Certified Global Research Member
Isomar fd.webp Wcrc 57.webp
Key Questions Answered
  • Global Market Outlook
  • In-depth analysis of global and regional trends
  • Analyze and identify the major players in the market, their market share, key developments, etc.
  • To understand the capability of the major players based on products offered, financials, and strategies.
  • 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
Why Choose Market Research Future?
  • Vigorous research methodologies for specific market.
  • Knowledge partners across the globe
  • Large network of partner consultants.
  • Ever-increasing/ Escalating data base with quarterly monitoring of various markets
  • Trusted by fortune 500 companies/startups/ universities/organizations
  • Large database of 5000+ markets reports.
  • Effective and prompt pre- and post-sales support.

Dairy Ingredients Market Research Report Information by Product Type (Milk Powders, Milk Protein concentrate and milk protein Isolate, Whey Ingredients, Lactose, Others), by Form (Powder, Liquid), By Category (Organic, and Regular), By End Use (Commercial, Residential), By Distribution Channel (Supermarkets/Hypermarkets, Convenience Stores, Specialty Stores, Online, Others), By Application (Bakery and Confectionary, Food and Beverages, Infant milk formula, Others), By Region (North America, Europe, Asia Pacific, Rest of World) - Forecast Till 2032


ID: MRFR/F-B & N/1276-CR | 128 Pages | Author: Varsha More| April 2024

Global Dairy Ingredients Market Overview


Dairy Ingredients Market Size was valued at USD 70,545 Million in 2023. The Dairy Ingredients industry is projected to grow from USD 75,024 Million in 2024 to USD 1,35,791.9 Million by 2032, exhibiting a compound annual growth rate (CAGR) of 7.70% during the forecast period (2024 - 2032). Rising importance of nutritional enrichment in food & beverages because of increasing awareness towards maintaining a healthy lifestyle among individuals is expected to have a positive impact over the next eight years. Rising consumption of protein fortified functional food products by vegetarians to supplement their protein requirements is projected to have a strong impact on the market. Increasing demand for protein supplements in food items has resulted in new product launches by food & beverage companies including Kellogg, which is expected to fuel the demand for whey and milk powder.


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, confectionary, 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 because of consumers’ growing preference for nutritious and useful food items. Additionally, the demand for dairy components in the processed food sector has also increased because 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 Product Type Insights


The Dairy Ingredients Market segmentation, based on product type, includes Milk powders, Milk Protein Concentrate and Milk Protein Isolate, Whey Ingredients, Lactose, and others. The Milk Powders segment accounted for the largest market share in 2020, with a market value of USD 27,341.8 million; it is expected to register a CAGR of 8.6% during the forecast period. 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, the growing popularity of milk powder as an ingredient in sports nutrition products and as a dairy alternative in vegan and lactose-free formulations has further fueled its growth., making it a practical choice for various culinary applications.


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


Dairy Ingredients Market, by product type, 2022 & 2032


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


Dairy Ingredients Form Insights


The Dairy Ingredients Market segmentation, based on Form, includes Powder, Liquid. The Powder segment accounted for the largest market share in 2020, with a market value of USD 56,412.5 million; it is expected to register a CAGR of 7.7% during the forecast period. 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 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.


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, based on Category, includes Organic, Regular. The Regular segment accounted for the largest market share in 2020, with a market value of USD 51,834.7 million, it is expected to register a CAGR of 6.4% during the forecast period. 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. Despite the increasing popularity of alternative dairy products, regular dairy ingredients maintain a significant market share due to their long-established presence and familiarity among consumers.


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 segmentation, based on End Use, includes Commercial, Residential. The Commercial segment accounted for the largest market share in 2020, with a market value of USD 44,196.0 million, it is expected to register a CAGR of 7.4% during the forecast period. The commercial sector's demand for dairy ingredients remains high, as they are essential components in many food products such as bakeries, confectionery, and frozen desserts. Dairy ingredients like milk, cream, cheese, and butter are popular choices in the foodservice 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. This product targets health-conscious consumers seeking a convenient and nutritious breakfast option, highlighting the demand for dairy ingredients in the commercial sector catering to health-conscious customers.


