Australia Animal Protein Market Size and Share

Australia Animal Protein Market (2025 - 2030)
Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.
View Global Report

Australia Animal Protein Market Analysis by Mordor Intelligence

The Australia animal protein market size was valued at USD 102.65 million in 2025 and estimated to grow from USD 107.86 million in 2026 to reach USD 138.16 million by 2031, at a CAGR of 5.07% during the forecast period (2026-2031). The market shows sustained growth driven by domestic demand for premium dairy and meat proteins, along with increasing export opportunities to Asia, despite reduced national milk output and limited livestock availability. The decline in average milk production per farm has impacted market dynamics and supply chain operations across the country. Production decreased primarily due to floods and adverse weather conditions that affected farming operations and feed quality, creating operational challenges for farmers and reducing their productivity and profitability. The market is expanding through the adoption of precision fermentation, insect protein, and collagen extraction technologies, establishing new revenue streams beyond conventional segments and reducing reliance on plant-based alternatives. These technologies enhance protein production by offering sustainable options while maintaining the nutritional benefits consumers expect from animal proteins, as the industry responds to changing consumer preferences and environmental standards.

Key Report Takeaways

  • By protein type, whey protein dominated the market with a 49.35% revenue share in 2025, while the casein and caseinates segment is expected to grow at a 6.05% CAGR through 2031.
  • By form, protein concentrates held 34.45% of the Australia animal protein market share in 2025. The hydrolyzed segment is projected to grow at a 6.61% CAGR through 2031.
  • By category, conventional products commanded 91.68% of the Australia animal protein market size in 2025. The organic segment is anticipated to grow at a 6.93% CAGR through 2031.
  • By application, supplements captured 49.20% of revenue share in 2025. The personal care and cosmetics segment is growing at a 6.36% CAGR through 2031.

Note: Market size and forecast figures in this report are generated using Mordor Intelligence’s proprietary estimation framework, updated with the latest available data and insights as of 2026.

Segment Analysis

By Protein Type: Whey’s Scale Endures as Casein Accelerates

Whey protein maintains a 49.35% share of the Australia animal protein market, supported by established filtration infrastructure, proven clinical research, and consumer recognition of its rapid absorption properties. Casein and caseinates are expected to grow at a 6.05% CAGR through 2031, driven by increased demand for slow-digesting proteins in night-time recovery products and infant formula. This growth is supported by All G's development of precision-fermented human casein micelles in May 2025. Collagen products derived from beef hides are expanding into gummies, beverages, and topical applications, creating value from processing by-products while enhancing meat processing economics. While insect protein represents a small market volume, it maintains premium pricing and attracts significant attention, positioning it as a long-term diversification opportunity.

Australian manufacturers with multi-protein production capabilities in a single facility protect against market fluctuations and expand their customer reach. The adaptable nature of microfiltration and spray-drying equipment enables efficient transitions between whey, casein, and collagen production, optimizing facility utilization throughout the year. Emerging companies can access established processing facilities through partnerships, reducing initial capital requirements for new protein development. These operational advantages help maintain stable revenue across the Australian animal protein market as consumer preferences shift.

Australia Animal Protein Market: Market Share by Proetin Type, 2025
Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.
Australia Animal Protein Market: Market Share by Proetin Type, 2025

By Form: Concentrates Dominate While Hydrolyzed Solutions Surge

Whey protein concentrates maintain a 34.45% market share in 2025 due to their cost-effective processing, sufficient protein purity, and compatibility with bakery, beverage, and confectionery applications. Hydrolyzed whey proteins are expected to grow at a 6.61% CAGR through 2031, driven by their rapid absorption properties that appeal to sports nutrition, clinical nutrition, and senior nutrition manufacturers seeking low-lactose and low-allergen solutions. Whey protein isolates maintain their premium position with protein purity exceeding 90% and the highest unit prices, with growth driven by elite sports nutrition and bariatric care applications. 

Enhanced enzymatic hydrolysis techniques improve flavor profiles and solubility, addressing previous challenges with bitterness and expanding market acceptance. The combination of inline chromatography and membrane filtration technology produces higher-quality isolates with improved yields, maintaining profit margins despite increased electricity costs. Processors located in renewable energy zones reduce energy expenses, strengthening their competitive position in the Australian animal protein market.

By Category: Conventional Volume Rules as Organic Premium Rises

Conventional category accounts for 91.68% of market share as of 2025, supported by an extensive feed-grain supply chain, established quality assurance protocols, and widespread retailer acceptance. The conventional segment benefits from decades of infrastructure investment, standardized production processes, and economies of scale that enable competitive pricing. Organic protein is projected to grow at 6.93% CAGR through 2031. This growth is driven by price premiums and consumer confidence in certification labels. Consumer demand for organic products continues to increase due to environmental sustainability awareness, animal welfare concerns, and perceived health benefits. 

