China Milk Protein Market Report | Market Size, Industry Analysis, Growth Opportunities, & Forecast (2025-2030) 

China Milk Protein Market Overview

The China milk protein market is experiencing significant growth, driven by increasing health consciousness and demand for high-quality protein sources. Valued at approximately USD 127.79 million in 2024, the market is projected to reach USD 164.74 million by 2029, reflecting a compound annual growth rate (CAGR) of 5.21% during the forecast period. ​

This expansion is fueled by rising consumer awareness of the nutritional benefits of milk proteins, particularly in urban areas where disposable incomes are higher. The demand spans various applications, including infant nutrition, sports supplements, functional foods, and ready-to-drink beverages. Notably, milk protein concentrates (MPCs) are gaining popularity due to their high protein content and low lactose levels, making them suitable for protein-fortified beverages and low-carbohydrate foods. 

Geographically, Eastern China leads in milk production, accounting for over 60% of the country’s total output, supported by government initiatives to enhance dairy farming and processing technologies. Meanwhile, Western China’s growing health food sector and increasing consumer awareness are contributing to market growth in that region.​

The market is characterized by a mix of domestic and international players, including Arla Foods amba, Fonterra Co-operative Group Limited, Groupe Lactalis, Kerry Group PLC, and Morinaga Milk Industry Co. Ltd. These companies are actively engaging in product innovation and strategic partnerships to strengthen their market positions.

Market Report Coverage

The “China Milk Protein Market Overview)” by Digiroads Research & Consulting covers an in-depth analysis of the following segments in the market.

Study Assumptions and Definition

This report on the China Milk Protein Market is based on a comprehensive analysis of industry trends, market dynamics, and consumer behavior. The study assumes a stable economic environment in China, with consistent government policies supporting the dairy industry. It also presumes that technological advancements in dairy processing will continue to evolve, enhancing production efficiency and product quality.​

Definitions:

• Milk Protein: Refers to proteins derived from milk, primarily casein and whey proteins, used in various food and beverage applications for their nutritional and functional properties.​
• Casein: The predominant protein in milk, accounting for approximately 80% of its protein content, known for its slow digestion rate and use in cheese production.​
• Whey Protein: The remaining 20% of milk proteins, rapidly digested and commonly used in dietary supplements and sports nutrition products.​
• Milk Protein Concentrates (MPCs): Dairy products with a higher concentration of milk proteins, achieved by removing non-protein components from milk.​
• Milk Protein Isolates (MPIs): Highly refined milk proteins with minimal lactose and fat content, used in specialized nutritional products.​
• Hydrolyzed Milk Proteins: Proteins that have been enzymatically broken down into smaller peptides, enhancing digestibility and reducing allergenicity.​
  The market analysis considers various forms of milk proteins, including concentrates, isolates, and hydrolyzed proteins, across different applications such as infant formula, sports nutrition, and functional foods. The study also examines the impact of consumer preferences, regulatory frameworks, and technological developments on market growth.​

Data sources include industry reports, government publications, and market surveys, ensuring a robust and accurate representation of the current market landscape. The report provides valuable insights for stakeholders, including manufacturers, investors, and policymakers, to make informed decisions in the evolving China Milk Protein Market.

Market Scope

The China milk protein market is experiencing robust growth, driven by increasing health consciousness and demand for high-quality protein sources. Valued at approximately USD 127.79 million in 2024, the market is projected to reach USD 164.74 million by 2029, reflecting a compound annual growth rate (CAGR) of 5.21% during the forecast period. ​

This expansion is fueled by rising consumer awareness of the nutritional benefits of milk proteins, particularly in urban areas where disposable incomes are higher. The demand spans various applications, including infant nutrition, sports supplements, functional foods, and ready-to-drink beverages. Notably, milk protein concentrates (MPCs) are gaining popularity due to their high protein content and low lactose levels, making them suitable for protein-fortified beverages and low-carbohydrate foods. ​

Geographically, Eastern China leads in milk production, accounting for over 60% of the country’s total output, supported by government initiatives to enhance dairy farming and processing technologies. Meanwhile, Western China’s growing health food sector and increasing consumer awareness are contributing to market growth in that region.​

The market is characterized by a mix of domestic and international players, including Arla Foods amba, Fonterra Co-operative Group Limited, Groupe Lactalis, Kerry Group PLC, and Morinaga Milk Industry Co. Ltd. These companies are actively engaging in product innovation and strategic partnerships to strengthen their market positions.

