Global Dairy Ingredients Market is Segmented By Source (Milk, Whey), By Type (Milk Powder, Whey Ingredients, Lactose & Derivatives, Casein & Derivatives, Others), By Livestock (Cow, Sheep, Others), By Application (Pediatric, Sports Nutrition, Medical Nutrition, Functional Food, Bakery, Animal feed, Others), By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031
Dairy Ingredients Market Size
Global Dairy Ingredients Market reached USD 58.5 billion in 2022 and is expected to reach USD 83.1 billion by 2031 growing with a CAGR of 4.5% during the forecast period 2024-2031. Milk fat is used as an ingredient in various food applications, such as butter and butterfat, dairy cream, ice cream, cheese, and dairy-based spreads.
The rising demand for dairy ingredients rich in protein, driven by increased awareness of the health benefits of protein and its role in muscle development, weight management, and overall wellness. Consumers are increasingly seeking clean label and natural dairy ingredients, which are free from artificial additives, preservatives, and synthetic ingredients. Dairy ingredients with functional properties, such as probiotics, prebiotics, omega-3 fatty acids, and bioactive peptides, have significant market potential. These ingredients can be incorporated into various dairy products to enhance digestive health, immune support, heart health, and cognitive function.
Casein and caseinates exhibit various functional properties, including emulsification, stabilization, thickening, and gelation. Lactose is natural sugar found in milk commonly used as a sweetener, bulking agent, and flavor carrier in various food and pharmaceutical products.
Dairy Ingredients Market Scope
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Metrics |
Details |
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CAGR |
4.5% |
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Size Available for Years |
2022-2031 |
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Forecast Period |
2024-2031 |
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Data Availability |
Value (US$) |
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Segments Covered |
Source, Type, Livestock, Application and Region |
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Regions Covered |
North America, Europe, Asia-Pacific, South America, and Middle East & Africa |
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Fastest Growing Region |
Asia Pacific |
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Largest Region |
Asia Pacific |
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Report Insights Covered |
Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and Acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, Porter’s Analysis, Pricing Analysis, Regulatory Analysis, Supply-Chain Analysis and Other key Insights. |
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Dairy Ingredients Market Dynamics
The Emergence of Nutritionally Conscious Customers is Moving the Dairy Ingredients Market Forward
The demand for food products is predicted to rise as the world's population grows. The rising frequency of diseases in the population pushes the demand for nutritious meals. The Population Reference Bureau (PRB) predicts that the world human population will increase by 75 million people per year, or 1.1 percent per year. As a result, the world's population is predicted to reach 9.9 billion in 2050, up 33 percent from the estimated 7.4 billion in 2017.
Dairy components are a significant component of nutrient-dense foods and supplements. It is found in probiotic foods, protein supplements, and various meals like yogurt, fermented beverages, and savory dishes. As a result, the dairy ingredients market is predicted to develop due to the rising demand for nutritious food from a growing population. Due to the rising consumers concern about health benefits of consuming dairy ingrdients helps to boost market growth over forecast period.
Growth in the Key Players Investment in Dairy Industry Helps to Boost Dairy Ingredients Market
New investments and strategic relationships are being established to assist the expansion of the dairy ingredients sector. Dairy and related businesses are growing rapidly in developing and emerging economies around the world, particularly in Asia and Latin America. According to the Indian Council of Food and Agriculture, India is the world's largest producer of dairy products by volume, accounting for more than 13% of global milk output, as well as having the world's largest dairy herd. As a result, India is a significant market for the expansion of dairy components.
In addition, the market expansion of dairy components is being driven by new partnerships developed between organizations/agencies from various nations. The goal of the US Dairy Export Council and China's Jignana University is to promote US dairy exports to China by offering traditional Chinese products, with a concentration on dairy protein products. Furthermore, prominent companies' endeavors to enhance production in the future are projected to give considerable market potential prospects.
Fluctuating Raw Material Prices of Dairy Ingredients Hampers Market Growth
Fluctuating milk prices make it difficult for dairy farmers and processors to predict and plan for their costs and profits. When prices are low, farmers may struggle to cover their production costs, which can lead to financial strain and a decrease in investment and production. Milk prices are closely tied to the cost of inputs such as feed, labor, and energy. Fluctuating milk prices can create uncertainty in the profitability of dairy operations, as farmers and processors face challenges in managing input costs.
The primary reason of the increase in the cost of milk is increase in the cost of production. India is the largest producer of the milk in the globe accounted 22% of the global milk production. One of the major reason of increase in the price of milk is increase the cost of feed. The cost of feed increasing due to the shortage of fodder and rice in the price of raw material such as soybean and corn. Universal rain and heat waves are also contributed to the increase in the prices.
Dairy Ingredients Market Segmentation Analysis
The global dairy ingredients market is segmented based on source, type, livestock, application and region.
Milk Based Dairy Ingredients Segment Accounted for the Highest Share in Global Dairy Ingredients Market
The global dairy ingredients market by source has been segmented by milk, and whey.
