Dairy ingredients are a rich source of proteins, amino acids, carbohydrates, minerals and vitamins, and probiotics. Dairy ingredients are used in various food and beverages, including bakery products, confectionery, ice creams, dairy products, desserts, spice blends, and dry baking mixes. Dairy proteins are used in protein supplements and functional foods. Moreover, dairy ingredients are also used in personal care products as they provide hydration to the skin and hair. Furthermore, dairy proteins are used in animal feed to feed fortification to fulfil livestock animals' nutritional requirements.
Asia-Pacific held the largest share of the global market for dairy ingredients in 2020, while the Middle East and Africa market is expected to grow at the fastest CAGR over the forecast period. India is one o0f the largest dairy producers in the region. According to the Food and Agriculture Organization (FAO), India accounts for 22 % of the global milk production. The presence of a well-established dairy industry in the region is one of the primary factors driving the growth of the regional market. Moreover, the rising demand for functional foods and beverages and protein supplements due to the growing focus on health and well-being are also significant factors driving the growth of the Asia-Pacific dairy ingredients market.
The COVID-19 pandemic has affected many industries, including the food and beverage industry. The pandemic created operational difficulties because of lockdowns, business shutdowns, and supply chain disruptions. The dairy industry was also affected due to labor and raw material shortages. However, due to increased awareness regarding health and fitness, the demand for functional food and beverages increased, which offered positive growth opportunities to the dairy ingredients market. Moreover, the need for dietary supplements also increased due to the rising preference for immunity-boosting products. This factor also positively boosted the market growth. Additionally, rising vaccination rates, the revival of manufacturing activities, and the relaxation in government regulations are projected to positively influence the global dairy ingredients market over the forecast period.
The global dairy industry is witnessing notable growth. According to the United Nations Food and Agriculture Organization (FAO), global milk production accounted for 928 million tons in 2021. The rising population and changing diets of people are potentially driving the growth of the dairy industry. Moreover, rapid urbanization, increasing disposable income, and rising preference for protein-rich, nutritious foods are also boosting the development of the dairy industry. Furthermore, the dairy industry is undergoing a technological transformation. Manufacturers use emerging technologies, such as blockchain, robotics, and GPS-enabled devices, to optimize dairy production. These factors are driving the growth of the dairy industry, which is likely to propel the growth of the dairy ingredients market over the forecast period.
Based on product type, the global market for dairy ingredients is segmented into proteins, milk powder, milk fat concentrates, lactose & lactose derivatives, and others. The protein segment is expected to register significant growth during the forecast period 2021-2028. Casein and whey proteins are the major proteins found in milk. Casein is widely used in infant nutrition products and baby foods. Whey proteins are used to manufacture protein supplements. Whey proteins are also used in functional food and beverages for fortification purposes. The rising demand for protein-rich foods is driving the need for milk proteins. Moreover, the growing demand for milk proteins to manufacture infant food due to increased awareness about specific infant nutrition is also driving the segment's growth.
Based on application, the dairy ingredients market is segmented into food & beverage, pharmaceuticals & nutraceuticals, animal feed, and personal care. The food & beverage segment accounted for the largest market share in 2020. Dairy ingredients are being extensively used in various food and beverages, including bread, cakes, pastries, muffins, ice-creams, chocolates, cheese, and cream. The rapidly growing food and beverage industry owing to rising disposable incomes, rapid urbanization, rising inclination towards health and fitness, and increasing demand for convenience foods, are the key factors driving the growth of the dairy ingredients market. Moreover, increasing demand for dairy proteins from the nutraceuticals industry is also expected to drive the segment's growth over the coming years.
A few players operating in the dairy ingredients market include Agropur, Arla Foods Ingredients Group P/S, Lactalis Ingredients, Frieslandcampina, Saputo Inc., Fonterra Co-Operative Group Limited, Kerry, Amco Proteins, Prolactal, and Glanbia Ireland, among other players.
The regional trends and factors influencing the Dairy Ingredients Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Dairy Ingredients Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.
| Report Attribute | Details |
|---|---|
| Market size in 2021 | US$ 85.68 Billion |
| Market Size by 2028 | US$ 105.3 Billion |
| Global CAGR (2021 - 2028) | 3.0% |
| Historical Data | 2019-2020 |
| Forecast period | 2022-2028 |
| Segments Covered |
By Product Type
|
| Regions and Countries Covered | North America
|
| Market leaders and key company profiles |
The Dairy Ingredients Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.
Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.
Major Companies operating in the Dairy Ingredients Market are:
Disclaimer: The companies listed above are not ranked in any particular order.
With the rapid growth of the dairy industry, the demand for dairy ingredients such as milk powder, lactose and its derivatives, milk protein, etc., is also growing. surging dairy production, the dairy ingredients market is also projected to register a notable growth over the forecast period.
Asia-Pacific accounted for the largest share of the global dairy ingredients market. The surge in demand for dairy ingredients in the food & beverage and nutraceutical industry to drive the dairy ingredients market in the region.
The dairy ingredients are a major constituent of nutritious food and supplements. It gets widely used in probiotic foods, protein supplements. Whey protein is often sold as a protein supplement, and it has been associated to a variety of health benefits. Due to these properties, manufacturers of pharmaceutical and nutraceutical products frequently employ dairy ingredients in their products.
Dairy ingredients have a wide range of applications across several end-use industries including food and beverage, pharmaceuticals and nutraceuticals, personal care, and animal feed is expected to create lucrative opportunities for dairy ingredients market in the coming years.
Based on application, the food and beverage segment accounted for the largest revenue share as the dairy ingredients essentially thrive on the wider functional benefits that these ingredients confer, in terms of high quality, safety, and nutrition of the processed food products. Processed food products include various categories, such as baked products, confectionary, and beverages.
The major players operating in the global dairy ingredients market are FrieslandCampina Ingredient., Fonterra Co-operative Group Limited, Arla Foods Ingredients Group P/S, Lactalis Ingredients, AGROPUR, Saputo Inc., Kerry Group, AMCO Proteins, PROLACTAL, Glanbia Ireland.