Opportunities in Whey Products and Lactose: Market growth and new product development in sports and infant nutrition

Date: October 22, 2009
Pages: 167
Price:
US$ 4,795.00
Publisher: Business Insights
Report type: Strategic Report
Delivery: E-mail Delivery (PDF)
ID: OA19236718AEN
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Opportunities in Whey Products and Lactose: Market growth and new product development in sports and infant nutrition
Advances in whey processing technology and investments in research and development have combined with a greater understanding and recognition of the potential health benefits of Whey Products. As a result both ingredients suppliers and product manufacturers alike seeking to exploit the potential of an area which many see as currently “exploding”.

Undoubtedly the functional benefits of certain Whey Products (in particular concentrates and isolates) are driving renewed interest and market momentum. But less-hyped areas should not be forgotten: use in Animal Feed and in human food use as a food (as opposed functional) ingredient will fuel demand. Lactose’ use as a relatively cost effective, low glycemic index, carbohydrate source should not be overlooked either as this category will see greater volume growth in the future than overall Whey Products.

Functional applications will be at the forefront of shaping the future direction of Whey Products however, with markets like Sports Nutrition, Seniors’ Nutrition and Nutritional Management creating demand for higher quality, value-added Whey Products in the future. Certain Whey Products, particularly concentrates and isolates (WPI) are potentially well placed to take advantage of these developments.

But growth will not just happen by itself – there are significant problems to overcome. First, much greater scientific substantiation of product benefits is required to establish efficacy and to pass regulatory hurdles, particularly in Europe. Beyond that marketers must also ensure the marketing messages have high integrity and accurately represent product benefits as misleading marketing has the potential to undermine the market. The potential for growth is there, but successful targeting requires carefully constructed strategies to be followed.

Scope of this report
  • Provides extensive market data on the size, growth and segmentation of the Whey Products and Lactose markets across 4 major regions and 15 countries, with forecasts up until 2013. Assessments of use by end-use markets are also provided.
  • Analysis of the relative strength of demand both now and in the future from different uses of Whey Products and Lactose, both as an ingredient in product formulation sand as a specific functional ingredient.
  • Uniquely detailed product launch analysis examines the pattern of product introductions containing Whey Products and Lactose across the globe over the past 3 years.
  • Detailed chapters provide extensive insight into the emerging role of Whey Products in both the Sports Nutrition and Infant Formulas markets, highlighting the growth potential for Whey Products in these areas and how manufacturers can effectively utilize these ingredients.
  • Examination of the latest scientific evidence that points towards the likely future direction of Whey Product use in burgeoning markets like Seniors’ Nutrition and Immunity and Gut Health.
  • Examination of the key issues that marketers need to be addressed in order to unlock the full potential of the Whey Products and lactose markets.

Reasons to purchase this report
  • Fill a gap in market understanding by knowing the size, segmentation and growth of the Whey Product markets across the globe. This provides clarity when developing marketing plans for suppliers and allows product manufacturers to understand the growing importance of these ingredients by product market and by country and region.
  • Identify product development opportunities (for both manufacturers and ingredients suppliers alike) using the detailed scientific evidence of the areas where Whey Products can play a role in the development of foods with added health functions.
  • Learn how to avoid the potential pitfalls in the development of this market by first identifying the problem areas (from consumer to regulatory issues) and then understanding ways in which these problems can be targeted and overcome.
  • Understand competitive activity in product launches to identify hot areas of activity by product market, region and country and use this information to refine your own product pipelines and product launch tactics.
  • Examine the growth potential in functional product markets like Sports Nutrition and Infant Formulas for Whey Products and how these can help grow your business’s sales.

Highlights from this report

Global production volumes for Whey Products in 2008 were over 3.2 million metric tonnes, and over 0.9 million metric tonnes for Lactose. Europe is the dominant region in global Whey Products and lactose production, accounting for more than 50% of total production in both markets in 2008.

Functional uses for Whey Products are the hot area of the market due to the potential for Whey Products to leverage their excellent nutrition profiles (in particular their amino acid and protein profiles) into high quality nutrition for consumers.

Product markets which offer a role for Whey Products as a functional ingredient include Infant Nutrition, Sports Nutrition & Body Composition, and Immunity & Gut Health products, Weight Management and Satiety and Nutritional (disease) Management.

Issues that require addressing for growth in the market to continue include; the need to maintain product integrity and to market these products responsibly, the need to tackle head-on consumer mistrust of functional foods and the need to mitigate, as far as possible, price fluctuations.

