Permeate Market Growth, Size, Share, Trends, and Forecast 2030

Permeate Industry Prospective:

The global permeate market size was worth around USD 962.47 million in 2023 and is predicted to grow to around USD 1,739.92 million by 2032 with a compound annual growth rate (CAGR) of roughly 6.80% between 2024 and 2032.

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Permeate Market: Overview

Permeate is made using milk. It is produced using a method called ultrafiltration in which milk is passed through a fine membrane or sieve. This method essentially separates minerals, vitamins, and lactose from the milk fat and protein. Permeate is considered an essential part of the fresh milk sector. Permeate is not considered unnatural or unhealthy. However, certain segments of the consumer group prefer milk without permeate. Unfiltered milk that is obtained directly from cows can be inconsistent in terms of composition and taste. Ultrafiltration allows companies to achieve standardized protein content throughout the year.

In some cases, milk companies without permeate can label their product as permeate-free. The food & beverages (F&B) industry has vast applications of dairy permeate. It is widely used as a direct replacement for other forms of solid items made out of dairy products including items such as pizza crust and bakery product dough. Some other applications of permeate include application as a replacement for corn syrup or sucrose. During the projection period, the demand for permeate is expected to reach new heights.

Key Insights:

• As per the analysis shared by our research analyst, the global permeate market is estimated to grow annually at a CAGR of around 6.80% over the forecast period (2024-2032)
• In terms of revenue, the global permeate market size was valued at around USD 962.47 million in 2023 and is projected to reach USD 1,739.92 million, by 2032.
• The market is projected to grow at a significant rate due to the rising demand for baked goods and confectionary items
• Based on application segmentation, the food & beverage industry was predicted to show maximum market share in the year 2023
• Based on product type segmentation, milk permeate was the leading segment in 2023
• On the basis of region, North America was the leading revenue generator in 2023

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Permeate Market: Growth Drivers

Rising demand for baked goods and confectionary items may drive market demand

The global permeate market is expected to grow due to the rising demand for baked goods and confectionery products. Permeate, along with other ingredients, has become widely popular in the global bakery and confectionary industry. As per market projections, the global bakery products industry is expected to reach a revenue of over USD 710 billion by 2032. Several reasons have been acting as the driving force for higher demand for baked goods. For instance, the rising disposable income of the common population and the changing lifestyle of the potential buyers. For instance, consumer awareness about product existence and availability has increased. In addition to this, there has been a sharp rise in the number of baked goods sellers across the globe. Bakery items are available across price ranges catering to the specific taste needs and demands of people from all income groups.

For instance, in April 2023, one of Kenya’s largest flour milling companies Capwell Industries Ltd announced the launch of a new biscuit range under the brand name Treatos. With this move, the company has successfully diversified its product portfolio. Additionally, there has been a steady increase in demand for luxury baked items. In February 2024, Biscuiteers, a British luxury biscuit company, announced a collaboration with Bridgerton, a popular television series, and Netflix, a global streaming channel. Through this collaboration, the biscuit maker will produce 13 exclusively made designs of biscuits inspired by the Regency era of Bridgerton.

Rising demand to curb food prices and meet global food demand may contribute to higher market growth

In recent times, the food industry has registered an increase in food prices. Companies in the F&B sector are under pressure to control inflating food prices while continuing to deliver an increased rate of food items as the global food demand is growing. Permeate is considered a versatile and cost-effective food ingredient. Governments across the globe are considering measures through which food prices can be controlled.

Permeate can be produced in several forms with each form offering a wide range of applications. For instance, crino permeate is often used as a bulking agent with several food applications. Crino deproteinized whey is used to improve flavors in food products. Such wide-scale uses of the products available in the global permeate market are expected to fuel the market demand.

Permeate Market: Restraints

Regionally changing regulations of the global food industry will restrict the market expansion rate

The global industry for permeate is expected to be limited in terms of growth as the regulations in the global food sector are dynamic and change from one region to another. Each country has specific governing bodies that regulate the domestic food market and companies must adhere to the regulations. Compliance can be challenging for the food makers thus resulting in penalties and fines.

For instance, the US Food & Drug Administration (FDA) is responsible for regulating products such as dairy items, cereals, spices, fruits & vegetables, and other items.

