Whey Permeate Market Research Report: Information by Application (Food and Beverages, and Animal Feed), and Region (North America, Europe, Asia-Pacific, and Rest of the World) —Forecast till 2030

Whey Permeate Market Overview

The global Whey Permeate market is projected to register a CAGR of 4.35% and reach a value of USD 955.80 million by 2030. Whey permeates, also known as the high lactose dairy product solids, is a product from which protein ingredients and other milk solids are removed. Whey permeates consists of a lot of lactose content, a minimum of approximately 80 percent. Whey permeate is loved by consumers, owing to its pleasant flavor and sweet taste.

COVID-19 Impact Analysis

Whey permeate prices in North America and European countries have surged after the COVID-19 spread due to inflation in the prices of the raw materials. As per the survey conducted by the United States Department of Agriculture (USDA), the cost of whey reached a price ranging from USD 1.367 to 1.466 per ton. The association stated that the price of whey increased by 1.43% in the current quarter. The production of dry whey narrowed during the spread of coronavirus, and the scalability of the product was affected due to the non-availability of the individuals and the implementation of restricted or no production guidelines. Nonetheless, according to the USDA, the US dry whey production recorded a positive year-on-year (y-o-y) growth of +2.3% in 2020. Moreover, whey permeate is particularly used as a sweetener, filler, and stabilizer in beverages and confectionery products. The necessary food products were manufactured during the lockdown phase under controlled conditions and were distributed in line with regulatory guidelines. The usage of whey permeates in the production of food and beverages augmented the market growth during the Covid period.

Market Dynamics

The Global Whey Permeate Market is expected to grow at a CAGR of 4.35% during the forecast period 2022-2030. The increasing application in the feed industry is expected to be the prime factor driving the growth of the global whey permeate market. Likewise, the growing consumption of milk products is expected to fuel the growth of the global market during the review period. However, growing incidences of lactose intolerance are expected to hamper the growth of the global market. Nevertheless, the growing use of whey permeates confectionery products is expected to create lucrative opportunities for the players operating in the global market.

Drivers:

• Increase application in the feed industry

The consumption rate of permeate is high in animal feed applications, as a permeate has different applications such as enhancing sodium reduction, main

taining nutrition and health, hydration solution, and sweetener solutions. Increasing consumption of milk permeate powder as a filler in case of milk substitutes for calves and growing usage of whey permeate in pig feed are driving the popularity and importance of permeate in the animal feed industry. Whey permeate offers protein rate standardization and acts as a bulking agent which provides good fluidity and flow in animal feed. Moreover, whey permeate is a free-flowing powder that blends uniformly and dissolves easily, even in high-moisture conditions. Owing to this, it has become an ideal choice, particularly for baby pigs, poultry, cattle, and aquaculture feed. Furthermore, the demand for delactosed whey is growing, owing to its lower price as compared to other animal feed products. All the factors mentioned above are collectively driving the whey permeate market during the forecast period.

Restraint:

• Growing incidences of lactose intolerances

There has been a rise in the number of cases of lactose intolerance across the globe. Lactose intolerant people lack the enzyme lactase in their small intestine, which breaks down lactose into simpler sugars. Lactose intolerance includes an allergy to dairy products, deficiency of disaccharides, and lactase deficiency. Undigested or partially digested lactose leads to abdominal bloating, stomach pain, diarrhea, tiredness, sleep disturbances, vomiting, and other health problems. Estimates for lactose intolerance vary by ethnicity. African, American, and Asian ethnicities see a 75% - 95% lactose intolerance rate, while northern Europeans have a lower rate of 18% - 26% lactose intolerance. Also, according to ENSA (European Plant-Based Food Association), approximately 70% of the world’s population suffers from lactose intolerance. Its prevalence is generally very low in young children and remains low into early adulthood. The ability to tolerate certain amounts of lactose differs between individuals. The presence of lactose intolerance across the globe has forced people to adopt alternatives for lactose-containing products. This has led to an increased sale of lactose-free products in recent years. Whey permeate is a byproduct of the cheese-making industry, containing 44–50 g l−1 lactose. The average content of lactose is 80% in whey permeate. This can be a major restraining factor for the growth of the global whey permeate market for the forecast period.

Opportunities:

• Growing use in confectionary products

The confectionery industry includes three segments: chocolate confectionery, sugar confectionery, and gum products. All three categories are characterized by the use of a significant amount of sugar and sugar substitutes. Confectionery is generally low in micronutrients but rich in calories and carbohydrates. Whey permeate can be used as a fat-free carbohydrate ingredient, including as a bulk sweetener in chocolate, confectionery, and bakery products. Whey permeate powder is free-flowing, non-hygroscopic, highly soluble, and with a soft dairy taste; therefore, it can easily be used in chocolate, bakery, or pastry applications. Also, whey permeate is a fast-moving ingredient increasingly finding applications in numerous bakery categories such as cakes, biscuits, and baking mixes. It is the most cost-effective dairy solid in the market, which can replace lactose, sweet whey powder, and skimmed milk powder. Furthermore, whey permeate is more price attractive than lactose and shows fewer price fluctuations than other dairy solids. This creates significant growth opportunities for the whey permeate market in the confectionery industry in the coming years.

