whey protein ingredient market ubic

WHEY PROTEIN INGREDIENT MARKET

Science Market Regulation

UBIC 2014 CONSULTING

Marketing Development

Strategy Consulting

Partnership searches

Informations systems

Technical & Competitive Scanning – Regulations – Manufacturers This comprehensive report is based on in-depth interviews with food companies completed by a desk review. It provides for DECISION MAKERS a global understanding of the sector as well as an outlook on its future.

MARKET ANALYSIS

APPLICATIONS

Trends & Perspectives Sales and Production by Country Ingredient category Trade Statistics Suppliers Users

Dairy products & Ice creams Infant formula Dietetic & Sport & Slimming foods Beverages Confectionery & Chocolate Bakery, Biscuits, Snacks Meat, ready-to-eat food Clinical Nutrition

COUNTRIES COVERED

INGREDIENTS COVERED

North America South America Europe Asia Australia New Zealand

WPC WPI Hydrolysates High Gel proteins Heat Stable WPC WPC enriched alpha-lactalbumin


OBJECTIVES

MARKET

Consumer Trends Volumes & Values per country Evaluation of each segments Price of ingredients Market shares MANUFATURERS

Production volume Product Portfolio Specifications USERS

Volumes of ingredients Purchased Expectations towards new Ingredients

INTRODUCTION Whey proteins are the group of milk proteins that remain soluble in whey after precipitation of caseins at pH 4.6 and 20°C. Whey proteins represent the major proteins in human (breast) milk, in contrast to that of cow’s milk where casein is the major protein. The whey protein is a heterogeneous grouping of several dissimilar proteins: -lactalbumin, lactoglobulin, immunoglobulin, lactoferrin, lactoperoxydase, immunoglobulins, proteoses peptone, etc. It contains lactose, minerals and lipids. Whey is the watery portion obtained from cheese manufacturing. It is called “sweet whey” (pH greater than or equal to 5.6) if it comes from rennetcoagulated cheese manufactures or “acid” whey (pH less than or equal to 5.1) if it originates from cottagecheese manufactures. Whey proteins can perform a number of technical functions in food products. They possess solubility over a wide pH range, even near their iso-electric point, create viscosity through waterbinding, form gels, emulsify, bind fat, facilitate whipping, foaming and aeration, enhance color, flavor and texture, and bring with them numerous nutritional advantages. Whey proteins can usefully replace or supplement meat proteins, soy proteins products, modified starches and hydrocolloids gums in processed meats. In their native state, whey proteins are highly soluble and adeptly perform emulsification and whipping functions in a food application. They have no flavor on their own and are compatible with cooked meat flavor and spice/seasoning blends.

Their capacity of water-binding make possible to improve cook yield and to have a positive economic impact. They give firmness texture and facilitate retention of moisture during process and cooking. For example, high solubility over a wide range of pH makes WPCs a good candidate for a sport beverage or meal-replacement beverage. In baked goods, whey proteins are used to enhance crust browning, bread flavor and crumb structure. They can retard staling. The use of whey proteins is specially interesting in acid food products like beverages. They provide a high solubility in a large wide pH range, a high dispersibility and good suspension stability. They impart a smooth mouthfeel and are bland of flavor. They can emulsify fat-containing beverages and aerate shake-type drinks and impart a low viscosity useful in dietary product or convalescent food. Finally, they provide an economical source of highnutritional-quality proteins which makes them particularly useful in sports nutrition: They have an excellent metabolic efficiency and are easily digested. They have the highest concentration of branched chain amino-acids (BCAAs), are a good source of sulphur-containing amino-acids that maintains antioxidant levels in the body, contain glutamine and high levels of arginine and lysine that may stimulate growth hormone release and an increase in muscle mass.

WHEY PROTEIN INGREDIENT MARKET MARKET APPLICATIONS

WPC 34 There will be development of 34 WPC powders in order to enhance their gellifying functionalities which will allow their use in more sophisticated products. Ranges will also be larger, and the market more segmented. For instance, extrusion processing is used to modify the physical texture of whey proteins, expanding their potential use in snack foods and meat products. WPC 34 powders can respond to the growing demand in the food industry for texturing and gelling agents. They are also a substitute for more expensive milk ingredients, in ice-cream for example. The image of milk proteins has remained very good despite the promotional efforts of the soy protein industry. It has been demonstrated that humans need an amino acid source from animal origin. The protein balance in animal origin protein is better than that in vegetable protein. WPC volumes in food uses are likely to rise further. Obviously overall growth will be fairly small, and the main trend will be moves to add value, both in product variants, and in higher protein levels.

WPC 75-80 Mainstream food use will be as important for these products as the more specialised uses listed in the study. More high value food products will switch partly (and slowly) into WPI type proteins, but re-formulation will cause significant practical delay. Overall this sector will show good growth.

Use of WPC in Human Foods

PROCESS Dry Blends

WPC is typically produced using an ultrafiltration process. After the ultrafiltration process, the concenInfant Formula trated liquid whey passes through an evaporator and a spray dryer to remove all but 4-5 percent of Other the water. WPC is often referred to in conjunction with its level of protein concentration. The procesDairy Applications sing method of choice is commercial-scale ultrafiltration and diafiltration with semipermeable memNutraceuticals & branes. These have molecular weight cut-off limits Pharmaceuicals, of 10 to 50 KD for fractionating whey protein from Special Dietary the low-molecular-weight compounds such as lactose, minerals, non-protein nitrogen and vitamins. WPC 80% can be used in most processed food applicaUnless it is pre-treated, a WPC will contain almost tions. Utilized in sport nutrition, energy bars, baby formuall protein components of whey. Products with over las, ice cream, dry mixes, condensed milk products and 70% protein offer the highest concentration of many other processed foods, the product is produced proteins with the potential for biological activities. from pasteurized and skimmed sweet whey by ultrafiltraFood scientists agree that to maximize this functiotion and spray drying. nality as a food ingredient, the proteins should receive minimal denaturation, which implies as little WPC 90 (WPI) heat treatment as possible during processing. WPI is mainly used in sports food and clinical nutrition, two growing markets. In sports food, the price remains an important buying criterion. This is less the case for clinical nutrition. Re-formulation of products will be very slow as usual. WPI also has applications for its texturing properties in the food industry.