Figure 4: 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, based on Distribution Channel, includes Supermarkets/Hypermarkets, Convenience Stores, Specialty Stores, Online, and Others. The Supermarkets/Hypermarkets segment accounted for the largest market share in 2020, with a market value of USD 22,278.5 million; it is expected to register a CAGR of 7.3% during the forecast period. 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. The availability of different brands, types, and flavors of dairy ingredients in these stores reflects the ongoing demand and preferences of consumers who value the convenience and extensive selection offered by supermarkets and hypermarkets.


Figure 5: Dairy Ingredients Market, by Distribution Channel, 2022 & 2032 (USD Million)


Dairy Ingredients Market, by Distribution Channel, 2022 & 2032


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


Dairy Ingredients Application Insights


The Dairy Ingredients Market segmentation, based on Application, includes Bakery and Confectionary, Food and Beverages, Infant Milk Formula, and Others. The Food and Beverages segment accounted for the largest market share in 2020, with a market value of USD 14,708.2 million; it is expected to register a CAGR of 7.9% during the forecast period. The application of dairy ingredient in the beverage industry is becoming increasingly popular due to its nutritional properties and functional benefits. dairy ingredient is 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.


Figure 6: 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


By Region, the study segments the market into North America, Europe, Asia Pacific, South America, and the Rest of World. The Asia Pacific segment accounted for the largest market share in 2020, with a market value of USD 18,756.1 million, it is expected to register a CAGR of 9.1% during the forecast period. Increase in disposable income, rapid urbanization and growing awareness about health and wellness is a major driver 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 have doubled the consumption of dairy products over the last 30 years. The APAC dairy products market is projected to grow at over 10%. In this region liquid milk is the most consumed dairy product, however it is adopted to other dairy products includes yogurt and sweetened or flavored milk as well. India and Indonesia are the fastest growing dairy markets in this region.


Figure 7: DAIRY INGREDIENTS MARKET SHARE BY REGION 2022 (%)


DAIRY INGREDIENTS MARKET SHARE BY REGION 2022


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


The North America dairy ingredients market is expected to grow at a significant CAGR from 2022 to 2028. Increase in athlete population and increased health and diet consciousness among youth has increased the growth in dairy ingredients market of North America. Inclusion of technology and new features by vendors has proven to have a positive impact in the industry. The demand for dairy products in North America is not only as food & beverages but also for animal feed, pharmaceuticals & nutraceuticals, and personal care. Moreover, there has been an expansion in whole milk powder manufacturing catering to the export global customer demand. 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 dairy producer with 300 registered kinds of cheese and dairy products. Recently due to decreasing milk prices production has declined. However, Western Europe especially is likely to witness a significant growth in the dairy ingredients market due to rising GDP and higher standards of living. 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.


Dairy Ingredients Key Market Players & Competitive Insights


The Dairy Ingredients Market is anticipated to register a CAGR of 7.3% during the review period. The key factors driving the growth in the market are the increasing preference for snack products that have higher protein content along with the shift in the trend of consuming organic and non-meat protein products. However, the growing preference and launch of plant-based protein ingredients and the veganism culture are anticipated to hamper the growth of the market during the forecast period. Nevertheless, the technological advancements by the key players coupled with escalating milk production are creating lucrative opportunities for manufacturers in the Dairy Ingredients Market. The significant rise in the incidence of lactose intolerance in the global population might pose a risk for the players in the market during the forecast period. The 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.


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)

  • Co-Operative Limited (Ireland)

  • Saputo Inc. (Canada)

  • Volac International Ltd. (the United Kingdom)

  • Nestle (Switzerland)

  • Danone S.A.(France)


Dairy Ingredients Industry Developments


April 2023: Volac introduced a new ingredient in the Europe market namely Volactive Pro2O Ready-to-Mix (RTM). This product allows manufacturers in developing shakes that are clear in solution, thus manufacturing refreshing new fruit-based flavors, such as citrus and melon, for consumers to explore.


