ID: MRFR/F-B & N/8094-CR | 110 Pages | Published By Snehal Singh on November 2022
Dairy Cream Market is projected to register a CAGR of 3.90% and reach a value of USD 20,841.3 million by 2028.
The global Dairy cream market is projected to register a CAGR of 3.90% and reach a value of USD 20,841.3 million by 2028. Dairy cream is composed of high fat layer skimmed from the top of the milk before homogenized. In the industrial production process of cream, the process of separation of fat globules is accelerated by using centrifugal separators. Depending on the total fat content, the cream is classified into various types such as thick cream, low-fat cream, and sour cream.
COVID-19 Impact Analysis
The COVID-19 pandemic has adversely affected the dairy cream business and will continue to pose risks. There are numerous risks related to the outbreak of the COVID-19 pandemic. COVID-19 spread globally in 2020 and continues to impact economic activity around the globe. COVID-19 caused disruption and volatility in the global capital markets and resulted in an economic slowdown during 2020. The pandemic and its associated economic uncertainty negatively impacted the dairy cream market in most regions and across various customers. In regard to COVID-19, governments around the world have introduced certain measures, such as travel prohibitions, shutdowns of certain businesses, bans on group events and gatherings, shelter-in-place orders, curfews, and recommendations of practicing social distancing.
The Global Dairy Cream Market is expected to grow at a CAGR of 3.90% during the forecast period 2022-2028. Dairy creams are designed to enhance the flavor of the product. Health benefits associated with the consumption of dairy cream is considered one of the key factors for the rising growth of the global dairy cream market. Additionally, increasing application areas of dairy cream and increasing demand for low-fat dairy cream are driving the market growth. However, the adoption of vegan and plant-based protein products and a rise in incidences of lactose intolerance are hampering the growth of the market. The global dairy cream market is estimated to emerge as a lucrative environment for the vendors in both developed and developing economies due to the increasing demand for organic products.
The application of dairy cream is rising in the food & beverage industry due to its ease of use and richness. The use of dairy cream in high-end food and beverages has increased in the developed nations in Europe and North America. Dairy cream is essential in manufacturing various items such as chocolates, pastries, fresh dairy products, biscuits, ready meals, soups, and broths. Moreover, it has various functional properties to suit various applications. For instance, it helps build texture and gives rich and velvety viscosity to soups and sauces due to cream homogenization. Thus, the increasing application areas of dairy creams in the food & beverage industry is expected to drive market growth during the forecast period.
Lactose intolerance is the inability to digest the milk sugar lactose, which causes gastrointestinal symptoms of flatulence, bloating, cramps, and diarrhea in some individuals. This results from a shortage of lactase enzymes, which help break down lactose into simpler forms, glucose, and galactose. According to the US Department of Health & Human Services, approximately 65% of the global human population has a reduced ability to digest lactose after infancy. Lactose intolerance in adults is most prevalent in East Asian countries such as China, Hong Kong, and Japan, with more than 90 percent of adults being affected. Lactose intolerance is common in people in European and African countries. The rising cases of lactose intolerance have led food & beverage manufacturers to introduce lactose-free products. Thus, the rise in incidences of lactose intolerance is expected to restrain the growth of the global dairy cream market during the forecast period.
Consumer awareness across the globe is rising in proportion to the environmental and health impact of chemicals during food cultivation and processing. Due to the increasing awareness regarding the harmful impact of chemicals on human health, consumers are shifting toward the use of organically cultivated and processed products. Thus, the global demand for organically produced products is growing rapidly. Along with North America and Europe, the adoption of organic food products is increasing in Asia-Pacific and the Middle East & Africa. Consumers in these regions are becoming aware of the benefits of organic dairy products, which creates an opportunity for the producers of dairy cream. Manufacturers are trying to tap into this pool of opportunities by investing in R&D for the launch of innovative products. For instance, in 2018, Westby Cooperative Creamery launched sour cream under its organic product category. Thus, the demand for organic products is expected to create opportunities for market players during the forecast period.
Milk derived from various animal sources, including cows and buffalos, is the key raw material used for manufacturing dairy cream. Therefore, milk prices have a severe impact on the production costs of dairy cream. The prices of milk vary and depend on various factors such as production, weather, and global demand. The following figure depicts the year-on-year variation in milk prices in various countries between 2013 and 2018.Source: United States Department of Agriculture (USDA)
The graph indicates the fluctuation in farm-gate milk prices in different regions between 2013 and 2018. Such fluctuations affect the manufacturing cost of dairy cream. For instance, an increase in the price of milk leads to the increased price of the dairy cream produced. This results in a supply-demand gap and affects the profit margins of manufacturers. Thus, fluctuating raw material prices pose a challenge for market players in the global dairy cream market.