MARKET OVERVIEW

INNOVATION

New trends RESEARCH

New researches and new developments ENVIRONMENT

Regulation Registration Importers & Traders

Region 1 Region 2 Region 3

WPC 80/85 World Market

The change in ingredient demand, particularly for specialised whey products, can be linked to the explosion of some segments such as healthy foods in some parts of the world. The demand for whey derivatives can also be linked to increased consumption of specialised products such as infant formula, in the last few years. Some countries have developed high quality techniques to obtain specialised whey products from the whey, and therefore play a leading role in world trade of those products, while other countries are far behind and play a much smaller part in these markets. The world's processed food market is valued at over two trillion USD and is broadly divided between North America, Western Europe and the rest of the world. Not only it is by far % the largest consumer market, but is growing in real terms by 5-7% owing to the 15% and above growth rates currently recorded in many Asian countries. With their growing middle classes and young populations, Asia and Latin America represent the most attractive markets. Populations in these areas are increasing more rapidly than in Western countries and people in these countries will spend a larger proportion of their income on food. The competition is becoming more sophisticated and products more specialized and differentiated. Ignoring any cultural culinary differences, there are two main trends emerging in changes in food taste in developed countries.

World Production of Whey Proteins

WPC 34

WPC 80/85

WPI

Increase in consumption of prepared, frozen, vacuum- or controlled atmosphere-packed foods (convenience food). The main characteristics of these very high added value products are the quality of the preservation and presentation, and their speed of preparation (using, for example, microwave ovens). An ever-increasing attraction towards natural products. The rediscovery or reinvention of so-called forgotten tangs of the soils, as well as the "biological/organic products, especially in Northern Europe.

COMPANY PROFILE EXAMPLE OBJECTIVES Company presentation MARKET

Consumer Trends Volumes & Values per country Evaluation of each segments Price of ingredients Market shares MANUFATURERS

Production volume Product Portfolio Specifications USERS

Volumes of ingredients Purchased Expectations towards new Ingredients

The company specializes in most types of bars, drinking chocolate, chocolate spread and other chocolate confectionery. In addition, they manufacture private label products for the most qualityconscious retailers.

Ingredients used INGREDIENT WPC MPC Whey Powder Dem. Whey powder

QUANTITY

APPLICATIONS

Nutraceutical properties researched

Ingredient WPC/WPI

CLA (Conjugated linoleic acid)

Functions Good protein source A good texturing agent Can be active on sleep (tryptophan of the αlactalbumin) Anti obesity

Expectations The company is awaiting new texturizing agents which are above all reliable and at a competitive price, and are also awaiting changes in regulations. Milk proteins are good emulsifiers, and are especially useful for stabilizer-free formulae. Lacto-replacers are used as milk substitutes on the grounds of cost. The seral balance (soluble proteins/emulsifiers) is currently being experimented. The company's products usually have a protein content of around 35% (caseins, whey) and a lactose content of 65%, although the required protein content is in fact between 15 and 25%. A product midway between a lacto-replacer and an emulsifier has been tried for sugar-free ice creams in 1 to 2% doses. All low fat formulae have been abandoned as these do not correspond to what consumers are looking for.

TABLE OF CONTENTS

PART 1- INTRODUCTION 1.1.SUMMARY Whey Presentation Soluble proteins description Different whey processed products Whey protein concentrate and isolate Economical aspects - Supply whey supply Whey protein concentrate-Whey protein Isolate supply Economical aspects - Market WPI High Gel WPC market Heat Stable WPC - WPI WPC enriched in alfa-lactalbumin market Whey protein hydrolysates 1.2 STRATEGIC ASSESSMENT Increased globalisation of dairy industry Need for dairy products Suppliers future commercial policy Future net importers of dairy goods China & South East Asia India Japan Russia Rest of the world 1.2.PROCESS Processing Methods WPC Production technique WPI production Ultrafiltration process Whey proteins and solubility criteria 1.3.NUTRITIONAL ASPECTS Composition and Nutrition value of Whey Nutritional properties Whey protein hydrolysates nutritional properties Whey proteins and nutraceutical properties summary

17 18 18 19 22 22 23 23 24 28 34 35 35 36 36 37 38 39 39 40 40 41 41 42 42 38 39 39 43 43 45 47 48 51 53 54

PART 2 – MARKET 2.1 APPLICATIONS 2.2. DOWNSTREAM MARKET SEGMENTS Dairy products WPC – WPI Ingredient use - Summary Dairy Market America Europe Asia WPC-WPI Users in Dairy Products DANNON (USA) MEIJI MILK PRODUCTS CO, LTD (J) MORINAGA (J) NAMYANG DAIRY (Korea) SEOUL DAIRY (Korea) ADAMS FOOD (IRISH DAIRY BOARD- UK) UNILEVER (UK) DANONE (F) ELSA SA (CH) HIPPWERK OHG (G) BRIGHT DAIRY (China) Ice creams WPC – WPI Ingredient use - Summary Key Factors: Ingredient use - Summary World Ice Cream Market USA New Zealand Europe WPC-WPI Ingredients used in Ice cream WPC-WPI Users in Ice cream UNILEVER KOHLER MIX (USA) KROGER Co Inc (USA) NESTLE ICE CREAM (F) LANGNESE IGLO (UNILEVER GROUP - G) WELLS’ DAIRY Inc (Blue Bunny Brand) (USA) MENGNIU DAIRY GROUP ICE CREAM PLANT (China) YILI GROUP ICE CREAM (China) Infant formula WPC – WPI Ingredient use - Summary Key Factors:

55 56 62 63 63 65 68 69 71 73 73 73 74 74 75 76 77 78 79 80 81 84 84 84 86 88 90 92 92 94 94 95 96 97 98 99 100 101 104 107 107 107

