Dairy Ingredients Market Research Report - Forecast to 2032

Dairy Ingredients Market Research Report Information By Category (Organic, Regular), By Form (Powder, Liquid), By End Use, (Commercial, Residential), By Distribution Channel, (Supermarkets/Hypermarket, Convenience Stores, Specialty Stores, Online, Others), By Application, (Bakery & Confectionery, Food & Beverages, Infant Milk Formula, Others) And By Region (North America, Europe, Asia-Pacific, And Rest Of The World) - Forecast Till 2032

ID: MRFR/F-B & N/1276-CR | 110 Pages | Author: Varsha More | August 2023         

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Global Dairy Ingredients Market Overview


Dairy Ingredients Market Size was valued at USD 66,489.65 million in 2022. The dairy ingredients market industry is projected to grow from USD 135,791.90 million by 2032, exhibiting a compound annual growth rate (CAGR) of 7.5% during the forecast period (2023 - 2032). The rising consumer desire for wholesome and useful food products is one factor driving the growth of the worldwide dairy ingredients market. However, dairy ingredient producers confront intense competition from both domestic and foreign businesses in this highly competitive market. Because of this, producers of dairy ingredients may experience pricing pressure and reduced profit margins.


Dairy Ingredients Market Overview


Source: Secondary Research, Primary Research, MRFR Database and Analyst Review


Dairy Ingredients Market Trends



  • INCREASING DEMAND FOR NUTRITIOUS AND FUNCTIONAL FOOD PRODUCTS


The rising consumer desire for wholesome and useful food products is one factor driving the growth of the worldwide dairy ingredients market. The important nutrients proteins, vitamins, minerals, and amino acids are abundant in dairy components. Numerous food products, including infant formula, baked goods, confectionery, sports nutrition, and dietary supplements, are made with these substances. Consumers are looking for food products that offer extra nutritional benefits as their focus on health and wellness increases. By improving the nutritional profile and practical qualities of diverse foods, dairy ingredients meet this requirement. The demand for dairy ingredients around the world has increased as a result of consumers growing preference for nutritious and useful food items.


Additionally, 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.


Dairy Ingredients Market Segment Insights


Dairy Ingredients Type Insights


Milk protein, milk powders, concentrates, and isolates, whey components, lactose, and others are the market segments for ingredients. 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, rising demand for infant formula, and the convenience it provides in baking, cooking, and beverage preparation. Additionally, 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.


Figure 1: Dairy Ingredients Market, by Type, 2022 & 2032 (USD Million)


Dairy Ingredients Market, by Type, 2022 & 2032


Source: Secondary Research, Primary Research, MRFR Database and Analyst Review


Dairy Ingredients Form Insights


The Dairy Ingredients Market segmentation, is based on powder and liquid. The Powder segment accounted for the largest market share in 2021, with a market value of USD 56,576.5 million; it is expected to register a CAGR of 7.7% during the forecast period. 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. Whereas, liquid dairy ingredients is used in various food and beverage applications, including nutritional drinks, sports supplements, and infant formula.


Figure 2: Dairy Ingredients Market, By Form, 2022 & 2032 (USD Million)


Dairy Ingredients Market, By Form, 2022 & 2032


Source: Secondary Research, Primary Research, MRFR Database and Analyst Review


Dairy Ingredients Category Insights


The Dairy Ingredients Market segmentation is based on organic and regular. 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. Whereas, 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.


Figure 3: Dairy Ingredients Market, by Category, 2022 & 2032 (USD Million)


Dairy Ingredients Market, by Category, 2022 & 2032


Source: Secondary Research, Primary Research, MRFR Database and Analyst Review


Dairy Ingredients End-Use Insights


The Dairy Ingredients Market with the end-user segment is bifurcated into commercial and residential. 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. However, 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. This collection features a variety of handcrafted cheeses made from high-quality milk sourced from local farms. The launch reflects the ongoing demand for premium and specialty dairy ingredients in residential kitchens, as consumers seek to elevate their culinary experiences with authentic and flavorful dairy products.


Figure 3: Dairy Ingredients Market, by End Use, 2022 & 2032 (USD Million)


Dairy Ingredients Market, by End Use, 2022 & 2032


Source: Secondary Research, Primary Research, MRFR Database and Analyst Review


Dairy Ingredients Distribution Channel Insights


The Dairy Ingredients Market segmentation is based on Supermarkets/Hypermarket Convenience Stores, Specialty Stores, Online, and Others. 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. Additionally, 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.


Figure 3: Dairy Ingredients Market, by Distribution Channel, 2021 & 2032 (USD Million)


Dairy Ingredients Market, by Distribution Channel, 2021 & 2032


Source: Secondary Research, Primary Research, MRFR Database and Analyst Review


Dairy Ingredients Application Insights


The Dairy Ingredients Market segmentation is based on bakery & confectionery, food & beverages, infant milk formula, and others. 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. Additionally, the application of dairy ingredients in the beverage industry is becoming increasingly popular due to their 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.