MARKET OUTLOOK

Executive Summary

The China Milk Protein Market is poised for significant growth, projected to expand from USD 127.79 million in 2024 to USD 164.74 million by 2029, reflecting a compound annual growth rate (CAGR) of 5.21% during the forecast period. This growth is driven by increasing health consciousness among consumers and a rising demand for high-quality protein sources across various demographics.​

A notable shift in consumer demographics is influencing market dynamics. With China’s birth rate reaching a record low of 6.4 births per 1,000 people in 2023 and an aging population, dairy companies are increasingly focusing on adult and senior nutrition. Companies like A2 Milk, Danone, Abbott, Fonterra, and Nestlé, along with domestic brands such as Yili and Feihe, are introducing products tailored to these demographics, emphasizing aspects like senior and sports nutrition. ​

Milk Protein Concentrates (MPCs) are emerging as a significant segment within the market. Their high protein content and low lactose levels make them suitable for protein-fortified beverages and low-carbohydrate foods. Manufacturers are leveraging MPCs for their nutritional and functional properties, catering to the growing demand for health-oriented products. ​

Geographically, Eastern China leads in milk production, accounting for over 60% of the country’s total output, supported by government initiatives to enhance dairy farming and processing technologies. Meanwhile, Western China’s expanding health food sector and increasing consumer awareness are contributing to market growth in that region.​

However, the market faces challenges, including an oversupply of milk due to declining birth rates and a sluggish economy, leading to reduced demand for dairy products. Milk consumption per capita dropped from 14.4 kg in 2021 to 12.4 kg in 2022, while milk production surged to nearly 42 million tons, surpassing Beijing’s 2025 target. This surplus has resulted in falling milk prices and financial strain on smaller farms. ​

Despite these challenges, the China Milk Protein Market remains dynamic and competitive, with both domestic and international players actively engaging in product innovation and strategic partnerships to strengthen their market positions. Companies are focusing on developing specialized dairy products to cater to the evolving consumer preferences, ensuring the market’s continued growth and resilience.

COMPETITIVE LANDSCAPE

Key Market Players

• Fonterra Co-operative

• Arla Foods Amba

• Groupe Lactalis

• Kerry Group PLC

• Morinaga Milk Industry Co.,Ltd.

• Sanyuan Group

Market Share Analysis

The China milk protein market is characterized by a fragmented landscape, with both domestic and international players contributing to its growth. The market is projected to expand from USD 127.79 million in 2024 to USD 164.74 million by 2029, reflecting a compound annual growth rate (CAGR) of 5.21% during the forecast period. 

Domestic giants such as Yili Group and Mengniu Dairy dominate the market, leveraging extensive distribution networks and strong brand recognition. Yili Group, headquartered in Hohhot, Inner Mongolia, is a leading dairy producer in China, offering a diverse range of products including milk, yogurt, and milk powder. Mengniu Dairy, also based in Hohhot, is a major competitor, known for its wide array of dairy products and significant market presence. ​

International players such as Arla Foods amba, Fonterra Co-operative Group Limited, Groupe Lactalis, Kerry Group PLC, and Morinaga Milk Industry Co. Ltd. have established a strong presence in the Chinese market. These companies are actively engaging in capacity expansions, strategic partnerships, and product portfolio diversification to gain a competitive edge. ​

The market’s growth is further supported by increasing consumer demand for convenient and healthy dairy products. Rising health concerns, such as digestive and gut disorders, have led consumers to seek dairy products that aid gut health, thereby supporting the market’s expansion. Additionally, the demand for milk protein ingredients from infant formula manufacturers is on the rise, as awareness regarding the benefits of infant formula continues to grow across the country.

