Dairy Ingredients Sales to Sky Rocket Fuelling Market Growth by 2032, States MRFR Report

Market Research Future (MRFR) has published on the “Global Dairy Ingredient Market”.

Global Dairy Ingredient Market

The rising importance of nutritional enrichment in food & beverages as a result of increasing awareness towards maintaining a healthy lifestyle among individuals is expected to have a positive impact over the next eight years. The global dairy ingredients market drivers include increasing demand for nutritious and functional food products, and growing consumption of dairy products in emerging products which support the market growth in the past recent years. In addition, the increasing prevalence of lactose intolerance and dairy allergies, health concerns, and dietary preferences are anticipated to hamper the market growth during the forecast period. Furthermore, rising demand for functional foods and growing demand from emerging economies are expected to offer lucrative opportunities for the market players during the forecast period.

Dairy ingredients in the form of milk powder are fortified in the formulation of infant products on account of providing exceptionally low microbiological levels, high heat stability, and facilitating long processing runs during infant formula production. The rising levels of innovation led by baby food manufacturers in emerging economies including China and India are expected to promote the demand for milk powder over the next years.

Market Synopsis

As per the MRFR assessment, the global dairy ingredient market was valued at 66,489.5 million in 2022 and is expected to reach USD 135,791.9 million by 2032, growing at a 7.5% CAGR.

The increasing consumption of dairy products in emerging nations is another factor driving the market for dairy components globally. Rapid urbanization, rising disposable incomes, and shifting food habits have all occurred in nations like China, India, Brazil, and Southeast Asian countries. Dairy products like milk, cheese, yogurt, and ice cream have become much more popular in these areas as a result. To support the manufacture of these dairy products, there is a commensurate increase in demand for dairy ingredients. Additionally, the demand for dairy components in the processed food sector has also increased as a result of changing lifestyles and an increase in the consumption of convenience foods brought on by urbanization. The rising urban population and shifting dietary trends in emerging nations are now major factors in the expansion of the global dairy ingredients industry.

COVID-19 Impact on Dairy Ingredient Market

The COVID-19 outbreak has had a significant impact on dairy ingredients production. The implementation of lockdowns, travel restrictions, and workforce disruptions in various regions have led to challenges in dairy farms and processing facilities. Labor shortages, reduced milk collection, and limited access to processing plants have hampered production capabilities. The need for stringent health and safety measures has also affected production efficiency and capacity. Additionally, the pricing dynamics in the dairy ingredients market have been influenced by the COVID-19 outbreak. Fluctuating demand and supply imbalances have led to price volatility. The closure of food service establishments and disruptions in the hospitality industry have shifted demand patterns, affecting pricing strategies. Moreover, increased production costs due to implementing safety protocols and adapting to changing market conditions have further impacted pricing dynamics

Access full report @ https://www.marketresearchfuture.com/reports/dairy-ingredients-market-1808

Competitive Landscape

The global dairy ingredients market is highly competitive, with key industry players adopting various strategies such as acquisition and product launches to strengthen their market positions. Most companies in the market are expected to focus on increasing their investment in production facilities and advanced technologies to augment & strengthen their position in the market. The growth of market players is dependent on various factors including urbanization, economic trends, supply chain issues, demand from end-use industries, market conditions, and overall industry development.

Segmentation

By Product Type

• Milk Protein: Milk Protein Concentrate (MPC) is a type of milk protein that has been processed to increase protein content and reduce lactose and fat content. It is produced by ultrafiltration, which separates the protein from the other components of milk based on size. The demand for MPC is driven by the increasing awareness of the health benefits of protein, as well as the growth of the sports and nutrition industry.


• Milk Powder: The growth of dairy ingredients in the milk powder segment has been substantial. Milk powder offers convenience, extended shelf life, and versatility, making it a popular choice for various applications. The demand for milk powder is driven by factors such as increasing consumer preference for long-lasting dairy products


• Milk Protein Concentrate And Milk Protein Iolates: Milk protein concentrate (MPC) is a type of milk protein that has been processed to increase the protein content and reduce the lactose and fat content. It is produced by ultrafiltration, which separates the protein from the other components of milk based on size. The demand for mpc is driven by the increasing awareness of the health benefits of protein, as well as the growth of the sports and nutrition industry. Mpc is a cost-effective source of protein that can be used in a variety of applications, making it a popular ingredient for food manufacturers


• Others: The demand for dairy ingredients in the other product type segment is diverse and encompasses a range of applications. this segment includes dairy ingredients used in products such as infant formula, nutritional supplements, animal feed, cosmetics, and personal care items. in the infant formula sector, dairy ingredients like milk powders and specialized formulations are in high demand due to their nutritional benefits for infants. nutritional supplements, including protein powders and meal replacements, utilize dairy ingredients such as whey protein and casein for their high protein content.

