Whey Permeate Market By Applications (Food and Beverage Industry, Animal Feed Industry, Others) – Growth, Future Prospects and Competitive Analysis, 2016 - 2028

The global Whey Permeate Market report explores the critical analysis of the whey permeate industry using key parameters. The report consists of investment strategies, the need for investments in the whey permeate industry, and the multiple benefits for the investors. Importantly, this report sets out major changes in the global technical regulations for the whey permeate industry and how economic and non-economic barriers are helping the market grow. Moreover, the report examines historic and forecasted market sizes at the global, regional, and country levels. The report also includes an in-depth analysis of key investment propositions, the demand and supply gap, competitor positioning, SRC analysis, STAR analysis, and Tornado analysis. Important technological advancements and other analyses, including Porter's Five Forces, PESTEL, Value Chain, etc.


Key Highlights of the report

How are the major segments performing in the Whey Permeate Market?

In terms of applications, the food and beverage industry segment dominated the global market in 2021, and this trend is anticipated to hold throughout the projection period. Whey permeate is a fat-free carbohydrate ingredient used in chocolate and confectionery products as a bulk sweetener. Whey permeate is an excellent replacement for expensive milk solids that do not alter the taste or texture of food products or necessitate changes to processing parameters. The numerous advantages of whey permeate in the food and beverage industry are driving the whey permeate market in the food and beverage segment for the predicted period.

Which region dominated the Whey Permeate Market?

North America dominated the global whey permeate market in 2021 and is expected to continue to do so during the forecast period. The market in the United States has grown as consumers have become more aware of the importance of protein and a well-balanced diet. This drives sales of dietary supplements and other nutrient-dense products in the regional market. Besides, the country's thriving food and beverage sector is creating new opportunities for industry players. The development of low-lactose permeate allows for its use as electrolytes in beverages, establishing a new trend in the beverage industry. North America is a leading producer of whey permeate, as the International Dairy Federation reported. Whey permeate is most commonly used in animal feed in North America. The market is expected to expand significantly during the forecast period, owing to increased whey permeate applications in the feed industry.

What is the competitive environment of the Whey Permeate Market?

Tier-1, tier-2, and local players are present in the market. The tier-1 and tier-2 players have a wide range of products and a global presence. Companies such as Agri-Dairy Products Inc. (the US) and Arla Foods amba (Denmark) dominate the global whey permeate market due to financial stability, product differentiation, diversified regional presence, and strategic developments. They also implement strategic growth initiatives like joint ventures, product launches, and partnerships to broaden their customer base and strengthen their market position. For instance, in December 2021, Lactalis Ingredients, based in France, inaugurated a new whey drying tower at its Verdun facility. The 30,000-ton production capacity of the new facility enables the business to enter new markets. On the other hand, Glanbia plc, an Irish nutritional ingredients company, began operations at its Waterford plant. This enabled the company to broaden its product portfolio and thus expand its market presence in Ireland.

Executive Summary

What are all technical developments being developed in the Whey Permeate Market?

Permeate, a dairy ingredient with a high lactose content is made by removing the protein and other solids from milk or whey. A variety of physical separation techniques are used for this. After elimination, milk's dairy fat and milk proteins are ultrafilters to produce milk permeate. Milk permeates, is high in urea and NPN, and stabilizes casein micelles. Preferably, it is utilized as a protein standardization or bulking agent. Whey permeates, a by-product of the cheesemaking process, has a lactose content of 44–50 g per liter. It is considered to be a good substrate for AB fermentation as a result. Whey permeate has many uses in the fermentation industry as it contains between 70% and 90% of processed lactose, milk, minerals, and nitrogenous compounds. Technological advancements and significant investments by key players will provide additional opportunities for the permeate market to grow during the forecast period. For instance, in Ireland, Glanbia Ingredients collaborates with AgriChemWhey, a European Commission project. The Bio-based Industries Joint Technology Initiative, in collaboration with an EU research consortium, engineering, and business interests, has primarily funded this project. The primary goal is to create technology that converts dairy product flows into high-value commercial products. The initial goal is to build a USD 41.2 million integrated biorefinery that will convert 25,000 tons of whey permeate and whey pearl lactose per year into polylactic acid, minerals for human nutrition, L-lactic acid, and bio-based fertilizers. As a result, the 2018 Bio-Based Industries Joint Technology Initiative encourages increased permeate production, propelling the permeate market forward.

