Permeate has arrived as a permanent fixture in the ever-innovating world of dairy ingredients. A recent analysis of new product tracking data from Innova Market Insights confirmed dairy permeate’s upward growth streak for global new product introductions continued in 2021, smashing prior year records. What’s driving this demand? Manufacturers are seizing the benefits of adding permeate across various formulations and application categories, including the multifunctional ingredient’s browning, flavor enhancement, and cost saving properties. With a wave of health-conscious consumers wanting more out of their food, permeate delivers on great taste, while also helping reduce the use of sodium and added sugars in formulations.

As further illustrated in a new infographic snapshot, new data from Innova Market Insights, a consultancy that tracks new product launches all over the world, reveals how permeate use is increasing across the board.

• In 2021, a record-shattering 752 new products were introduced globally, reflecting a 35% increase in tracked new products over the prior year.
• There has been a compound annual growth rate (CAGR) of 17.6% between 2016–2021.
• The number of tracked new products containing permeate doubled from 2017-2021.

The proof is in the numbers! Permeate is permeating the ingredients market at an unprecedented rate, both in markets and formulations.

The top five markets with new product launches accounted for 43% of all tracked 2021 launch activity. The countries and their percentage share of global launches, in order, are as follows:

• United Kingdom - 12.0% with 89 products
• United States - 9.2% with 68 products
• Brazil - 8.5% with 63 products
• France - 7.4% with 56 products
• South Africa - 5.9% with 44 products

Other markets included in the top ten are Belgium, Ireland, Netherlands, Spain, and Bulgaria. Permeate is being used all over the globe with applications that only exemplify its multidimensional use. At the same time, with Western Europe and North America combined accounting for more than half (52%) of launches globally, there is significant untapped potential to increase permeate usage in other parts of the world.

Strong growth was also recorded across usage application categories. The top five categories accounted for 69% of all tracked new products from the food and beverage sectors. They are, in order, with total percentage share of the tracked launches and respective CAGR from 2016-2021.

• Confectionery – 27.4% with 41% CAGR
• Bakery – 17.8% with 15.9% CAGR
• Snacks – 9.3% with 44.8% CAGR
• Dairy – 8% with 6.9% CAGR
• Hot drinks – 6.6% with 8.7% CAGR

The United States is the world’s leading supplier of permeate, accounting for about 60% of global production. U.S. production is ample and expanding to support customers’ rising permeate supply needs.

To learn more about how permeate is increasingly finding its way into consumers’ shopping carts and kitchens, download the detailed infographic, and discover new opportunities to incorporate this attractive ingredient into your formulations.