Trends on the use of proteins WPC-WPI Ingredients used in Infant Formula WPC-WPI Users in Infant Formula Beverages Use of dairy ingredients - Summary Beverage market United States Japan WPC-WPI Ingredients used in Beverages WAHAHA (China) PEPSICO (USA) Sport Food, Food supplements & Nutritional products WPC – WPI Ingredient use - Summary Key Factors Sports Food Market USA Market size Europe WPC-WPI Ingredients used in Sports Foods WPC-WPI Users in Sports Foods in the United States The Functional Food and Nutrition Market WPC-WPI Ingredients used in Nutritional ProductS WPC-WPI Users in Nutritional Products in the U.S. BARIATRIX (CDN ) NELLSON’S NUTRACEUTICALS (USA) Confectionery and Chocolate Production WPC –WPI Ingredient use – Summary Key factors The world market Asia - Pacific The functional confectionery market Innovations and trends WPC-WPI used in Confectionery and Chocolate WPC-WPI users in Confectionery and Chocolate L’EUROPEENNE DU CHOCOLAT (CADBURY FRANCE) (F) NESTLE UK (ROWNTREE MACKINTOSH - UK) AUGUST STORCK (G) HERSHEY FOODS (USA) Bakery / Biscuit / Snacks WPC – WPI ingredients use - Summary The World market USA Asia Europe WPC-WPI Ingredients used in Bakery Meats / Pork Meat / Cured Meats WPC – WPI Ingredient use –Summary Key Factors

110 113 114 115 115 116 116 117 117 119 122 123 123 123 124 125 128 129 134 134 135 136 136 138 140 142 142 142 143 147 149 150 150 150 151 153 155 156 158 158 159 160 161 161 163 165 165 165

WHEY PROTEIN INGREDIENT MARKET TABLE OF CONTENTS The Meat and Porkmeat Market WPC-WPI Ingredients used in Meat and Pork meat WPC-WPI users in Meat and Pork meat CAMPOFRIO FOOD GROUP (SP) OSCAR MAYER (KRAFT FOODS- USA) NANJING YURUN FOOD CO LTD (China) SHINEWAY GROUP TECHNOLOGY CENTER (China) Ready to eat foods WPC–WPIIngredienuse-Summary Use of dairy ingredients Keyfactors Preparedmeals WPC-WPI Ingredients used in Ready to eat Meals WPC-W PIusers in Ready to eat Meals Clinical Nutrition WPC–WPI ingredientuse-Summary Keyfactors Clinica lnutrition market WPC-W PIngredientsused in ClinicalNutrition WPC-W PIusers in Clinical Nutrition 2.3.MARKET BY COUNTRIES WPC–WPImarketbycountry NorthAmerica UnitedStates Canada SouthAmerica Mexico Argentina Brazil Bolivia Chile Peru Ecuador Paraguay Uruguay Panama Dominicanrepublic WesternEurope Germany

166 167 167 168 168 170 172 175 175 175 175 176 178 178 179 179 179 179 186 186 187 188 189 189 200 202 203 206 207 210 210 212 213 213 213 214 214 215 220

Spain Portugal EasternEurope Russia Ukraine CzechRepublic Estonia Lithuania Hungary Slovakia SouthEasternEurope Turkey Asia Japan Thailand China Taiwan HongKong Korea India ThePhilippines Malaysia Indonesia Srilanka Oceania Australia NorthAfrica Algeria Morocco Tunisia Africa Egypt Ghana Nigeria SouthAfrica MiddleEast UnitedArabEmriates Syria SaudiArabia Quatar Oman Lebanon Kuwait Jordan Israel

220 220 224 224 226 228 232 233 234 235 236 236 237 240 245 246 251 252 252 254 259 260 261 261 262 262 263 263 264 264 265 265 265 266 266 270 270 271 271 272 272 272 273 273 273

Iran Bahrain Yemen Iraq Libya 2.4 – INNOVATION 2.5.REGULATION 2-6- FUTURE MARKET TRENDS 34WPC WPC80 WPI PART3 – SUPPLY 3.1. WPC - WPI PRODUCTION BY COUNTRY United States Canada South America WesternEurope Central&Eastern Europe Middleeast Asia Oceania Northafrica 3.2. WPC - WPI PRODUCTION BY INGREDIENT CATEGORY WPCWPI production by ingredient category 34-35%WPC 80-85%WPC 90%WPI HYDROLYSEDWPI HIGHGELWPC HEATSTABLEWPI 3.3.MANUFACTURER SANDPOSITIONING Western European Suppliers ALPAVIT(G) ARLAFOODINGREDIENTS(DK/USA) ARMORPROTEINES(F) BIOLACGmbh(G) BONILAITPROTEINES(F) FRIESLANDCAMPINA(NL) CARBERYINGREDIENTS(IRL) CREMOSA,(CH) NUTRIBIO(F) EPI-INGREDIENTS(F) INTERNATIONALDAIRYINGREDIENTS(F) INGREDIA EUROSERUM(F) GLANBIA(IRL) KERRYINGREDIENTS(IRL)

274 274 275 275 276 280 284 287 288 288 288 295 296 300 309 312 316 321 322 322 324 325 326 327 327 328 328 329 329 329 330 336 337 338 342 344 345 346 351 353 354 355 357 357 359 360 363

WHEY PROTEIN INGREDIENT MARKET TABLE OF CONTENTS LACTALIS(F) MEGGLE (G) MILEI - MORINAGA (G) WHEYCO (G) VALIO (FIN) VOLAC INTERNATIONAL Ltd. (UK) Eastern European Suppliers WORLD PROTEIN (HU) PML Protein.Mléko.Laktóza a.s., (CZ) US Suppliers AGRI-MARK DAIRY FARMERS OF AMERICA DAVISCO ERIE FOODS FOREMOST GLANBIA USA GRANDE CUSTOMS INGREDIENTS HILMAR CHEESE Co. KERRY INGREDIENTS LEPRINO NUTRICEPTS INC PGP International (Protient) LAND O’ LAKES INGREDIENTS TREGA FOODS Canadian suppliers AGROPUR. (CDN) SAPUTO Inc. (CDN) South American Suppliers CAFE DE EXPORTACION (CADEXA) . (HOND) CONAPROLE. (URUG) DESHILDRATADOS ALIMENTICIOS E INDUSTRIALES, SA DE CV (MX) MILKAUT (ARG) SANCOR (ARG) CARGILL (BR) Oceania suppliers FONTERRA (NZ) TATUA (NZ) MURRAY GOULBURN CO-OPERATIVE CO. LTD (AUS)