November 2022: Fonterra Group launched lactoferrin under the SureStart brand of NZMP. Lactoferrin is a whey protein that has a characteristic ability to bind iron which is most widely used in infant formula preparations.


Dairy Ingredients Market Segmentation


Dairy Ingredients Product Type Outlook



  • Milk Powders

  • Milk Protein Concentrate and Milk Protein Isolate

  • Whey Ingredients

  • Lactose

  • Others


Dairy Ingredients Form Outlook



  • Powder

  • Liquid


Dairy Ingredients Category Outlook



  • Organic

  • Regular


Dairy Ingredients End Use Outlook



  • Commercial

  • Residential


Dairy Ingredients Distribution Channel Outlook



  • Supermarkets/Hypermarkets

  • Convenience Stores

  • Specialty Stores

  • Online

  • Others


Dairy Ingredients Application Outlook



  • Bakery and Confectionary

  • Food and Beverages

  • Infant Milk Formula

  • Others


Dairy Ingredients Regional Outlook



  • North America

    • US

    • Canada

    • Mexico



  • Europe

    • Germany

    • UK

    • France

    • Spain

    • Italy

    • Rest of Europe



  • Asia-Pacific

    • India

    • China

    • Japan

    • South Korea

    • Indonesia

    • Vietnam

    • Australia & New Zealand

    • Philippines

    • Rest of Asia-Pacific



  • Rest of World

    • South America

    • Middle East

    • Africa



Report Attribute/Metric Details
Market Size 2024 USD 75,024 million
Market Size 2032 USD 1,35,791.9 million
Compound Annual Growth Rate (CAGR) 7.70% (2024-2032)
Base Year 20223
Forecast Period 2024-2032
Historical Data 2020 & 2021
Forecast Units Value (USD Million)
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Segments Covered By Product Type, by Form, By Category, By End Use, By Distribution Channel, By Application, By Region
Geographies Covered North America, Europe, Asia Pacific, South America, and Rest of World.
Countries Covered The U.S, Canada, Mexico, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, Indonesia, Vietnam, Australia and New Zealand, and Philippines
Key Companies Profiled 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), Saputo Inc. (Canada), Volac International Ltd. (the United Kingdom), Nestle (Switzerland), Danone S.A.(France), among others.
Key Market Opportunities Innovation and product development Growing food service industry
Key Market Dynamics Rising consumption of dairy milk products Increasing health and wellness Trends Changing consumer preference Price volatility


Frequently Asked Questions (FAQ) :

The Dairy Ingredients Market accounted for USD 70,545 Million.

Rising consumption of dairy milk products, increasing health and wellness Trends, are the key driving factor for the Dairy Ingredients Market.

The growth rate of the Dairy Ingredients Market is 7.70% CAGR.

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), Kerry Group plc (Ireland), Dairy Farmers of America Inc. (United States), Groupe Lactalis (France), Ornua Co-Operative Limited (Ireland), Saputo Inc. (Canada), Volac International Ltd. (the United Kingdom), Nestle (Switzerland), Danone S.A.(France), among others, are the key players in the Dairy Ingredients Market.

Regular category led the Dairy Ingredients Market.

Leading companies partner with us for data-driven Insights
client_1 client_2 client_3 client_4 client_5 client_6 client_7 client_8 client_9 client_10
Kindly complete the form below to receive a free sample of this Report
Please fill in Business Email for Quick Response

We do not share your information with anyone. However, we may send you emails based on your report interest from time to time. You may contact us at any time to opt-out.

Purchase Option
Single User $ 4,950
Multiuser License $ 5,950
Enterprise User $ 7,250
Compare Licenses
Tailored for You
  • Dedicated Research on any specifics segment or region.
  • Focused Research on specific players in the market.
  • Custom Report based only on your requirements.
  • Flexibility to add or subtract any chapter in the study.
  • Historic data from 2014 and forecasts outlook till 2040.
  • Flexibility of providing data/insights in formats (PDF, PPT, Excel).
  • Provide cross segmentation in applicable scenario/markets.