities, and metabolic benefits. Expanding applications in nutrition, cosmetics, and pharmaceuticals continue to strengthen market growth.
Market Restraints
High production and processing costs, coupled with price volatility in raw milk, challenge market expansion. Compliance with strict environmental and food safety regulations adds to operational expenses, particularly in developing markets.
Market Opportunities
The growing shift toward value-added dairy products and hybrid blends combining dairy and plant proteins presents new opportunities. Product diversification into sports nutrition, clinical supplements, and fortified foods supports expansion into both emerging and developed markets.
Reasons to Buy the Report
✔ In-depth regional analysis of market growth and opportunity segmentation
✔ Insights into the latest technological advancements and sustainability practices
✔ Detailed evaluation of leading dairy protein types and applications driving global demand
✔ Comprehensive company profiles with strategic partnerships and innovation trends
✔ Forecast data through 2031 for strategic decision-making and investment planning
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Frequently Asked Questions (FAQs)
◆ How big is the global dairy protein market in 2023?
◆ What is the projected CAGR for the dairy protein industry through 2031?
◆ Which protein type holds the largest share in the global dairy protein market?
◆ Which region dominates the dairy protein market globally?
◆ Who are the major companies operating in the global dairy protein market?
Company Insights
Arla Foods (Denmark)
Fonterra Co-operative Group (New Zealand)
Nestlé S.A. (Switzerland)
Danone S.A. (France)
Glanbia plc (Ireland)
Lactalis Group (France)
Saputo Inc. (Canada)
Hilmar Cheese Company (U.S.)
Milk Specialties Global (U.S.)
Royal FrieslandCampina N.V. (Netherlands)
Recent Developments:
May 2025 - Danone's Oikos launched a protein shake for GLP-1 medication users focusing on controlled appetite and nutritional support, available across major U.S. retailers.
October 2024 - DairyX (Israel) unveiled yeast-based casein proteins to enhance the texture of plant-based cheeses, reducing environmental impact and aligning with sustainability targets.
Conclusion
The global dairy protein market is poised for strong expansion as health-conscious consumers increasingly incorporate protein into daily nutrition. With technological innovation, evolving dietary trends, and expanded product portfolios, dairy proteins remain at the core of functional food, sports nutrition, and infant formula segments. North America leads growth through advancements in ingredient technology, while Asia-Pacific's dynamic demand reflects the next wave of market opportunity. As sustainability and nutritional innovation continue to shape the future, dairy proteins are set to remain a cornerstone of the global nutrition industry.
Contact Us
Mr. Sai Kiran
DataM Intelligence 4market Research LLP Ground floor
DSL Abacus IT Park, Industrial Development Area
Uppal, Hyderabad, Telangana 500039
USA: +1 877-441-4866
Email: Sai.k@datamintelligence.com
Visit Our Website: https://www.datamintelligence.com
About Us
DataM Intelligence 4Market Research is a comprehensive market intelligence platform offering syndicated and customized reports along with expert consulting across multiple industries, including chemicals, healthcare, agriculture, food & beverages, and more. With extensive experience and a strategy-focused approach, DataM provides businesses and individuals with reliable market insights, statistical forecasts, and personalized research solutions to help them make informed decisions and successfully bring innovations to market.
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