U.S. Dairy Products > Permeate

Why U.S. Permeate

Delivering a Steady, Year-Round Supply

U.S. permeate is a smart, not-to-be-missed strategic business opportunity for product formulators looking for supply stability, product functionality and value. The United States leads the world in permeate production with an estimated market share of about 60%. U.S. permeate production has increased 48 percent from 2010 to 2015, and is projected to continue to increase in years to come, in tandem with expansion in the production of high-protein whey and milk protein ingredients. This means global buyers and end-users can count on the United States to fulfill customer needs as a stable, quality supply partner of permeate for years to come.

US Permeate Production

New Product Innovations Taking Off

The number of global food and beverage product launches containing permeate has taken off since 2010, affirming solid, rising manufacturer interest in innovating with permeate. Data from Innova Market Insights shows that the number of food and beverage new product launches tracked with permeate has been growing over the last decade, and the growth rate has increased significantly. Between 2005-2009, the average compound annual growth rate was just 12%. This jumped to 39% from 2010 to 2015.

In terms of key product categories, dairy accounted for 14% of the new permeate product introductions tracked by Innova Market Insights between 2005 and 2015. Other leading categories included bakery (20%) and hot drinks (24%), ready meals (11%), confectionery (9%) and desserts and ice cream (5%), reflecting the versatility of this attractive ingredient. Don't get left behind as the competition embraces permeate in their new product formulations.

Collaborative Innovation Potential

In addition to being a leader in permeate production volumes, the U.S. dairy industry has also been a pioneer in investing significant research and development efforts revealing the sensory, functional and nutritional benefits of whey and milk permeate as cost-saving, flavor-enhancing and sodium-reducing food and beverage ingredients. This includes investments by private U.S. companies manufacturing permeate, alongside efforts of U.S. state and regional dairy research centers and other U.S. dairy institutions to understand permeate's distinct advantages.

Buyers and end-users can benefit from this collaborative effort that has driven innovation forward through harnessing this knowledge to shorter lead-times in bringing successful new products to market.