Suppliers in the Australian animal protein market differentiate their products through multiple certification programs. Animal welfare certifications ensure humane treatment throughout the livestock lifecycle, from breeding to processing. Regenerative grazing practices focus on soil health, biodiversity, and sustainable land management techniques. Carbon-neutral claims demonstrate a commitment to reducing greenhouse gas emissions across operations. These certifications require substantial investments in various areas. Companies must implement comprehensive auditing processes to verify compliance with certification standards. Documentation systems track and maintain detailed records of farming practices, animal treatment protocols, and environmental impact measurements. Supply chain transparency initiatives involve monitoring and reporting mechanisms from farm to retail, enabling suppliers to maintain premium market positions and meet consumer demands for verified sustainability claims.

Australia Animal Protein Market: Market Share by Category, 2025
Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.
Australia Animal Protein Market: Market Share by Category, 2025

By Application: Supplements Lead, Personal Care Unlocks New Demand

Supplements generate 49.20% of revenue in the Australian animal protein market, driven by established gym culture, e-commerce growth, and medically-recommended nutrition protocols. While sports and performance powders remain dominant, the introduction of ready-to-drink products and collagen chews has expanded market reach across age groups. The personal care and cosmetics segment is expected to grow at a 6.36% CAGR, as beauty supplements gain prominence in pharmacies, supported by research demonstrating the benefits of collagen peptides for skin health.

The animal feed segment incorporates Black Soldier Fly meal, poultry by-products, and milk replacer proteins in livestock, aquaculture, and pet food applications to enhance sustainability. Food and beverage manufacturers continue to expand their protein-enriched product lines, including yogurts, breads, and ready meals for convenience-seeking consumers. The infant nutrition sector focuses on fermented human proteins that replicate breast milk properties, targeting premium export markets through traditional formula formats. The elderly nutrition segment utilizes hydrolyzed beef and milk peptides to address muscle loss, establishing consistent supply arrangements with aged-care facilities. These varied market applications provide stable demand for protein suppliers in Australia.

Regulatory Landscape

Australia animal protein ingredients operate under the Australia New Zealand Food Standards Code, developed by Food Standards Australia New Zealand (FSANZ) and enforced through state and territory regulators. The Code includes Primary Production and Processing (PPP) Standards that set hygiene, safety, and traceability requirements for meat and poultry supply chains, shaping specifications and audit burdens for ingredient processors supplying domestic food, supplements, and export-oriented customers.

Border and trade-facing controls are handled by the Department of Agriculture, Fisheries and Forestry (DAFF) under the Biosecurity Act 2015 and Imported Food Control Act 1992, with compliance requirements that also apply to imported inputs and export documentation. For live animal exports tied to downstream protein supply, the Exporter Supply Chain Assurance System (ESCAS) is mandatory and sets animal welfare and supply chain control requirements in importing markets. For red-meat traceability, Integrity Systems Company programs such as the National Livestock Identification System (NLIS), Livestock Production Assurance (LPA), and National Vendor Declarations (NVD) support market access.

Value Chain Analysis

The value chain starts with livestock and dairy production, where on-farm assurance and identification underpin access to processors and export markets. In red meat, Integrity Systems Company frameworks (NLIS, LPA, and NVD) support farm-to-plate traceability that flows into abattoirs and renderers, while the Australian Meat Industry Council (AMIC) represents the post-farmgate sector through advocacy, training, and operational support.

Primary processing and ingredient conversion include dairy fractionation and drying (whey, milk proteins, caseinates), collagen/gelatin recovery from hides and bones, and egg processing, alongside emerging insect-protein rendering for feed and specialty applications. Midstream processing such as membrane filtration, enzymatic hydrolysis, and spray drying supplies formulators and brand owners across supplements, food and beverages, personal care, and animal feed, with distribution through ingredient distributors and direct contracts. ProviCo produces high-value proteins (including micellar casein isolate and native whey protein isolate) with around 90% exported, while Noumi integrates ingredient sourcing with value-added manufacturing across dairy and nutritionals.

Competitive Landscape

The market structure is moderately fragmented, creating opportunities for both established companies and new entrants to gain market share. Key market players include Fonterra Co-operative Group Limited, Saputo Inc., Groupe Lactalis, Kerry Group plc, and Glanbia PLC. The increasing demand for animal protein, driven by its nutritional value and caloric content, has prompted market players to develop innovative products. Companies are implementing expansion strategies through mergers, acquisitions, and partnerships.

