The new WHEY BOOK 2014 on whey and lactose products from 3A Business Consulting demonstrates, how whey and lactose ingredients continue to show much higher growth rates in volume and value terms, than the general food and food ingredients market, despite the state of the world economy. The WHEY BOOK 2014 covers the global market in terms of whey production, trade and demand.
“It is tempting to say that demand for whey and lactose just keeps growing, irrespective of the relative poor performance of the global economy”, says Tage Affertsholt, Partner of 3A Business Consulting.
For the forecast period 2014-2017, the assessment is that the whey industry will be able to keep up with demand, giving the very large investments undertaken by the industry in recent years in capacity and technology, and by better utilization of the liquid raw material available. “Generally supply and demand is not forecast to be significantly out of balance, however as recent price volatility has shown turbulence may be expected – and in particular so for the ingredients with the largest investments” says Affertsholt.
Whey powder and whey proteins represent a global market value of approx. USD 9.8 billion in 2013, 36% higher than in 2011 given higher prices, and the market value is forecast to reach approx. USD 11.7 billion in 2017, corresponding to an average annual value growth towards 2017 of 4% at constant prices. Lactose, pharmaceutical lactose and permeate powder markets are globally worth USD 2.3 billion in 2013, a figure estimated to exceed USD 2.8 billion in 2017 implying an average annual growth of 5% over the forecast period.
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, Saputo, Glanbia, Murray Goulburn, DMK/Wheyco, Leprino, Agropur, Sachsenmilch, Bongrain/Armor Proteines, Sodiaal/Euroserum and Hilmar. Specialist whey and lactose ingredient companies such as Milk Specialties Global, Meggle, Milei, Volac, Carbery, Dairygold, and Davisco also play a similar important role in the global market place. The World’s two largest dairy companies – Nestlé and Danone – are rarely actual producers; they are however major end users of whey and lactose ingredients e.g. for infant formulas. Further, traditional non-dairy companies such as the Coca Cola company, expands their product portfolio to new product ranges including protein fortified soft-drinks. “The protein fortification trend is really a global mega-trend playing into the hands of the whey industry,” Affertsholt says.
The report 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 infant formula, sports nutrition, and clinical nutrition products are mainly responsible for the strong growth in the high-end protein ingredients. Another trend is the ongoing consolidation of the industry, exemplified with the Agropur acquisition of Davisco per August 2014 and the Fonterra strategic alliances in Europe.
EU-28 and the US are both the largest producers and major markets for whey products, whereas Asia is rapidly approaching the top spot for lactose and permeate demand. For the 2014-2017 period, the Asian region including China will show the highest demand growth rates. Production growth is highest in the US, and in terms of export the US has likewise assumed the number one position globally.
The report is global in scope with regional analysis of EU-28, the US, Asia, Latin America, Eastern Europe, MEA and Oceania. Focus is on supply and demand including trade analysis. Specifically, the report covers the products whey powders, WPC35, WPC80, WPI, WPH, lactose and permeate powder. Report headlines are:
- Market size (volume and value), expected growth rates and market outlook 2014-2017
- Future supply and demand balance of whey and whey ingredients
- Whey and lactose ingredient applications, product launches and demand by key end user sectors
- Detailed regional trade analysis
- Profiles and product portfolio of more than 50 companies
- Industry mergers and acquisitions including strategic alliances
- WHEY BOOK 2014
- Global Market for Whey and Lactose Ingredients 2014-2017
The report can be purchased for EUR 6,400. For more information please contact: Tage Affertsholt – 3A Business Consulting Tel: +45 70 21 00 98 Fax: +45 86 13 50 66 E-mail: ta@3abc.dk Web: www.3abc.dk