The global demineralised whey powder ingredient market is estimated to be valued at nearly US$ 491 Mn by 2017 end, and is projected to reach nearly US$ 805 Mn by the end of 2027, registering a CAGR of 5.1% over the forecast period.

Milk, as a source of adequate nutrition, fat, protein, calcium and minerals, is considered an essential commodity in almost all parts of the world. In sharp contrast to its demand, milk is not uniformly produced across the globe, leaving a large number of countries with a dairy deficit. This deficit in turn leads to high imports of dairy products, including whey, from regions such as Australia, New Zealand, the U.S. and Europe. The impact of this deficit and the volume of imports are particularly high in various emerging economies such as China, Indonesia, Mexico and Russia. China is the largest importer of dairy products currently, and imported over 347,000 tonnes of whole milk powder in 2015.

Growth of the global infant food formulation market is primarily driven by increasing health-related concerns and changing mind-set of modern-day consumers to switch to alternative healthy options. An increasing number of infants are being prescribed customised infant formulas as a means to address various deficiencies and also to ensure adequate intake of necessary nutrition that includes carbohydrates and proteins. As a result, a number of key players offering infant formula are exploring techniques to develop infant products with minimal mineral content in the market. For instance, Agrana Starch offers both conventional and organic ingredients for infant nutrition that do not contain any preservatives, artificial flavourings, colourants and gluten.

Developing countries such as India, China, Brazil and others, have weak distribution networks for demineralised whey ingredient products. Manufacturers use selective modes of distribution such as online selling, speciality outlets and others, in order to reach out to consumers. Demineralised whey ingredient products are relatively more expensive than conventional ready-to-eat breakfast products, dietary supplements and dairy products. This is a major factor expected to negatively impact market growth during the forecast period.

The Infant Food segment by application is expected to register a relatively high CAGR during the forecast period. The Bakery and Confectionary segment is expected to register a CAGR of 4.3% in terms of value over the forecast period. In 2016, the Infant Food segment was valued at US$ 183.4 Mn and is expected to register a CAGR of 6.4% over the forecast period to reach US$ 367.3 Mn by the end of 2027.

Demineralised whey powder is increasingly being used in various dairy products owing to the presence of high amounts of proteins, mineral salts as well as lactose. For instance, Alpavit has introduced Demin50, which is an important ingredient in the production of a wide range of foodstuffs, particularly sweets and pastry products, by the reduction of the salt content and its resulting excellent sensor profile. Demineralised whey powder is being increasingly used in various bakery products that are high in protein content in order to make the otherwise high-carb food healthier. For example, Lactalis Ingredients, which is a major dairy-based firm in France, manufactures whey powder developed for use in high-protein low-calorie products such as cakes and sweets.

Demineralised whey has high bioavailability and absorption characteristics that are extensively beneficial in post-exercise recovery and for muscle building. As a result, demand for applications in sports nutrition and slimming food products has been witnessing significant increase of late. Emergence of sports nutrition and increasing demand for functional foods for weight management and slimming are other major factors driving revenue growth of the global demineralised whey powder ingredient market currently.

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