365 367 369 371 372 374 375 376 376 377 378 380 383 386 387 389 390 392 394 395 397 398 402 404 405 407 408 409 410 411 414 416 418 419 420 421 428 430

WARRNAMBOOL CHEESE & BUTTER FACTORY CO. LTD (AUS) 432 WESTLAND MILK PRODUCTS CO. LTD 3.4. EVOLUTION OF THE SECTOR 4. ANNEX 4.1. PRODUCTION

433 435 437 438

LIST OF TABLES Table 1: Distribution of whey proteins of cow’s milk (%, wet matter) Table 2 : Distribution of whey proteins of cow’s milk Table 3 : Availability of Whey and their components 2000-2010 Table 4: Whey powder production 2002-2010 Table 5 : World dairy production in 2010 Table 6 : Comparative production of WPC in tons per region 19972011 Table 7 : World dairy ingredient demand for application of the health food sector in 2007 Table 8 : European dairy ingredient production – 2010 (in tons) Table 9: World dairy ingredient market 2004 - 2010 Table 10: Present market of WPC Table 11 : WPC 35% market – 2004-2010 Table 12 : WPC 34-35 % prices 2004-2010 Table 13 : WPC 80-85 % market – 2004- 2010 Table 14 : WPI world market – 2004- 2010 (tons) Table 15 : Whey Protein Concentrate: domestic sales by end-use application 1998-2010 (volumes in million pounds) Table 16 : Whey Protein Concentrate: domestic sales by end-use application 1998-2010 (in %) Table 17 : High Gel WPC average price in €/kg – 2004 - 2007 Table 18 : Heat Stable WPI average price in €/kg - 2011 Table 19 : Main suppliers of WPC rich in alpha-lactalbumin Table 20 : World Hydrolysate Market – 2010 Accessible market Table 21: Price range for Hydrolysates Table 22 : Essential amino-acid content of selected proteins (mg/g protein)

20 22 23 23 24 25 26 27 28 30 32 33 33 34 34 35 35 32 36 36 37 48

Table 23 : Whey proteins and their health benefits activity 53 Table 24. Applications of whey products 56 Table 25. Functional Benefits of Whey Products 57 Table 26. Recommended use levels of whey proteins in confectionery applications 58 Table 27. Whey Ingredients Composition and Advantages in Bakey Applications 59 Table 28. Enhancement of Functionality with Whey Protein Concentrates in Low-fat Products 59 Table 29. Use of Whey Protein Concentrate 80% or Whey Protein Isolate in Extended Ham 60 Table 30. Whey Ingredients Composition and Advantages in Bar Applications 60 Table 31. Functionality and Benefits of Whey Products in Frozen Dairy Desserts 61 Table 32. Examples of dairy products using WPC formulation 64 Table 33: U.S. Functional Food and Nutraceutical estimates for 19972010 67 Table 34: Probiotic Capsules product market - 2010 - In Mio US$ (wholesale price) 67 Table 35. The US exports of yogurt, in volume (in MT) and value (in Thousands of Dollars), 2009-2011 69 Table 36. The US imports of yogurt dry, in volume (in MT) and value (in Thousands of Dollars), 2006-2010 69 Table 37 : European Dairy Markets – 2008 69 Table 38 : Exports of yoghurt and butter milk in Europe (US Dollar thousand), 2006-2010 70 Table 39. Imports of yoghurt and butter milk in Europe (US Dollar thousand), 2006-2010 70 Table 40. Dairy productions in EU, 2000-2010 71 Table 41 : Imports of yoghurt and butter milk in Asia (US Dollar thousand), 2006-2010 71 Table 42. Exports of yoghurt and butter milk in Asia (US Dollar thousand), 2006-2010 71 Table 43: WPC-WPI Ingredients used in Dairy Products 72 Table 44 : Examples of dairy products using WPC formulation 72 Table 45: Potential WPC – WPI Market in dairy products - tons 72

WHEY PROTEIN INGREDIENT MARKET TABLE OF CONTENTS Table 46 : Properties of proteins in ice-creams 85 Table 47 : Example of fruit smoothes formulation 85 Table 48. Total US production ice cream in categories 2010 91 Table 49. Total US production of ice cream and related frozen desserts in 2011 91 Table 50. Top Ten Ice Cream Brands (Supermarkets Only) 91 Table 51. US per capita ice cream consumption 92 Table 52 : Total New Zealand ice-creams import and export values IN 1000 USD ($) 2008-2010 92 Table 53 : Potential WPC-WPI market in Ice-creams (in tons) 94 Table 54 : Main users of whey proteins in ice-creams - 2010 94 Table 55 : Representative Infant and Follow-on Formulations containing whey protein 107 Table 56 : Main source of protein: trends by type of formula and by geographical area 108 Table 57 : Infant formula market size – 2000-2010 109 Table 58 : World Ingredient volumes in tons – 2010 110 Table 59 : Human and cow milk Whey protein 111 Table 60 : Representative infant formula and Follow-on Formulations containing whey protein 112 Table 61 : Example of Infant Formula WPC-based formulation 112 Table 62 : Main usage of protein by type of formula and by country 112 Table 63 : Main usage of protein by type of formula and by country 113 Table 64 : Potential WPC – WPI markets in Infant formulas (in tons) 113 Table 65: World Infant formula consumption of Hydrolysates in tons – 2010 Accessible market 113 Table 66 : Main users of whey proteins in Infant Formula – 2010 114 Table 67 : Main users of beta-lactoglobulin in Infant Formula – 2010 114 Table 68 : Examples of beverage formulation 115 Table 69 : World functional drink market prospective 116 Table 70:Tracking beverage growth by trade class -2010 116 Table 71: Sales for U.S. Functional Foods and Beverages, 2010-2015 ($ Millions) 116

