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

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.