Dairy Processing Equipment Market : Key Factors behind Market’s Rapid Growth

The dairy processing equipment market refers to the industry involved in the manufacturing and sale of machinery and equipment used in various stages of dairy processing, from raw milk to finished dairy products such as milk, cheese, yogurt, butter, and more. This market plays a crucial role in the dairy industry, helping to automate and streamline the production process, enhance product quality and safety, and increase production efficiency.

The global dairy processing equipment market size is estimated at USD 9.6 billion in 2021 and is projected to grow at a CAGR of 6.0% to reach USD 12.8 billion by 2026. The abolition of milk quota in the European Union, and growing demand of dairy-based products will drive the market for dairy processing equipment. In addition to this, rising need for automation is also one of the important factors for purchasing dairy processing equipments. Recently in January 2019, GEA Group (Germany) launched DairyRobot R9500 to enhance the milking process.

Key components of the dairy processing equipment market include:

Pasteurizers: These machines heat raw milk to eliminate harmful bacteria and pathogens while preserving the quality of the milk.

Homogenizers: Homogenization is the process of breaking down fat molecules in milk to ensure a consistent texture and taste in dairy products like cream and milk.

Separators: Separators are used to separate the cream from the milk, which is a crucial step in the production of products like butter and various dairy-based products.

Cheese-making equipment: This category includes cheese vats, curd cutters, and cheese presses used in cheese production.

Yogurt processing equipment: Machinery for yogurt production includes fermenters, mixers, and packaging equipment.

Butter churns: These machines are used to separate cream from milk and turn it into butter.

Milk cooling and storage equipment: Refrigeration systems and storage tanks are essential for keeping milk fresh and preserving its quality.

Packaging machinery: Equipment for packaging finished dairy products in various forms, including bottles, cartons, and more.

Milk powder and whey processing equipment: These machines are used in the production of milk powders and whey-based products.

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The global dairy processing equipment market is influenced by factors such as the demand for dairy products, consumer preferences, food safety regulations, and technological advancements in the dairy industry. The market is competitive, with various companies offering a wide range of equipment designed to meet the diverse needs of dairy processors.

Market trends in this industry often reflect changes in consumer preferences, such as increased demand for organic and plant-based dairy alternatives. Additionally, advancements in automation, smart technology, and sustainability practices are becoming increasingly important in the dairy processing equipment market.

Market Driver: Growing demand for dairy-based products

The market is witnessing growth due to the growing demand for dairy products because of the health and nutritional benefits they provide. Dairy processing companies are now targeting on low-fat, organic, and nutrient-fortified dairy products, which require highly advanced dairy processing machinery. According to the dairy index from Tetra Pak Global, consumption of products such as milk, cheese, and butter is expected to rise by 36% from 2014 to 2024, reaching in excess of 710.0 million tons of liquid milk equivalent by 2024. The rising demand for dairy products is majorly seen in emerging economies such as India, China, and South American countries. This demand is fueled by population growth, rapid urbanization, increased disposable income, and the emergence & modernization of cold chain facilities such as refrigerated transport & storage. In China, growth in dairy consumption is expected to remain strong. The International Farm Comparison Network (IFCN) projected that Chinese dairy demand would increase from 43 million tons of liquid milk in 2015 to 61 million tons by 2024—reporting a 42% increase. The growing demand for dairy products is thus driving the market.

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Asia Pacific is projected to be the fastest and largest-growing region in the market.

The governments in Japan and Korea have favorable government policies to support the growth and development of the dairy industries. Flavored milk has also been gaining wide acceptance in the Asia Pacific region. India is the largest producer of milk in the world. Hence, the market for pasteurizers and homogenizers has been consistently rising in the Indian dairy processing equipment market.