CASEIN AND CASEINATE MARKET ANALYSIS

One of the major challenges faced by the casein and caseinate market is stringent regulations surrounding milk procurement. Dairy being an agricultural product is subject to strict quality and safety standards by regulatory bodies. As per EU directives, raw milk meant for casein production needs to comply with microbiological, chemical, and organoleptic standards. It should not contain inhibitory substances and antibiotics beyond the maximum residue limits specified. Obtaining milk from farms involve ensuring adherence to guidelines at different stages of the process from milking to transportation. Non-compliance can lead to severe penalties and even shutdown of processing facilities temporarily. This raises procurement costs for dairy product manufacturers. Additionally, farmers need to invest in infrastructure and training to meet the regulatory standards which is a financial burden.

Market Opportunity - Increased usage of casein and caseinate in various substitute dairy products

One of the key opportunities for growth in this market is the increased usage of these proteins in various substitute dairy products. With the rising global demand for vegan and dairy-free products from health-conscious consumers, casein finds application as a milk protein replacer. For instance, as per data published by the Good Food Institute in 2023, the U.S. retail sales of plant-based milks increased over 30% in the past 2 year. Such expansion in the non-dairy sector means rising demand for casein and caseinate to produce more of these alternative products. It provides the texture and functionality to create alternatives to traditional dairy such as cheese, yogurt, cream, etc. without using animal milk. The market has seen the popularity of various plant-based dairy substitutes incorporating caseinates. This has boosted the consumption of casein extracts significantly.