By Form

• Powder: Powdered form of dairy ingredients, which is obtained by removing the moisture content from liquid protein in dairy products. This process helps to increase the shelf life of the milk protein and also makes it easier to transport and store. The dry form of dairy ingredient is used as an ingredient in various food and beverage products, including sports nutrition products, infant formulas, bakery products, dairy products, and confectionery items.


• Liquid: Liquid dairy ingredients are the form that is sold in a liquid or semi-liquid state. It is derived from fresh milk by separating the protein from the other components of milk. Liquid dairy ingredients are used in various food and beverage applications, including nutritional drinks, sports supplements, and infant formula. 

By Category

• Organic: The demand for organic dairy ingredients has witnessed a substantial increase in recent years. Consumers are increasingly seeking products that are produced without the use of synthetic pesticides, hormones, or genetically modified organisms (GMOs). Organic dairy ingredients such as milk, cheese, butter, and yogurt have gained popularity due to their perceived health benefits and environmental sustainability.


• Regular: The demand for regular dairy ingredients remains strong and continues to be a staple in consumer diets worldwide. Regular dairy ingredients such as milk, cheese, butter, and yogurt are widely consumed and incorporated into various culinary applications. For instance, in many households, milk is an essential part of daily breakfast routines, used in cereal, coffee, or tea. Regular dairy ingredients are favored for their taste, versatility, and nutritional value, providing essential nutrients like calcium, protein, and vitamins.

By End Use

• Commercial: The commercial sector's demand for dairy ingredients remains high, as they are essential components in many food products such as bakery, confectionery, and frozen desserts. Dairy ingredients like milk, cream, cheese, and butter are popular choices in the food service industry due to their taste, texture, and functional properties. One instance of a recent product launch in the commercial sector is Nestlé's "Carnation Breakfast Essentials Probiotics" drink, which contains dairy ingredients such as milk and whey protein.


• Residential: The residential segment continues to drive the demand for dairy ingredients, as consumers incorporate them into their daily cooking and meal preparations. Dairy ingredients like milk, cheese, yogurt, and butter are staples in households worldwide. One recent product launch catering to the residential segment is a premium artisanal cheese collection by a renowned dairy company.


• By Distribution Channel


• Supermarkets & hypermarkets: The demand for dairy ingredients in the Supermarkets & Hypermarkets segment remains robust. These retail establishments cater to a wide range of consumers seeking convenience and variety in their shopping experience. Dairy ingredients like milk, cheese, yogurt, and butter are prominently displayed in dedicated sections within supermarkets and hypermarkets. They are popular choices for customers looking to stock their pantries and refrigerators with essential ingredients for cooking, baking, and snacking.


• Convenience Stores: The growth of dairy ingredients in the convenience stores segment has been significant. Convenience stores have become increasingly popular as go-to destinations for quick purchases and on-the-go snacks. Dairy ingredients such as milk, yogurt, cheese sticks, and pre-packaged butter have gained prominence in these stores. They cater to consumers looking for convenient and portable dairy products for immediate consumption. The availability of single-serve portions and innovative packaging formats has further fueled the growth of dairy ingredients in convenience stores.


•  


• Specialty Stores: The demand for dairy ingredients in the specialty stores segment has experienced notable growth. Specialty stores, known for their focus on high-quality and unique products, cater to consumers with specific tastes and preferences. These stores offer a wide range of artisanal and imported dairy ingredients, including specialty cheeses, gourmet butter, organic milk, and cultured dairy products. Consumers frequent specialty stores seeking unique flavors, superior quality, and niche dairy products that are not easily found in mainstream retail outlets.


