Dairy Ingredients Global Market Report 2024

The dairy ingredients market size has grown strongly in recent years. It will grow from $70.28 billion in 2023 to $75.45 billion in 2024 at a compound annual growth rate (CAGR) of 7.4%. The expansion observed in the historical period can be attributed to robust economic progress in emerging markets, a global increase in population, and a rising number of health-conscious consumers.

The dairy ingredients market size is expected to see strong growth in the next few years. It will grow to $101.82 billion in 2028 at a compound annual growth rate (CAGR) of 7.8%. Forecasted growth is driven by rising diseases, global population increase, organized retail expansion, improved cold chains, dietary awareness, and higher demand for sports nutrition. Key trends include automation, dairy protein supplements, IoT use, e-commerce collaborations, clean label products, partnerships/acquisitions, innovative whey protein, 3D printing, and advancements in separation tech.

The increase in health consciousness among individuals is a significant driver of growth in the dairy ingredients market. With a growing awareness of health concerns, people are incorporating health-focused products, including dietary items, into their lifestyles. According to a report by the World Health Organization in 2021, safely managed sanitation services increased from 47% to 54%, and it is projected that by 2030, 67% of the global population will have access to safe sanitation. This heightened focus on health is anticipated to fuel the expansion of the dairy ingredients market.

The surge in demand for sports nutrition products is poised to propel the dairy ingredients market's growth in the foreseeable future. Research indicates that products such as whey protein can enhance lean body mass, muscle size, and strength. Whey's essential amino acids contribute to muscle protein synthesis, facilitating quicker recovery of muscle function in athletes. Whey protein is known for its rapid absorption, providing swift nourishment to muscles. A significant number of athletes, including over 85% of elite track and field competitors, incorporate dietary supplements into their regular training or competition routines. These supplements often include vitamins, minerals, proteins, creatine, and various ergogenic substances. For example, a survey conducted by the Australian Institute of Sport (AIS) in May 2021 revealed that 46.9% of surveyed fencers use sports supplements primarily to enhance their performance (34.2%). The study also highlighted the widespread consumption of sports drinks, vitamin C, sports bars, and caffeine. Consequently, the increasing adoption of protein for muscle gain, strength enhancement, and other functional benefits by athletes globally is expected to be a key driver for the dairy ingredients market.

Automation has become a prominent trend in the dairy industry, gaining traction in the dairy ingredients market. This involves the implementation of fully integrated dairy plant systems to enhance manufacturing processes. The adoption of automation in the dairy industry results in the development of robotic systems that optimize production control and increase capacity. ABB, a Swedish automation company, exemplifies this trend by providing automation solutions for various dairy processes, including milk reception, pasteurization, and monitoring and control during the transfer of milk, cream, and buttermilk from reception tanks to packaging machines. These automation systems offer improved filtration, automatic de-clogging, and high-pressure cleaning, reducing milk loss and minimizing the reliance on cleaning agents.

Companies operating in the dairy ingredients market are strategically focusing on advancing separation technologies to address challenges in the supply of raw ingredients. These separation techniques are particularly effective in isolating different protein components within milk. In 2021, Arla Foods, a Danish dairy company, introduced a patented milk fractionation technology. This innovative technology allows the separation of milk proteins from whey without the need for cheese production. The breakthrough enables scientists, nutritionists, and health professionals to create next-generation dairy products. Milk protein fractionation, utilizing synthetic membranes, expands the potential raw material pool and facilitates the creation of protein streams through a controlled process with fewer processing steps. This gentler processing method opens up new opportunities in areas such as infant formula, sports nutrition, and medical nutrition.

In October 2021, Royal DSM, a Dutch company specializing in health and nutrition, acquired First Choice Ingredients for $453 million. This acquisition aims to expand First Choice Ingredients' market presence by leveraging DSM's extensive global customer network outside the US. DSM plans to integrate First Choice Ingredients' offerings into its comprehensive range of taste, texture, and health solutions, thus bolstering sustainable solutions for its Food & Beverage clientele. First Choice Ingredients, based in the US, is known for producing concentrated dairy flavors.

