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Fat Rich Dairy Products Market Analysis

ID: MRFR//3950-HCR | 110 Pages | Author: Snehal Singh| May 2024

The market dynamics of fat-rich dairy products are witnessing notable changes influenced by evolving consumer preferences, nutritional considerations, and industry innovations. Fat-rich dairy products, which include items like butter, cream, and full-fat yogurt, have experienced shifts in demand patterns driven by changing perceptions of dietary fats. One key driver of the market is the changing attitude towards fats, with consumers increasingly embracing the notion that certain fats can be part of a balanced and healthy diet. This shift is evident in the growing popularity of high-fat dairy products, as consumers recognize the potential health benefits associated with these products.

The dairy industry, recognizing the changing consumer landscape, has played a crucial role in shaping the market dynamics of fat-rich dairy products. Manufacturers are responding to the demand for natural and minimally processed foods by offering full-fat versions of traditional dairy items. This trend is not only driven by flavor preferences but also by a desire for satiety and the recognition of the nutritional value that fats can provide. As a result, the market dynamics reflect a move towards an increased availability and diversity of fat-rich dairy products in grocery stores and supermarkets.

Nutritional considerations contribute significantly to the market dynamics of fat-rich dairy products. Consumers are increasingly seeking products that align with various dietary approaches, including low-carb, ketogenic, and high-fat diets. Fat-rich dairy items, being naturally low in carbohydrates, appeal to individuals following these dietary trends. This nutritional positioning influences market dynamics by creating a niche for fat-rich dairy products within the broader context of dietary choices and lifestyles.

In addition to consumer preferences, cultural and regional influences play a role in shaping the market dynamics of fat-rich dairy products. In some culinary traditions, full-fat dairy has long been a staple, and the market dynamics reflect variations in consumer preferences based on cultural backgrounds. As global tastes converge, the market responds with a fusion of traditional and modern offerings, providing a diverse range of fat-rich dairy products to cater to a broad spectrum of consumers.

The health and wellness trend contributes to the market dynamics by influencing product positioning and marketing strategies. Companies are increasingly focusing on communicating the nutritional benefits of fat-rich dairy products, emphasizing attributes such as naturalness, higher nutrient content, and satiety. This health-conscious approach reshapes the perception of fat-rich dairy items, positioning them as wholesome and nutrient-dense options within the broader dairy product landscape.

Retailers and foodservice providers also play a pivotal role in shaping the market dynamics of fat-rich dairy products. The strategic placement of these products in stores and the inclusion of high-fat dairy options in restaurant menus contribute to their visibility and accessibility. The expansion of dedicated sections for specialty and premium dairy products further supports the market dynamics by creating a distinct space for fat-rich offerings.

Despite the positive momentum, challenges exist within the market dynamics of fat-rich dairy products. Concerns related to the saturated fat content of these products may impact consumer choices, especially in the context of broader dietary recommendations. Companies in the industry must navigate these considerations by providing transparent information about the nutritional profiles of their products and emphasizing moderation as part of a balanced diet.

Market Scenario   


Fat-Rich Dairy Products Market is expected to garner a revenue of approximately USD 16 billion by 2024 at a CAGR of approximately 4% during the forecast period of 2019–2024. Dairy products rich in various nutrients, along with conjugated linoleic acid, milk fat globule membrane, and short-chain free fatty acids are commonly referred to as fat-rich dairy products. Surging consumption of various fat-rich dairy products such as ghee, butter, cream and others are amongst the major determinants driving the growth of global fat-rich dairy products market. The health benefits associated with the consumption of ghee and butter, especially in the developing nations of Asia-Pacific, can be attributed to the increasing consumption of fat-rich dairy products. Introduction of flavored fat-rich dairy products are yet another factor catalyzing the demand for such products, which, in turn, is fueling the market growth. However, the rising concerns regarding obesity and cholesterol-based diseases are hampering the growth of the global fat-rich dairy products market. Manufacturers of fat-rich dairy products are expected to witness profitable growth opportunities during the upcoming years due to continuous product innovation and launch of innovative product flavors.   

 

Segmentation 

 

The global fat-rich dairy products market has been segmented based on type, packaging type, distribution channel, and region. By type, the global fat-rich dairy products market has been classified as butter, ghee/clarified butter, cream, and others. The global fat-rich dairy products market has also been segregated, on the basis of packaging type, into bottles & jars, pouches, and others. Based on distribution channel, the market is segregated into store-based and non-store-based. The store-based segment has been further segmented into supermarkets & hypermarkets, convenience stores, and others. The global fat-rich dairy products market has been studied with regard to four key regions—North America, Europe, Asia-Pacific, and the rest of the world. The North American fat-rich dairy products market has further been segmented into the US, Canada, and Mexico. The European fat-rich dairy products market has been classified as the UK, Germany, France, Italy, Spain, and the rest of Europe. The fat-rich dairy products market in Asia-Pacific has been divided into China, India, Japan, Australia and New Zealand, and the rest of Asia-Pacific. The fat-rich dairy products market in the rest of the world has been segmented into South America, the Middle East, and Africa. 

 

Key Players 

 

Land O'Lakes, Inc. (US), Nestle S.A. (Switzerland), Royal FrieslandCampina (Netherlands), General Mills (US), DANA Dairy (Switzerland), GCMMF (AMUL) (India), Groupe Lactalis (France), Saputo Inc. (Canada), Fonterra Co-operative Group (New Zealand), Danone (France), and Kraft Foods Inc. (US) are some of the key players in the global fat-rich dairy products market.   

 

Regional Market Summary 

 

North America dominated the global fat-rich dairy products market in 2018 owing to the surging consumption of convenience food products in the region. Europe was the second-largest market in terms of revenue share, in 2018 due to the increasing retail consumption of fat-rich dairy products in Belgium, Germany, and France. However, the Asia-Pacific fat-rich dairy products market is expected to register the highest CAGR during the forecast period owing to the increasing consumption of ghee and butter in the region due to their health benefits. India, Australia, and New Zealand are the major country-level market contributing to the growth of the regional market. 

 

Global Fat-rich Dairy Products Market, by Type



  • Butter

  • Ghee/Clarified Butter

  • Cream

  • Others


Global Fat-rich Dairy Products Market, by Packaging Type

  • Bottles & Jars

  • Pouches

  • Others


Global Fat-rich Dairy Products Market, by Distribution Channel

  • Store-Based


    • Supermarkets & Hypermarkets

    • Convenience Stores

    • Others


  • Non-Store-Based


Global Fat-rich Dairy Products Market, by Region


  • North America

    • US

    • Canada

    • Mexico






  • Europe

    • Germany

    • France

    • Italy

    • Spain

    • UK

    • Rest of Europe






  • Asia-Pacific

    • Japan

    • China

    • India

    • Australia and New Zealand

    • Rest of Asia-Pacific






  • Rest of the World (RoW)

    • South America

    • Middle East

    • Africa




Intended Audience

  • Dairy product manufacturers

  • Food and beverage manufacturers

  • Traders, importers and exporters

  • Raw material suppliers

  • Retailers and wholesalers


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