• Online: The growth of dairy ingredients in the online segment has been remarkable. With the increasing popularity of e-commerce, consumers now have access to a wide variety of dairy ingredients at their fingertips. Online platforms offer convenience, choice, and often competitive pricing, making it an attractive option for purchasing dairy ingredients. The online segment has witnessed the emergence of specialty dairy ingredient retailers, subscription services, and direct-to-consumer brands, further driving the growth of dairy ingredient sales.


• Others: The growth of dairy ingredients in the other distribution channel segment has shown significant potential. This segment encompasses various distribution channels such as food service providers, institutional buyers, wholesale markets, and direct sales to businesses. While not falling under the traditional categories, these channels play a crucial role in the distribution of dairy ingredients to sectors like restaurants, hotels, cafeterias, and catering services. The demand for dairy ingredients in this segment is driven by the need for bulk quantities, specialized products, and customized solutions to meet the specific requirements of these businesses.

• Bakery & Confectionery: Bakery and confectionery are important application areas for the dairy ingredient market. dairy ingredients such as whey protein concentrates and isolates, dairy ingredient concentrates, and caseinates are used in bakery and confectionery products to enhance their nutritional value and provide a range of functional benefits. Also, dairy ingredients play a crucial role in the bakery and confectionery industry, providing nutritional benefits, improving texture, and enhancing the overall quality of a wide range of products. These factors will further drive demand for bakery and confectionery in the dairy ingredient market


• Food & Beverages: The application of dairy ingredients in the beverage industry is becoming increasingly popular due to its nutritional properties and functional benefits. dairy ingredients are commonly used in the production of various beverages, including sports drinks, dairy-based drinks, and nutritional drinks. Sports drinks are one of the most common beverages that use dairy ingredients. The high protein content in dairy ingredients helps in muscle recovery and growth, making it a popular ingredient among athletes and fitness enthusiasts


• Infant & Milk Formula: Infant formula is one of the major applications for dairy ingredients in the market. Infant formula is a substitute for breast milk, which is designed to provide essential nutrients to infants who are unable to be breastfed or who require additional supplementation. dairy ingredient is a key ingredient in infant formula as it provides the necessary amino acids and protein needed for healthy growth and development. dairy ingredient in infant formula is subject to strict regulatory requirements to ensure the safety and quality of the product. The composition of infant formula must meet the nutritional requirements set by regulatory agencies, such as the Food and Drug Administration (FDA) in the United States or the European Food Safety Authority (EFSA) in Europe


• Others: The other application segment in the dairy ingredient market includes a wide range of products where dairy ingredients are used as an ingredient. This segment includes products such as sauces, dressings, soups, ready-to-eat meals, pet foods, and sports nutrition products. In sauces and dressings, dairy ingredients can be used as a thickening and stabilizing agent. In soups and ready-to-eat meals, they can be used to enhance the nutritional value and texture of the products

• North America: The North American dairy ingredients market is expected to grow at a significant CAGR from 2022 to 2028. The increase in the athlete population and increased health and diet consciousness among youth has increased the growth in the dairy ingredients market in North America. The inclusion of technology and new features by vendors has proven to have a positive impact on the industry. Veganism trends with the surge in demand for plant-based products have been detrimental to the dairy ingredients market. The pandemic has affected the management and marketing of milk and its by-products causing a dramatic fall in prices of milk.


• Europe: Europe has more than 12,000 milk processing and production facilities across the continent, being a significant player in the global food and beverage market. In terms of consumption, EU countries have the largest consumer base in the global market. The European Whey Producers Association has stated that Europe ranks 1 as a dairy producer with 300 registered kinds of cheese and dairy products. Moreover, new products and processes are also being introduced to ramp up growth.


• Asia-Pacific: An increase in disposable income, rapid urbanization, and growing awareness about health and wellness is a major drivers of the dairy industry in this region. Asia-Pacific has the largest consumer base for dairy products in the world. The growing population in the region and rising middle class, especially in countries such as India and China has doubled the consumption of dairy products over the last 30 years. In this region liquid milk is the most consumed dairy product however it is adopting other dairy products including yogurt and sweetened or flavored milk as well.


• Rest of the World: The dairy ingredients market in the rest of the world (ROW) region, which includes countries in South America, the Middle East, and Africa, is expected to grow steadily in the coming years. The market is driven by increasing awareness of the health benefits of protein consumption, rising disposable incomes, and the growing demand for functional foods and supplements.