Major companies operating in the dairy ingredients market report are Fonterra Co-operative Group, Dairy Farmers of America, Groupe Lactalis, Agropur Dairy Cooperative, FrieslandCampina Ingredients, Saputo Inc., Arla Foods, Sodiaal Group, Glanbia PLC, Kerry Group, Milk Specialties, Pacific Dairy Ingredients, ProviCo, Amul, Pacific Dairy, China Mengniu Dairy Company Limited, Milk Powder Co.Ltd., China Shengmu Organic Milk Limited, Mother Dairy, Kwality Limited, Dynamix Dairy, AAVIN, MILMA, Dudhsagar Dairy, Bates Dairy, Muller UK & Ireland, Dairy Crest, Meadow Foods, Dale Farm, Yeo Valley, Glanbia Cheese, Lactalis International, Danone S.A, Savencia Fromage & Dairy, Dutch Dairy Center, Holland Dairy Star BV, Michael and Augustine, Bel Group, J.N Dairies, Carron Lodge Ltd., County Milk Products Ltd., Danone Russia, Kompaniya Pavlov, Molvest, Olam, Rusmolco, CLAL, Siemens Dairy industry, Gabrovo Milk Ltd., JOSSI Ltd., Kondov Ecoproductia, Lactalis, Nestle, Danone North America, Schreiber Foods, Kraft Heinz Co, ConAgra Brands, Prairie Farms Dairy Inc., California Dairies Inc., Sunopta Inc., GLORIA SA, NESTLE PERU SA, SANCOR COOPERATIVAS UNIDAS LIMITADA, Italac, Piracanjuba, La Serenisima, Colun, Ilolay, The Hain Celestial Group Inc., Earth's Own Food Company, Eden Foods Inc., Al Safi Danone Ltd., Nada Dairy, Nadec, Saudia Dairy and Foodstuff Company (Sadfco), Ornua, Danya Foods Ltd., Al Amoudi Group, Yalla Protein, Almarai, Pinar Dairy Food Co, Friesland Arabia Ltd., Tara Dairy, Arla Food Inc., Dano Milk Nigeria, Fan Milk PLC, FrieslandCampina, Bandini Cheese (Pty) Ltd., Clover SA (Pty) Ltd., Coega Dairy (Pty) Ltd., Danone Southern Africa (Pty) Ltd., Darling Romery (Pty) Ltd., Denmar Estates (Pty) Ltd., The Arab Dairy Products Co, Brego Food Industries.

Asia-Pacific was the largest region in the dairy ingredients market in 2023. North America was the second largest market in dairy ingredients market in 2022. The regions covered in the dairy ingredients market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the dairy ingredients market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

The primary types of dairy ingredients include milk powder, whey protein, milk protein, third-generation ingredients, casein, buttermilk powder, whey permeate, and lactose. Milk powder is created by evaporating the water content of milk, resulting in a dry substance. Whole milk powder typically contains 26% to 40% milk fat and no more than 5% moisture on a milk solids-not-fat basis. Sources of different dairy ingredients include milk and whey, available in both powder and liquid forms. Diverse production methods for dairy ingredients include traditional processes and membrane separation. These methods find application in various sectors such as dairy products, convenience foods, bakery and confectionery, instant milk formula, sports nutrition, medical nutrition, animal nutrition, and other relevant industries.

The dairy ingredients market research report is one of a series of new reports that provides dairy ingredients market statistics, including dairy ingredients industry global market size, regional shares, competitors with a dairy ingredients market share, detailed dairy ingredients market segments, market trends and opportunities, and any further data you may need to thrive in the dairy ingredients industry. This dairy ingredients market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The dairy ingredients market consists of sales of butter, cheese, ice cream, yogurt, and condensed and dried 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.