“The Dairy Ingredients market size was US$ 65.8 Billion in 2023 and is likely to grow at a decent CAGR of 7.1% in the long run to reach US$ 95.5 Billion in 2032”.
Market Dynamics
Introduction
Although some proteins are derived from dairy produce, they are well accepted due to their flavor profile and nutritional benefits across the food and beverage sectors. The lactisol and permeate products are considered natural, functional, and nutritious, and their functionality has frequently been linked to sports and performance in the market. Consumer trend towards the use of functional foods influences the utilization of whey ingredients in backed products, confectionery products, beverages, dairy products, meat products, and healthy foods/pharmaceuticals/nutraceuticals. Within the product category, whey protein isolates and demineralized whey protein are the most popular as they offer high protein content, and proteins can function in various applications.
Market Drivers
As a result of the increased health consciousness of consumers, the demand for food products that are fortified with essential nutrients is growing as people are trying to anticipate health issues and improve their well-being. This is a sign of the change in the tendency toward healthcare that is more on the side of the preventive one, with a big preference for functional foods that are at the same time healthy for the body. Vitamin D fortification has become a major theme, which has led to the demand for fortified products such as functional beverages, dietary supplements, and fortified processed foods, in both developed and developing regions. The trend proves the existence of a great market opportunity in the food and nutraceutical industries, which is caused by the changing of consumer preferences towards health-conscious consumption habits.
Challenges
Since the processing of dairy ingredients involves the placing of equipment within factories and plants, it calls for considerable fixed capital investment. They are also challenging to install, and their maintenance is costly, which is something that further increases the operating costs in the dairy processing plants. Hence, the implication that vast capital investment is an issue that affects operating margins is valid.
Recent Product Development:
- January 2021: The three-year project was formally tripartite but only three players are relevant here; New Zealand-based Fonterra Co-operative Group and Netherlands-based Royal DSM with on-farm greenhouse gas emissions of New Zealand.
- March 2021: FrieslandCampina International Holding B. V. signed a deal with the Arabian Food Industries Company through which it would export cheese to Africa and the Middle East region.
- May 2021: Ehrmann bought Campina LLC which is Friesland Campina’s subsidiary company, which was effective for Ehrmann by improving the company’s position in the Russian market, and FrieslandCampina in reaching its new target markets.
- August 2021: Foodarom, a custom flavor designer and manufacturer based in Canada, is in the food, beverage, and nutritional products segment of the consumables industry sucking to Glanbia Nutritionals, a subsidiary of Glanbia plc.
Market Segments' Analysis
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Segmentations
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List of Sub-Segments
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Segments with High Growth Opportunity
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Type Analysis
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Proteins, Milk Powder, Milk Fat Concentrate, Lactose & Its Derivatives
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Protein is expected to be the dominant product for the dairy ingredient market and is likely to grow at the fastest rate in the coming years.
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Livestock Analysis
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Cows and Other livestock (Buffaloes, goats, sheep, and camels)
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Livestock-cow is likely to dominate as well as grow at the fastest rate in the forecasted period.
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Form Analysis
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Dry and Liquid
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The dry form is anticipated to contribute the largest share in the forecasted period.
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Application Analysis
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Infant Formulas, Sports Nutrition, Dairy Products and Bakery & Confectionery
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Infant Formulas is anticipated to contribute the largest share of the market
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Regional Analysis
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North America, Europe, Asia-Pacific, and The Rest of the World.
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Asia-Pacific is expected to maintain its reign over the forecast period and is also likely to grow fastest.
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By Type Analysis
“Protein is expected to remain the dominant type in the market during the forecast period”.
- Out of the types mentioned above, proteins are said to have the highest market as dairy ingredients. such attributes as nutritional value, functional properties; health and wellness trends, and technology.
- Although there are other segments of dairy ingredients such as milk powder, milk fat concentrates, lactose derivatives, and derivatives, which can also have their role and importance in the market, the protein segment’s greater emphasis is noted owing to its nutritional value, functionality, and usage across food and beverages sectors.
By Livestock Type
“Cow is expected to remain the dominant type in the market during the forecast period”.
- Among the segment types, it is anticipated that the cow segment will have the highest market share in the dairy ingredients market. This can be attributed to a high population of cows worldwide, which means high milk production.
- Another important factor is that unlike other types of livestock that are more localized and have a limited market outside that particular region, European dairy ingredients derived from cow milk are more easily and cheaply identifiable in the final product.
By Form Type
“Dry type is expected to remain the dominant type in the market during the forecast period”.
- Powdered dairy products such as milk powder, owing to some factors such as their longer shelf life, easier handling, flexibility in being used in food formulations, relatively cheaper to transport, and versatility take up the big market share.
- These factors make them better suited to various food and manufacturing industries for their products, which has in turn helped them secure their market position over liquids.
By Application Type
“Bakery and confectionery is expected to remain the dominant and fastest-growing application type in the market during the forecast period”
- The bakery and confectionery segment proved to be the largest market for dairy ingredients because these products can be used in a variety of ways in a particular industry. Their substitutes, in the food services and other related sectors, are non-fat dried milk and skim milk powder respectively.
- Dairy ingredients are also useful for writing on packaging to make people consider baked products as being valuable. One category of whey protein ingredients that is regarded as particularly functional and high-performing is influential. All these trends have increased with the modern need to achieve greater fitness levels, by the young generation in particular, where dairy formulations chiefly of whey protein, are getting more popular.
Regional Analysis
“Asia-Pacific is expected to remain the largest market for Dairy Ingredients during the forecast period”.
- According to the forecast, the Asia Pacific region has the highest CAGR in the forecasted period. With a high production of milk, it can be expected that the market for dairy ingredients will continue to grow in the coming years and promises to be a good export market.
- These include factors such as increased urbanization, a shift in diet, and new consumer trends toward healthier and richer products. Furthermore, the increase in demand for convenience foods and Dairy products is attracting major market players towards it.
Key Players
The market is fragmented with the presence of over 100 players across the region. Most of the major players compete in some of the governing factors including price, service offerings, regional presence, etc. The following are the key players in the Dairy Ingredients market:
Here is the list of the Top Players (Based on Dominance)
- FrieslandCampina (The 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 (The Netherlands)
- Batory Foods (US)
- Ingredia SA (France)
Note: The above list does not necessarily include all the top players in the market.
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Report Features
This report provides market intelligence most comprehensively. The report structure has been kept such that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market. The following are the key features of the report:
- Market structure: Overview, industry life cycle analysis, supply chain analysis.
- Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
- Market trend and forecast analysis.
- Market segment trend and forecast.
- Competitive landscape and dynamics: Market share, Service portfolio, New Type Launches, etc.
- COVID-19 impact and its recovery curve.
- Attractive market segments and associated growth opportunities.
- Emerging trends.
- Strategic growth opportunities for the existing and new players.
- Key success factors.
The global dairy ingredients market is segmented into the following categories.
Dairy Ingredients Market, by Type
- Proteins (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- Milk Powder (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- Milk Fat Concentrate (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- Lactose & Its Derivatives (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
Dairy Ingredients Market, by Livestock
- Cows (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- Others (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
Dairy Ingredients Market, by Form
- Dry (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- Liquid (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
Dairy Ingredients Market, by Application
- Infant Formulas (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- Sports Nutrition (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- Dairy Products (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- Bakery & Confectionery (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
Dairy Ingredients Market, by Region
- North America (Country Analysis: The USA, Canada, and Mexico)
- Europe (Country Analysis: Germany, France, The UK, and Rest of Europe)
- Asia-Pacific (Country Analysis: Japan, China, India, and Rest of Asia-Pacific)
- Rest of the World (Country Analysis: Brazil, Saudi Arabian, and Others)
Research Methodology
- This strategic assessment report from Stratview Research provides a comprehensive analysis that reflects today’s Dairy Ingredients market realities and future market possibilities for the forecast period.
- The report segments and analyzes the market in the most detailed manner to provide a panoramic view of the market.
- The vital data/information provided in the report can play a crucial role for market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulate growth strategies to expedite their growth process.
- This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.
- More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data.
- We conducted more than 15 detailed primary interviews with market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.
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Company Profiling
- Detailed profiling of additional market players (up to three players)
- SWOT analysis of key players (up to three players)
Competitive Benchmarking
- Benchmarking of key players on the following parameters: Service portfolio, geographical reach, regional presence, and strategic alliances
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