Key Market Issues addressed

The key challenge for Whey Products remains how can ingredients suppliers and manufacturers maximize their potential? To achieve this a key aim will need to be taking the more refined Whey Products beyond specialist markets like Sports Nutrition and into the mass market.

Achieving widespread distribution will require careful marketing approaches. In common with all functional foods marketers must take care to ensure that products have demonstrable benefits and that marketing messages are clear and accurately portray product benefits.

Furthermore, consumer mistrust of marketing messages also needs directly tackling. In 2008 around 77% of Europeans and 67% of American s did not feel that “nutritional claims on food and drinks were trustworthy”. This is a massive barrier which needs to be overcome for growth to continue in functional applications of Whey Products.

Competition between suppliers of Whey Products is likely to be intense in the future. For suppliers this means that establishing effective whey processing capabilities now is important. For manufacturers this means that more, better, Whey Products will become available in the future for them to use in product development.

Whey Products also need to establish their credentials compared to other high nutritional value ingredients (such as soy proteins) in consumers’ minds. This needs to be achieved in a manner which does not bombard consumers with claims and counter-claims for different ingredients, as this runs the risk of alienating consumers from functional foods altogether.

Key questions answered by this report

How large are the Whey Products and lactose markets and how fast are these markets growing?

Which end-use markets are fuelling demand for Whey Products? How important will the Human Food and Animal Feed sectors be in the future?

In which products are Whey Products being used most extensively in order to drive new product development and what does this say about where future demand is likely to be coming from?

What roles can Whey Products play in providing superior formulations for infants compared to products currently available on the market?

What are the new roles for Whey Products in Sports Nutrition that new science is uncovering? How can these areas be effectively targeted?

What scientific discoveries about Whey Products are likely to create future opportunities for product development that I should be aware of now?
Opportunities in Whey Products and Lactose
Executive summary
Drivers, applications and issues
Market size and segmentation
Product launch analysis
Infant formulas
Sports nutrition and body composition
Emerging opportunities

CHAPTER 1 INTRODUCTION

Scope of the report
Overview of coverage
A note on market data
Definitions
Whey products and lactose
Segmentation of whey products (including lactose)
Other definitions
Methodology

CHAPTER 2 DRIVERS, APPLICATIONS AND ISSUES

Summary
From by-product to high value ingredient
Processing technologies have enabled dramatic growth
A generation ago whey was considered a waste product
The next challenge is how to maximize the potential of whey products
Whey’s profile makes it an ideal functional ingredient
Lactose is also a valuable food ingredient
Supply side market drivers
Two main supply-side factors drove initial growth in whey products
Demand side market drivers
New functional uses for whey and the consumer health trend
A substitute for NFDM
Lactose as a source of carbohydrate
Encapsulation technology – a future driver?
Whey products as a food ingredient
By product category
Threats to continuing growth
Maintaining product integrity is vital to future success
Suppliers should seek to ensure standards are upheld industry-wide
Responsible, appropriate marketing of product benefits is also key
Suppliers should play a role in managing the claims made by manufacturers
Consumer mistrust of functional products needs addressing
Price fluctuations and the threat of substitution
The future marketing landscape
Intense competition is likely to be seen between suppliers
Whey products will need to mark out their territory
Conclusions

CHAPTER 3 MARKET SIZE AND SEGMENTATION

Summary
Introduction
A note on the market data
Overall methodology
Data parameters
Global and regional analysis
Regional analysis
Europe is the dominant force in whey product production
Whey products category analysis
Growth has been explosive, but growth rates are set to fall in many categories
Human food vs. animal feed (whey products only)
Selected end use market analysis
A note on coverage and approach
US
Dairy foods and dried foods and mixes are the key markets
Europe
Conclusions
Supplementary data
Asia
Japan
South Korea
Philippines
Europe
France
Germany
Italy
Netherlands
Spain
Sweden
UK
EU 25
North America
Canada
Mexico
US
Oceania
Australia
New Zealand
Other countries