The milk source category is expected to hold the highest proportion of the entire dairy ingredients market. The overall growth of this segment can be attributed to factors such as the milk powder's diverse functional properties (emulsifying capacity, foaming and whipping ability, hygroscopicity, etc.) in food industries; the product's longer shelf life; increasing consumption in infant formulas, confectionaries, savory, and baked products due to its nutritional benefits; and consumers' willingness to spend more on high-quality products.
Increase in the milk based dairy ingredients product launches helps to boost segment growth over the forecast period. For instance, On May 04, 2021, Lactalis Ingredients launched organic milk powder in the France. The milk for producing milk powder is comes from the French dairy farms organically. The new launched product is free from the antibiotics, neutralizing agents, and other additives. It has only 26% milk fat. The new launched product is Ecocert certified.
Dairy Ingredients Market Geographical Share
Asia Pacific is Expected to be the Fastest Growing Region During the Forecast Period
The Asia Pacific region is the largest market for dairy components, and it is expected to develop at the highest rate in the future years. Consumers are demanding functional and fortified food products due to the growing population and increased purchasing power. Because of the low mortality rate and better living conditions, they have invested more in health and health-related services than in the past. As a result, the healthy and ready-to-eat food options market has grown.
As the global dairy industry's nerve center, India provides a plethora of chances for investors and entrepreneurs looking to profit from one of the world's fastest-growing marketplaces for milk and milk products. As a result, the dairy ingredient market in the country has seen an influx of new entrants and a variety of product introductions. For instance, On July 31 2021, KMF, a dairy company launched various milk products in the India such as milk powder, badam milk, paaysam mix, flavoured milk, and cookies. The company sell 10,000 litres of fresh milk every day.
Dairy Ingredients Companies
The major global players include Fonterra Co-operative Group Limited, Saputo Inc., Volac International Limited, Arla Foods, Dairy Farmers of America, Nestle S.A, Hatsun Agro Products, Glanbia PLC, Groupe Lactalis, Devondale Murray Goulburn.
COVID-19 Impact on Dairy Ingredients Market
COVID-19 Impact
The dairy industry has been badly impacted by a scarcity of animal feed, veterinary medicine, and other critical dairy supplies. Restaurants, schools, and less regular supermarket shopping are closing, reducing demand for food products, notably dairy-based products, impacting farmers and suppliers' companies. Furthermore, the supply chain disruption has resulted in massive waste of fresh milk/milk products, and sales to major dairy export markets have dried up since the bulk of foodservice industries around the world have shut down.
Due to travel restrictions, dairy companies are dealing with lower consumption of dairy ingredients, supply chain challenges, and a reduced workforce at the plant, harvest, and distribution centres. The current imbalance and crises have had a negative impact on the global dairy ingredients market. Several dairy businesses are fighting to mitigate the effects of a potential worldwide recession during this global pandemic.
Russia-Ukraine Impact Analysis
The conflict has disrupted the trade relations between Russia and Ukraine, leading to restrictions, bans, and embargoes on various goods, including dairy products. These trade barriers have limited the exchange of dairy ingredients between the two countries, affecting the supply chain and availability of dairy ingredients in both markets.
Due to the trade restrictions, Russia has sought alternative sources for dairy ingredients to compensate for the reduced supply from Ukraine. Russia has increased imports from other countries to meet its demand, potentially leading to changes in global trade patterns and supplier relationships for dairy ingredients. The disruption in trade and changes in sourcing have created price volatility for dairy ingredients. The shift in supply and demand dynamics, coupled with the uncertainty caused by the conflict, can lead to price fluctuations, making it challenging for businesses to plan and manage costs effectively.
Key Developments
- On May 06, 2022, Fonterra, a dairy company launched e-commerce platform for the online dairy products selling. It helps consumers to buy all products from milk powder to specialty dairy proteins.The new launched E-commerce platform named as myNZMP which helps consumers to to find all dairy products.
- On May 30, 2022, Arla Foods, a largest producer of the dairy products inaugurated a new production plant in the Germany. The company invested EUR 190 million in Germany to expand the production of primarily milk powder.
- On June 15, 2022, Fonterra, a dairy company launched Pro-Optima, Grade A Whey Protein Concentrate in the market with Three Mile Canyon Farms and Tillamook County Creamery Association (TCCA) in a joint venture called Columbia River Technologies (CRT).
Why Purchase the Report?
- To visualize the global dairy ingredients market segmentation based on source, type, livestock, application, and region, as well as understand key commercial assets and players.
- Identify commercial opportunities by analyzing trends and co-development.
- Excel data sheet with numerous data points of dairy ingredients market-level with all segments.
- PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
- Product mapping available as excel consisting of key products of all the major players.
The global Dairy Ingredients market report would provide approximately 71 tables, 72 figures and 122 Pages
Target Audience 2024
- Manufacturers/ Buyers
- Industry Investors/Investment Bankers
- Research Professionals
- Emerging Companies
