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Dairy Ingredients Market Size Forecast to Reach $80.15 Billion by 2025

Dairy Ingredients Ma

iCrowdNewswire   Oct 27, 2020  11:55 AM ET

Dairy Ingredients Market size is forecast to reach $80.15 Billion by 2025, growing at a CAGR of 6.89% during the forecast period 2020-2025. Dairy ingredients are foodstuffs (milk ingredients) that help meet nutritional, organoleptic and functional needs of the dairy products. Nowadays these ingredients are highly valued in food industry especially for their multiple functions and are essential elements for industrial applications. Whey, which is contains about 70%–90% of the processed milk, contains lactose, nitrogenous substances, and minerals. Therefore, it is usually used as an ingredient by being made into whey powder in biscuits, chocolate, and ice cream industry. Demand for low-fat and healthy food and beverage foods among the population, changing consumption habits of consumers towards ready-to-eat and functional food and increased health benefits of products with dairy ingredients are driving the market growth during the forecast period 2020-2025

Type – Segment Analysis

Skimmed Milk Powder held the largest share in the type segment of Dairy Ingredients Market in 2019. The growth of this segment is owing to the growing food industry, bakery, and confectionery foods. Manufacturers use skimmed milk powder in baking recipes to enhance the tenderness of the food such as doughnuts, cakes, and bread. This has resulted in a rapid surge in the demand of its products in the recent years. Milk Protein Concentrate & Isolate (MPC & MPI) is set to be the fastest growing segment and is estimated to register the highest CAGR of 6.3% during the forecast period 2020-2025. This is owing to boosting sales of milk protein as an ingredient in various application industries and adoption of nutrition-rich dairy products by the masses.

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Application – Segment Analysis

Bakery & Confectionery held the major share in the application segment of Dairy Ingredients Market in 2019. Dairy ingredients, especially butter, are highly valuable in the bakery industry. They bring taste, texture, and a nice color to many products such as biscuits, cakes, and croissants. Strongly associated with a natural image, dairy ingredients also can be used as claims on packaging to better valorize baked goods products which eventually drives the market growth. Dairy Products is set to be the fastest growing CAGR during the forecast period 2020-2025. This is owing to growing number of product portfolio launches by dairy companies, ever growing consumer base worldwide for dairy products and increasing key investments in nutritional replacements of meals in the form of dried foods by major market players.

Geography – Segment Analysis

Asia-Pacific dominates the geography segment of Dairy Ingredients Market with a share of 38.7% in 2019, followed by Europe. Increasing market infrastructure of food and beverages, increasing demand from the urban population for better nutritious foods and presence of key market players in the region have helped in the growth of Dairy Ingredients Market infrastructure in this region. Europe held the second place in the geography segment share of the market, owing to shifting consumer lifestyle towards healthier dairy products, increasing investment in dairy-related products and services and growing awareness about benefits of dairy ingredients in dairy food.

Asia-Pacific is estimated to grow at the fastest rate at a higher CAGR during the forecast period 2020-2025. This is owing to rapidly growing demand of dairy based diet, entry of new market players in the region, and increasing disposable income of the population.

Drivers – Dairy Ingredients Market

Growing demand for nutritionally enhanced foods

The demand for diet that are high in nutritional content is granted for those who live in the industrialized world in developing countries. For such populations, a diet that is balanced in adequate levels of vitamins and minerals is required to achieve and maintain the working life. Owing to recent developments in manufacturing and processing methods, it is now possible to make dairy foods and supplements which are nutritionally enhanced to improve the content and bioavailability of essential nutrients. This is set to drive the market growth in the forecast years 2020-2025.

Growing government regulation for approval of dairy products

Regulatory support for whey proteins and milk supplements in food & drinks by the U.S. FDA and subsequent similar relaxations and approvals by the governments of UK and Germany have motivated new players to enter the market. This results in more competition and quality products in the long run. This is projected to drive the demand for Dairy Ingredients, and consequently help in market growth during the forecast period 2020-2025.

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Challenges – Dairy Ingredients Market

Presence of alternatives to dairy ingredients

Dairy ingredients significantly improve the food quality and nutrition, plant-based alternatives to them are an upcoming competition in the foods market. Rise of veganism and more emphasis on non-dairy based products are set to consequently affect the market consumer base in the coming years. Thus, it is anticipated to hamper the market growth during the forecast period 2020-2025.

Dairy Ingredients Industry Outlook

Product launches, mergers and acquisitions, joint ventures and R&D activities are key strategies adopted by players in the Dairy Ingredients Market. In 2019, Dairy Ingredients Market share is consolidated by the top players present in the market. Dairy Ingredients Market top 10 companies are FrieslandCampina, Groupe Lactalis, Arla Foods, Saputo, Fonterra Co-operative Group, Dairy Farmers of America, Kerry Group, Ornua, AMCO Proteins and Euroserum among others.

Acquisitions/Product Launches

In November 2019, Royal FrieslandCampina N.V. sold its majority shareholding of 82.3 percent in provider Royal CSK Food Enrichment C.V. to the Royal DSM N.V., a global science-based company in nutrition, health, and sustainable living.

In July 2019, Lactalis do Brasil, a subsidiary of Groupe Lactalis, announced the closing of its acquisition of the Itambé cooperative. This acquisition made Lactalis the largest player in Brazil’s dairy industry.
In February 2020, Dairy Farmers of America reached the agreement with Dean Foods. DFA would become the stalking horse bidder to acquire substantial portion of Dean Foods Assets and Business.

Key Takeaways

Asia-Pacific dominated the Dairy Ingredients Market in the year 2019 owing to increasing market infrastructure of food and beverages, increasing demand from the urban population for better nutritious foods and presence of key market players in the region. The Dairy Ingredients Market scope for different regions will be provided in the final report.

Growing demand for nutritionally enhanced foods, growing government regulation for approval of dairy ingredients and related products, and increasing innovations in technological aspects of product manufacturing by key market players is estimated to drive the industry growth during the forecast period 2020-2025.

Detailed analysis on the Strength, Weakness and Opportunities of the prominent players operating in the market will be provided in the Dairy Ingredients Market report.

Availability of substitutes of dairy ingredients are anticipated to hamper the market growth of the Dairy Ingredients Industry.

Related Reports :

A. Fermented Dairy Ingredients Market

B. Dairy Alternative (Beverage) Market

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