Global Dairy Ingredient Market By Product (Skimmed Milk Powder (SMP), Whole Milk Powder (WMP), Buttermilk Powder, Cream Powder, Rolled Dried Powder, Other Products), By Application (Bakery & Confectionery, Dairy Products, Convenience Foods, Infant Milk Formula, Sports & Clinical Nutrition, Others Applications), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2023-2032

Dairy Ingredient Market Overview:

In 2021, the global market for dairy ingredients was valued at USD 63,900 million and is projected to grow at a CAGR of 7.6% between 2023 to 2032.

Over the next years, there will be a positive shift in nutrition enrichment as a result of increasing awareness about maintaining a healthy lifestyle.

Global Dairy Ingredient Market Scope:

Product Analysis

SMP (skimmed milk powder) was responsible for a 23.3% share of the global revenue in 2021. It is expected to grow as it has a longer shelf life and lower moisture content. The dairy ingredients market will grow over the forecast period due to rising demand for the product in ready-to-use foods (RUFs), fortified blended food (FBFs), and therapeutic and supplementary foods. MPC & MPI are expected to see volume growth of 5.1% between 2023 to 2032 due to their high use in desserts, baked good, toppings, dry mixes, and dairy-based products. They offer many benefits, including viscosity and water binding.

Application Analysis

In 2021, 40% of the global share was made up of dairy products. This segment is expected to see significant growth due to increasing demand for cream and buttermilk, buttermilk, cream, yogurts, cream, butter, and other lactose-free products. From 2023 to 2032, chocolate volume is expected to grow at 4.8%. The use of milk powder will be encouraged by the projected increase in chocolate consumption in functional foods due to its stress-relieving properties. Positive factors include the continued innovation of MondelA’z products regarding dark chocolate.

Key Market Segments:

By Product

• Skimmed Milk Powder (SMP)
• Whole Milk Powder (WMP)
• Buttermilk Powder
• Cream Powder
• Rolled Dried Powder
• Other Products

By Application

• Bakery & Confectionery
  • Chocolate
  • Ice-Cream
  • Others
• Dairy Products
  • Recombinant Milk
  • Others
• Convenience Foods
• Infant Milk Formula
• Sports & Clinical Nutrition
• Other Applications

Market Dynamics:

The market is expected to see a significant increase in the consumption of protein-fortified functional foods products by vegetarians as a way to meet their protein needs. Food & beverage companies such as Kellogg have launched new products to meet the increasing demand for protein supplements. This is expected to increase demand for milk powder and whey.

Fortified milk powders, which are dairy ingredients, are used in infant formula formulations. They have a low microbiological level, and high heat stability, and allow for long processing runs. Over the next eight-year, milk powder demand will rise due to the innovation of baby food manufacturers Danone in emerging countries like China and India.

Consumers are adopting healthier eating habits, which is creating growth opportunities for dairy ingredient companies. Dairy products are a good source of protein because they contain casein and caseinates. As prebiotics, lactose derivatives are used in pharmaceutical preparations. A holistic diet is one that includes milk and dairy intake. An adequate intake of milk in children is linked to the availability of many other micronutrients, including calcium, potassium, and magnesium.

Regional Analysis:

The Asia Pacific accounted for 42% of the total share in 2021. The regulatory inclination to promote investments in the food and beverage sectors of China & India is expected to increase the manufacturing capacity for baked goods and sports nutrition products. This trend will continue to be a driving force for the promotion of the use of dairy ingredients.

The rising spending of athletes and workers on nutrition products in Germany and Russia to improve muscular strength will encourage the use of milk powder as a functional ingredient. The forecast period will see new opportunities due to the shifting inclination of Middle East governments, including Qatar, UAE, and Saudi Arabia, from the upstream oil and gas sector in favor of domestic food & beverages sector investments.

Key Regions and Countries covered in the report:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Spain
  • Rest of Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Rest of Asia-Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• MEA
  • GCC
  • South Africa
  • Israel
  • Rest of MEA

Market Share & Key Players Analysis:

Dairy Farmers of America and Fonterra are key industry players. Globally, the market for dairy ingredients is highly concentrated. Key industry players have adopted a variety of competitive strategies to meet the needs of emerging markets by increasing production capacity and gaining industry share.

Market Key Players:

• AMCO Proteins
• Cayuga Dairy Ingredients
• Dairy Farmers of America
• Fonterra Co-operative Group
• Kerry Group
• Sodiaal Group
• Lactalis Group
• Arla Foods
• Epi Ingredients
• Other Key Players

For the Dairy Ingredient Market research study, the following years have been considered to estimate the market size: