Middle East and Africa Dairy Ingredients Market - Growth, Trends, and Forecast (2020 - 2025)

The Middle East and Africa dairy ingredients market is projected to grow at a CAGR of 5.7% during the forecast period (2020 - 2025).

• With the rising number of middle-income populations, consumers are getting more and more sophisticated and demanding higher-quality foods with dairy nutrition being one of the key cornerstones to the scenario. ​
• As a result, the dairy manufacturers in the country are constantly seeking advanced ingredients to incorporate during product formulation, eventually elevating the demand for market studied in the region. The ingredient manufacturers are thus coming up with ingredients with added nutrients such as vitamins and minerals to capture the demand raised by food companies.

Key Market Trends

Rising Demand for Whey Ingredients

The demand for whey protein concentrates is driven by the sports nutrition and lifestyle industry. Infant formula is one of the fastest-growing market for whey protein specifically WPC­-35­-80 and demineralized whey powder. The market for whey protein isolates is driven by its increasing application across various products such as, enriched beverages, sports drinks, dry nutritional mixes, and other dietary products. Moreover, there has also been an increasing effort by ingredients manufacturers to bring functional and nutritional dairy-based ingredients for the consumers looking for nutritional diets. Hydrolyzed forms of whey are known to remove all fats and lactose, making them beneficial to consumers who are hypersensitive to lactose.

Increased Utilization in Infant Milk Formula

Infant formula is required to have all the necessities that can help a baby to develop the digestive system. Infant formula needs to have the composition to be as close as possible to that of breast milk at every stage of a baby’s development. When it comes to infant formula, four main sources of proteins are used, out of which one is cow's milk (whey & casein) which is closest in structure to human breast milk. Whey protein empties quicker from the stomach, as it stays in liquid form throughout the digestive process in a baby. There is also partially hydrolyzed 100% whey protein formula, which helps in preventing most common allergic diseases, like atopic dermatitis in infancy throughout the first year of life and up to three years of age.​

Competitive Landscape

Middle East and Africa dairy ingredients market is consolidated and some of the players are Fonterra Co-operative Group, Almarai Company, Lactalis and Epi-ingrédients. New product development, expansion, mergers and aquisitions and partnerships are the strategies adopted by the major players to gain a competitive advantage in the market.

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