Dive Brief:
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The global dairy protein market for nutrients and nutraceuticals is set to double – reaching $24.5 billion – by 2024, according to a new report from Persistence Market Research.
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Combined, the U.S. and Europe account for 63.9% of the global market, with the U.S. making up 33.7%, or $4.4 million in sales, and Europe representing 30.2%. Both are expected to maintain their dominance well into the 2020s.
- Dairy protein can be segmented into whey protein, which is a byproduct of making cheese and the most popular worldwide, and casein protein. These are used in yogurt, cheese, ice cream, energy bars, infant formula, nutritional products for older people and sports beverages.
Dive Insight:
Even though the nutraceutical market is taking off, the longstanding lack of definition of what those products are, as well as how — and by whom — such products are regulated, places a damper on the future.
In the U.S., the FDA is the governing authority. For their own reasons, companies may market nutraceutical containing items as ingredients, foods or dietary supplements. Elsewhere, the situation can be even more confusing.
But with so much room for growth, companies marketing dairy proteins or nutraceuticals need to pay close attention to regulatory matters in all jurisdictions they intend to be active in. As always, close attention to labeling is critical in these sectors.
As product differentiation continues to grow in the yogurt sector, it is likely to consume an ever-growing volume of dairy nutrients. The U.S. will continue to be the predominant market for several segments of this sector, including set yogurt, thanks to a broadening range of flavored products and recipe uses, and flavored yogurt drinks.
This means, of course, benefits will accrue not just to the dairy ingredients market but also to providers of fruit-based or fruit-like flavors and others.