Dairy Ingredients Market: Opportunities And Challenges

The dairy ingredients market is estimated to account for a value of USD 63.6 billion in 2021 and is projected to grow at a CAGR of 7.2% from 2021, to reach a value of USD 89.9 billion by 2026. The growth of this market can be attributed to the growing protein demand from consumers, they prefer products with dairy ingredients as a source of protein. 

Consumer attitude with respect to dairy is changing, and a large section of the European and US population is turning vegan. Despite such negative trends, continued premiumization and the consumer preference for tastes drive the demand for dairy ingredients. Lifestyle and consumer preferences are changing mostly due to double-income profiles; hence, successful manufacturers ought to continue innovation, alongside ‘clean label’ solutions are transforming the taste and texture of dairy alternatives.

To know about the assumptions considered for the studyRequest for Sample of this Report

The Milk Powder segment by type is projected to achieve the fastest growth in the Dairy Ingredients  Market.

Milk powders are mostly preferred by food processing manufacturers because of their extended shelf-life and versatile functional and nutritional properties. It has various food applications such as dry mixes, bakery products, beverages, confections, dairy food, salad dressings, meat products, sauces and soups, and some pharmaceutical applications.

The Dry Form is estimated to account for the largest market share in the Dairy Ingredients  Market.

All dry ingredients contain 5% or less moisture content. They are quite popular, as they have a good shelf life compared to liquid dairy ingredients. Depending on the type of milk used, drying produces whole milk powder or skimmed milk powder. The transportation and storage costs of dry ingredients are low, which results in the reduced cost of the final products. As a result, they are highly preferred by manufacturers. Also, they are readily available in the market and are easy to use. All these properties make them a popular ingredient form.

The use by Cow is estimated to account for the largest market share of the Dairy Ingredients  Market over the forecast period.

Dairy ingredients derived from cow’s milk are the most preferred and widely used in all types of products. Such products have high acceptance globally and are manufactured in abundance due to large cow milk production in every region. Many major players prefer manufacturing dairy ingredients through cow’s milk because of its vast and easy availability and easier production processes.

The Bakery and Confectionery segment, By Application, is estimated to observe the fastest market growth in the Dairy Ingredients  Market during the forecast period.

Bakery & confectionery is among the primary applications of dairy ingredients because of their multi-functionalities. These ingredients are majorly used during baking for protein fortification, crust browning, improving the stability of dough or batter, enhancing yeast fermentation, and as an egg replacer. The addition of milk ingredients to these products helps the manufacturers maintain a sensory appeal and superior quality of products at a comparatively lower price.

Asia Pacific is estimated to be the largest market.

The Asia Pacific region is projected to witness the highest growth during the forecast period. A large amount of milk is produced in the country, which gives the dairy ingredients market the potential to grow in the coming years. Owing to this large production, the region has immense potential for exports of dairy ingredients. Rapid urbanization, changing lifestyles, and the inclination of consumers toward nutritious food and beverages also contribute to the growth of the dairy ingredients market. Owing to the increasing consumer demands for convenience food and dairy products in the region, many major players are entering the market.

To speak to our analyst for a discussion on the above findings, click Speak to Analyst

Key Market Players 

The key players in this market include Royal FrieslandCampina N.V. (The Netherlands), Fonterra Co-operative Group Limited (New Zealand), Arla Foods (Denmark), Glanbia (Ireland), Kerry Group (Ireland), Dairy Farmers of America (US), Groupe Lactalis (France), Ornua (Ireland), Saputo (Canada), Volac International Ltd. (UK), Epi Ingredients (France), Prolactal (Austria), Hoogwegt Group (The Netherlands), Batory Foods (USA), Valio (Finland), Ingredia SA (France), Cayuga Dairy Ingredients (US), Interfood (The Netherlands), AMCO Proteins (US), and Valfoo (China). These players in this market are focusing on increasing their presence through agreements and collaborations. These companies have a strong presence in North America, Asia Pacific and Europe. They also have manufacturing facilities along with strong distribution networks across these regions.