CHAPTER 4 PRODUCT LAUNCH ANALYSIS

Summary
Introduction
A note on Product Launch Analytics and data downloads
Methodology
A note on product numbers
Whey products launch analysis
Launches featuring any form of whey by sector over time
Regional share of launches containing whey products only
Regional share trends of launches with whey products only
Emerging regions are taking a greater share of product launches
Heat map of launches with whey products only
The US is easily the most dominant country
Share of whey products launches by market over time
Confectionery has increased its share of launches
Leading manufacturers in launches with whey products
High fragmentation between manufacturers characterizes the market
Lactose launch analysis
Launches featuring lactose by sector over time
Regional share of launches featuring lactose
Asia-Pacific is the second most important region
Regional share trends of launches featuring lactose
South and Central America is accounting for a growing share of launches
Heat map of launches featuring lactose
The US is not as dominant in lactose launches as it is in whey products launches
Share of lactose launches by product market over time
Share between product markets has remained stable
Leading manufacturers in launches with lactose
Fragmentation between manufacturers has increased in recent years
Conclusions

CHAPTER 5 INFANT FORMULAS

Summary
Whey’s role in infant formulas
An important ingredient in a low growth market
Toddler formulas offer the highest growth
The need for product differentiation is creating opportunities for whey products
Low overall growth and high consolidation with prompt intense competition
There are signs that whey products are at the forefront of product development
Main prospects for infant formulas
Whey products as a protein modifier in infant formulas
Significant amounts of whey must be added to match the profile of mother’s milk
Milks for older and infants and young children also offer opportunities
Whey products and infant allergenicity
Product analysis
Whey proteins are an increasing feature of new product launches
Use of more advanced forms of whey products has been relatively recent
Future outlook

CHAPTER 6 SPORTS NUTRITION & BODY COMPOSITION

Summary
Sports nutrition is a hot growth market
What is sports nutrition?
Sports nutrition is no longer just for professional athletes
Drivers of whey products in sports nutrition
Better understanding of nutrition’s role drives whey products’ use
Consumers are becoming more demanding, encouraging product development
A favorable sporting regulatory environment
Market size and growth
Whey’s role in sports nutrition & body composition
Whey’s nutritional profile makes it an ideal ingredient
Proteins are an important energy source while exercising
Power and endurance athletes have different protein demands
New technologies have expanded the role for whey proteins in sports nutrition
Roles other whey fractions may play in sports nutrition for power athletes
Whey’s sports nutrition properties also help with general body composition
Whey appears more effective than casein protein in improving body composition
Further benefits of whey products for athletes
BCAAs aid recovery if taken before and after exercise
BCAAs can also help to delay fatigue
Whey proteins can help to stimulate growth hormones
Glutamine from whey products can help prevent fatigue
Product development
“Pure” sports nutrition
Premium whey products need to show why they are more than “just protein”
Some innovation showing the future direction of innovation
Offering benefits to the broader sports nutrition market
Products should offer the chance to attain the “nutrition of professionals”
All sizes of companies can secure endorsements from sportspeople
Future outlook

CHAPTER 7 EMERGING OPPORTUNITIES

Summary
Introduction
Whey products have many potential benefits
Immunity and gut health
Whey and immunity: a role in boosting the body’s defenses
Lifestyle factors affect immune system function
Whey protein’s role in boosting antibodies and aiding T-cell function
WPC and WPI’s role in the antioxidant system
Whey products and gut health: multiple potential benefits
Improved intestinal integrity
Improved nutrient uptake
Enhancing gut enzyme and microbial activity
Physio-chemical conditions of the intestinal lumen
Seniors’ nutrition
Sarcopenia
Whey proteins aid post-prandial protein synthesis
Whey protein intake should ideally be a regular part of Seniors’ diets
Cardiovascular health in seniors
Bone health
Whey proteins help to maintain bone mineral levels in older consumers
Whey products are also a good calcium source
Immunity
Weight loss
Weight management and satiety
Increased satiety
BCAAs and the maintenance of lean muscle mass
Angiotensin converting enzyme (ACE) inhibitory action
Provision of calcium
Lactose offers a low glycemic index sugar source
Nutritional management
Cardiovascular disease (CVD)
Diabetes
Osteoporosis
Conclusions
Appendix
Bibliography

