Irish Dairy Companies Stand to Benefit From €11.6bn Whey Market by 2030

A report by Analytical Market Research describes whey protein as a major functional ingredient in food, beverages and nutrition. Once treated mainly as a by-product of cheese and casein production, whey is now processed into ingredients used in sports, clinical and lifestyle nutrition.

The report lists Tirlán, Glanbia Nutritionals, Kerry Group and Carbery Group among the leading companies in the sector. They compete with Fonterra, Arla Foods Ingredients, Lactalis Ingredients and FrieslandCampina Ingredients in international markets.

It identifies vertical integration as an important competitive advantage. Companies that control raw-milk supply as well as filtration, fractionation and drying can reduce their exposure to fluctuations in raw-milk prices, according to the report.

Demand is divided between higher-volume whey-protein concentrate, or WPC, used to fortify mainstream food and beverages, and higher-margin whey-protein isolate and hydrolysate products. These grades are used in infant formula, medical-recovery products and sports nutrition.

The report attributes expanding demand to the adoption of high-protein diets, the addition of protein to everyday retail foods and increasing clinical-nutrition requirements among ageing populations in developed markets. It says product performance, including functional solubility, as well as supply-chain security and innovation will be important as the market grows by a projected €3.6bn over the five years to 2030.

North America accounts for 36% of global consumption, supported by established sports-nutrition infrastructure and high per-capita supplement use. Europe holds 26%, with cooperative processing networks and requirements for clean-label and grass-fed products. Asia-Pacific has a 23% share and is the fastest-growing region, with annual expansion of 9.2% linked in the report to urbanisation, a growing fitness culture and investment in regional nutrition manufacturing.

Irish manufacturers are described as having grass-fed reputations, specialised research and development capabilities and membrane-filtration technology. The report says these characteristics support the production of more specialised whey ingredients as demand for protein-based nutrition expands.