Dairy Protein Market Size to Reach $15.3 Bn, by 2027 at 4.6% CAGR

The global dairy protein industry generated $9.9 billion in 2019, and is expected to reach $15.3 billion by 2027, witnessing a CAGR of 4.6% from 2021 to 2027.

WILMINGTON, DE, UNITED STATES, July 2, 2025 /EINPresswire.com/ -- Increase in demand for protein as nutritional and functional ingredients and rise in demand for infant formula drive the growth of the global dairy protein market.

Allied Market Research published a report, titled, “Dairy Protein Market by Type (Casein and Derivatives, Whey Protein, and Milk Protein Concentrate) by Application (Food & beverage, Nutrition, Personal care & Cosmetics, Feed and Others) and by Form (Solid and liquid): Global Opportunity Analysis and Industry Forecast, 2021–2027.”

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Increase in demand for protein as nutritional and functional ingredients, surge in consumer awareness regarding healthy diet, and rise in demand for infant formula drive the growth of the global dairy protein market. However, demand for plant-based protein hinders the market growth. On the other hand, introduction of protein supplements in untapped regions, product innovations, and demand for organic dairy ingredients create new opportunities in the coming years.

Leading market players

Kerry Inc.
Arla Foods Inc.
Archer Daniels Midland Company
Fonterra Co-Operative Group (Fonterra)
Groupe Lactalis
Cabot Creamery
Royal Frieslandcampina
Dana Dairy Group
Schreiber Foods
Saputo

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The whole egg protein segment to maintain its lead position during the forecast period

Based on product type, the whey protein segment accounted for the largest share in 2019, contributing to around half of the global dairy protein market, and is projected to maintain its lead position during the forecast period. This is due to rise in popularity among athletes and bodybuilders as it offers overall body growth and muscle building along with rise in demand for sports nutrition products and its tag as clean label ingredients. However, the casein and derivatives segment is projected to witness the highest CAGR of 5.9% from 2021 to 2027, owing to rise in demand for dietary supplements, expansion of prominent dairy-based vendors, and surge in consumption of proteins, vitality bars, and caffeinated drinks.

The food and beverages segment to maintain its dominant share in terms of revenue by 2027

Based on application, the food and beverages segment contributed to the largest market share, holding nearly half of the global dairy protein market in 2019, and will maintain its dominant share in terms of revenue throughout the forecast period. This is attributed to rise in demand for dairy protein and other milk extracted proteins along with increase in consumer demand for high nutritional drinks in the U.S. and Canada. However, the nutrition segment is projected to manifest the fastest CAGR of 5.9% from 2021 to 2027, owing to shift in preferences of health-conscious consumers toward nutritional drinks and products in developed countries with their excellent nutritional contents such as electrolytes and nutrients.

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North America to maintain its leadership status by 2027

Based on region, North America held the highest market share in 2019, contributing to more than one-third of the global dairy protein market, and will maintain its leadership status by 2027. This is due to significant growth and unlimited potential of the fitness industry in the U.S. However, Asia-Pacific is estimated to portray the highest CAGR of 6.2% during the forecast period, owing to rise in food & beverages and nutrition industries in many Asian countries along with increase in awareness regarding casein & derivatives and whey protein as sports or refreshment drinks.

David Correa
Allied Market Research
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