By Product Type
Based on product type, the global dairy cream market has been segmented into thickened cream & whipping cream, sour cream, fresh cream and others. The thickened cream & whipping cream segment accounted for the largest market share of 36.63% in 2021 and is likely to register a CAGR of 4.13% during the forecast period.
Based on end-use, the global dairy cream market has been segmented into food processing, food service and food retail. The food processing segment accounted for a larger market share of 53.42% in 2021, whereas the food service segment is estimated to register the highest CAGR of 4.22% during the forecast period.
Global Dairy cream Market Share, by Region, 2021 (%)Sources: MRFR Analysis
By region, the global Dairy cream market has been divided into North America, Europe, Asia-Pacific, South America, Middle East and Africa. Europe accounted for the largest market share of 34.08% in 2021, the market is expected to register the highest CAGR of 3.63% during the forecast period. North America was the second-largest market in 2021, the market is projected to exhibit a CAGR of 3.74%.
Europe is accounting for 34.08% of market proportion in the year of 2021 and it is projected to expand at a high CAGR of 3.63% the forecast period of 2022-2028. The UK, Germany, the Netherlands, and France have significant contribution in the growth of the market in Europe. The increasing use of dairy cream in bakery products is driving the growth of the dairy cream market in Europe. Moreover, the presence of manufacturers such as Arla Foods amba, Lactalis Group, and Royal FrieslandCampina N.V., along with various strategies adopted by these manufacturers, is expected to propel the market during the forecast period. For instance, in May 2019, Lactalis Group acquired Nuova Castelli S.p.A., an Italy-based company specializing in the production and distribution of most of the renowned dairy products in the Italian dairy industry.
North America is also accounting for significant market share in the global dairy cream market in the year of 2021 and is expected to grow at a CAGR of 3.74% during the forecast period 2022-2028. The US is a key market for dairy cream manufacturers, followed by Canada. The consumption of dairy cream is high in the US due to its preference in soups, sauces, and dressings. Moreover, the high consumption of frozen desserts in North America is boosting the sales of dairy cream. The demand for organic products is rising in North America, influencing manufacturers to launch organic dairy cream. Moreover, owing to the high prevalence of obesity in the region, manufacturers are focusing on launching products with low-fat claims.
The market comprises tier-1, tier-2, and local players. The tier-1 and tier-2 players have a global reach and diverse product portfolios. Companies such as Royal FrieslandCampina N.V., Dairy Farmers of America, Agropur, and Saputo Inc. dominate the global market due to brand reputation, product differentiation, financial stability, and diversified regional presence.
Prominent players in the global Dairy cream market include Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF/Amul) (India), Arla Foods (Denmark), Land O'Lakes, Inc. (US), Lactalis Group (France), Royal FrieslandCampina N.V. (Netherlands), Agropur (Canada), Saputo Inc. (Canada), Dairy Farmers of America, Inc. (US), Fonterra Co-operative Group (New Zealand), and Organic Valley (US).
Few developments that occurred in recent times influencing the market growth of Dairy cream are listed below:
Scope of the Report
Global Dairy cream Market, by Product Type
Global Dairy cream Market, by End-Use
Global Dairy cream Market, by Region
|Market Size||USD 20,841.3 million|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Type, End-Use and region|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Arla Foods (Denmark), Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMF / Amul) (India), Land O'Lakes, Inc. (USA), Royal FRIESLANDCAMPINA NV (Netherlands), Lactalis Group (France), Agropur (Canada), Dairy Farmers of America, Inc. (USA), Saputo Inc. (Canada), Organic Valley (USA) and Fonterra Co-operative Group (New Zealand)|
|Key Market Opportunities||Identifying potential customers and key opportunities in the marketplace.|
|Key Market Drivers||increase in consumer demand for healthy foods|
Dairy Cream Market projected to grow at a 3.90% CAGR between 2021-2028.
Europe accounted for the largest market share in Dairy Cream Market
Arla Foods (Denmark), Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMF / Amul) (India), Land O'Lakes, Inc. (USA), Royal FRIESLANDCAMPINA NV (Netherlands), Lactalis Group (France), Agropur (Canada), Dairy Farmers of America, Inc. (USA), Saputo Inc. (Canada), Organic Valley (USA) and Fonterra Co-operative Group (New Zealand)
Dairy Cream Industry Size is estimated to reach USD 20,841.3 million by 2028