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The global bovine lactoferrin market size was valued at USD 546.6 million in 2019 and is projected to reach USD 949.0 million by 2027, exhibiting a CAGR of 5.0% during the forecast period.
Lactoferrin is an iron-binding protein found in human and bovine milk. It is an ingredient that helps in the treatment of stomach and intestinal ulcers, diarrhea, and hepatitis C. It is also used as an antioxidant against several bacterial and viral infections. The concentration of lactoferrin is higher in human milk like colostrum, the first milk produced after baby is born as compared to the bovine milk. This ingredient has several applications in pharmaceutical, food, and other industries owing to its clinical benefits.
COVID-19 Pandemic to Have a Positive Impact on Market Growth
The COVID-19 outbreak has positively impacted the market. Certain market segments have experienced a growth in product demand due to its higher efficiency in improving immunity. According to a research article published by iMedPub, lactoferrin has anti-inflammatory and immunomodulatory properties against COVID-19 and its use as nutritional supplements has been proposed by various health professionals. This is anticipated to boost its consumption in countries like China, Japan, and U.S during the pandemic. Also, the increasing demand, is exerting a pressure on the suppliers and manufacturers. Thus, some of the market players have responded to the rising demand through capacity expansions. For instance, Bega Cheese Ltd. announced the completion of the expansion of its koroit Australia plant, at a cost of USD 34 million in 2019. The expansion has doubled the lactoferrin production capacity of Bega Cheese.
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Introduction of Technologically Advanced Manufacturing Process to Drive the Market Growth
At present, researchers and manufacturers are focused towards enhancing the manufacturing process of the protein due to rising demand for bovine lactoferrin by integrating advanced techniques in the market. For instance, in May 2018, Bega Bionutrients launched Inferrin, a novel form of microencapsulated lactoferrin. This new technique of microencapsulation, offers a more stable product and will improve its bioavailability. Along with this, some companies are emphasizing on introducing a cost-effective way of production. For instance, according to its press release in April 2020, Conagen, Inc., with the help of microbial fermentation technology developed a cost effective way to manufacture the protein. The company stated that this technology will reduce its production cost immensely. Thus, introduction of such advanced techniques by manufacturers is expected to boost the adoption of lactoferrin during the 2020-2027 period.
Increasing Consumption of Infant Formula to Fuel the Demand
An increase in number of working women has been observed globally, which has lowered the overall breastfeeding rates. For instance, according to data published by the World health Organization (WHO), it is estimated that only 38.0% of all infants aged between 0 to 6 months are exclusively breastfed. Emerging countries like China, Japan, and India have recorded higher growth in the ratio of female to male labor force, resulting in working women shifting towards infant formula feeding to children, rather than breastfeeding. This has led to higher demand for infant formula in these countries.
Additionally, manufacturers of infant formula are emphasizing on introducing new specialized products in the market in order to cater the growing demand for nutrient rich baby food. This will further augment its demand in the infant formula segment during the forecast period.
Regulatory Changes Propelling the Growth of the Market
During 2016-2017, some countries in North America, Europe, and Latin America allowed infant formula players to manufacture and market products with added lactoferrin. This has opened new regional markets for various manufacturers. For instance, in April 2017, Synlait Ltd. received the FDA approval to export lactoferrin to the U.S, further to be used in infant and toddler formula. Thus, these changes in regulations regarding use of the protein as an added ingredient in infant formula are instrumental in rising demand for these products in the global market. These will present new market opportunities for manufacturers.
High Cost of Lactoferrin to Limit the Adoption in Different Products
Despite growing demand for advanced nutritional and infant formula products globally, certain factors are restricting the growth of the market of Bovine Lactoferrin. Among them is the high cost of products containing lactoferrin as an ingredient. Different segments such as food, nutritional supplements, infant formula, etc., require different purity levels of the protein ranging from 90.0% to 98.0% purity. The higher the purity required, more costly it becomes to manufacture, subsequently resulting in its higher prices.
