Top Driving Factors of Dairy Ingredients Market

The report “Dairy Ingredients Market by Type (Proteins, Milk Powder, Milk Fat Concentrate, Lactose & Its Derivatives), Application (Infant Formulas, Sports Nutrition, Dairy Products and Bakery & Confectionery), Livestock, Form, and Region – Global Forecast to 2026“, The market for dairy ingredients is anticipated to grow at a CAGR of 7.2% , it is anticipated to be worth $89.9 billion by 2026.

This growth is fueled by the increasing demand for dairy-based products and the growing trend towards protein-rich diets.

The market is poised to offer a diverse range of dairy products, paving the way for players in the industry to create innovative and irresistible offerings that cater to the evolving tastes of consumers.The demand for versatile dairy ingredients in the food industry is driven by the increasing consumption of ready-to-eat and functional foods. The trend towards healthy eating habits has further fueled the demand for functional food ingredients that are high in protein, low in fat and calories, and free from artificial additives. Additionally, the rise of plant-based alternatives to dairy products and the demand for natural and organic products are contributing to the growth of the market. These trends are expected to continue to drive the dairy ingredients market in the coming years.

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Dairy ingredients are components derived from milk that are used in food and beverage products. They are widely used in the food industry for their functional properties, including emulsification, foaming, and thickening, as well as their nutritional value. Some of the commonly used dairy ingredients include whey protein, casein, lactose, and milk fat.

Market Driver: Increasing awareness about health and wellness

Consumer preferences are gradually shifting from junk and fast food to nutritional diets. This shift to healthy diets is being witnessed due to the increasing aging population, coupled with the rising health issues. This has led to increased demand for protein-based ingredients, such as dairy ingredients, for use in nutritional foods. This health and wellness trend will act as a key driving factor, which is set to fuel the consumption of dairy ingredients.

Owing to the growing consumer awareness toward health gain, the demand for protein in the daily diet is increasing, which has exponentially propelled the market for dairy proteins. In 2019, the International Food Information Council Foundation (IFICF) conducted a consumer survey in North America about diet preferences. About 48% of consumers said that they often include dairy products in their daily meals as a source of protein. The below diagram depicts the share of each category in the daily meals of North American consumers.

The increasing demand for dairy ingredients in Asia Pacific is driving the growth of the dairy ingredients market.

The global dairy ingredients market is dominated by Asia Pacific, which accounted for the largest share. Nowadays, a sedentary lifestyle and a hectic daily routine run parallel to the consumer focus on health, resulting in an extreme workout and heightened dependence on protein supplements. Dairy protein ingredients are being consumed for weight loss and muscle gain and provide maximum nutrition and nourishment. Veganism has captured a large section of the market in Europe and the US; however, dairy being a staple in India, retains its position as the major protein supplement. Globally, whey is being incorporated in the regular diet as natural bioactive substances have a positive influence on an individual’s health.

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The key players in this market include FrieslandCampina (Netherlands), Groupe Lactalis (France), Arla Foods (Denmark), Saputo (Canada), Fonterra Co-operative Group (New Zealand), Dairy Farmers of America (US), Kerry Group (Ireland), Ornua (Ireland), AMCO Proteins (US), Prolactal (Austria), Valio (Finland), Glanbia (Ireland), Hoogwegt Group (Netherlands), Batory Foods (US), Ingredia SA (France), Agropur (Quebec), and Euroserum (France). Major players in this market are focusing on increasing their presence through new product launches, expansions & investments, mergers & acquisitions, partnerships, collaborations, and agreements. These companies have a strong presence in North America and Europe. They also have manufacturing facilities along with strong distribution networks across these regions.