Table 72: Functional Drink Market Japan 2006-2015 117 Table 73 : Potential WPC – WPI market in beverages in tons 118 Table 74: WPC-WPI Users in Beverages 118 Table 75 : Examples of Protein Bar formulas 124 Table 76 : The American dietetic and slimming products market in 2006-2012 125 Table 77. The European Dietetic & Slimming/Sports products market –2010 126 Table 78. Leading US and EU Companies in Sports Nutrition 1998 -2010 operating on the European Market 126 Table 79. Powdered protein Drinks 129 Table 80 : The European Sports Products market - 2010 129 Table 81. Comparative Sports industry revenues in European countries – 2010 130 Table 82 : WPC-WPI in sports nutrition – USA and EU- 2010 (in tons) 134 Table 83 : Potential WPC-WPI market in sports food (in tons) 134 Table 84 : WPC-WPI users in sports food in the US 134 Table 85 : Asian dietary supplement market (in $ million) - 2010 136 Table 86 : Potential WPC-WPI market in nutritional products in tons 136 Table 87 : Main users of whey proteins in nutritional products in 2010 136 Table 88 : Examples of confectionery formulations 142 Table 89 : Chocolate confectionery 143 Table 90 : Sugar confectionery 143 Table 91: Confectionery sales by region (in billions of dollars) 20052010 144 Table 92: Global confectionery sales by sector (in billions of dollars) 2005-2010 144 Table 93 : World’s key confectionery companies, by turn-over in 2010 (update in process) 145 Table 94: US key confectionery companies, by turnover – 2010 (update in process) 147 Table 95 : Brazil chocolate confectionery market size – 1998-2010 147 Table 96: Confectionery sales by region (in billions of dollars)2005-2010 147 Table 97 : Asian confectionery market in 2010 148 Table 98: Top Asian Confectionery Companies 148 Table 99: Confectionery manufacturers market shares in Shanghai 149 Table 100 : Market for chocolate confectionery 149

Table 101 : Market for sugar confectionery 149 Table 102 : Market shares of functional confectionery 150 Table 103 : Potential WPC-WPI market in confectionery and chocolate (in tons) - 2010 150 Table 104 : Main users of whey proteins in confectionery in 2010 150 Table 105 : Functional food market 2000-2010 160 Table 106 : Bakery and cereals market value in US $ 2010 161 Table 107 : Bakery European market value in US $ - 2011 161 Table 108 : Trends in the European Bakery Market, 1998-2007 ('000s)161 Table 109 : Snack European market value in US $ - 2002-2007 162 Table 110 : Potential WPC-WPI market in Bakery in tons- 2010 163 Table 111 : Examples of bakery products formulation 163 Table 112 : Functionalities of dairy ingredients in bakery products 164 Table 113 : Use of Proteins in meat products 165 Table 114 : Examples of meats / charcuterie formulation 166 Table 115 : Potential WPC-WPI market in Meat and Pork Meat (in tons) - 2010 167 Table 116 : Main users of whey proteins in the Meat industry in 2010 167 Table 117 : Examples of soup of mushroom formulation 176 Table 118 : Functional properties of dairy ingredients in ready-to-eat meals 176 Table 119 : Potential WPC-WPI market in ready--to-eat meals (in tons) – 2010 178 Table 120 : Main users of whey proteins in sauces and prepared foods in 2010 178 Table 121 : Clinical Nutrition World Market 2011 179 Table 122 : Clinical Nutrition Market 2001-2010 179 Table 123 : World Market CAGR 2006-2011 (volume) 180 Table 124: Clinical Nutrition Market by region ($m), 2008-2013 180 Table 125 : US and EU Clinical Nutrition Market Value growth CAGR 2008 – 2013 181 Table 126 : Market growth potential for clinical nutrition products 181 Table 127 : World Clinical Nutrition market – Companies production share – 2010 182 Table 128 : Potential WPC-WPI market in clinical nutrition (in tons) – 2010 186 Table 129 : WPC-WPI users in clinical nutrition 186 Table 130 : Whey Protein Concentrate: domestic sales by end-use application 1998-2010 (volumes in million pounds) 189

WHEY PROTEIN INGREDIENT MARKET TABLE OF CONTENTS

Table 131 : Whey Protein Concentrate: domestic sales by end-use application 1998-2010 (in %) 189 Table 132 : U.S. sales of WPC-WPI per type of ingredient 189 Table 133 : 25-50% WPC end-use by product category 2007-2010 (in million pounds and %) 191 Table 134 : 50-90% WPC end-use by product category 2007-2010 (in million pounds and %) 192 Table 135 : WPC 35% Market size in the USA – 2004-2010 194 Table 136 : WPC 80-85% Market size in the USA – 2004 - 2010 194 Table 137 : WPI Market in USA – 2004 - 2010 195 Table 138 : Comparative prices for WPC and NFDM in USA – 2001 – 2011 196 Table 139 : US WPC Products Imports by volume 2005-2011 197 Table 140 : U.S. WPC imports in value (1000$), 2006-2011 198 Table 141 : U.S. WPI imports in value and volume, 2011 198 Table 142 : U.S. WPI imports in value (1000$), 2011 199 Table 143 : Canadian trade in WPC 2007-2010 200 Table 144 : Canadian trade in WPI 2007-2010 200 Table 145: Canadian Imports of Whey Products 2004-2008 201 Table 146: Canadian Imports by Region 2005-2008 201 Table 147 : South-American WPC imports from U.S.in value and volume, 2000-2010 202 Table 148 : South-American trade evolution for whey concentrates from EU in € -1999-2010 202 Table 149 : Mexican Imports of WPC 2010 204 Table 150 : Mexican Imports of WPI 2010 204 Table 151 : US exports of Whey products to Mexico 2008-2010 205 Table 152 : Argentina- External trade in Dairy products 2010 206 Table 153 – Argentina - External trade in Whey products 206 Table 154 : Argentina - External trade in WPI 206 Table 155: Brazil - Import of WPC-WPI and MPC 2008-2011 in Volume and Value 207 Table 156 : Brazilian trade evolution for whey concentrates from EU in € -2010 207