 ​MARKET DYNAMICS

Market Drivers and Key Innovation

Market Drivers

1. Rising Health Consciousness: An increasing awareness of health and wellness among Chinese consumers is driving demand for high-quality, nutrient-dense foods. Milk proteins, known for their complete amino acid profiles, are gaining popularity in functional foods, dietary supplements, and sports nutrition products. ​
2. Aging Population and Demographic Shifts: China’s declining birth rate and rapidly aging population are prompting dairy companies to shift focus from infant nutrition to adult and senior health products. Brands like A2 Milk, Danone, and Nestlé are introducing products tailored for adult and senior nutrition, emphasizing benefits such as bone health and muscle maintenance. 
3. Government Support for Dairy Industry: Chinese government initiatives aimed at enhancing dairy farming and processing technologies are bolstering milk protein production. These policies support the development of high-quality dairy products to meet domestic demand and reduce reliance on imports. ​
4. Growth in Sports and Fitness Culture: The burgeoning fitness and wellness culture in China is increasing demand for protein-rich products. Milk proteins are being incorporated into sports nutrition products, such as protein bars and ready-to-drink beverages, catering to health-conscious consumers seeking muscle-building and recovery benefits. 
5. Expansion of Functional Foods Market: The functional foods sector in China is expanding, with milk proteins being utilized for their nutritional and functional properties. Applications include fortified beverages, dairy products, and bakery items, addressing consumer demand for health-enhancing food options. 

Key Innovations

• Product Diversification: Companies are developing specialized milk protein products targeting various consumer segments. Innovations include milk protein-enriched snacks, beverages, and supplements designed for specific health benefits, such as improved digestion and enhanced immunity. 

• Technological Advancements in Processing: Advancements in filtration and processing technologies are improving the quality and efficiency of milk protein production. These innovations enhance the functional properties of milk proteins, such as solubility and emulsification, expanding their applications in the food industry. 

• Personalized Nutrition Solutions: The trend towards personalized nutrition is leading to the development of milk protein-based products tailored to individual health and fitness goals. This includes customized dietary supplements and functional foods designed to meet specific nutritional requirements. ​

• Sustainable Practices: Dairy companies are adopting sustainable practices in milk protein production, focusing on reducing environmental impact. This includes implementing energy-efficient processes and sourcing raw materials responsibly to meet consumer demand for environmentally friendly products. ​

• Integration of Digital Technologies: The use of digital technologies, such as e-commerce platforms and data analytics, is enhancing the marketing and distribution of milk protein products. Companies are leveraging online channels to reach a broader consumer base and tailor offerings based on consumer preferences and purchasing behaviors.

Market Challenges

Oversupply and Declining Demand: China’s dairy industry faces a significant oversupply of raw milk. In 2023, milk production reached nearly 42 million tons, surpassing the 2025 target of 41 million tons. However, consumer demand has not kept pace, leading to a surplus. In 2024, milk production decreased by 2.4% to 26.95 million tons, while consumption declined by 1.6%

Economic Pressures on Dairy Farmers: Many smallholder dairy farms are struggling financially. Over 80% of dairy farms are reporting losses, with some companies spray-drying up to 20,000 tons of milk daily to manage excess supply. Bulk milk prices have fallen to just over 1 yuan per kilogram, making it difficult for farmers to cover costs. 

Trade Tensions Affecting Imports: China has initiated anti-subsidy and anti-dumping investigations into EU dairy products, including milk and cream, as part of a broader trade dispute. This scrutiny could lead to tariffs or other trade barriers, potentially disrupting the supply of imported dairy ingredients.

Quality Control Challenges: Ensuring consistent quality in raw milk remains a significant issue. Factors such as variable protein levels, high bacteria counts, and antibiotic residues due to inadequate farming practices can compromise the quality of milk protein products.

Consumer Preferences and Market Dynamics: Consumer preferences are shifting towards plant-based alternatives and other beverages, leading to a decline in demand for traditional dairy products. Additionally, economic uncertainties have made consumers more price-sensitive, affecting the sales of premium dairy products.

