Market Trends of europe whey protein ingredients Industry
The expanding consumer base may benefit the sports supplements market
- The European sports nutrition market grew by 15% during 2016-2019. However, in 2020, it witnessed a steep decline of 4.33% in the Y-o-Y growth rate. Health clubs, being one of the common sales channels for supplements, impacted the sales of sports supplements adversely as the pandemic took a harsh toll on fitness club operators, employees, and consumers. In 2020, due to government regulations, fitness clubs, health clubs, and gyms were forced to close, and club memberships declined by 10-15% in 2020 compared to the previous year. The number of clubs also decreased under the influence of the pandemic. To regain the market in the second half of 2020, the general VAT rate of 19%, which also applies to fitness services, was reduced to 16% for a limited period until the end of the year to strengthen economic demand.
- The growing number of fitness enthusiasts expands the scope of sports supplements beyond their mainstream users. As consumers flock to buy gym requisites, the demand for health and fitness products is growing, especially in developed countries like Italy, France, and Germany. These countries also emerged as the major spenders on gym memberships, supplements, training, etc. There are around 63,000 fitness centers in the region, and all these clubs jointly witnessed an increase of 3-4% in memberships yearly.
- The demand for sports nutrition products with natural ingredients supports market growth by providing an opportunity for manufacturers to add value to their products. More than 70% of the European sports nutrition market is dominated by the United Kingdom, Germany, Spain, and France. Over 50% of the market share is captured by the United Kingdom and Germany in the sports drinks segment.
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Increasing dry whey production to stabilize whey protein prices during forecast period
- Whey is a high nutritional value by-product of the dairy industry. Whey powders are obtained from cheese manufacturing which are skimmed and concentrated before being spray dried. European dry whey prices are steady to slightly lower. Industry sources suggest there is plenty of whey powder available to meet buyer needs, and production is active. In 2022, The Netherlands had the second highest level of production for whey (about 15 % of the EU total) and the fourth highest for cheese (about 9 % of the EU total).
- The significant and widespread production of cheese across major countries contributes to the dry whey production in the region. In 2022, out of the total raw milk production, the vast majority of raw milk (149.9 million tonnes) was delivered to European dairies. As of 2022, 10.4 million tonnes of cheese from 59.2 million tonnes of whole milk and 16.9 million tonnes of skimmed milk was produced in the region. Germany was the biggest producer of cheese in the EU in 2022, accounting for 22% of the overall total. France placed second, accounting for 18% of the total, with Italy in third. Liquid Whey is processed from the production of cheese and then converted to the dry whey. Other prominent cheese producing countries in the region include, Italy, The Netherlands, Poland, Spain, and Denmark, among others.
- Germany is the leading producer of milk in the European Union, accounting for more than 21% of milk deliveries in the European Union in 2020. The rise in milk production is attributed to the escalated volume of milk production per cow. This in turn enables the raw material for the production of dry whey in the country.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Market maturation and declining birth rates are accountable for the slow growth rate
- Healthy trends in beverages impacting market growth
- Consumers' preferences shift to premium condiments and sauces, away from packaged soups
- Dairy alternatives to witness significant growth rate
- Innovation in product formulations has greater scope in the market
- Healthier snacking is likely to impel the market
- Natural and organic products are taking over the market
- Strong hold of the retail sector is supporting market growth
- Sustainable and innovative packaging trends to influence breakfast cereals market
- Innovation in chocolates driving the sales
- The growing demand for nutrition-specific diets may drive the market demand
- Single-head households to drive the RTE/RTC market
- Increased meat production to push the market growth
- Animal protein consumption growth fuels opportunities for key players in the ingredients sector
