The global market for the dairy nutritional and nutraceutical ingredients will double its size over the next nine years, jumping from US$12.2 billion in 2015 to $24.5 billion by 2024, according to a new report from Persistence Market Research. The dairy protein segment is expected to be valued at US$19.89 billion by 2024 and is projected to register an 8.1 percent compound annual growth rate (CAGR) over the forecast period.

Dairy ingredients’ unique protein, carbohydrate, fat and mineral composition contributes functional, as well as nutritional, benefits to foods and beverages, and product developers are tasked with producing results that don’t sacrifice taste or function. Globally, these are extensively used in a variety of food categories such as bakery, dairy, beverages, sports nutrition meat, confectionery, infant nutrition, and clinical nutrition, among others.

Dairy protein is segmented into whey protein and casein protein. Whey protein is the most demanding ingredient type in the dairy protein segment across the globe. The market is driven by the demand for dairy protein ingredients in the food and beverages industry, cosmetic industry, bakery and personal care.

Health benefits such as lower risk of cardiovascular disease, lower cholesterol levels, improved digestive health, and healthy bone growth are increasing the popularity of dairy nutritional and nutraceutical ingredients. According to the report, one of the biggest restraining factors for the global dairy nutritional and nutraceutical ingredients market is the fluctuating supply. The steady rise in prices has prompted some customers to switch to alternative proteins that are less expensive, which adversely affects the growth of the global dairy nutritional and nutraceutical ingredients market.

The dairy protein segment is estimated to account for a significantly high value share of 81.4 percent by the end of 2016, and the colostrum segment is estimated to account for a revenue share of 10.9 percent in the market. The prebiotics segment revenue is projected to register year-over-year growth rates ranging from 6.2 percent to 8.3 percent from 2016 to 2024, while the infant formula and clinical nutrition segment is estimated to account for a significantly high value share of 22.8 percent by the end of 2016. The functional food segment is estimated to account for a revenue share of 43.9 percent in the global dairy nutritional and nutraceutical ingredients market by the end of 2016 and is expected to register a CAGR of 7.8 percent over the forecast period.