Whey protein industry is rising in South America. Argentina, Mexico and Brazil are the key growing markets for whey protein in the region.
Brazil being world’s fifth largest country in terms of population and geography is one of the upcoming markets for whey protein products from the South America. We estimate that Brazil will be a US$ 954 million market for whey protein in 2018 with majority of the business coming from whey protein concentrates.
Whey protein in value terms increased at a CAGR of 29.3% during 2013-2017. Over the forecast period of 2018 to 2022, the industry is expected to record a CAGR of 20.0%, increasing from US$ 0.9 billion in 2018 to reach US$ 1.9 billion by 2022.
Primarily, demand is being driven by whey powders of various grades used for consumption by sports and fitness enthusiasts. However, demand for snacking products such as bars, smoothies and yogurts has been gaining momentum in Brazil. Also, demand is expected to grow in other areas such as protein supplement for aging people and patients. This segment of whey protein market has been posting steady growth and it is expected to contribute to revenue growth in coming years.
On competitive landscape companies such as Supley, Integralmédica , Arla Foods, Nutrifont (part of Lactalis Ingredients; a French leader in manufacturing of whey protein) lead the markets. The increasing movement by these companies in whey protein market suggests that they have an ambitious growth plan for the business in Brazil.
Nutrifont has its own plant of whey protein situated in Brazil. The plant was founded in 2015 with an investment of over US$ 34 million and produces whey protein concentrate (WPC 80) and lactose. Nutrifont aims to take its whey concentrate production to 1 million liters of whey per day.
Arla Foods have exited from Brazil dairy markets post acquisition of Vigor S.A. by Groupo Lala a Mexican dairy company. Now Arla’s Brazil sales office imports its whey protein products from its factory from Argentina.
Supley Laboratories is a Brazilian company that owns MAX TITANIUM brand of whey protein. With the recent acquisition of Probiótica, a pioneer company in the food supplements segment in Brazil (owned by Canadian multinational Valeant Pharmaceuticals International Inc.) now Supley has become the largest sports nutrition company in the country. Supley estimates to grab twenty five percent market share of Brazilian nutrition market with estimated revenue of US$ 66 million. Supley will be selling its whey protein through around 6,000 points of specialized stores and Body Shops.
Integralmédica founded in 1983 is one of the leading companies in the Brazilian market for nutritional supplements with a range of whey protein supplements and products. Situated in Sao Paulo; Integralmédica has 300 employees and facility admeasuring 322,917 sq. meters.
In May 2018, Leprino Foods buys majority stake of Brazilian dairy manufacturer Lactojara that manufacturers mozzarella cheese and dairy ingredients can be another company to watch as whey protein is a byproduct in cheese manufacturing.
There are developments observed on regulatory fronts where recently ANVISA, the Brazilian Health Regulatory Agency has released new regulations regarding sports nutrition. The new regulations will help in defining whey proteins and other 382 nutrients and substances as food supplements.
Nutrition business in Brazil continues to grow and the trends suggest that consumers are willing to pay prices for whey protein powders and snacks. Thanks to the increasing awareness of healthier lifestyle in Brazilians that is improving a market for whey protein powders and snacks. Making whey products sufficiently available at economical costs will help whey protein business in Brazil to grow significantly. Consensus with regulatory authorities and developing standardization in labeling and ingredient contents will work in favor of growth of the whey protein business in Brazil.
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