Table 157 : Brazilian trade evolution for whey concentrates from EU in kg. – 2010 207 Table 158 : Brazil - Imports of Whey Products, MPCs & WPIs by origin 2009-2011 208 Table 159 : Colombian Trade in dairy Products – 2010 209 Table 160 : Colombian trade evolution for dairy ingredients USD – 2010 209 Table 161 : Bolivian Trade in dairy Products – 2010 210 Table 162 : Bolivian trade evolution for whey concentrates from EU in €, 2010 210 Table 163 : Bolivian trade evolution for whey concentrates from EU in tons, 2010 210 Table 164 : Chile - trade in Dairy products, 2010 in Volume and Value210 Table 165 : Chile - External trade of Whey Products 2010 in Volume and Value 211 Table 166 : Chile- External trade of WPI 2010 in Volume and Value 211 Table 167 : Chilean trade evolution for whey concentrates from EU in €, 2010 211 Table 168 : Chilean trade evolution for whey concentrates from EU in tons, 2010 211 Table 169 : Venezuela - Trade in Selected Dairy products, 2010 212 Table 170 : EU exports of Whey products to Venezuela 2006-2010 212 Table 171 : Peru – trade in dairy products, 2010 212 Table 172 : Ecuador – trade in dairy products, 2010 213 Table 173 : Paraguay – trade in dairy products, 2010 213 Table 174 : Uruguay – trade in dairy products, 2009 213 Table 175 : Panama – trade in dairy products, 2010 214 Table 176 : Dominican Republic – trade in dairy products, 2010 214 Table 177 : Western Europe WPC-WPI sales per type of ingredient 215 Table 178: Market size for WPC 34, WPC 80/85 and WPI 90; 2007-£ 2010 216 Table 179 : European WPC 35% market – 2004-2010 216 Table 180: Price for WPC 34 216 Table 181 : European WPC 80-85% market – 2002-2010 217 Table 182: Price (€/ton) WPC 80/85 2007-2011 217 Table 183 : WPC 80-85% applications in Europe – 2010 (update in process) 218 Table 184 : European WPI market – 2004-2010 218 Table 185 : WPC 90% applications in Europe – 2008 (2010 in process) 219

Table 186: EU intra trade dispatches of WPC (by value) 2006-2010 221 Table 187: EU exports of WPC (mtons) 2006-2010 221 Table 188: EU intra trade dispatches of WPC – 2006-2010 222 Table 189: EU exports of WPC (value) 2006-2010 222 Table 190: EU exports of WPC by Member State of export 223 Table 191: EU exports of Whey and Related Products to Russia 20062010 224 Table 192: Russian Trade in Whey 2010 224 Table 193: EU Exports of Whey Products to Ukraine 2006-2010 226 Table 194: Whey Protein Import- Export from Ukraine 2010 226 Table 195: Trade of Whey Products and MPC/MPI to Czech Republic 2006-2010 228 Table 196: Czech Rep. - Trade in Whey 2010 229 Table 197: EU Exports of Whey Products and MPC/MPI to Poland 20062010 230 Table198: Whey Proteins Imports Exports Poland 2010 231 Table 199: Estonia - Trade in Whey Products and MPC/MPI 20062010 232 Table 200: Lithuania - Trade in Whey Products and MPC/MPI 20062010 233 Table 201: Hungary - Trade in Whey Products and MPC/MPI 20062010 234 Table 202: Slovakia - Trade in Whey Products and MPC/MPI 20062010 235 Table 203: Turkey Import Export of Whey Proteins - 2009 236 Table 204: Turkish trade evolution for whey concentrates from EU in €236 Table 205 : WPC market in Asia 2010 237 Table 206 : Asian trade evolution for whey concentrates from EU in € 237 Table 207 : EU exports to Asia of whey and related products 2002-2008 237 Table 208: U.S. Exports of Whey Protein Concentrate to Asian countries in volume in metric tons 2007-2011 238 Table 209: U.S. Exports of Whey Protein Concentrate in value in metric tons 2007-2011 238 Table 210: Whey products Import Quantity (tonnes) of Asian countries 238 2011 Table 211: Whey products Import Value (1000 $) of Asian countries 2011 239 Table 212 : Japan trade in Whey Proteins, 2010 240 Table 213 : Japan Imports of WPC, 2009 241

WHEY PROTEIN INGREDIENT MARKET TABLE OF CONTENTS

Table 214: WPC (including WPI) Supplier and Trader in Japan 241 Table 215 : Japan Imports of Whey and Modified Whey 2005-2010 Volume (,000 ton) 242 Table 216 : Japan Imports of Whey and Modified Whey 2005-2010 Value ($) 242 Table 217: Exports Quantity of Whey and Modified Whey HS040410 /KG/ (2004-2009) 243 Table 218:Exports Value of Whey and Modified Whey HS040410 /USD/ (2004-2009) 243 Table 219 : Japan trade evolution for whey concentrates from EU in € 199-2006 243 Table 220 : Specific dairy products managed by the Japanese ALIC quota system 244 Table 221 : Thailand - Imports of Whey Proteins, 2010 245 Table 222 : Thailand WPC imports from US 2003-2011 245 Table 223 : US Whey Exports to Thailand 2006-2011 245 Table 224: EU Exports of Whey Products to Thailand 2002-2008 246 Table 225 : China, Trade of Milk and Whey Proteins, 2010 246 Table 226: EU Exports of Whey Products to China 2002-2008 247 Table 227 : Chinese WPC imports from US 2003-2011 247 Table 228: US Whey Exports to China 2006-2011 247 Table 229 : China’s total direct imports of Dairy products – 2004 – 2009 248 Table 230 : China – Imports of milk powders and selected protein products 2009 249 Table 231 : Taiwan import of whey - 2007 251 Table 232 : Taiwan export of whey - 2007 251 Table 233 : Taiwan trade evolution for whey concentrates from EU in € 2006 251 Table 234 : Hong-Kong trade evolution for whey concentrates from EU in € 252 Table 235 : South Korean imports of WPC 2006-2010 252 Table 236: US Whey Exports to Korea 2005-2011 252 Table 237 : Whey suppliers 252 Table 238 : Korean trade evolution for whey concentrates from EU in € 253 Table 239 : Korea’s UR commitments for selected dairy products 253

