Whey and Lactose Showing Positive Volume Growth – Report

Whey powder, whey proteins and whey protein fractions represent a global market value of approx. USD 5 billion in 2010 and are forecasted to approx. USD 6.4 billion in 2014, corresponding to a CAGR of 4% at constant prices.

Nov 1 2010 --- Whey and lactose ingredients continue to show positive growth rates in volume terms and less so in value terms, although prices have recovered to a more normal level in 2010 after the dramatic fall in the 2007-2008 period, according to 3A Business Consulting.

“The extreme price increases in 2006 and first half of 2007 forced many food manufacturers to replace expensive whey and lactose ingredients with cheaper food ingredients, resulting in less demand for products. However, demand has been re-established at previous levels in 2010, assisted by lower prices and recovery of the global economy”, says Tage Affertsholt, Managing Partner of 3A Business Consulting.

Whey powder, whey proteins and whey protein fractions represent a global market value of approx. USD 5 billion in 2010 and are forecasted to approx. USD 6.4 billion in 2014, corresponding to a CAGR of 4% at constant prices. Lactose, pharmaceutical lactose, permeate and lactose derivatives are worth more than USD 1.6 billion in 2010, whereas market value is estimated to nearly USD 2 billion in 2014 resulting in a CAGR of 3%.

The major players in the whey and lactose ingredient industry are the leading dairy and cheese companies in the world such as Lactalis, FrieslandCampina, Fonterra, Arla Foods, Glanbia, Murray Goulburn and Hilmar. Specialist whey and lactose ingredient companies such as Meggle, Euroserum, Milei and Davisco also play a significant role, particularly in various speciality products. The world’s two largest dairy companies - Nestlé and Danone - are not actual producers; they are however major users of whey and lactose ingredients.

A new report on whey and lactose products from 3A Business Consulting [Global Opportunities for Whey and Lactose Ingredients 2010-2014] shows several clear product trends. For whey, the high-end protein products - WPC80, isolates and hydrolysates - are growing by double digit figures, whereas whey powder and other low-end products are stagnating. The nutritional sectors and particularly sports and energy nutrition products are mainly responsible for the strong growth in the high-end protein ingredients. For the lactose product group, high growth is apparent for permeate, lactose derivative galactooligosaccharides and to some extent pharmaceutical lactose, whereas standard lactose shows limited growth. EU-27 and the US are the major markets for whey products, whereas Asia is rapidly approaching the top spot for lactose.

During the 2010-2014 period, the Asian region including China will present the highest growth both in absolute and relative terms. EU-27 and the US are also the largest producers of whey and lactose products, with the US showing a stronger growth rate than the EU. In terms of export, the US has also moved into the number one position, accoridng to the company.