Nowadays, consumers are showcasing their interest in purchasing fat-free products in a large amount. This is predominantly due to the increase in the number of obese people worldwide. Permeate is one of the food products which does not contain fat and protein. It is a high lactose dairy ingredient, which comprises lactose, minerals, and vitamins in higher quantities. Milk permeate delivers various functional and nutritional benefits through its presence in dairy, meats, baked goods, soups, dry mixes, confectionery, and beverages. This milk permeate is a cost-effective ingredient that provides browning appearance and added flavor benefits such as pleasant caramelized aroma for baked goods. This characteristic of it is leading to an increasing permeate market demand. A mixture of milk permeate with soup attracts the soup consumers with improved appearance and aroma, as this product helps in maintaining the flavor and texture of the soup. In confectionery, this permeate is preferred for the removal of sweetness primarily, while offering crystallization characteristics. The adoption rate of permeate by the animal feed industry is high as compared to all the above-sited applications. Therefore, the demand influx from the animal feed industry is contributing more to the growth of the global permeate market revenue. As a result, the global permeate market size stood at $699.1 million in 2018 and is projected to grow at a CAGR of 4.6% throughout the forecast period 2019-2025.
Permeate consumption rate is high, especially in animal feed application, because this product is useful for different purposes such as enhancing sodium reduction to maintain nutrition and health, hydration solution, and sweetener solutions. Thus, the animal feed application of permeate is set to grow at a CAGR of 4.8% during the forecast period 2019-2025. Increase in the consumption of milk permeate powder as a filler in case of milk substitutes for calves and also its use in pigs feed is driving the popularity and prominence of permeate in the animal feed industry. This product offers protein rate standardization and acts as a bulking agent which provides good fluidity and flow in animal feed. Whey permeate is a free-flowing powder that blends uniformly and dissolves easily, even in the high-moisture conditions. Therefore, it has become an ideal choice, especially for baby pigs, cattle, poultry, and aquaculture feed as well, and this is significantly increasing the permeate market scope.
Furthermore, the widespread consumption of delactosed whey powder as a supplement for cattle is increasing the demand for delactosed whey powder. Additionally, the rising demand for delactosed whey is owing to its lower price as compared to other animal feed products. All the factors mentioned above are collectively enhancing the demand for permeate from the thriving animal feed industry.
Permeate Market Trends:
· Milk permeate is a byproduct of ultra-filtered milk production which is used in the development of a new vodka product, namely vodkow. This new development in the alcohol industry is indirectly helping to increase the revenue stream of the dairy industry. In January 2019, the Canadian brewers started the trend of distilling vodka from milk permeate. Thus, this new vodka product is boosting the permeate market demand.
· Initially, permeate is the choice for enhancing flavor and also for browning. However, the recent discovery of researchers revealed that the salty-enhancement characteristics of permeate are favored to replace salt in formulations. This exploration has extended the permeate market scope, especially in the health and nutrition aspect. In addition to this, research recognition has been promoting permeate as an ideal replacement for more costly ingredients which are capable of maintaining flavor that increase the consumer base of the permeate market players. Availability of a wide variety of permeate formulations is representing its ability in bakery, soup, and prepared meals. These formulations are mainly gaining traction from the consumers, who have a preference for very low sodium intake.
Permeate Market Dominance in the North America Region:
North America regional share is noted as 35% in the global permeate market, as of 2018. The U.S. suppliers are investing more in the research and development of milk and whey permeate compared to production. This investment is majorly intended to reveal the unique functional, nutritional, and sensory benefits of whey and milk permeate. It also elevates permeate as a cost-saving and flavor-enhancing ingredient in ends user industries such as animal feed and FNB.
Furthermore, significant growth potential visibility in the U.S. permeate production has been enabling a stable and quality supply of permeate from the country. According to the International Trade Center, the U.S. is listed as the top exporter of whey and modified whey (permeate) in the world. In 2018, the U.S. recorded an export value of $528.8 million for whey and modified whey. Moreover, this country held for a share of 17.4% in the world exports of permeate and whey. Thus, this export value signifies the increasing trade value corresponding to permeate in the U.S.
Major Players in the Permeate Market Include:
Arla Foods Ingredients Group P/S, Volac International Limited, Arion Dairy Products B.V., Lactalis Ingredients, Hoogwegt Groep B.V., Van Lee Melkprodukten Barneveld B.V., Armor Proteins S.A.S., Eurosérum, Agropur Ingredients LLC., Idaho Milk Products, Eurial G.I.E., SIA Baltic Dairy Board, Ltd., and Milk Specialties are some of the primary players which are operative in the global permeate market. These companies have been continuously concentrating on joint ventures and plant expansions to strengthen their portfolio and customer base in respective geographies.
Latest Innovations in the Permeate Marketplace:
· In 2018, Glanbia Nutritionals, Dairy Farmers of America (DFA), and Select Milk Producers Inc. have decided to start their new joint venture “large-scale cheese and whey production facility” at Michigan. It is estimated that the production process will start in the fourth quarter of 2020, which costs an amount of $470 million. Moreover, these companies signed an agreement with ProLiant Dairy Ingredients to process the whey permeate. For this, ProLiant planned to invest $85m to construct an adjoining facility to process the whey permeate from this joint venture. Hence, this joint venture is enabling the growth of the permeate market size.
· In Ireland, Glanbia Ingredients is coordinating with AgriChemWhey, which is a European Commission project. This project has been funded largely by the Bio-based Industries Joint Technology Initiative along with a consortium of EU research, engineering, and commercial interests, which mainly aims to develop a technology that converts process dairy side streams into high-value commercial products. The target is to form a $41.2 million integrated bio-refinery which will process 25,000 tons per year of whey permeate and de-lactosed whey permeate into polylactic acid, L-lactic acid, minerals for human nutrition, and bio-based fertilizers at the beginning. Thus, the joint technology initiative of bio-based industries in 2018 is supporting the rise in production of permeate, which is propelling the permeate market growth.
· In 2018, Milk Specialties were recognized with “The Exporter of the Year” award, because of its execution in providing nutritional solutions. This important title has been awarded by Dairy Foods magazine, USDEC which also offered a sponsorship for the same. Milk Specialties mainly exports more than 70% of its carbohydrates business, which includes permeate and lactose. Therefore, this award is reflecting the growth of the company in the permeate market.
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