Dairy Blends Market Report 2026

The dairy blends market size has grown strongly in recent years. It will grow from $4.23 billion in 2025 to $4.57 billion in 2026 at a compound annual growth rate (CAGR) of 8.2%. The growth in the historic period can be attributed to expansion of processed food manufacturing, rising demand for milk powder alternatives, availability of vegetable oil blends, growth of bakery and snack production, improvements in dairy processing techniques.

The dairy blends market size is expected to see strong growth in the next few years. It will grow to $6.37 billion in 2030 at a compound annual growth rate (CAGR) of 8.6%. The growth in the forecast period can be attributed to increasing demand for fortified food products, growing use of dairy blends in infant nutrition, expansion of plant-dairy hybrid formulations, rising focus on functional food ingredients, increasing application diversity across food categories. Major trends in the forecast period include increasing adoption of dairy and plant-based blends, rising demand for functional dairy ingredients, expansion of powdered dairy blend applications, growing use of dairy blends as nutrient carriers, enhanced focus on cost-optimized formulations.

The rising milk production is expected to drive the growth of the dairy blend market in the coming years. Milk production refers to the large-scale output of raw milk used in manufacturing a variety of dairy products such as cream, butter, cheese, yogurt, and blended formulations. Milk production is increasing as consumers increasingly seek protein-rich and nutritious dairy foods, driven by growing health awareness and a preference for natural ingredients. Dairy blends benefit directly from this trend because milk serves as the primary base for producing blended dairy formulations used in beverages, bakery applications, confectionery, and food service. For example, in June 2023, according to the United States Department of Agriculture, a U.S.-based government agency, milk production in the United States reached 19.9 billion pounds in May 2023, marking a 0.6% increase compared to May 2022. Therefore, the growing milk production is supporting the expansion of the dairy blend market.

Companies in the dairy blend market are increasingly focusing on launching cost-effective milk blends to achieve a competitive advantage. Cost-effective milk blends are mixtures of milk with various ingredients or substitutes aimed at striking a balance between affordability and nutritional value. For instance, in October 2023, Nestlé S.A., a Switzerland-based food company, unveiled an innovative instant powder blend in Central and West Africa that combines milk with plant-based ingredients to create an affordable and nutritious product. This blend is formulated to provide essential nutrients such as protein, fiber, iron, and calcium, while also offering sustainability advantages. The product aims to enhance the everyday diet of children and their families, providing a new flavor experience alongside its nutritional benefits.

In December 2023, Kerry Group PLC, an Ireland-based food company, acquired the lactase enzyme business from Chr. Hansen Holding A/S for an undisclosed amount. This acquisition enables Kerry Group to incorporate enzyme technology that facilitates the production of lactose-free and sugar-reduced dairy products. Chr. Hansen Holding A/S is a Denmark-based company that specializes in providing dairy blends.

Major companies operating in the dairy blends market are Cape Food Ingredients West Africa Ltd., All American Foods Inc., Cargill Incorporated, Fonterra Co-operative Group Limited, Kerry Group PLC, Royal FrieslandCampina NV, Döhler Inc., Agropur Ingredients LLC, Advanced Food Products LLC, Glanbia PLC, Galloway Company Inc., Interfood Holding B.V., Intermix Australia Pty Ltd., Dairy Farmers of America Inc., Danone SA, Nestlé SA, Land O'Lakes Inc., Archer Daniels Midland Company (ADM), Batory Foods, Bunge Limited, Foremost Farms USA Cooperative, Idaho Milk Products Inc., Lactalis Ingredients SA, Leprino Foods Company, MCT Dairies Inc., Milk Specialties Global Co., Pacific Dairy Ingredients Inc., Westland Co-operative Dairy Company Limited.

Asia-Pacific was the largest region in the dairy blends market share in 2025. The regions covered in the dairy blends 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 dairy blends market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

The dairy blend market consists of sales of yogurt, bakery creams, dairy drinks, and infant nutrition. 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.

This product will be delivered within 1-3 business days.