Market Opportunities

• Rising Health Consciousness and Nutritional Awareness: Chinese consumers are increasingly prioritizing health and wellness, leading to a surge in demand for nutritious food options. This trend is driving the growth of milk protein products, particularly in categories like infant formulas, protein bars, ready-to-drink shakes, and protein-fortified snacks. 
• Aging Population and Senior Nutrition: 

China’s rapidly aging population presents significant opportunities for milk protein products tailored to senior nutrition. With a growing number of elderly consumers facing protein deficiency challenges, there is a rising demand for dairy products that support bone health, muscle maintenance, and overall well-being. 

• Expansion of Functional Foods Market: 

The increasing consumer preference for functional foods that offer additional health benefits beyond basic nutrition is creating opportunities for milk protein market players to develop value-added products. These products can target specific health concerns such as immunity, digestive health, and joint support. 

• Growth in Fitness and Sports Nutrition: 

The burgeoning fitness culture in China is driving demand for protein-rich products. Milk proteins are gaining popularity among fitness enthusiasts and athletes for their role in muscle recovery and performance enhancement. This trend is fueling the development of specialized dairy products catering to this segment. 

• E-commerce and Digital Distribution Channels: 

The rise of e-commerce platforms and digital retail channels is transforming the distribution landscape for milk protein products. Online platforms offer manufacturers a direct route to consumers, enabling targeted marketing and personalized offerings. This shift is particularly advantageous in reaching tech-savvy urban populations. ​

• Government Support and Policy Initiatives:

 The Chinese government’s emphasis on food security and support for the dairy industry provides a favorable environment for market growth. Policies aimed at increasing domestic milk production and improving quality standards are encouraging investment and innovation in the milk protein sector. ​

• Product Innovation and Localization:

 There is a growing demand for milk protein products that align with local tastes and preferences. Companies are focusing on product innovation, including flavor customization and culturally relevant formulations, to cater to the diverse Chinese consumer base.

RECENT STRATEGIES & DEVELOPMENTS IN THE MARKET

The China milk protein market has witnessed several strategic initiatives and developments in recent months, reflecting the industry’s adaptation to evolving consumer demands and market dynamics.​

• Expansion into Senior Nutrition: 

Companies like a2 Milk and Danone are focusing on senior nutrition products. a2 Milk plans to introduce China-specific fortified milk powder products targeting the immune system and bone health, while Danone reported strong sales of its premium Essensis product line in China, driven by robust demand for infant milk formula and medical nutrition products.

• Development of Ready-to-Drink (RTD) Protein Beverages: Mengniu is investing in the development of RTD protein beverages, aiming to cater to the growing consumer interest in convenient, protein-rich dairy products. This aligns with the national Healthy China 2030 objective to promote dairy as a crucial source of nutrition .​

• Sugar Reduction Initiatives: 

Yili is focusing on sugar reduction in its products, introducing zero-sucrose flavored probiotic drinking yogurts using maltitol and steviol glycosides to achieve desired sweetness without added sugar. This move addresses the increasing consumer demand for healthier food options .​

• Enhanced Distribution Networks:

 Yili emphasizes the importance of diversified distribution channels, including e-commerce platforms and community group-buying, to enhance product accessibility across China. This strategy aims to reach low-tier markets and meet the growing consumer demand for dairy products .​

• Government Initiatives for Industry Regulation: 

The Chinese government is updating standards for high-temperature pasteurized milk to improve product quality and safety. These new standards, open for public comment, aim to regulate processing parameters and testing methods for various types of milk, including cow, goat, and camel milk .​

• AI Integration in Dairy Management:

 Advancements in artificial intelligence are being applied to dairy management, with AI models predicting teat shape and skin conditions in dairy cows. This technology aims to improve animal health monitoring and optimize dairy production processes