Also, as the purity increases the prices are estimated to increase 2 to 4 times. For ex., the price per kg of lactoferrin for dietary supplements (requiring 96.0% purity), is comparatively high than other food applications requiring 90.0% purity. Thus, fluctuation in prices and comparatively higher prices of final products are one of the major factors limiting its adoption rate globally.
Also, increasing initiatives by various government and non-profit organizations to promote breastfeeding is anticipated to restrain the demand and consumption of infant formula containing lactoferrin during the forecast period.
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Freeze Dried Segment to Grow at Higher CAGR during 2020-2027
On the basis of product, the market includes spray dried and freeze dried. The freeze dried segment held a dominant share of the market in 2019. The dominance is due to technical advantages of freeze drying technique over spray dried such as high quality and purity of the product coupled with comparatively higher iron-binding capacity.
However, the spray dried segment is expected to grow at a significant CAGR during the forecast period due to its growing popularity among pharmaceutical industries and comparatively lower production cost.
Infant Formula Segment Dominated the Market in 2019
Based on application, the market for Bovine Lactoferrin is segmented into infant formula, pharmaceuticals, dietary supplements, food, and others. The infant formula segment accounted for highest Bovine Lactoferrin market share in 2019. The dietary supplements and food segments are expected to register a significant CAGR during the forecast period owing to rising awareness among general people regarding health and immunity.
Similarly, pharmaceutical and others segment are anticipated to account for a comparatively lower share of the global market during the forecast period.
North America Bovine Lactoferrin Market Size, 2016-2027 (USD Million)
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The market size in North America stood at USD 77.1 million in 2019. The region is anticipated to grow at a significant CAGR due to recent approval by the U.S FDA for use of lactoferrin in infant formula that is resulting in its higher adoption rate as compared to previous years.
On other hand, Europe accounted for a significant share of the global market for Bovine Lactoferrin in 2019. Rising demand for infant formula, dietary supplements, and pharmaceutical products with added lactoferrin in some developed countries of Europe are propelling the growth of the market in the region.
Asia Pacific held a dominant share of the market in 2019 owing to higher demand of lactoferrin containing products in countries such as China and Australia coupled with rapidly developing food and pharmaceutical sector in the region. Latin America & the Middle East & Africa are expected to grow at a moderate CAGR during the forecast period.
MILEI GmbH, Synlait Ltd., and Bega Bionutrients to Lead the Global Market.
Major players operating in bovine lactoferrin market are MILEI GmbH, Synlait Ltd., and Bega Bionutrients. The dominance of these players is primarily attributed to their strong distribution network coupled with constant focus on capacity expansion for increasing production. For instance, currently, MILEI GmbH is planning to complete its new production line at Fukui plant by the end of 2020 in order to cater the growing demand of lactoferrin in the market.
However, few other players are also adopting strategies like capacity expansion with an aim to gain a higher market share during the forecast period. This is anticipated to result in a slightly fragmented market by the end of 2027. For instance, in 2019, Fonterra Co-operative Group announced its plan to expand its lactoferrin manufacturing capacity by 10.0% with an aim to fulfill the growing demand from emerging countries including China, and India.
Other key players in the market are FrieslandCampina DOMO, Armor Protéines, Saputo Dairy Australia Pty Ltd, Hilmar Cheese Company, Inc., Murray Goulburn Co-operative Co. Limited, Glanbia Plc., and Ingredia.
The bovine lactoferrin market research report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and leading applications of the product. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the advanced market over the recent years.
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Value (USD million)
Fortune Business Insights says that the global bovine lactoferrin market size was USD 546.6 million in 2019 and is projected to reach USD 949.0 million by 2027.
In 2019, the North America market value stood at USD 77.1 million.
Growing at a CAGR of 5.0%, the market will exhibit steady growth in the forecast period (2020-2027).
The infant formula segment is expected to be the leading segment in this market during the forecast period.
Increasing consumption of infant formula with added lactoferrin, and regional regulatory changes, are major factors driving the growth of the market.
MILEI GmbH, Synlait Ltd., and Bega Bionutrients are major players of the global market.
Asia Pacific dominated the market share in 2019.
Introduction of cost effective advanced technologies by manufacturers for production are expected to boost its adoption in the global market.
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