Milk Fat Fractions Market Report 2026

The milk fat fractions market size has grown strongly in recent years. It will grow from $17.12 billion in 2025 to $18.07 billion in 2026 at a compound annual growth rate (CAGR) of 5.5%. The growth in the historic period can be attributed to expansion of dairy processing capabilities, rising consumption of fortified dairy products, increased use of milk fats in infant nutrition, advancements in fat separation technologies, growing demand for value-added dairy ingredients.

The milk fat fractions market size is expected to see strong growth in the next few years. It will grow to $23.13 billion in 2030 at a compound annual growth rate (CAGR) of 6.4%. The growth in the forecast period can be attributed to increasing focus on nutraceutical and functional food development, rising demand for clean-label dairy fats, expansion of sports and clinical nutrition markets, growing adoption of specialized infant formula ingredients, increasing innovation in lipid fractionation methods. Major trends in the forecast period include increasing demand for functional dairy ingredients, rising use of fractionated milk fats in nutrition, growing adoption of advanced fractionation technologies, expansion of high-purity milk fat applications, enhanced focus on nutritional lipid profiles.

The growing demand for bakery products is expected to drive the growth of the milk-fat fractions market going forward. Bakery products are foods made from flour or meals derived from grains, baked in an oven, and sold in bakeries. Milk fat fractions are used in these products to enhance tenderness, crumbliness, and overall mouthfeel. For example, in February 2024, according to Agriculture and Agri-Food, a Canada-based government department, retail sales of baked goods in the United States reached US$82.9 billion in 2022 and are expected to grow at a CAGR of 3.1% from 2023 to 2027, reaching US$97.7 billion by 2026. Therefore, rising demand for bakery products is fueling the milk-fat fractions market.

Leading companies in the milk fat fractions market are increasingly focusing on strategic partnerships to strengthen their competitive position. These collaborations are essential for addressing consumer demands and overcoming market challenges more effectively. For example, in July 2024, Nourish Ingredients, an Australian technology firm, teamed up with Fonterra, a dairy company from New Zealand, to develop innovative dairy products using fermentation-based, animal-like fats. This partnership aims to combine Nourish's expertise in specialty fats with Fonterra’s dairy capabilities. It also reflects a broader trend in the food industry, where established businesses are joining forces with innovative startups to explore new ingredient technologies.

In April 2023, the German dairy products manufacturer Unternehmensgruppe Theo Müller completed the acquisition of FrieslandCampina for a sum of $326.313 million. This strategic move expands, diversifies, and enhances Unternehmensgruppe Theo Müller's dairy products portfolio, fortifying the company's market presence in Germany. FrieslandCampina, a Netherlands-based dairy cooperative and provider of milk fat fractions, now becomes an integral part of Unternehmensgruppe Theo Müller's growing and enriched dairy products business.

Major companies operating in the milk fat fractions market are Glanbia plc, Uelzena Milchwerke eGmbH, FIT Company, Oleo-Fats Incorporated, Koninklijke VIV Buisman B.V., Flechard S.A.S., Wilmar International Limited, MCT Dairies Inc., The Tatua Co-operative Dairy Company Ltd., Comarco Group, Anand Milk Union Limited, Saputo Dairy, Shanghai Guangyu Food Co. Ltd., United Dairy Group Ltd., Royal FrieslandCampina N.V., Groupe Lactalis, Arla Foods, Agropur Cooperative, Land O'Lakes Inc., Dairy Farmers of America, DMK Deutsches Milchkontor GmbH, Meggle Group, Hoogwegt Group, Molkerei MEGGLE Wasserburg GmbH & Co. KG, Armor Proteines, Lactoprot Deutschland GmbH, Carbery Group, Orafti S.A.

North America was the largest region in the milk fat fractions market in 2025. Asia-Pacific is expected to be the fastest-growing region in the global milk fat fractions market during the forecast period. The regions covered in the milk fat fractions 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 milk fat fractions market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

The milk fat fractions market consists of revenues earned by entities by providing various technologies such as melt crystallization, short-path distillation and supercritical CO2 extraction. The market value includes the value of related goods sold by the service provider or included within the service offering. The milk fat fraction market also includes sales of milk fat globule membrane (MFGM) fraction, short-chain fatty acid (SCFA) fraction, and medium-chain fatty acid (MCFA) fraction. 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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