Global Whey Demand to Witness 1.5-2 Percent Increase in 2021, Says Beroe Inc
Source: PR Newswire
RALEIGH, North Carolina, Apr 26, 2021 - The whey protein market is expected to see an upward trend since more people have now started to consume whey protein powder in recent times, says Beroe Inc.
The global demand for whey powder is projected to witness an increase of 1.5–2 percent Y-o-Y in 2021, supported by a recovery in consumption from the restaurant and food chain sectors across Europe and the U.S. The consumption from Asian markets, like China, is estimated to remain steady. One of the main reasons for this higher demand is rising occurrences of chronic illnesses. Changing lifestyles and increasing cases of COVID-19 are regarded as stimulating factors to adopt protein-rich diets among people; especially among the millennial population.
Beroe, which is based in North Carolina, further stated that procurement experts could access this report on its recently launched market intelligence platform Beroe.
The supply market outlook shows that North America, Asia, and Europe get adequate supplies of whey powder. To that, while North America and Europe are net exporters, Asia is a net importer. Coming to the whey market price analysis, North America witnesses a 3-5 percent increase and EU 3-4 percent increase, followed by APAC with a 2-3 percent increase. Due to COVID-19, whey protein powder prices are low as the production got hampered. Many production units got squandered due to fluctuation in raw material supply and shipment setbacks.
In addition to whey protein market price, the supply chain in major producing countries has also got affected due to the pandemic. One of the worst affected regions, Europe is facing supply chain disruption and labor curtailment. North America and Oceania are facing partial lockdown. This could result in Argentina and Australia emerge, in terms of whey production, as a possible alternate region for consistent supply.
It’s worth noting that the capita consumption of whey in developing countries tends to increase on average by 0.4 percent every year, which also supports the increase in demand for butter, cheese, and other high-calorie products in select regions.
As per Porter’s Five Forces Analysis, the market instability opens opportunities for dairy farmers in India, Russia, Ukraine, China, and Brazil to amplify their production. To that, due to over-supply, the buyers engaging with integrated suppliers have high negotiation power.
- The global production of whey is growing at a CAGR of 1.78 percent and the demand is growing at 1.73 percent. The future outlook of this market largely depends on the secondary derivatives market.
- Oceania is a key market. While it produces 5 percent of the global milk, it contributes to more than 40 percent of the milk derivatives export market.
- With adequate availability of milk, production in 2021 is expected to remain steady in Europe and Oceania.
- In the U.S. and Europe, the global consumption of cheese is estimated to rise thanks to the re-opening of restaurants and QSR businesses after pandemic-induced lockdown. However, a second wave of the pandemic could impact the demand in Europe, as well as other regions.
- Per protein market research, the global milk price will continue the downtrend due to stockpiles in key producing countries.
- To ensure supply consistency, buyers are recommended to go for long-term engagements because the probability of huge production cuts is high due to over-supply.
- COVID-19 has impacted the whey industry to only low or medium levels.
The report from Beroe includes:
- Value Chain Analysis
- Global and Regional Market Analysis
- Industry Analysis
- Market Monitoring Dashboard & Insights
- Impact of Brexit
- Impact of COVID-19
- Supplier Analysis
Beroe is the world's leading provider of procurement intelligence and supplier compliance solutions. We provide critical market information and analysis that enables companies to make smart sourcing decisions — leading to lower costs, greater profits, and reduced risk. Beroe has been providing these services for more than 15 years and currently works with more than 10,000 companies worldwide, including 400 of the Fortune 500 companies. For more information about Beroe Inc., please visit https://www.beroeinc.com/.