Which are the key investments by the players in the Whey Permeate Market?

Leading companies in the global permeate market are investing in R&D to diversify their product lines and manufacturing facilities to meet the needs of an expanding customer base. The key player is making various investments. For instance, Glanbia Nutritional and Proliant Dairy Ingredients formed a joint venture in August 2018 to invest USD 85 million in establishing a whey protein manufacturing plant in Michigan. This enabled the company to broaden its product portfolio and expand its customer base. Similarly, in June 2018, Idaho Milk Products, a business that processes raw milk into milk protein concentrate and milk permeate, announced plans to invest USD 26 million in an expanded facility in Michigan. The company's overall production capacity is anticipated to increase by this facility by 1 million pounds per day, allowing it to expand its product line.

Some of the major players in the market are FIT Company (France), Arla Foods amba (Denmark), Agri-Dairy Products Inc (US), Melkweg Holland BV (Netherlands), LACTALIS Ingredients (France), Havero Hoogwegt BV (Netherlands), Arion Dairy Products BV (Netherlands), Sloan Valley Dairies Ltd (Canada), Agropur Ingredients (US), and American Dairy Products Institute (US).

What are the Major Driving Factors for the Whey Permeate Market?

The demand for supplemental diet and functional foods and the rising consumption of milk products are significant factors anticipated to drive the permeate market during the forecast period. Removing milk quotas in developed nations is also anticipated to spur the permeate market's expansion. Further predicted factors to stir up the permeate market's growth include the rise in the use of dairy permeate as a substitute ingredient for sodium reduction, growing infections, and reduced economic activity.

What are the Major Risks for the Whey Permeate Market?

Increasing consumer awareness and lactose intolerance will restrain market growth throughout the forecast period. The prevalence of lactose intolerance has increased recently all over the world. Lack of lactase, an enzyme that converts lactose into simpler sugars in the small intestine, is the primary cause of lactose intolerance. Standards for food quality, unsafe handling practices, and competition from substitute products could also restrain market expansion.

Which are the key Applications in the Whey Permeate Market?

The food and beverage industry dominated the whey permeate market in 2021. As a bulk sweetener, whey permeate is a fat-free carbohydrate ingredient in chocolate and confectionery products. Whey permeate is a great substitute for pricey milk solids as it does not change the flavors or texture of food products or call for alterations to processing guidelines. The whey permeate market in the food and beverage segment is anticipated to be driven by the numerous benefits of whey permeate in the food and beverage industry. Meat and dairy products drive the market due to rising production and consumption. Growth is anticipated to be fueled in the forecast period by rising sales of packaged foods, ready-to-eat meals, and beverages and rising consumer preference for foods with high nutritional content.

How is the Whey Permeate Market performing in regions?

In 2021, North America dominated the world market for whey permeate, and it is predicted that it will continue to do so over the forecast period. According to the International Dairy Federation, North America is a major whey permeate manufacturer. Whey permeate is primarily used in animal feed in North America. The market is anticipated to expand significantly over the forecast period due to growing whey permeate applications in the regional feed industry. Due to consumers' growing awareness of the value of a balanced diet and the necessity of getting enough protein, the U.S. market has expanded. The rising demand for dietary supplements and other nutrient-dense goods drives sales in the regional market. Moreover, the nation's booming food and beverage industry is giving market participants room to grow. The development of low-lactose permeate allows for its use as electrolytes in beverages, establishing a new trend in the beverage industry.

