Market Trends of China Milk Protein Industry
Increasing Consumer Demand for Nutritious Food
- The demand for nutritious food in China is rising from all age groups, mainly for infant food formulas, which is driving the market's growth. Baby food essentially contains specialized nutrition with a well-balanced composition aimed as closely as possible at matching breast milk.
- Additionally, these factors, coupled with the increasing concern of parents regarding infant foods and their milk protein content, are driving the market's growth. Moreover, a considerable increase in the number of working mothers is further fueling the demand for nutritious infant and baby food in the country. Such factors have led manufacturers to innovate their ingredients and develop more enhanced and functional milk proteins.
- In addition to the growing demand from infant product manufacturers, the growing nutrient-conscious population and fitness enthusiasts are expanding the application capabilities of milk proteins in various products like nutrient-rich bars, protein bars, ready-to-drink-beverages, and drinks, thus generating more opportunities for the players in the market. In line with this, manufacturers are also focused on offering milk protein ingredients that align with the consumers' and manufacturers' demands.
- For instance, Fonterra offers milk proteins like milk protein isolate 4900 and softbar 1000, among others, in the Chinese market under its brand SureProtein, claiming that these ingredients enable high protein, low sugar bar formulation supporting formulation flexibility and stable texture over the bar shelf life. Similarly, its milk protein isolate 4900 is claimed to offer low lactose, high micellar casein with heat stability and a great milky flavor, finding its application in various infant food products.
- Moreover, the increasing milk production in the country is also supporting the market and players to grow and expand with low production costs. For instance, according to the National Bureau of Statistics of China, in 2022, China had an output of around 39.3 million metric tons of cow's milk, the highest volume in recent years and also increased when compared to the previous year in which the cow's milk production volume in the country was only 36.83 million metric tons. Thus, high milk production in the country is supporting the growth of milk protein manufacturers.
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Milk Protein Concentrates is the Fastest Growing Segment in the Market
- Milk protein concentrates (MPCs) have emerged over the past two decades as significant new dairy ingredients that are used increasingly in food formulation and nutritional beverages in China. Milk protein concentrates with higher protein content are often used in China to enhance the protein content of foods and beverages by imparting a clean dairy flavor without adding significant levels of lactose and allowing food and beverage formulators to develop lactose-free products, avoid product defects, such as browning due to Maillard reaction.
- Additionally, they often come with higher protein content compared to other ingredients and are also lower in price, making them ideal for manufacturers to use in their applications. Manufacturers use milk protein concentrates for their nutritional and functional properties, and the high protein, low lactose ratio makes MPC suitable for protein-fortified beverages and low-carbohydrate foods.
- Owing to this growing demand, the imports of protein concentrate into the country have seen an increase in 2021, according to the UN Comtrade. For instance, in 2021, the imports of protein concentrates and textured protein into China accounted for about USD 20,965 thousand, which increased from USD 20,289 thousand when compared to the previous year.
- Moreover, milk protein concentrates are often suitable for a variety of applications in cultured products like spoon-able yogurt, drinking yogurt, yogurt mousses, nutritional yogurt bars, and more, making it compatible with many of the brand's other health and wellness ingredients to deliver multi-functional benefits across many food and drink offerings.
- Such factors are attracting manufacturers to prefer milk protein concentrates over other types of milk proteins, thus driving the segment's growth in the country. Furthermore, the rising trend of clean-label and organic food ingredients is creating more opportunities in the segment, allowing players to innovate with their ingredients to further boost growth.