Australian companies are establishing market positions through specialized technologies and distribution strategies. Companies are implementing diverse distribution approaches, including chilled logistics, e-commerce platforms, and veterinary endorsements for insect-protein snacks.

Supplement manufacturers form partnerships with toll spray-dryers to reduce capital expenditure. Companies that demonstrate low-carbon operations and blockchain traceability receive premium pricing from Japanese and Korean retailers. This market environment has established digital traceability systems and renewable energy investments as priorities for Australian animal protein companies.

Australia Animal Protein Industry Leaders

  1. Fonterra Co-operative Group Limited

  2. Saputo Inc.

  3. Groupe Lactalis

  4. Kerry Group plc

  5. Glanbia PLC

  6. *Disclaimer: Major Players sorted in no particular order
Australia Animal Protein Market Concentration
Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

Market Opportunities and Future Outlook

Premium, specialized dairy proteins and functional nutrition are key whitespace for Australia to deepen local conversion and improve its export mix, supported by visible capital and ownership moves around functional dairy. In June 2026, Danone acquired MADE Group and increased its stake in the Danone Saputo Dairy Australia joint venture to 51%, highlighting a pathway for scaled product commercialization and procurement alignment in fresh dairy and functional nutrition.

A second opportunity area is higher-value protein ingredient manufacturing for export customers that prioritize traceability and specification reliability, where site-level upgrades and new hubs are being built. ProviCo's multi-phase AUD 90 million program at Dennington, including a next-generation bio-protein hub targeted to come online in early 2027 for specialist protein export, indicates additional capacity for micellar casein and native whey-type products. It also opens room for contract manufacturing, downstream formulation partnerships, and distributor-led penetration in sports nutrition, medical nutrition, and personal care collagen applications.

Recent Industry Developments

  • June 2026: Saputo Dairy Australia set opening 2026-27 farmgate milk price at $8.15 per kgMS (Southern Region) and $9.20 per kgMS (Sydney milkshed). The price signal will influence milk supply decisions, contract negotiations, and regional dynamics in Australia's dairy market. The move strengthens Saputo's position in the supply chain and affects competing processors.
  • March 2026: Fonterra Co-operative Group Limited completed the sale of its Mainland consumer businesses to Groupe Lactalis, initiating a long-term ingredients supply partnership. The consolidation shapes Australian dairy ingredients sourcing under Lactalis and alters competitive dynamics in the local market. The arrangement enables Lactalis to expand its Oz-based ingredients footprint and aligns downstream capabilities with its global portfolio.
  • January 2026: Danone/Saputo Dairy Australia (DSDA) ACCC approved Danone to acquire an additional 1% interest in the DSDA joint venture, taking Danone’s stake to 51%. The regulatory approval strengthens Danone’s position in Australian dairy supply via DSDA and affects milk procurement and product commercialization. The move provides greater alignment of DSDA's portfolio with Danone's global dairy strategy.

Table of Contents for Australia Animal Protein Industry Report

1. INTRODUCTION

  • 1.1 Study Assumptions and Market Definition
  • 1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET LANDSCAPE

  • 4.1 Market Overview
  • 4.2 Market Drivers
    • 4.2.1 Growing fitness culture driving protein demand
    • 4.2.2 Rising demand for functional dairy proteins in sports nutrition manufacturing
    • 4.2.3 Innovation in insect protein for aquaculture feed reducing reliance on fishmeal
    • 4.2.4 Premiumization trend in pet food elevating animal protein inclusion rates
    • 4.2.5 Growing popularity of protein-based convenience foods
    • 4.2.6 Rising use in functional and fortified food items
  • 4.3 Market Restraints
    • 4.3.1 Accelerating shift toward plant-based alternatives
    • 4.3.2 Stringent biosecurity and traceability regulations increasing compliance costs
    • 4.3.3 Ethical and environmental concerns over intensive animal farming practices
    • 4.3.4 Stringent animal welfare regulations
  • 4.4 Supply Chain Analysis
  • 4.5 Regulatory Outlook
  • 4.6 Porter’s Five Forces
    • 4.6.1 Threat of New Entrants
    • 4.6.2 Bargaining Power of Buyers/Consumers
    • 4.6.3 Bargaining Power of Suppliers
    • 4.6.4 Threat of Substitute Products
    • 4.6.5 Intensity of Competitive Rivalry