Challenge:

• Difficulties in drying whey permeate

The challenge with whey permeate is that it is about 94% water and about 4% lactose. This makes it expensive to dry, and the process is more complicated than for most other dairy ingredients (due to its high lactose content). In recent years, it has been found that there is more galactose in cheese whey due to the popularity of thermophilic cultures, which is also adding to the drying challenge. This process of drying the whey permeate creates challenges for the whey permeate producing industry, restraining the market growth. This challenge could be resolved by adopting the new technologies for producing whey permeate.

Segment Overview

By Application

Based on application, the global Whey Permeate market has been segmented into food and beverages, animal feed, and others. The animal feed segment accounted for a larger market share of 56.14% in 2021, whereas the food & beverages segment is likely to register a higher CAGR of 4.60% during the forecast period.

Global Whey Permeate Market Share, by Region, 2021 (%)Sources: MRFR Analysis

Regional Analysis

By region, the global Whey Permeate market has been divided into North America, Europe, Asia-Pacific, and the Rest of the World. North America accounted for the largest market share of 46.20% in 2021, the market is expected to register a CAGR of 4.18% during the forecast period. Europe was the second-largest market in 2021 whereas, the Asia -Pacific market is projected to exhibit the highest CAGR of 4.84%.

North America

North America is also accounting for a significant market share in the global Whey Permeate market in the year 2021 and is expected to grow at a CAGR of 4.18% during the forecast period 2022-2030. Key factors attributing to North America’s large share include increasing applications of whey permeate in the feed industry, increasing usage of dairy permeate as a substitute ingredient for sodium reduction, and the presence of a large number of market players in the region. For instance, in August 2018, Glanbia Nutritionals and Proliant Dairy Ingredients announced a strategic partnership to set up a plant in Michigan to produce whey protein by investing US$ 85 million. This partnership will help the company expand its product portfolio and increase its customer base.

Suppliers are investing more in milk and whey R&D than production. This investment is to reveal the unique function, nutrition, and sensory benefits of whey and milk permeate. It promotes permeate as an inexpensive and flavor-enhancing ingredient in end-use industries such as animal feed and food & beverages. Furthermore, the potential visibility of significant growth in permeate production in the US has enabled a stable and quality supply of permeate from the country.   

Europe

Europe is accounting for 34.25% of market proportion in the year of 2021 and it is projected to expand at a high CAGR of 4.48% the forecast period of 2022-2030. The rise in the demand for highly matured sports nutrition, the geriatric population in Europe, health-conscious consumers, and an increasing number of health and fitness clubs or centers are the major factors driving the market growth in Europe. The surge in the nutritional values, flavors, ease of carrying, and perishable nature are making whey snacks a popular choice amongst not only health-conscious people but also millennials who are looking for quick snack options for full meals and older people looking for a protein reach diet are some of the key factors propelling the market's growth in Europe. Furthermore, increasing the number of acquisitions, collaborations, and development of novel products in whey permeate is anticipated to drive the demand in the market. Additionally, the importance of fitness and clinical nutrition provides substantial growth to the whey protein market. The demand for dairy alternatives has increased among lactose-intolerant adults in the European region. Also, the food industry has experienced a huge demand for high-quality protein ingredients from consumers, driving the application of whey protein in Europe.

Competitive Landscape

The market comprises tier-1, tier-2, and local players. The tier-1 and tier-2 players have a global reach and diverse product portfolios. Companies such as Agropur Cooperative, Glanbia Plc., Arla Foods amba, Lactalis Ingredients, Arion Dairy Products, Inc., dominate the global market due to brand reputation, product differentiation, financial stability, and diversified regional presence.

Prominent players in the global Whey Permeate market Sloan Valley Dairies Ltd, Agropur Cooperative, FIT, Proliant Dairy, Inc., Hilmar Cheese Company, Inc., Glanbia plc., Arla Foods amba, Agri-Dairy Products, Inc., Melkweg Holland B.V., Lactalis Ingredients.

Recent Developments

Few developments that occurred in recent times influencing the market growth of Whey Permeate are listed below:

• In November 2020, Lactalis Ingredients, based in Retiers, France, has launched a separate brand of instant whey protein that contains sunflower lecithin as a substitute for the traditional soy-based lecithin component.

Scope of the Report

Global Whey Permeate Market, by Application

• Food And Beverages


• Animal Feed


• Others

Global Whey Permeate Market, by Region

• 
  North America
  
  
  
  • US
  
  
  • Canada
  
  
  • Mexico
  
  
  
  


• 
  Europe
  
  
  
  • Germany
  
  
  • UK
  
  
  • France
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• 
  Asia-Pacific
  
  
  
  • China
  
  
  • India
  
  
  • Japan
  
  
  • Australia & New Zealand
  
  
  • Rest of Asia-Pacific
  
  
  
  


• 
  Rest of the World
  
  
  
  • South America
  
  
  • Middle East
  
  
  • Africa
  
  
  
  

Intended Audience

• Food and Beverage Industry


• Bakery and Confectionary


• Animal Feed Industry


• Dairy Industry


• Meat Industry