The dairy protein market continually evolves as the ingredients expand beyond the sports nutrition space. Currently, dairy proteins are trending as sought-after ingredients in the holistic health, gut health and functional and fortifying ingredients categories.
Moreover, technology for traditional dairy proteins, often used in the sports nutrition arena, are creating solutions that offer greater nutritional value while ramping up texture, flavor and ingredient combinations.
Innova Market Insights data suggests that supplement and sports nutrition launches with dairy-based proteins grew 13% year-over-year at a growth rate from July 2021 to June 2023. Additionally, it suggests that over half of the launches were sports powders, with whey protein isolate being the leading ingredient and casein positioned as the lead dairy protein for innovation.
Nutrition Insight sits down with experts from Fonterra, FrieslandCampina Ingredients and Ingredion to better understand the trends and innovations shaping this growing market.
“While once a niche category dominated by protein shakes for the most dedicated fitness enthusiasts, dairy proteins have been reinvented in consumers’ eyes as a cornerstone for good holistic health,” Vicky Davies, the global senior marketing director, performance, active & medical nutrition at FrieslandCampina Ingredients reveals.Vicky Davies, the global senior marketing director, performance, active and medical nutrition at FrieslandCampina Ingredients.
“More consumers focusing on full body and mind wellness inevitably influences the development of new dairy protein offerings. This is perhaps best exemplified in the ‘protein plus trend,’ where consumers want protein products that offer multiple health benefits like gut health or energy management.”
Dr. Shakti Singh, the category and innovation manager for proteins at Fonterra, agrees, emphasizing how consumers increasingly perceive health in a holistic way.
“We have moved beyond needing to just convince consumers that well-being and nutrition are important,” Singh explains. “It is now about providing tailored solutions that harmonize the brain and body to the right consumers.”
Singh further notes that the company is looking at three main trends influencing dairy protein development — functional nutrition, whole foods and personalization.
Michael Natale, the global platform leader plant-based proteins, Ingredion, notes that plant-based analogs to dairy proteins are also on trend, and top dairy industry players are noticing.
“Major dairy manufacturers are starting to play into the plant-based dairy market and they have the scale to bring more innovation to the consumer base and continue to invest in ingredient innovation that serves both markets and critically delivers value to both customers and consumers,” he explains.
Advancing dairy proteins
According to Davies at FrieslandCampina Ingredients, one of the main tasks in dairy protein advancement is utilizing current technology, innovating new technologies and re-imagining older ones for the twenty-first century — such as fermentation.
She notes that the company’s latest innovation, Biotis Fermentis, fuses whey protein with prebiotics and probiotics. The innovative blend is designed to enhance athletic performance and overall health by focusing on the gut-muscle axis.
“Our first-of-its-kind Biotis Fermentis leverages the power of fermentation to boost athletes’ and active consumers’ holistic health via the gut, supporting athletic performance,” Davies explains. “Emerging science shows that our gut microbiota, muscle function, body composition and athletic performance are linked.”
“Biotis Fermentis combines the benefits of whey protein, prebiotic galactooligosaccharides (Biotis GOS) and probiotic cultures through the power of fermentation. By using a patent-pending process, the properties of whey, which stimulates muscle protein synthesis — Biotis GOS, which fuels the growth of gut-friendly Bifidobacteria and probiotics — are significantly enhanced.”Biotis Fermentis has been shown to enhance overall athletic performance through the gut-muscle axis.
Overcoming challenges
Another advancement in the field of dairy proteins is the move to overcome some of the traditional challenges of the industry.
“We recently commercialized an ingredient, Novation Indulge 2940, that is the first-of-its-kind clean label gelling corn starch which provides yogurt, dairy desserts and processed cheese a novel texture previously only achieved with less-preferred ingredients,” reveals Ingredion’s Natale.
“By replacing dairy and other fats, these can improve the nutritional profile and consumer perception of quality, both of which are top of mind for consumers.”
At the same time, Dr. Singh at Fonterra stresses that dairy protein innovation should integrate diverse consumer lifestyles, motivations and obstacles to create tailored solutions and foster stronger connections with consumers.
“Protein consumption and the clinically proven health benefits of protein drives the need for more efficient delivery of protein or more protein per serving,” he underscores. “Taste and texture expectations also must be met for repeat purchase, especially for mainstream consumers.”
“Hence, many formulators turn to proteins with specialized functionalities, such as NZMP ProOptima WPC, to manage taste, texture and stability to enable everyday foods to be nutritionally enhanced with elevated protein.”