Permeate Market: Opportunities

Growing demand in the animal feed sector has high growth potential

The global permeate market has tremendous growth potential in the form of increasing demand and consumption of animal feed. These edible items are given to animals of all types including livestock, pets, and other forms of domesticated animals. Feed curated specially for animals acts as a means of nutrition which in turn improves productivity. For instance, cattle that are well-fed with highly nutritious ingredients will produce more milk. Thus, the market for animal feed is growing rapidly, especially items that are highly nutritious and cost-effective.

In 2021, the global animal feed market was valued at over USD 40 billion. The growing number of pet adoptions globally and the rising population of domesticated animals will drive the demand for animal feed subsequently impacting the permeate industry.

Rise in demand for nutritional supplements may aid the market expansion rate

One of the growing segments with high demand for permeate is the nutritional supplements group. Since COVID-19 more people are investing in healthy diets and supplements that support a healthy diet. As per a recent survey conducted by the Nutraceuticals World that includes surveying around 13,200 people from 14 countries in Europe, around 88% responded in favor of consuming dietary supplements at least once in their lives. Around 93% of the respondents claimed that they consumed supplements in the last 12 months thus in turn impacting the global permeate market size.

Permeate Market: Challenges

Negative perceptions about the by-products in the dairy sector will challenge market expansion

The global permeate industry is expected to be challenged by the negative perception that consumers have about the by-products obtained in the dairy sector. Additionally, a significant part of the population is allergic to dairy items and its by-products. The rise in the sale of dairy alternatives almond and soy milk may deviate customers toward substitute items. Research indicates that around 53.1% of the European population prefers plant-based milk.

Permeate Market: Segmentation

The global permeate market is segmented based on application, product type, and region.

Based on application, the global market segments are animal feed industry and food & beverage industry. In 2023, the highest demand was observed in the food & beverages sector. The growing demand for food products including confectionary items and baked goods is the primary driver of the segmental demand. As per market projections, baked goods consumption in Europe is expected to reach over 10.9 billion kilograms in 2026. The animal feed sector is a thriving market. The rise in demand for nutritious animal feed is expected to drive segmental demand during the projection period.

Based on product type, the global market divisions are milk permeate and whey permeate. In 2023, the demand was the highest for milk permeate. This is due to higher consumer awareness about milk and its by-products. The high versatility of permeate in the food and animal feed sector will aid in generating high revenue. Experts are of the view that permeate recovery per membrane element should not cross 18% for excessive concentration polarization.

Permeate Market: Report Scope

Permeate Market: Regional Analysis

North America to register the highest growth rate during the forecast period

The global permeate market is projected to witness the highest growth in North America. During the forecast period, the region is expected to grow at a CAGR of over 4.75%. Higher consumer awareness in the region along with a growing demand for nutritional products and well-balanced diet structures is fueling the market growth rate. The US and Canada regions are the largest contributors to the regional market revenue. Consumers in these regions are increasingly inclined toward nutritional supplements. In addition to this, the presence of a thriving regional F&B sector with a presence in the international market further promoted regional market expansion. Recent market research reports suggest that over 28.1% of the US population consumes baked goods regularly. The population percentage has increased since COVID-19.

In March 2023, Canada witnessed the commencement of the region’s first Paris Baguette Cafe. The brand has been rapidly expanding in the North American market. Europe is projected to remain one of the leading regions with high growth potential. The existence and popularity of a world-renowned bakery industry are the key drivers for regional demand for permeate.

Permeate Market: Competitive Analysis

The global permeate market is led by players like:

• Fonterra Co-operative Group
• Arla Foods Ingredients
• Darigold Inc.
• Ingredia
• Valio Ltd.
• Lactalis Ingredients
• Westland Milk Products
• Glanbia plc
• Leprino Foods
• Saputo Dairy Australia
• Kerry Group
• Agropur Cooperative
• Murray Goulburn Co-operative Co. Limited
• Dairy Farmers of America
• FrieslandCampina

The global permeate market is segmented as follows:

By Application

• Animal Feed Industry
• Food & Beverage Industry

By Product Type

• Milk Permeate
• Whey Permeate

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa