Dairy Ingredients Market Size, Share, Growth Analysis, By Product (MPC & MPI, Skimmed Milk Powder), By Form (Powdered, Liquid), By Application (Dairy Products, Convenience Foods), By Region -Industry Forecast 2024-2031
Report ID:
SQMIG30I2409 |
Region:
Global |
Published Date: November, 2024
Pages:
174
|Tables:
0
|Figures:
0
Dairy Ingredients Market Insights
Global Dairy Ingredients Market size was valued at USD 84.37 Billion in 2022 and is poised to grow from USD 84.53 Billion in 2023 to USD 126.81 Billion by 2031, growing at a CAGR of 5.2% in the forecast period (2024-2031).
Rising consumption of healthy nutrients is one major factor that accounts for the increase in demand for dairy products. The global dairy ingredients industry is growing due to increased awareness regarding the consumption of healthy diet and healthy life. Since dairy products are milk-derived and have nutritional benefits as known, they have been widely used in many industries. These dairy products are ideal for products that promote bone strength, the immune system, among others, because they contain high levels of calcium and other nutrients. The aging population and increased rates of health issues, such as obesity, have brought about a shift in food consumption patterns that has increased at a fast pace globally over the past two decades. Today, people consume a large protein diet. This is in addition to raising awareness of health benefits that are accrued from the consumption of whey and other milk products, which helps expand the global market. In addition, rapid dairy ingredients market growth and an increase in milk production will further contribute to the expansion of the market in the future. Conversely, growth in awareness about sustainability and animal cruelty has suppressed the expansion of the dairy business. Besides that, the market for dairy substitutes is also expected to gain growth in terms of demand due to rising awareness of animal abuse which is also expected to restrain the growth of the global dairy ingredients market during the forecast period.
Market snapshot - 2024-2031
Global Market Size
Largest Segment
Fastest Growth
Growth Rate
CAGR
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Dairy Ingredients Market Segmental Analysis
The global dairy ingredients market is segmented into product, form, application, and region. By product, the market is classified into skimmed milk powder, whole milk powder, buttermilk powder, cream powder, and MPC & MPI. Depending on the form, it is bifurcated into powdered and liquid. According to the application, the market is divided into bakery & confectionary, dairy products, convenience foods, infant milk formula, sports & clinical nutrition, and others. Regionally, the market is studied across North America, Europe, Asia-Pacific, Middle East and Africa, and Latin America.
Analysis by Product
As per the dairy ingredients market forecast, with 19.7% in revenue share in 2023, the MPC and MPI segments led the way in the market. Given its high concentration of protein, MPC and MPI are highly valuable for food and beverage manufacturers that want to improve the nutritional characteristics of products. This high concentration of protein is extremely beneficial because fortification with protein is absolutely critical in sports nutrition, baby formula, and dietary supplements. Another factor for the demand growth is increasing consumer awareness and preference for healthier foods. Consumers are looking for clean-label products that have less additive ingredients such as MPC and MPI, as such ingredients are considered the most natural sources of milk-derived protein. This comes within a bigger set of dietary trends for high-protein diets meant for weight loss, muscle gain, or health.
Based on the dairy ingredients market analysis, in 2023, the skimmed milk powder segment is expected to dominate the market. SMP is a good option for manufacturers that want to produce dairy products with more stability and longer shelf life because it has a longer shelf life than liquid milk. This makes it more appealing for different types of culinary application, including bakery goods, confections, and ready-to-eat meals, where longer shelf life is required. SMP is also selected because of its excellent flexibility in the processing of foods. It is an adaptable ingredient to produce different formulations and dairy products. It enables the food manufacturers to take advantage of the nutritional profile of SMP, which contains high protein and critical minerals, such as calcium, while keeping good quality and texture on the products they will be providing.
Analysis By Form
The powdered segment is the biggest in the dairy ingredients industry as it has a longer shelf life, can be easily stored, and is very flexible. Some of the most common dairy components in the food and beverage department are milk powder, whey powder, and casein, due to these being encountered mostly in powders, especially in confections, bakery goods, baby formula, and nutritional products. For these powdered ingredients, stability is seen to be better and manageable than when liquid counterparts are utilized, creating more manufacturing and transportation ease. The increased consumers' need for packaged and processed foods, particularly in areas where dietary and lifestyle changes and urbanization evolve, increases the requirement for powdered dairy components worldwide. Furthermore, the convenience and practicality of sports nutrition and functional meals to be promoted bring more domination for powdered dairy products.
However, the liquid dairy ingredients segment is currently growing at the fastest rate because of the growing demand for fresh and minimally processed dairy products. There has been an increased use in the foodservice, beverage, and dairy processing sectors of liquid dairy products such as whey liquid, cream, and milk. These ingredients are chosen because they are relatively natural in flavor and smooth in texture for applications in ready-to-eat meals, soups, sauces, or drinks. Liquid dairy demand has increased as consumers have an increasing interest in natural ingredients and clean-label goods. Liquid dairy is also taking a growing pace of growth in the emerging region, with developments in liquid dairy products including nutritional supplements and functional drinks.
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Dairy Ingredients Market Regional Insights
The dairy ingredients market in North America is assumed to be a profitable market for this industry. The demand from the customers seeking natural and healthy food products in the region opens increasingly high potential for this industry. A number of food and beverage products, including baked goods, confections, and prepared meals, require dairy ingredients including cheese, butter, and milk powders. Lastly, market demand for dairy components also arose with consumers' demand for diets high in protein. Technical developments in dairy processing have also improved the utility and flexibility in dairy component manufacturing that leads to the development of new products designed to address changing customers' preferences and tastes. Dairy ingredients in the North American market are experiencing a higher demand. This is due to the convenience meal and drink products, which are highly in demand currently.
In the future, the CAGR in the European dairy ingredients market is expected to be impressive. It is so because food products related to dairy have gained popularity among the consumers, as they have increased interest in healthy and natural food alternatives. The European dairy industry continues to innovate and diversify its product offers to meet shifting customer preferences and nutritional trends such as increased protein consumption. Demand for dairy components such as butter, cream, and milk powders-all very essential in enhancing flavor of products-has also increased due to the increase in the bakery and confectionery industries across the geographical expanse of Europe. Furthermore, local dairy products are preferred by consumers in Europe, thus boosting local dairy operation and other players.
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Dairy Ingredients Market Dynamics
Drivers
Increasing Demand for Functional Foods
- With consumers looking much more attentively to health and wellbeing, functional foods are gaining popularity. Such products, incorporating dairy products such as whey protein and probiotics, are valued for nutritional benefits such as strengthening muscles, aiding digestion, and boosting the immune system. The trend is most prominent in the case of sports nutrition, health supplements, and weight-management products.
Increasing Demand for Dairy-Based Beverages
- The impetus to the dairy ingredients market is in the adoption of dairy-based beverages, such as milkshakes, smoothies, and flavored milk. Consumers have highly sought liquid dairy components as a 'healthier' substitute for sugar-sweetened drinks. Formulation innovations for dairy-based beverages are also driven by large demand for plant-based milk alternatives such as oat and almond milk.
Restraints
Raw Material Price Volatility
- Total cost structure for dairy ingredients may be affected by the price change from raw materials such as milk and whey. There will be pricing uncertainty for the end consumers, and there is a restriction on profit margins of manufacturers due to adverse weather changes, regulatory, and shifts in global supply chains associated with price volatility.
Health Concerns and Lactose Intolerance
- Lactose intolerance and dairy allergies are causing concerns, which are reducing the demand for traditional dairy components as people around the world are becoming more health conscious. The demand for plant-based or dairy-free alternatives is yet another factor that is further acting as a restraint in the expansion of the market. With all such advancements in lactose-free dairy products, some people are still of the opinion that dairy is bad, so restraint from the industry from expanding further widely.
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Dairy Ingredients Market Competitive Landscape
The dairy ingredients market is highly competitive as major companies focus on the innovation of products, sustainability, and expansion in global markets. Major players in this market include Danone, Nestlé, Arla Foods, Fonterra, and Lactalis as they have a good network for distribution and offer products of the same. They invest in research and development to meet the demands of consumers for plant-based, clean-label, and functional dairy alternatives. Other strategies used in the expansion of market share include partnership, merger, and acquisition strategies.
Top Player’s Company Profile
- Fonterra Co-Operative Group Limited
- FrieslandCampina
- Arla Food Ingredients
- Glanbia PLC
- Sodiaal Group
- Dairy Farmers of America Inc.
- Saputo, Inc.
- Schreiber Foods Inc.
- Lactalis American Group, Inc.
- EPI Ingredients
- Kerry Group
- Ingredia SA
- Olam International Limited
- Groupe Lactalis
- Nestle
Recent Developments
- Epi Products launched a new butter powder to cater to the ever-increasing consumer demand for natural and clean-label products in May 2024. This innovation keeps in line with the current industry demand for simple and flexible butter substitutes in different food applications.
- According to a March 2024 release, Nestle S.A. is introducing a new milk powder product line for the middle-aged market segment-surveyed into the target market range of 40 to 60 years. This product contains mulberry leaf extract, vitamin B, tryptophan, and minerals.
- Lactalis Ingredient launched a brand-new organic whole milk powder in May 2021. This goes to supplement their already long list of milk powders. According to the firm, the new surging demand for organic products in the region is due to its new launch. In a bid to beat its market share, the firm focuses on increasing the number of organic items in its line.
Dairy Ingredients Key Market Trends
- Increased Trend of Natural Ingredients and Clean Label Products: The growth in this trend will be due to consumer demand for clean label products with no artificial preservatives or additives. Consumers have increasingly chosen less processed, more natural dairy ingredient products in the market and manufacturers have responded by making ingredient lists easier to understand, using organic dairy ingredients and being more transparent in sourcing and manufacturing practices.
- Dairy-Based Protein Innovations: With the rising demand for sports nutrition products and high-protein diets, newer dairy-based protein ingredients are being invited to develop. Such dairy proteins as whey protein isolate are more widely appearing in protein bars, meal replacements, and functional snack food. Inspired by the growing interest of consumers in exercise and health, this innovation is aspired to fulfill the need for rapidly consumed, easily taken out, and nutrient-dense meal alternatives.
Dairy Ingredients Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected using Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, the dairy ingredients market would rise steadily, due to growing demand from consumers for protein-rich foods, dairy-based beverages, and functional foods. Innovation, from plant-based to lactose-free and clean-label alternatives, continues to evolve in the market. However, the business is still haunted by other issues such as persisting price volatility of raw materials and other fears over lactose intolerance. Manufacturers have to focus on innovation and variety of products to really compete as the demand has been based on sustainability and health trends. With all these considerations, industry is yet open for enough elbow room to grow with current advances in functional dairy and emerging markets.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 84.37 Billion |
| Market size value in 2031 | USD 126.81 Billion |
| Growth Rate | 5.2% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
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| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Dairy Ingredients Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Dairy Ingredients Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Dairy Ingredients Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Dairy Ingredients Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Dairy Ingredients Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Dairy Ingredients Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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