Concentrated Milk Fat Market Report 2026

The concentrated milk fat market size has grown rapidly in recent years. It will grow from $5.84 billion in 2025 to $6.47 billion in 2026 at a compound annual growth rate (CAGR) of 10.7%. The growth in the historic period can be attributed to expansion of dairy processing infrastructure, increasing demand for butterfat-based ingredients, growth in bakery product consumption, availability of milk fat separation technologies, rising use in traditional food formulations.

The concentrated milk fat market size is expected to see rapid growth in the next few years. It will grow to $9.78 billion in 2030 at a compound annual growth rate (CAGR) of 10.9%. The growth in the forecast period can be attributed to growing demand for premium dairy fats, increasing use in functional nutrition products, expansion of organic dairy ingredient offerings, rising focus on ingredient traceability, increasing adoption in global food manufacturing. Major trends in the forecast period include increasing use of cmf in bakery and confectionery products, rising demand for high-fat dairy ingredients, expansion of clean-label dairy formulations, growing adoption in nutraceutical applications, enhanced focus on shelf-stable dairy fats.

The robust expansion of the dairy industry is playing a significant role in driving the growth of the concentrated milk fat market in the coming years. The dairy industry includes both milk production at dairy farms and the processing of milk and dairy products at manufacturing facilities. Concentrated milk fat is widely utilized within the dairy sector for the production of cheese, ice cream, and dairy creams, thereby supporting market growth. For example, in November 2023, according to the Foreign Agricultural Service, a US-based overseas agency of the Department of Agriculture, milk consumption for factory use increased to 5.847 MMT from a projected 5.817 MMT in 2023. In addition, cheese production is expected to reach a new record of 445,000 metric tons in 2024, representing a 28% increase compared with 2023. Consequently, the continued growth of the dairy industry is contributing to the expansion of the concentrated milk fat market.

Major companies operating in the concentrated milk fat market are focusing on the development of innovative production capabilities, such as protein concentrate manufacturing, to produce milk protein concentrates. Protein concentrate refers to a food ingredient or product that undergoes processing to increase its protein content relative to other components, including carbohydrates, fats, and minerals. For instance, in January 2023, ZAO Molvest, a Russia-based food and beverage company, launched the country’s first milk protein concentrate production facility. This facility is expected to replace 25% of the nation’s milk protein concentrate imports, which were previously sourced from overseas suppliers. The plant has an annual production capacity of 2,500 metric tons, significantly reducing reliance on imports.

In April 2024, Arla Foods Group, a Denmark-based food company, acquired Volac Whey Nutrition Holdings Limited for an undisclosed sum. Through this acquisition, Arla envisions the Felinfach site as a global production hub and a key component of an expanded product range in the performance, health, and food sectors. Volac Whey Nutrition Holdings Limited is a UK-based company that specializes in dairy nutrition and whey protein isolates.

Major companies operating in the concentrated milk fat market are Darigold Inc., Grassland Dairy Products Inc., Lactalis Ingredients, FrieslandCampina Professional NV, California Dairies Inc., Fonterra Co-operative Group, Hoogwegt US Inc., CP Ingredients Ltd., Provilac Dairy Farms Private Limited, DANA Dairy Group Ltd., Keynote Dairy Corp. Ltd., Anand Milk Union Limited, Pine River Dairy Inc., MCT Dairies Inc., Prolac Pvt. Ltd., Galloway Company, Agropur Cooperative, Dairy Farmers of America, Glanbia plc, Arla Foods amba, Euroserum SAS, Milk Specialties Global Co., Westland Co-Operative Dairy Company Ltd., Tatura Milk Industries Ltd., Synlait Milk Limited, Tatua Co-operative Dairy Company Limited, Meggle AG, Batory Foods Inc., Carbery Group Ltd., Milkfat Products Company, Uelzena eG, Milkio Foods Limited.

North America was the largest region in the concentrated milk fat market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the concentrated milk fat market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the concentrated milk fat market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

The concentrated milk market consists of sales of evaporated milk and condensed milk. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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