Fonterra’s trend focus
Fonterra highlights the results of its recent consumer report published by its brand Nutiani. The report details how protein, a macronutrient with proven health benefits, attracts a wide range of consumers, from young to elderly, for muscle recovery, weight management and overall holistic physical and immune health.
Dr. Singh notes that the global consumer is increasingly valuing mental health alongside physical well-being. This shift drives the demand for holistic nutritional solutions that combine brain, body and inner health benefits without sacrificing taste and texture — guiding product development and innovation in the protein sector. The company is also focusing on three main trending areas.
Ingredion’s Novation Indulge 2940 is clean label gelling corn starch which enhances the texture of yogurt, dairy desserts and processed cheese.“Whole Foods — consumers are becoming more conscious of the ingredients in their food, leading to a preference for products with recognizable, whole food ingredients,” Dr. Singh reveals. “Dairy protein products that incorporate natural and minimally processed components continue to gain popularity.”
“Consumers are looking beyond basic nutritional content and showing interest in dairy protein products that offer additional health benefits — functional nutrition. This could include products fortified with vitamins, minerals, probiotics, phospholipids or other bioactive compounds associated with various health benefits.”
Finally, he notes that consumers are looking for personalization.
“The demand for personalized nutrition is rising, with consumers seeking dairy protein products tailored to their specific health goals, dietary preferences and lifestyle,” he adds.
“To stay ahead of these trends, Nutiani actively invests in research and development to create innovative dairy protein products that align with emerging consumer preferences. We actively seek and respond to consumer feedback, preferences, and concerns to ensure that products meet the evolving needs of the target market.”
“We also feel that it is essential to continue to educate consumers about the nutritional benefits of dairy protein, promoting transparency in labeling, and highlighting the use of whole, natural ingredients.”
Moreover, he states that the rise in demand for plant-based and alternative protein sources is creating heightened competition for conventional dairy products. Alternatives like almond, soy and oat milk are gaining a significant presence in the market, directly challenging the position of traditional dairy milk.
However, he notes that consumers continue to prioritize two key factors when making repeat purchases — taste and protein quality – and says that dairy proteins remain market leaders in delivering these attributes. Yet, innovations in the plant-based dairy proteins space is ongoing, allowing those with dietary restrictions or preferences to experience analogous nutritional benefits.
The rise of plant-based
According to Natale at Ingredion, the company’s proprietary “All About Protein Consumer Study, 2023,” shows that as consumer demand for a diverse range of dairy alternatives grows, the challenge lies in achieving the perfect blend of what he calls the “two pillars” — taste and nutrition.
Furthermore, he says that creating plant-based milk, yogurt, cheese and similar products requires expertise in both ingredients and processing techniques.
“When it comes to food trends from a generation perspective, According to ATLAS, Ingredion proprietary research, purchase of dairy alternatives is higher among younger consumers,” he reveals. “34% of consumers 18-34 year olds are buying more dairy alternatives in 2023 versus 2020 compared to 22% of 50-74 year old consumers.”Fonterra’s NZMP ProOptima WPC protein manages taste, texture and stability, while nutritionally elevating everyday foods.
“In the US, younger parents are driving exposure and familiarity of children to plant-based alternative products, as well as placing great importance on protein intake for their children.”
Davies at FrieslandCampina Ingredients highlights that plant-based dairy has evolved from a trend to a firmly established market, with nearly half of global consumers opting for diets that moderate or avoid animal-based products.
She further notes that this shift doesn’t imply a decline in traditional dairy demand — rather, consumers are incorporating both dairy and plant-based proteins into their diets. She also spotlights that a primary motivation for choosing plant-based options is their perceived health advantages.
“At FrieslandCampina Ingredients, we know proteins, and our expertise isn’t limited to just dairy — our plant-based Plantaris range has been designed specifically to help manufacturers overcome common plant protein formulation challenges,” says Davies. “Plantaris offers a neutral taste and can be formulated with a range of flavors, avoiding the off-notes of pea proteins and creating an appealing taste and texture for consumers.”
“Both our Plantaris pea and faba protein isolates are extracted using a gentle, chemical-free manufacturing process which ensures dispersibility, solubility, stability and low dusting, making them easier to formulate with. And both ingredients are a good source of essential amino acids and have a very high protein content which helps to optimally stimulate muscle protein synthesis.”
“We’ve also recently partnered with specialist biotechnology company, Triplebar Bio Inc., to develop and scale up the production of cell-based proteins using precision fermentation,” Davies concludes. “This partnership is part of our commitment to developing innovative and future-proofed protein solutions that improve human health — for now and for generations to come.”