LIST OF FIGURES

Figure 3.1: Share of global whey products and lactose production by region, 2008-2013
Figure 3.2: Global whey products and lactose production growth (2005-2013) and future production volumes (metric tonnes, 2013)
Figure 3.3: Human food and animal feed share of global whey product sales (metric tonnes), 2005-2013
Figure 3.4: US human end use markets for whey powder, whey protein concentrate and whey protein isolate (% share), 2007-2008
Figure 4.5: Heat grid of the regional share of product launches containing whey products by industry, 2006-2008
Figure 4.6: Regional share of global new product launches containing whey products (%), 2006- 2008
Figure 4.7: Heat map of global new product launches containing Whey Products, 2006-2008
Figure 4.8: Product market share of global new product launches containing Whey Products, 2006-2008
Figure 4.9: Leading companies in global new product launches containing whey products, 2006- 2008
Figure 4.10: Heat grid of the regional share of product launches featuring lactose by industry, 2006- 2008
Figure 4.11: Regional share of global new product launches featuring lactose, 2006-2008
Figure 4.12: Heat map of global new product launches featuring lactose, 2006-2008
Figure 4.13: Product market share of global new product launches containing lactose, 2006-2008
Figure 4.14: Leading companies in global new product launches containing lactose, 2006-2008
Figure 5.15: Infant formulas volume growth, value growth and market size by segment in 2013
Figure 5.16: Global market shares (% value) for leading companies in infant formulas, 2005-2009
Figure 5.17: Examples of product launches making use of partially hydrolyzed whey proteins
Figure 6.18: PureSport and Lucozade Sport provide examples of how both large and small companies can associate themselves with top sportspeople

LIST OF TABLES

Table 2.1: Approximate quality scores of various protein forms
Table 2.2: Reported physiological effects of protein fractions found in whey protein
Table 2.3: Applications and benefits of lactose products
Table 2.4: Functions of whey products as a food ingredient in end applications
Table 3.5: Global whey products and lactose production by region (metric tonnes), 2005-2013
Table 3.6: Global whey products production by volume (metric tonnes), by category, 2005-2013
Table 3.7: Global whey products production by volume (metric tonnes), split by human food and animal feed use, 2005-2013
Table 3.8: US human end use markets for whey powder, whey protein concentrate and whey protein isolate (% share and metric tonnes), 2007-2008
Table 3.9: EU 25 human end use markets for whey powder, whey protein concentrate and whey protein isolate (% share and metric tonnes), 2008
Table 3.10: Japanese whey products production by volume (metric tonnes), by category, 2005- 2013
Table 3.11: South Korean whey products production by volume (metric tonnes), by category, 2005-2013
Table 3.12: Filipino whey products production by volume (metric tonnes), by category, 2005-2013
Table 3.13: French whey products production by volume (metric tonnes), by category, 2005-2013
Table 3.14: German whey products production by volume (metric tonnes), by category, 2005-201373
Table 3.15: Italian whey products production by volume (metric tonnes), by category, 2005-2013
Table 3.16: Dutch whey products production by volume (metric tonnes), by category, 2005-2013
Table 3.17: Spanish whey products production by volume (metric tonnes), by category, 2005-2013
Table 3.18: Swedish whey products production by volume (metric tonnes), by category, 2005- 2013
Table 3.19: UK whey products production by volume (metric tonnes), by category, 2005-2013
Table 3.20: EU 25 whey products production by volume (metric tonnes), by category, 2005-2013
Table 3.21: Canadian whey products production by volume (metric tonnes), by category, 2005- 2013
Table 3.22: Mexican whey products production by volume (metric tonnes), by category, 2005- 2013
Table 3.23: US whey products production by volume (metric tonnes), by category, 2005-2013 82 Table 3.24: Australian whey products production by volume (metric tonnes), by category, 2005- 2013
Table 3.25: New Zealand whey products production by volume (metric tonnes), by category, 2005-2013
Table 3.26: Other countries’ whey products production by volume (metric tonnes), by category, 2005-2013
Table 4.27: Number of global product launches by industry and whey products category, 2007- 2009
Table 4.28: Percentage share of global product launches by industry and whey products category, 2007-2009
Table 4.29: Number of global product launches featuring lactose, 2007-2009
Table 4.30: Percentage share of global product launches featuring lactose, 2007-2009
Table 5.31: Global infant formula sales (US$m) by region, 2005-2013
Table 5.32: Top five global company shares (% value) for infant formulas, 2005-2008
Table 5.33: Global infant formula sales (US$m) by category, 2005-2008
Table 5.34: Global infant formula sales (Kg millions) by category, 2005-2008
Table 5.35: Global infant formula sales (US$m) by category, 2005-2008
Table 6.36: Core European and US sports nutrition market value (US$m), 2003-2013
Table 7.37: Major nutritional management disease prevalence 2008 (% total population), growth in sufferer numbers (CAGR 2008-2013) and forecast suffers number 2013 (actual) in eight major countries
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