Table 240: Whey Exports to India 2009-2010 254 Table 241 : India export stats ( 04041020) 2010-2011 254 Table 242: India 04041090 Exports by destination 2010-2011 255 Table 243: India 04041010 Exports by destination 2010-2011 255 Table 244: India 04041010 Imports by country 256 Table 245: India 04041020 Imports by country 256 Table 246: India 04041090 Imports by country 256 Table 247: India Total Exports 040410 - 2010 257 Table 248: India Total Imports 040410 - 2010 258 Table 249: US Whey Exports to India 2005-2011 259 Table 250 : India’s exports and imports of concentrated whey powder (in tons)- 2007 259 Table 251 : Philippines trade evolution for whey concentrates from EU in € 259 Table 252: Malaysia whey protein Imports and Export, 2010 260 Table 253: US Whey Exports to Malaysia 2006-2011 260 Table 254 : Malaysian trade evolution for whey concentrates from EU in 260 Table 255: U.S. Whey exports to Indonesia 2006-2011 261 Table 256 : Sri Lanka trade in Whey Proteins, 2010 261 Table 257. Australian whey protein Imports and Export, 2010 262 Table 258: Australian whey powder production and export, 2004-2010, in thousands tons 262 Table 259 :Africa Imports of selected protein products by country 2008 263 Table 260 : Algerian trade evolution for whey concentrates from EU in € 2006 -2010 263 Table 261 : Algeria Imports of selected protein products 2008 263 Table 262 : Morocco trade evolution for whey concentrates from EU in € 2006 - 2010 264 Table 263 : Morocco Imports of selected protein products 2008 264 Table 264 : Tunisian trade evolution for whey concentrates from EU in € 2006-2010 264 Table 265 : Egyptian trade evolution for whey concentrates from EU in € 2006-2010 265 Table 266 : Imports of selected protein products2008 265 Table 267 : Ghanaian trade evolution for whey concentrates from EU in € 2006-2010 265 Table 268 : Nigerian trade evolution for whey concentrates from EU in € 2006-2010 266

Table 269 : South-American trade evolution for whey concentrates from EU in € 2006 266 Table: 270: North Africa – Imports of milk powders and selected protein products 2008 267 Table 271: World Export to North Africa – milk powders and selected protein products 269 Table 272: Middle East - Imports of selected protein products 2010 270 Table 273: United Arab Emirates – Imports of selectedprotein products 2005-2008 270 Table: 274: Syria- Imports of selected protein products 2010 271 Table 275 : Syrian trade evolution for whey concentrates from EU in € 2006 271 Table 276 : Saudi Arabia - Imports of selected protein products 20042010 271 Table 277 : Quatar - Imports of selected protein products 2008 272 Table 278 : Oman - Imports of selected protein products 2004-2010 272 Table 279 : Lebanon - Imports of selected protein products 2004-2010 272 Table 280 : Kuwait - Imports of selected protein products 2007 273 Table 281 : Jordan - Imports of selected protein products 2004-2010 273 Table 282 : Israel - Imports of selected protein products 2004-2010 273 Table 283 : World Exports to Iran –Milk powders and selscted protein products 2008 274 Table 284 : Bahrain - Imports of selected protein products 2004-2010 274 Table 285 : Yemen Imports of selected protein products 2009 275 Table 286 : World Exports to Iraq –Milk powders and selscted protein products 2008 275 Table 287 : World Exports to Libya –Milk powders and selscted protein products 276 Table 288 : Middle East – Imports of milk powders and selected protein products 2007 277 Table 289 : World Export to the Middle East – Milk powders and selected protein products 2008 278 Table 290 : Comparative production of WPC in tons per country 19972010 296 Table 291: EU exports of WPC by Member State of export 20062010 297 Table 292: World exports of WPI by country of destination, 2010 298 Table 293: World exports of WPI by country of export, 2010 299


Table 294 : U.S. Total Production of WPC (‘000 lb) 2007-2011 300 Table 295 : U.S. WPC 25-49,9% production 2009-2011 301 Table 296 : U.S. WPC 50-89,9% production 2009-2011 301 Table 297 : Whey and Modified Whey Products production- US 2010 (1,000pounds) USDA, NASS, 302 Table 298 : U.S. WPI production 2003-2010 302 Table 299 : U.S. WPC exports (1,000 metric tons) 2003 - 2010 307 Table 300 : United States WPC exports value by country in 2004 – 2010 307 Table 301 : United States WPC exports volume by country in 2003 – 2010 in ‘000 tonnes 307 Table 302 : U.S. Protein Isolates exports in volume and value(1000$), 2004-2010 308 Table 303 : Canadian WPC production - 2007 309 Table 304: Canada - Whey products exports in volume 2006-2008 309 Table 305: Canada - Whey products exports in volume 2006-2008 309 Table 306: Canadian Exports of Whey products 2005-2008 310 Table 307: South America – Trade in Whey Products 2005-2007 312 Table 308 : Argentina - Exports by destination 2010 in Volume 313 Table 309 : Argentina - Exports by destination 2010 in Value 314 Table 310 : Brazil - Export of WPC-WPI and MPC 2008-2011 in Volume and Value 316 Table 311 : WPC production in the European Union in 2010 316 Table 312 : European WPC-WPI production in 2010 316 Table 313 : European dairy ingredient production 2010 316 Table 314: EU exports WPC 2004-2009 in 1000 tons 317 Table 315 : EU Import-exports of Whey & WPC 34 in 2007 In tons and 1,000 € 318 Table 316 : EU Import-exports of WPC 50-70 in 2007 In tons and 1,000 € 320 Table 317 : Ukrainian whey trade with UE 2000-2010 321 Table 318: WPI Import Export Russia 2005-2009 321 Table 319: WPI Import Export Turkey, Ukraine 2005-2009 321

