Forecast - High Protein Milk
High protein milk is made by one to two ways. It is either filtered or protein is added into the milk. High protein milk is trending and gaining in popularity with the consumer.
HIGH PROTEIN MILK MARKET
- High protein milk is made one of two ways, by filtering, or by adding milk protein into the milk.
- The Global Milk Protein Market will grow to $18.25 billion by 2025, with a CAGR of 7.8%. Global demand is growing primarily due to the need for higher protein concentrations.
- Fairlife, who uses a high filtration process hit $250 million in retail sales in 2017. These sales represent a 258% increase over 2015, even though the overall milk sales declined during this period.
- Even though large brands dominate the market, small brands are driving the growth, being the only division to show growth according to McKinsey.
- The ultra-filtered market has seen rapid growth in the last few years.
- The global ultra-filtered key players are Coca-Cola, HP Hood LLC, Idaho Milk Products, Fonterra Co-Op, Kerry Group, Tatura Milk Industries Ltd., Darigold Ingredients Company, Erie Foods International, Inc., Enka Sut Company, and Grassland Dairy Products.
- "In 2017, The U.S. Food and Drug Administration announced that ultra filtered milk can now be used to make all any of natural cheese products. The ultra filtered milk is the fresh farm milk develop through a filter process to minimize the amount of water and lactose and focus on the natural proteins. This will allow cheese makers to use ultra filtered milk with natural and concentrated form in cheese making products."
- Changing consumer preferences, and a demand for nutritional products has created this new platform.
- Dairy Foods states that using filtration technology could raise the bar and provide additional opportunities.
- Niche categories are showing growth, even though overall dairy sales are down.
- Research has shown that protein is a top priority for people.
- Health, a desire for transparency, and sustainability are trends the milk market is currently experiencing.
- Consumers have a high expectation for dairy, with 45% expecting dairy to be healthier than other foods, and 56% believing it is necessary for a balanced diet.
- Over 40% of consumers say they have tried a new dairy brand in the last year.
- Nearly 80% of shoppers are interested in protein.
Our first step was to understand exactly what this market consists of. After researching, we discovered that high protein milk is either made by ultra-filtration or by adding milk protein to milk. It is referred to as ultra-filtration, value-added, and milk protein, along with high protein. When we researched, we used all four terms to make sure we covered every aspect.
In order to determine the market size and growth rate for high protein milk, we first consulted market research. McKinsey, MarketWatch, IBIS World, Mintel, Nielsen, and Bloomberg were consulted, and the only report we could find was a paid market report. This path did offer up some interesting insights.
Next, we went to industry associations to see if they might shed some light on the market share and growth. This research gave us some valuable insights, but no actual numbers we could use. We consulted KPMG, USDA, Food Navigator, Think Dairy USA, National Dairy Council, Ag Week, Duxes, Progressive Dairy, and Cargill.
As a final attempt to find any information on the high protein market, we went to industry publications. We researched PR Newswire, Beverage Daily, Food Business News, Dairy Business, and Dairy Reporter. Again, we found some information, but no quantitative information.
Ultimately, we believe that the two distinct ways that high protein milk is made, along with the "newness" of the concept, makes it a niche product that market research is not currently focusing on. There was a paid market report that would most likely share insight and actual market figures.