Dairy Ingredients Market is Growing at CAGR of 7.11%, Increasing consumer demand for protein-enriched foods and beverages
Digvijay Chakravarty
Managing Director & Co-Founder | Bachelor of Engineering (B.E.)
Market Overview
Global Dairy Ingredients market is valued at USD 70.79 Million in 2023 and is projected to reach a value of USD 131.35 Million by 2032 at a CAGR of 7.11% over the forecast period
The dairy ingredients market is one of the fastest-moving sectors in the food industry at this time, containing within it an extensive portfolio of milk-based and milk-derived products. These ingredients are an important constituents of a variety of food and beverage formulations because of their functional and nutritional value. Still, with the escalating consumer demand for health and wellness products and increased awareness about the nutritional value of milk, ever-evolving improvements in milk processing technologies further boost growth.
Principal ingredients in the dairy ingredients market include milk powders, whey proteins, lactose, and dairy fats. Milk powders, among which are whole, skim, and specialty powders, have a number of applications in baked goods, confectioneries, and dairy beverages due to their extended shelf life and convenience. Whey proteins, being a liquid by-product of cheese production, are of high biological value and find quite widespread usage in sports nutrition and dietary supplements. Lactose is a natural sugar Milk contains and acts as a functional ingredient in a wide array of foodstuffs, adding sweetness and texture. Dairy fats butterfat and anhydrous milk fat are used to add flavour, texture, and mouth feel to a wide variety of foods.
Market Dynamics
Market Drivers
Increasing consumer demand for protein-enriched foods and beverages
·?????? Consumer demand for protein-enriched foods and beverages increased the market activity in dairy ingredients. Due to growing health and wellness trends, consumers have been paying more attention to diets that would work well with their body system for muscle growth, recovery, and general health. Proteins are one of the most essential macronutrients required by the body for a variety of functions, like repairing muscles, supporting the immune system, and other metabolic activities. This enhanced awareness has led to high demand for protein-rich products in forms such as shakes, bars, and fortified foods. With respect to this, in particular, whey protein is highly in demand for its complete amino acid profile and high biological value, commanding a premium for use in sports nutrition and dietary supplements. This, in turn, is making manufacturers increase the introduction of dairy proteins into a wider portfolio of products to meet this demand, thereby spurring innovation and widening the reach of applications for dairy ingredients into the food and beverage industry.
Rising popularity of convenience foods and ready-to-eat products
·?????? One of the major factors driving the market for dairy ingredients is increasing demand for convenience foods and ready-to-eat foodstuffs. The fast pace at which people live nowadays means that consumers are primarily looking for food options that could offer them convenience with respect to time and effort while not really being at the cost of quality or taste. Convenience foods do so with quick and accessible meals and snack bars, instant meal preparations, and ready-to-drink beverages. Dairy ingredients become very relevant in these offerings because of the ease of use, extended shelf life, and flavour and texture enhancement they can offer. Their addition into convenience foods enables food manufacturers to come up with products that are nutritious but at the same time respond to consumer needs for speed and convenience. The reliance on dairy ingredients will only continue to grow for their functionality and versatile applications as the trend continues towards on-the-go and ready-to-consumer products, therefore further fuelling market growth.
Market Opportunities
Expansion of lactose-free and hypoallergenic dairy ingredient options
·?????? Among the dairy ingredients market, providing expanded lactose-free and hypoallergenic dairy ingredient options opens up a significant opportunity to meet the needs of consumers with dietary restrictions and allergies. A higher demand is noted for dairy products in respect to these particular health issues as the awareness of people about lactose intolerance and milk allergy spreads. The sweet, lactose-inclusive dairy and hypoallergenic dairy ingredients are formulated to deliver the same nutrient values as found in regular dairy. The latter group just lacks lactose, thus friendly to a person with problems digesting regular dairy. Hypoallergenic dairy ingredients minimize the allergens and, therefore, are less risky in terms of allergic reactions a safe milk alternative for allergic patients. Easily digestible dairy ingredients allow food product differentiation for serving a wide range of consumers, including food-sensitive ones, hence propelling the trigging of an innovation in product offerings. The ever-growing demand for inclusive food options and an increase in developed dairy applications allows for market growth and fosters scope diversification for dairy ingredients across various food and beverage formulations.