5. MARKET SIZE AND GROWTH FORECASTS (VALUE)

  • 5.1 By Protein Type
    • 5.1.1 Casein and Caseinates
    • 5.1.2 Collagen
    • 5.1.3 Egg Protein
    • 5.1.4 Gelatin
    • 5.1.5 Insect Protein
    • 5.1.6 Milk Protein
    • 5.1.7 Whey Protein
    • 5.1.8 Other Animal Protein
  • 5.2 By Form
    • 5.2.1 Isolates
    • 5.2.2 Concentrates
    • 5.2.3 Hydrolyzed
    • 5.2.4 Marine Based
    • 5.2.5 Animal Based
    • 5.2.6 Others
  • 5.3 By Category
    • 5.3.1 Conventional
    • 5.3.2 Organic
  • 5.4 By Application
    • 5.4.1 Animal Feed
    • 5.4.2 Personal Care and Cosmetics
    • 5.4.3 Food and Beverages
    • 5.4.3.1 Bakery
    • 5.4.3.2 Beverages
    • 5.4.3.3 Breakfast Cereals
    • 5.4.3.4 Condiments/Sauces
    • 5.4.3.5 Confectionery
    • 5.4.3.6 Dairy and Dairy Alternative Products
    • 5.4.3.7 RTE/RTC Food Products
    • 5.4.3.8 Snacks
    • 5.4.4 Supplements
    • 5.4.4.1 Baby Food and Infant Formula
    • 5.4.4.2 Elderly and Medical Nutrition
    • 5.4.4.3 Sports/Performance Nutrition

6. COMPETITIVE LANDSCAPE

  • 6.1 Strategic Moves
  • 6.2 Market Rank Analysis
  • 6.3 Company Profiles (includes Global level Overview, Market level overview, Core Segments, Financials (if available), Strategic Information, Market Rank/Share for key companies, Products, and Recent Developments)
    • 6.3.1 Fonterra Co-operative Group Limited
    • 6.3.2 Saputo Inc.
    • 6.3.3 Groupe Lactalis (Lactalis Australia)
    • 6.3.4 Kerry Group plc
    • 6.3.5 GELITA AG
    • 6.3.6 Glanbia PLC
    • 6.3.7 Goterra Pty Ltd
    • 6.3.8 Noumi Limited
    • 6.3.9 Bega Cheese Limited (Bega Bionutrients)
    • 6.3.10 Royal FrieslandCampina N.V.
    • 6.3.11 Tatua Co-operative Dairy Company Ltd
    • 6.3.12 Tessenderlo Group nv (PB Liner)
    • 6.3.13 Milligans Food Group Limited
    • 6.3.14 Rogers & Company Foods Pty Ltd
    • 6.3.15 Cottee Group Pty Ltd.
    • 6.3.16 Pace Farm Pty Ltd
    • 6.3.17 Beston Global Food Company Ltd
    • 6.3.18 Arla Foods Ingredients
    • 6.3.19 Univar Solutions LLC
    • 6.3.20 Made Group Pty Ltd

7. MARKET OPPORTUNITIES AND FUTURE OUTLOOK

Research Methodology Framework and Report Scope

Market Definition and Coverage

For this methodology, the Australia animal protein market is measured as the value of animal-derived protein ingredients sold for use in food and beverages, dietary supplements, animal feed, and personal care within Australia.

Scope exclusions: We exclude plant, microbial, and synthetic proteins, and we also exclude finished meat and seafood products sold as whole cuts or ready-to-eat meals.

Segmentation Overview

  • By Protein Type
    • Casein and Caseinates
    • Collagen
    • Egg Protein
    • Gelatin
    • Insect Protein
    • Milk Protein
    • Whey Protein
    • Other Animal Protein
  • By Form
    • Isolates
    • Concentrates
    • Hydrolyzed
    • Marine Based
    • Animal Based
    • Others
  • By Category
    • Conventional
    • Organic
  • By Application
    • Animal Feed
    • Personal Care and Cosmetics
    • Food and Beverages
      • Bakery
      • Beverages
      • Breakfast Cereals
      • Condiments/Sauces
      • Confectionery
      • Dairy and Dairy Alternative Products
      • RTE/RTC Food Products
      • Snacks
    • Supplements
      • Baby Food and Infant Formula
      • Elderly and Medical Nutrition
      • Sports/Performance Nutrition

Data Sources, Market Sizing, and Validation

Desk Research

Desk research starts by mapping the demand backdrop for protein inputs in Australia, then narrowing it to animal-derived protein ingredients. We mainly rely on public production and trade releases, food standards, and agriculture outlook data that help track supply and usage of dairy, eggs, and other animal-origin inputs.