KEY BENEFITS FOR STAKEHOLDERS

Producers and Dairy Companies

• Access to a Growing Consumer Base: With a population exceeding 1.4 billion, China offers a vast market for dairy products. The increasing health consciousness among consumers has led to higher demand for nutritious dairy options, including milk protein products.​
• Government Support and Policy Incentives: The Chinese government has implemented policies to promote dairy production, such as subsidies for dairy farmers and investments in dairy infrastructure. These initiatives aim to enhance domestic production and reduce reliance on imports. ​
• Technological Advancements: Adoption of modern dairy farming technologies, including automated milking systems and precision farming, has improved efficiency and product quality, benefiting producers. ​

2. Consumers

• Enhanced Product Quality and Safety: Stricter regulations and quality control measures have improved the safety and nutritional value of dairy products, ensuring better health outcomes for consumers. ​
• Diverse Product Offerings: The market offers a wide range of milk protein products catering to various dietary needs, including lactose-free, low-fat, and fortified options, providing consumers with choices that align with their health preferences. ​

3. Investors and Financial Institutions

• Market Growth Potential: The dairy sector in China is experiencing growth, driven by increasing demand for dairy products and government support, presenting investment opportunities. 
• Sustainable Investment Opportunities: Investing in companies that adopt sustainable practices and technologies can offer long-term returns, aligning with global trends towards environmental responsibility. ​

4. Government and Regulatory Bodies

• Achievement of Food Security Goals: Enhancing domestic dairy production contributes to China’s food security objectives, reducing dependence on imported dairy products. ​
• Economic Development in Rural Areas: Promoting dairy farming in rural regions supports economic development, creates employment opportunities, and improves livelihoods.

At DigiRoads Research, we emphasize reliability by employing robust market estimation and data validation methodologies. Our insights are further enhanced by our proprietary data forecasting model, which projects market growth trends up to 2030. This forward-thinking approach ensures our analysis not only captures the current market landscape but also anticipates future developments, equipping stakeholders with actionable foresight.

We go a step further by offering an exhaustive set of regional and country-level data points, supplemented by over 60 detailed charts at no additional cost. This commitment to transparency and accessibility allows stakeholders to gain a deep understanding of the industry’s structural and operational dynamics. By providing exclusive and hard-to-access data, DigiRoads Research empowers businesses to make informed strategic decisions with confidence.

In essence, our methodology and data delivery foster a collaborative and data-driven decision-making environment, enabling businesses to navigate industry challenges and capitalize on opportunities effectively.

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Table of Contents

• • INTRODUCTION

    • Market Overview
    • Years Considered for Study
    • Market Segmentation
    • Study Assumptions and Definitions
    • Market Scope

  • RESEARCH METHODOLOGY

  • MARKET OUTLOOK

    • Executive Summary
    • Market Snapshot
  • Market Segments 

• By Product Type:

• • • • – Milk Protein Isolates: Highly purified proteins with minimal lactose and fat content.
      • – Casein & Caseinates: Slow-digesting proteins ideal for sustained amino acid release.
      • – Whey Protein (Concentrates, Isolates, Hydrolysates): Fast-absorbing proteins popular in sports nutrition.

• By Application:

• • • Adult & Senior Nutrition: Growing focus due to aging population and health awareness.
    • – Sports & Functional Foods: Increasing demand for high-protein, low-lactose products.
    • – Bakery & Confectionery: Enhancing texture and protein content.
    • – Pharmaceuticals: Used in medical nutrition formulations.

• COMPETITIVE LANDSCAPE

• • Recent Strategies (Key Strategic Moves)
  • Market Share Analysis
  • Company Profiles

• Fonterra Co-operative

• Arla Foods Amba

• Groupe Lactalis

• Kerry Group PLC

• Morinaga Milk Industry Co.,Ltd.

• Sanyuan Group

• MARKET DYNAMICS

  • Market Drivers
  • Market Challenges
  • Market Opportunities
  • Porter’s Five Forces’ Analysis
    • Bargaining Power of Suppliers
    • Bargaining Power of Buyers
    • Threat of New Entrant
    • Threat of Substitutes
    • Competitive Rivalry

• GLOSSARY OF PROMINENT SECONDARY SOURCES

• DISCLAIMER

• ABOUT US