Besides, the Asia Pacific region is expected to grow the most during the forecast period. The development of the Whey Permeate market in the Asia-Pacific region is anticipated to be aided by several trends emerging in nations like China. Chinese food laws had been preventing whey from entering the market until recently. On the other hand, China approved the market entry of whey imports in 2020. A growing preference for using whey permeate and shifting trends will likely drive the regional market.

What is the regulatory landscape for the Whey Permeate Market?

The National Health Commission's announcement on the promulgation of applicable standards for dairy permeates powder (provisional) in June 2020 was introduced and garnered much interest for the new term dairy permeate powder. According to the announcement, 'dairy permeate powder' refers to dairy products whose major components are lactose and milk minerals after evaporation and drying by removing whey protein in whey or cow milk through membrane filtration or other processing methods (such as ion exchange). Dairy permeate powder is currently used as a food processing ingredient in China. However, it is widely utilized in many nations and regions, including the European Union, the US, Australia, South Korea, India, and Japan, in numerous food and beverage products. Baked goods, pizza dough, and confectionery products in the US can be used as a direct replacement for other dairy solids. It can also be used as a sucrose or corn syrup substitute to lessen the salt content of formula products and fermentation. Young animals can also be given lactose and minerals using this method.

What is the Market Size of the Whey Permeate regarding value?

The global whey permeate market is anticipated to grow at a substantial CAGR of 3.9% in the upcoming years. The global whey permeate industry was estimated to be worth USD 682.5 billion in 2021 and was expected to be worth USD 858.6 billion by 2028.

What are the major players planning for the future of the Whey Permeate Market?

Whey permeate provides affordable, practical, and gastronomic advantages. Lactose makes up about 76-85% of permeate, so lactose content determines to permeate functionality. Food and Agricultural Outlook estimates that global milk consumption was 811 million tons in 2017 and is projected to rise by 22% to 1,168 million tons in 2030, providing room for market expansion. Players in the market are concentrating more on investing in R&D for manufacturing facilities. For instance, Glanbia Nutritionals, Dairy Farmers of America (DFA), and Select Milk Producers Inc. decided to establish the 'Big Whey and Cheese Production Plant' in Michigan in 2019. The estimated cost is $ 470 million, and production starts in the fourth quarter of 2021. These companies have agreed with ProLiant Dairy Ingredients to treat whey permeate. ProLiant intends to invest $ 85 million in constructing an adjacent facility to process the whey permeate generated by this joint venture. As a result, this joint venture allows the permeate market to expand in size.

Segmentation of Global Whey Permeate Market -

Global Whey Permeate Market – By Applications

  • Food and Beverage Industry
  • Animal Feed Industry
  • Others

Global Whey Permeate Market – By Region

  • North America
    • The U.S.
    • Canada
  • Europe
    • Germany
    • France
    • The U.K.
    • Italy
    • Spain
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • South-east Asia
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Middle East & Africa
    • GCC Countries
    • South Africa
    • Rest of the Middle East and Africa

Frequently asked questions about the global Whey Permeate Market

The whey permeate market also suffered from the COVID-19 pandemic, which resulted in a decline of over 2% in revenue generated in 2020.

North America accounted for the highest share in the global whey permeate market in value and volume.

The market's driving factors are an increase in the demand for supplementary diet and functional foods and an increase in the consumption of milk products. Moreover, eliminating milk quotas in advanced countries is expected to propel the permeate market forward.

Food and beverage industry had a major share in 2021, with more than 65% of the market revenue share.

The availability of substitutes and the high lactose content of permeate are expected to hinder the permeate market's growth over the forecast period. Standards for food quality, unsafe handling practices, and competition from substitute products could also restrain market expansion.

Whey Permeate Market Scope

Report Attribute Details
Market Value in 2021 USD 682.5 billion
Market Value in 2028 USD 858.6 billion
CAGR 3.9%
Benchmarking Year 2021
Past data 2016 – 2021
Forecast period 2022 – 2028
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Published Date:  Sep 2022
Category:  Food & Beverage
Report ID:   60651
Report Format:   PDF
Pages:   130
Rating:    4.6 (40)
Delivery Time: 24 Hours to 48 Hours   
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