Figure 3: Dairy Ingredients Market, by Application, 2022 & 2032 (USD Million)


Dairy Ingredients Market, by Application, 2022 & 2032


Source: Secondary Research, Primary Research, MRFR Database and Analyst Review


Dairy Ingredients Regional Insights


The Asia Pacific dairy ingredients market accounted for the largest market share in 2022 and is expected to exhibit a 9.1% CAGR during the study period. The Europe segment was the second-largest market in 2022, it is projected to exhibit a CAGR of 6.0%.


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 adapted to other dairy products including yogurt and sweetened or flavored milk as well. One of the fastest-growing dairy markets in this region is considered India and Indonesia. 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 the marketing of milk and its by-products causing a dramatic fall in the prices of milk.


Figure 4: DAIRY INGREDIENTS MARKET SHARE BY REGION 2021 (%)


DAIRY INGREDIENTS MARKET SHARE BY REGION 2021


Source: Secondary Research, Primary Research, MRFR Database and Analyst Review


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. The Asia Pacific dairy ingredient segment accounted for the largest market share in 2022, with a market value of USD 21,600.3 million; it is expected to register a CAGR of 9.1% during the forecast period.


Dairy Ingredients Key Market Players & Competitive Insights


Key players operating in the Dairy Ingredients Market are 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.


Key Companies in the Dairy Ingredients market include



  • FrieslandCampina N.V. (Netherlands),

  • Arla Foods (Denmark),

  • Glanbia Plc (Ireland),

  • Fonterra Co-operative Group Limited (New Zealand),

  • Kerry Group plc (Ireland),

  • Dairy Farmers of America Inc. (United States),

  • Groupe Lactalis (France),

  • Ornua Co-Operative Limited (Ireland)


Dairy Ingredients Industry Developments


In November 2021: Lactalis acquired the natural cheese business of the Kraft Heinz company in the United States. These strategic step made by the company has increased the market presence of the company in major North American nations such as the US & Canada.


February 2018:  Yeo Valley Dairies Limited, a division of Yeo Valley Group Limited, the top organic dairy company in Britain, was purchased by Arla. Arla was granted the license to market its organic dairy products under the Yeo Valley brand in the UK as a result.


Dairy Ingredients Market Segmentation


Dairy Ingredients Type Outlook



  • Milk Powders

  • Milk Protein Concentrates and Milk Isoaltes

  • Whey Ingredients

  • Lactose

  • Others


Dairy Ingredients Category Outlook



  • Organic

  • Regular


Dairy Ingredients By Form

  • Powder

  • Liquid


Dairy Ingredients By End Use

  • Commercial

  • Residentia


Dairy Ingredients Distribution Channel Outlook



  • Supermarkets/Hypermarket

  • Convenience Stores

  • Specialty Stores

  • Online

  • Others


Dairy Ingredients By Application

  • Bakery & Confectionery

  • Food & Beverages

  • Infant Milk Formula

  • Others


Dairy Ingredients Regional Outlook



  • North America

    • US

    • Canada



  • Europe

    • Germany

    • France

    • UK

    • Italy

    • Spain

    • Rest of Europe



  • Asia-Pacific

    • China

    • Japan

    • India

    • Australia & New Zealand

    • Rest of Asia-Pacific



  • Rest of the World

    • South America

    • Middle East

    • Africa



Report Scope:

Report Attribute/Metric Details
Market Size 2022 USD 66,489.65 million
Market Size 2032 USD 135,791.90 million
Compound Annual Growth Rate (CAGR) 7.5% (2022-2032)
Base Year 2022
Forecast Period 2022-2032
Forecast Units Value (USD Million)
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Segments Covered Type, Form, End Use, Application, Distribution Channel, and Region
Geographies Covered North America, Europe, Asia Pacific, South America, and Middle East & Africa
Countries Covered The U.S, Canada, Mexico, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, Argentina, and Brazil
Key Companies FrieslandCampina N.V. (Netherlands),Arla Foods (Denmark),Glanbia Plc (Ireland),Fonterra Co-operative Group Limited (New Zealand),Kerry Group plc (Ireland),
Key Market Opportunities Rising Demand for Functional FoodsGrowing Demand from Emerging Economies
Key Market Dynamics Increasing Demand for Nutritious and Functional Food Products




Frequently Asked Questions (FAQ) :

The market was valud at USD 66,489.65 million in 2022.

Increasing Demand for Nutritious and Functional Food Products

The growth rate of the Dairy Ingredients market is 7.5% CAGR.

The Asia Pacific region held the largest market share in the dairy ingredients market.

FrieslandCampina N.V. (Netherlands), Arla Foods (Denmark), Glanbia Plc (Ireland), Fonterra Co-operative Group Limited (New Zealand)

Key Questions Answered

  • Global Market Outlook
  • In-depth analysis of global and regional trends
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  • Identify disrupting products, companies, and trends.
  • To identify opportunities in the market.
  • Analyze the key challenges in the market.
  • Analyze the regional penetration of players, products, and services in the market.
  • Comparison of major players’ financial performance.
  • Evaluate strategies adopted by major players.
  • Recommendations
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