Top of Form
Market Restraining Factors
Regulatory challenges and compliance costs
·?????? Regulatory Challenges and Compliance Costs a few of the major challenges in the dairy ingredients market have to do with the regulatory challenges and related compliance costs affecting producers and consumers. There are a number of rigorous regulations that administrate product safety and quality, labelling, and production processes of products belonging to the dairy industry. These regulations ensure that dairy products comply with health and safety standards, but they also bind manufacturers to invest in rigorous testing, quality assurance, and documentation. Compliance with these regulations normally entails heavy facility upgrade costs, expensive certification processes, and continuous monitoring. In addition, compliance can get really complex during the production and distribution of dairy ingredients due to varying regulations across regions, wherein companies have to pass through the expectations set by local, national, and international standards. Cumbersome regulatory and compliance requirements raise operational costs, affect the product price, and may prevent entry into the market for smaller or emerging players. In the ever-changing dairy ingredients market, every company has to balance its need to adhere to regulatory requirements with related financial implications that might affect the dynamics of the overall market.
Segmentation Analysis
The market scope is segmented because of by Product Type, by Form, by Livestock, by End Use.
By Product Type
Based on the Product Type of the market is segmented into Milk Powder, Whey Ingredients, Casein & Caseinates, Lactose & Derivatives, Others.
Among the product type segments in the dairy ingredients market, milk powder has historically dominated the market. Exhibiting the following supporting factors could easily explain the above claim.
Milk powder forms such as whole milk powder, skim milk powder, and specialty milk powders are versatile in nature and have broad applications. It ranks as one of the major ingredients processed for bakery, confectionery, dairy-based beverages, and infant formula due to its long shelf life and convenience over liquid milk. The dehydration process allows milk to be preserved for a longer period of time and lessens the cost of transportation and storage; this is economical for the manufacturer and, in turn, for the consumer.
By Form
Based on the Form of the market is segmented into Powdered, Liquid.
Among form segments, the powdered dairy ingredients have traditionally dominated the market due to their versatility, extended shelf life, and convenience in transportation and storage. Unbeatable advantages that come along with powdered dairy ingredients—milk powders, whey powders, cheese powders—make them unrivalled in dominating the market. It delivers a stable, compact form that becomes easier to manipulate and transport than their corresponding liquid dairy products, which can be more sensitive to deterioration and require refrigeration. It is precisely because of this stability that powdered dairy ingredients become rather suitable for application in a wide range of uses, from baked goods and confectioneries to ready-to-drink beverages and nutritional supplements.
One of the key drivers behind interest in powdered dairy ingredients is their extended shelf life. In contrast to liquid dairy, which has a limited shelf life and requires refrigeration, powders can be stored for a longer period of time without refrigeration, thus reducing the risk of food waste or logistically cumbersome storage requirements. This is very useful where cold chain logistics is either unavailable or too expensive in a country.
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Regional Snapshots
The regional scope of the study encompasses North America, Europe, Asia-Pacific, Latin America, and MEA markets. Traditionally, among the regions in the dairy ingredients market, North America dominated the market due to a well-established dairy industry, advanced processing technologies, and high rate of consumption of dairy products. Leading dairy ingredient producers and consumers with developed infrastructure for dairy farming, processing, and distribution are the United States of America and Canada. Major dairy ingredient companies and an increased focus toward innovation and quality further extend North America's market leadership. High demand for dairy ingredients prevails in the region for all application areas, such as sports nutrition and convenience foods.
The Asia-Pacific is reported to be the fastest-growing market with increased disposable incomes, urbanization, and consumer awareness of health and wellness-associated benefits over dairy products, for instance, the expanding middle class in the region of China and India has been pushing up demand for dairy ingredient consumption in not only traditional but also novel food products. The trend toward increasingly diversified, protein-enriched diets in these countries bolsters increasing dairy ingredients consumption.
List of Companies Profiled:
·?????? Arla Foods amba
·?????? Dairy Farmers of America
·?????? Saputo Inc.
·?????? Fonterra Co-operative Group
·?????? Kerry Group
·?????? Glanbia
·?????? Olam International Limited
领英推荐
·?????? FrieslandCampia
·?????? Groupe Lactalis
·?????? Ingredia SA
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Key Industry Developments
In March 2024, Nestlé S.A. has introduced a new line of milk powder in China, enriched with mulberry leaf extract, vitamin B, tryptophan, and essential minerals. This latest product is specifically designed for consumers aged 40 to 60.
In October 2023, Nestlé has unveiled its first affordable and nutritious instant milk powder. According to the company, this new product combines milk and soy to appeal to children's taste preferences while delivering essential nutrition.
Report Coverage
The report will cover the qualitative and quantitative data on the global Dairy Ingredients Market. The qualitative data includes latest trends, market players analysis, market drivers, market opportunity, and many others. Also, the report quantitative data includes market size for every region, country, and segments according to your requirements. We can also provide customize report in every industry vertical.
Report Scope and Segmentations:
Study Period
2024-32
Base Year
2023
Estimated Forecast Year
2024-32
Growth Rate
CAGR of 7.11% from 2024 to 2032
Segmentation
By Product Type, By Form, By Livestock, By End Use, By Region
Unit
USD Million
By Product Type
By Form
By Livestock
By End Use
By Region
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