Typical references include Australian Bureau of Statistics series, Department of Agriculture, Fisheries and Forestry updates, Food Standards Australia New Zealand guidance, FAOSTAT production balances, and UN Comtrade trade flows. We then corroborate with company annual reports, investor decks, and credible industry press. To cross-check volumes and pricing, we use selective paid subscriptions for company financials and, where relevant, shipment-level import and export records. This list is not exhaustive, and additional sources were also used to collect data, validate assumptions, and clarify open questions.

Primary Interviews and Surveys

Primary work is used to pressure-test how protein types are being used across food processors, supplement formulators, feed users, and ingredient distributors, and then to confirm typical pricing and mix shifts. These conversations also clarify how imported materials compete against local supply and how new product launches affect demand by application across Australia.

Distribution of primary research fieldwork respondents

Company type Respondent position Region
Top tier: 35% CXOs: 16%
Mid tier: 46% Functional/Unit leaders: 37%
Smaller Players: 19% Managers: 47%

Market-Sizing & Forecasting

Sizing uses top-down and bottom-up once, in a practical way, so totals stay anchored to real demand signals. The top-down approach uses Australia production and trade data to reconstruct the ingredient pool, which is then translated into market value using blended price assumptions by protein type and form.

Those totals are then corroborated using selective bottom-up approximations, such as sampled supplier and distributor revenue splits, application-level consumption checks, and an ASP times volume sanity check for key proteins. When gaps appear, for example limited disclosure on niche proteins or private labels, we use proxy ratios from similar ingredients and then re-check them with channel feedback before locking the number.

Key model inputs include import and export volumes for protein ingredients, domestic dairy and egg output indicators, usage shares by application (food and beverages, supplements, animal feed, and personal care), average selling price progression by form, and the pace of reformulation and new product introductions. For forecasting, we mainly apply scenario analysis, where volume growth and price paths are adjusted based on expected consumer demand, input cost direction, and capacity or sourcing constraints confirmed through expert feedback.

Data Validation & Update Cycle

Validation is done through multiple passes, not a single check at the end. We compare model outputs against independent signals such as trade direction, local production movements, and reported company exposure to Australia, and we investigate any large swings that do not match these indicators.

Before sign-off, assumptions are reviewed internally and outliers are challenged using alternative price points and sensitivity checks, followed by re-contact with sources when a key variable changes. Reports are refreshed annually, and interim updates are made when material events occur, with a final pre-delivery review to ensure clients receive the latest updated view.

Mordor Intelligence's Australia Animal Protein Market Size Measured Against Other Published Estimates

Published figures for Australia animal protein often differ because each publisher makes different choices on what counts as protein and whether they measure ingredients or finished consumer foods. Currency handling, base-year timing, and how prices are blended across forms can also shift the final number.

Some estimates expand the scope into meat and poultry foods, which inflates the total by bringing retail value into the calculation. In Mordor Intelligence's model, only animal-derived protein ingredients are counted when they are sold into applications like food processing, feed, supplements, and personal care, and finished meat categories are left out.

Benchmark comparison

Source Market Size Gaps in Research Methodology
Mordor Intelligence USD 102.65 M (2025)
Industry Portal A USD 106.33 M (2033) This figure refers to processed animal protein only, so it narrows the scope to specific rendered and meal-type products and excludes broader dairy and egg proteins that are included here.
Category Study B USD 3.05 B (2025) This figure sizes poultry meat as a food category, which typically includes fresh, frozen, and processed meat sales, so it is not comparable to an ingredients-focused protein market total.

Taken together, the spread is mainly explained by scope choices, with one source narrowing into a processed subset and another widening into finished poultry meat sales. By keeping the scope tied to ingredient demand pools and then checking volumes and prices through multiple independent signals, the final number remains traceable and repeatable for planning purposes.

Key Questions Answered in the Report

What is the current size of the Australia animal protein market?

The market is worth USD 107.86 million in 2026 and is set to grow to USD 138.16 million by 2031.

Which protein type dominates revenue?

Whey protein leads with 49.35% market share in 2025, supported by extensive manufacturing infrastructure and sports-nutrition demand.

Which segment is expanding the fastest?

Casein and caseinates are projected to grow at 6.05% CAGR through 2031, driven by infant-formula and slow-release applications.

Why are insect proteins gaining traction?

Partnerships such as Goterra-Skretting show insect meal can replace fishmeal, improving sustainability in aquaculture and pet food.

Page last updated on:

Australia Animal Protein Report Snapshots