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Report: whey market worth $13.5bn by 2020

25 Jan 2016

Whey ingredients should continue to grow in both value and volume from 2015 to 2020 according to a new report from BCC Research which sees increasing demand in emerging economies, especially in Asia-Pacific and Latin America.

Whey ingredients should continue to grow in both value and volume from 2015 to 2020. Stable demand in core markets–the U.S. and countries in the E.U. region - will drive growth,. BCC Research reveals in its new report that increasing demand in emerging economies, especially in Asia-Pacific and Latin America, also will move the market.

Whey protein ingredients are currently playing a key role in effectively and efficiently replacing milk in many edible products, BCC notes. Primarily, whey proteins were used in intensive sports nutritional products and were restricted to usage by athletes. However, with increased awareness among mass consumers, the consumption of this commodity has increased in the form of nutrition bars, nutritional beverages, infant nutritional formula and weight-management supplements, the researchers say.

According to BCC, the global market should reach $13.5 billion in 2020 from $9.2 billion in 2015, reflecting a five-year annual compound growth (CAGR) of 6.5%. The food and beverage segment will increase at a five-year CAGR of 5% to grow from $4.3 billion in 2015 to $5.5 billion in 2020. Sports nutrition as a segment is expected to reach $1.7 billion and $2.7 billion in 2015 and 2020, respectively, increasing at a CAGR of 9%.

Fundamentally, increased focus on health across age groups and gender is driving adoption of whey protein beyond sporting activities, BCC claims. Whey protein demand overall is being driven by widespread application across end markets–from health food, bakery, confectionery, functional nutrition, dairy, ice cream and other processed food. Demand is being driven by change in consumer behaviour toward the healthy-food segment, which is a global phenomenon. Whey derivatives are also finding increased adoption in niche categories such as infant formula products.

Emerging economies in Asia and Latin America are driving the demand for whey ingredients, as well. Steady economic growth in key emerging economies in these regions has raised increased disposable income and a burgeoning middle-class population that appears ready to spend more on lifestyle and health food. This is significant especially in volume terms, with large populations in these markets.

“Whey proteins are currently used in newly released food items that are very popular in the Asia-Pacific region. Primarily, people within the age group of 25 to 45 years are key consumers of such products. They include mainly office workers who require products to alleviate stress at regular intervals,” said BCC Research analyst Pankaj Chaubey. “In Latin America, the whey protein market generated $411 million in 2014 and is expected to grow at a five-year CAGR of 5.3% to reach $565 million in 2020. In 2014, two countries, Brazil and Argentina, collectively accounted for nearly 39% of this market.”