The permeate market size is projected to be valued at USD 885.25 million in 2023 and is expected to rise to USD 1,705.85 million by 2033. The sales of permeate are expected to record a significant CAGR of 6.8% during the forecast period.
Permeate is a byproduct of the dairy industry that is widely used as an affordable sweetener in food and beverages due to its high lactose and mineral content.
As people become more health-conscious, there is a growing trend toward natural and low-calorie sweeteners. As permeate fits this bill while also being affordable for manufacturers. Moreover, the use of permeate in animal feed due to its high nutrient content creates a new market in regions with significant livestock industries.
The permeate market has plenty of expansion opportunities, such as creating new applications beyond food and beverages, like biodegradable plastics or renewable energy sources.
There is also potential for growth in new geographic regions, particularly in the Asia Pacific. As the growing population and disposable income make it an appealing marketplace. However, the market does face challenges such as increased regulation and competition from other sweeteners.
Suppliers and manufacturers must be flexible and adaptable to respond to changing consumer preferences and regulatory requirements. Whereas still maintaining a focus on cost and quality to remain competitive.
| Attribute | Details |
|---|---|
| Permeate Market Estimated Size (2023) | USD 885.25 million |
| Permeate Market CAGR (2023 to 2033) | 6.8% |
| Permeate Market Forecasted Size (2033) | USD 1,705.85 million |
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The permeate market is expected to see a significant increase in demand over the forecast period. With a projected compound annual growth rate (CAGR) of 6.8%. This is compared to the 4.5% CAGR seen between 2018 and 2022. The growth in demand can be attributed to the increasing popularity of packaged food products and dairy products worldwide.
Permeate is derived from milk or whey through the removal of protein and other elements. To create a palatable taste in bakery and confectionery products. It is a high-lactose dairy ingredient that contains urea and has a stabilizing effect on casein micelles. The food and beverage industry widely adopts it as a bulking agent or as a protein standardization agent.
Whey permeates, a co-product of whey protein concentrates and isolates, is gaining popularity in sports nutrition products and animal feed. It has good solubility and provides a pleasant dairy flavor in dry formulations.
The growing demand for dietary supplements and functional food is also expected to create opportunities for market growth. Manufacturers are incorporating whey permeate and milk permeate in food products. Such as sports drinks, nutrition bars, breakfast cereal, and other supplements. This trend is expected to continue augmenting the growth of the market over the forecast period.
Principal Consultant
Whey permeate is a desirable ingredient in the food industry for several reasons.
Given its status as a byproduct, it is frequently employed as a cost-effective alternative to other dairy constituents. Furthermore, milk permeate possesses functional qualities that can enhance the texture and stability of food and beverage items. It can be used in a variety of applications as a bulking agent, a protein standardization agent, and a flavor enhancer. The rising demand for functional foods, as well as the expanding use of permeate in the food and beverage industries, are projected to drive the market forward.
In terms of applications, animal feed sales are expected to account for almost 75% of the total market share in 2022. The product is commonly used as a grain feed substitute for cows, chickens, and pigs since it improves the palatability, flavor, scent, and overall taste of animal feed.
In addition, it dissolves easily, mixes well, and does not cake or clump in high moisture circumstances. Owing to these functional features, it can be used in aquaculture feed as well as feed for young pigs and calves. Applications in this area are expected to gain traction in the coming years as a result of these considerations.
Growth in the United States can be attributed to increased consumer awareness of protein requirements and the necessity of a well-balanced diet. This is increasing interest in dietary supplements and other nutrient-rich items.Furthermore, the presence of a thriving food and beverage sector in the country creates a potential for market players. The development of low-lactose permeate allows for its use as an electrolyte in beverages, which is emerging as a new trend in the beverage industry.
The country's increased production and consumption of meat and dairy products is likely to strengthen the market in the future years.
Permeate is used in the meat processing industry as a replacement for sodium chloride in the brining process to reduce the sodium content of meat and poultry. Brining is an important method for packaged meat commodities because it increases shelf life, improves flavor, and keeps meat soft when cooking.
As a result of these advantages, demand for permeates in meat processing is predicted to stay high, contributing to the growth of the China market over the forecast period.
Germany is one of Europe's top dairy producers, and demand for permeates is likely to expand in the next years. The expanding popularity of functional foods, together with rising demand for bakery and confectionery items, is likely to drive market expansion. Furthermore, measures by the German government to promote the consumption of healthy foods and beverages are projected to fuel demand for permeates in the country. Several well-known food and beverage companies have a substantial position in Germany's permeates the market. These businesses are investing in R&D to create innovative permeate products that can suit the changing needs of the food and beverage industries.
Sales in India are expected to thrive at a 7.6% CAGR, due to the expansion of the dairy and pharmaceutical industries. Consumer appetite for nutrition provided from supplements and other sources is allowing applications in dietary supplements. Furthermore, there is an increased use of whey permeates in medical confectionaries such as lozenges, strips, and hard candies for mild throat infections, colds, and coughs.
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The permeates market is a competitive one, with many players vying for a strong market position. These players are implementing various strategies, including mergers and acquisitions, partnerships, collaborations, and new product launches to strengthen their market position. They are investing heavily in research and development activities to create innovative permeate products that can meet the ever-changing demands of the food and beverage industry. To expand their market presence, companies are increasing their production capacity, expanding their distribution channels, and investing in new product development.
In addition, sustainability has become a key focus for several companies. As they are taking steps to reduce their environmental impact while also meeting changing consumer demands. For example, Glanbia PLC has set a goal of achieving net-zero carbon emissions by 2050. It is investing in renewable energy sources to decrease its carbon footprint.
Attribute Details Growth Rate CAGR of 6.8% from 2023 to 2033 Base Year of Estimation 2022 Historical Data 2018 to 2022 Forecast Period 2023 to 2033 Quantitative Units Revenue in USD million and Volume in Units and F-CAGR from 2023 to 2033 Report Coverage Revenue Forecast, Volume Forecast, Company Ranking, Competitive Landscape, growth factors, Trends, and Pricing Analysis Key Segments Covered By Product type, By Application, By Region Regions Covered North America; Latin America; Europe; East Asia; South Asia; The Middle East & Africa; Oceania Key Countries Profiled The United States, Canada, Brazil, Mexico, Germany, Italy, France, The United Kingdom, Spain, Russia, China, Japan, India, GCC Countries, Australia Key Companies Profiled Arla Foods Ingredients Group P/S (A subsidiary of Arla Foods); Arion Dairy Products B.V.; VOLAC INTERNATIONAL LIMITED; Hoogwegt; Lactalis Ingredients (A Subsidiary of LACTALIS GROUP); Van Lee Melkprodukten Barneveld BV; Armor Proteines S.A.S.; Idaho Milk Products; Eurial G.I.E. (A Subsidiary of Agrial); Eurosérum (A Subsidiary of Groupe Sodiaal); Agropur Ingredients LLC. (A Subsidiary of Agropur Cooperative); SIA Baltic Dairy Board; Milk Specialties; MILEI GmbH; Hochdorf Swiss Nutrition Ltd; Corporación Alimentaria Peñasanta, S.A; Batory Foods; Wisconsin Milk Marketing Board, Inc.; EURODUNA Rohstoffe GmbH; LAND O'LAKES, INC Customization & Pricing Available upon Request
The market is valued at US$ 885.25 million in 2023.
Arion Dairy Products B.V., Hoogwegt Group, and Idaho Milk Products Inc. are key market players.
India, Japan, and China dominate the Asian market.
The market is estimated to reach US$ 1,705.85 million by 2033.
North America is projected to emerge as a lucrative market.
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