Table 320. Whey products Export Quantity (tonnes) of Asian countries 2011 322 Table 321. Whey products Export Value (1000 $) of Asian countries 2011 323 Table 322 : Australia’s total production and exports of whey 2000-2008 324 Table 323 : Exports of whey products from New Zealand (NZ $000) 324 Table 324 : Exports of selected protein products 325 Table 325 : World WPC 35 % production 2004-2010 (in tons) 327 Table 326 : World WPC 80-85% production – 2004-2010 (in tons) 328 Table 327 : WPC 80-85% Suppliers Production shares 328 Table 328 : World 90%/ WPI production – 2002-2010 (in to ) 328 Table 329 : WPI 90% Suppliers Production share 329 Table 330 : Hydrolysed Whey Protein Isolate suppliers 329 Table 331 : High Gel WPC suppliers market shares 329 Table 332 : New comers in the High Gel supply 329 Table 333 : Heat Stable WPI suppliers 329 Table 334 : World Production and share of production of WPC-WPI, High Gel proteins and enriched WPC (In tons) – 2010 331 Table 335 : Position of the main actors on the market – WPC – WPI Ingredients 334 Table 336 : Whey Protein Concentrates plants in California 335 Table 337 : World cheese production 2005-2010 438 Table 338 : Production of WPC in the USA 2007-2009 (in 1000 tonnes) 439 Table 339 : U.S. Whey trade with E.U.27 2002-2008 439 Table 340 : U.S. Whey trade with E.U.27 2005-2008 439 Table 341: World exports of Whey & Whey Products by country of destination, 2010 442 Table 342: World exports of Whey & Whey products by exporting country, 2010 442 Table 343: EU 27 trade statistics, 2010 443 Table 344 : EU exports of whey powder 1999-2009 448 Table 345 : EU exports of whey powder 1999-2008 449 Table 346 : EU Import-exports of whey powder 2008 in tons 452

LIST OF TABLES Figure 1: World Whey Protein Production in 2010 24 Figure 2 : World whey protein production by protein content in 2010 24 Figure 3 : WPC-WPI use - breakdown by destination 2010 (tons) US market 25 Figure 4: World Whey Protein Market by protein content 2010 29 Figure 5 : The world WPC ingredient market 2010 (tons) 29 Figure 6: Utilisation of Whey Protein Concentrate in Human Foods (Total 114.1 million lbs) 2010 35 Figure 7: Hydrolysate Market Breakdown by application – 2010 37 Figure 8. Milk production in Europe and New Zealand, 2011 66 Figure 9 : Consumption of ice-cream per capita (litres per capita) 92 Figure 10 : The world infant formula market in 2008 109 Figure 11 : Infant formula market in Asia in 2008 (volume) 110 Figure 12 : World ingredient Breakdown in volume in 2010 110 Figure 13. The total market size of protein ingredients for sports nutrition, 2004-2014, USD MM 125 Figure 14. US ‘Sports Nutrition and Weight Loss’ Growth (1998-2013) 126 Figure 15 : Performance food and drinks market by country, 2010 128 Figure 16. European market size Health & Fitness industry in mio € market by country, 2010 131 Figure 17 : The world WPC-WPI market by region 188 Figure 18: Utilisation of Whey Protein Concentrate in Human Foods (Total 114.1 million lbs) 2010 190 Figure 19: Utilisation of Whey Protein Concentrate in Human Foods (Total 175.7 million lbs) 2009 190 Figure 20: Utilisation of Whey Protein Concentrate in Human Foods (Total 234.4 million lbs) 2008 190 Figure 21: Utilisation of Whey Protein Concentrate (25 % - 49.9%) in Human Foods 191 Figure 22: Utilisation of Whey Protein Concentrate (25 % - 49.9%) in Human Foods 192 Figure 23: Utilisation of Whey Protein Concentrate (50 % - 89.9%) in Human Foods 193 Figure 24: Utilisation of Whey Protein Concentrate (50 % - 89.9%) in Human Foods 193 Figure 25 : Countries of origin of U.S. Whey imports, 2010 197 Figure 26 : Evolution of U.S. WPC (04041005) Imports values between 2006-2011 by country 198

WHEY PROTEIN INGREDIENT MARKET Figure 27: Imports of whey products 2008 201 Figure 28 : South-American Import trade evolution for Whey concentrates from EU in € 203 Figure 29 : Western Europe WPC-WPI market by ingredient type 215 Figure 30 : Market size for WPC 34, WPC 80/85 and WPI 90; 20072010 215 Figure 31 : Breakdown of the protein market in Europe 216 Figure 32 : WPC 80-85% breakdown per application 217 Figure 33 : WPI market application – Europe in 2008 219 Figure 34 : Chinese WPC imports from US 2006-2010 247 Figure 35: WPC – WPI production in the U.S. 2003-2010 300 Figure 36: U.S Dry Whey Protein concentrate production (25 – 89.9 % protein) 2007-2011 303 Figure 37: U.S. Central & West Dry WPC monthly average mostly prices 2007-2011 303 Figure 38: USA - Comparative historical overview between Production and Prices of Whey Protein Concentrate (WPC) 2006-2011 304 Figure 39: USA- Comparative overview between Production, Stock and Prices of Dry Whey 2007-2011 304 Figure 40: USA - Comparative historical overview between Dry Whey, Lactose and WPC Production 2005-2011 305 Figure 41: USA – Historical Overview of WPC production 2006-2010 305 Figure 42: USA – Cumulative monthly data of WPC production 20072011 306 Figure 43 : Australian Whey products production and exports (in ‘000 tons) 324 Figure 44 : E.U. Whey Protein Concentrate production market shares 327 Figure 45 : World’s main whey producers in 2006 in tons 454 Figure 46 : World’s main whey exporters in 2006 in tons 454

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