FDBusiness.com

Valued at US$53.8 billion in 2019, the global dairy ingredients market (incorporating proteins, milk powder, milk fat concentrate, lactose and its derivatives) is projected to be worth US$81.4 billion by 2025, growing at a CAGR of 7.1% during the period, according to Research and Markets – the world’s largest market research store. Market growth is being fuelled by rising consumption of ready-to-eat and functional foods as well as the increasing consumer awareness about healthy eating.

Dairy ingredients are highly versatile in their application. Indeed, food and beverage manufacturers choose dairy ingredients for their functional and nutritional properties such as adding flavour, richness, texture and colour to products. Dairy ingredients are typically used in the production of infant formulas as well as sports, nutrition and dairy products. Further applications include bakery, confectionery, convenience foods, beverages and other processed foods.

Asia Pacific is the largest market for dairy ingredients and is projected to experience the fastest growth but Europe and North America are also expected to exhibit steady expansion over the forecast period to 2025. Indeed, the dairy ingredients market is being aided by regulatory support from the FDA in the United States and the UK Government to encourage the incorporation of proteins in food and drink products.

The willingness of consumers to pay a higher price for products perceived to offer health or nutritional benefits is a key driver of market growth. Rising demand for protein supplements has prompted product innovation by food and beverage manufacturers, which is increasing demand for whey and milk powders.

While high-concentrate ingredients, such as whey proteins and milk protein isolates, are chiefly used in developed markets like the US, Germany, France and the UK, low concentrate dairy ingredients are more prevalent in developing regions. Increasing disposable incomes combined with rising birth rates in the Asia-Pacific region will result in increased demand for dairy ingredients.

Leading manufacturers in the global dairy ingredients market include: FrieslandCampina (The Netherlands), Groupe Lactalis (France), Arla Foods (Denmark/Sweden), Saputo (Canada), Fonterra Co-operative Group (New Zealand), Dairy Farmers of America (US), Kerry Group (Ireland), Ornua (Ireland), AMCO Proteins (US), Prolactal (Austria), Valio (Finland), Glanbia (Ireland), Hoogwegt Group (The Netherlands), Batory Foods (USA), Ingredia (France), Agropur (Canada) and Euroserum (France).