Global Ultra Pasteurized Cream Market - 2023-2030

Market Overview

Ultra Pasteurized Cream Market were valued at USD YY million in 2022. It is forecasted to reach USD YY million by 2030, growing at a CAGR of 4.10% during the forecast period (2023-2030).

Ultra-pasteurized cream is treated at 280 degrees for 2 seconds and then chilled, enhancing the cream's shelf life. The higher temperature kills typical bacteria such as E. coli, salmonella, and typical bacteria that can cause spoilage. The ultra-pasteurized process kills all pathogens which are responsible for spoilage. The increasing demand for cream-filled and decorated desserts such as cakes, donuts, pastries, and puddings has fueled innovations and product development in the dairy industry. Factors such as increased research and development activities increased government support to the processing industry; new product innovations in the ultra-pasteurized cream drive the market growth in the forecast period.

Market Dynamics: An increase in the industrial applications of ultra-pasteurized cream in cafes and restaurants drives the market growth

The consumption of fresh, whipped and heavy cream has increased due to the rising popularity of cafe culture and changing consumer preferences. Quick-service restaurants and cafes are the fastest-growing food service industry segment. According to Statista, coffee consumption amounted to 1210 thousand 60-kilogram bags across India in 2022. It was an increase as compared to 2021. Global coffee consumption in 2021 stood at over 165 million 60-kilogram bags, with the United States and the European Union accounting for the highest volumes. The rising demand for coffee has facilitated the growing number of coffee shops, tea houses, and dessert bars worldwide, which is likely to drive market growth. The addition of UHT creams provides great flavor and mouthfeel to coffee, cakes, pastry, and other bakery products, further boosting the market growth in the forecast period.

Moreover, ultra-pasteurized cream has a more shelf life. It reduces the preservation cost of the product due to the increased consumer demand for the ultra-pasteurized cream market. This treatment removes spoilage-making pathogens from the product, which helps to grow the demand for ultra-pasteurized cream in the market. The increased demand for the shelf stable dairy creams across the food and bakery industry drives the market growth in the forecast period.

Market Segmentation: Whipping cream segment accounted for the highest share in global ultra-pasteurized cream market

Whipping cream accounted largest market share due to the increased demand from the bakery industry around the world. Whipping cream contains about 36-40 % of fat. It is present in fresh milk and rises to the top due to the lighter weight of milk fats. The ultra-pasteurization process effectively kills microorganisms in the milk. In ultra-pasteurization, the milk is heated from 265 F to 280 F, but only for 2 seconds. Ultra-pasteurization gives the finished cream a longer shelf life, which, combined with quicker processing, makes the process very cost-effective for dairies. In areas where the cream is a slow seller, ultra-pasteurization can be the factor that makes it feasible for retailers and dairies to keep it on the shelves.

An increase in product availability in the market boosts the sales of whipping cream products. Major key players focused on new product launches and expansion to expand their business. Whipping cream is mostly used in the topping for fruit and desserts such as pie, ice cream, cupcakes, cakes, waffles, hot chocolate, milkshakes, Jello, cheesecakes, and puddings. Whipping cream is specially served on coffee. In the Viennese coffee house, traditional coffee with whipped cream is popular. Ultra-pasteurized whipped cream is an ingredient in desserts, such as a filling for profiteroles and layer cakes. This increase in the application of whipping cream helps to boost market share in the forecast period.

Geographical Penetration: Europe is the dominating region during the forecast period.

In the forecast period, Europe is the dominating region in the ultra-pasteurized cream market. Germany, the U.K., France, and Italy are the dominating countries in the region due to the increased demand for plant-based dairy products. The rising consumers demand the nondairy ice creams, cakes and other desserts has encouraged manufacturers to utilize ultra-pasteurized cream. Continuously rising demand for healthy desserts in the food and beverage industry is helping to boost the ultra-pasteurized cream market. Rising demand for organic and high-quality dairy products resulting from the healthier perception of such products among consumers drives the market growth in the forecast period. Growing consumer demand for products requiring less investment for preservation boosts the ultra-pasteurization cream market.

Moreover, the Asia Pacific region held a significant market share in the ultra-pasteurized cream market due to the increased consumer demand for dairy desserts and the high milk production. The bakery and food industry's rapid expansion boosts the ultra-pasteurized cream market.

Competitive Landscape:

There are several established participants in the industry and local manufacturers; hence, the market is fragmented. Some major market players are Land O' Lakes, Inc., Meijer Companies, Ltd., Rockview Family Farms, The Kroger Co., Danone S.A., Dairy Farmers of America, Elle & Vire, Fonterra Co-operative Group Limited, The California Milk Advisory Board, and Safeway Inc. among others. Some major key players launched new products to increase their revenue. For instance, in August 2021, Yili and Westland's Cream Team partnered to launch whipping cream in the market for Chinese consumers. These new whipping cream sales accounted for 16 percent of Yili's total revenue in 2020, with Yili now ranked the fifth largest dairy producer globally. Also, Land O Lakes launched Ultra-Pasteurized Heavy Whipping Cream in the market. It gives 50 calories per serving. It is easy to whip and delicious in all forms; this silky-smooth heavy whipping cream makes a delicious addition to a wide range of recipes. It is mostly used in topping a cake, building flavor in a soup, or making a great egg scramble. Some of the major companies launched new technological advancement facilities in the market. For instance, in January 2022, IMCD launched a new UHT pilot facility in Indonesia to increase its regional technical footprint. The new UHT laboratory includes equipment that allows IMCD to work with its customer to run trials and develop formulations together. It provides greater flexibility for the customer to innovate without interruption in their daily operations.

COVID-19 Impact: Negative impact on the global ultra-pasteurized creams market.

The COVID-19 pandemic has adversely affected the economies of various countries due to lockdowns, business close, and travel bans. Food and beverages are among the major industries that suffered from intense disruptions, such as restrictions on the supply chain and the shutdown of warehouse plants. In addition, the shutdown of companies and factory production facilities in various countries disrupts the global supply chains. It has negatively impacted manufacturing activities, delivery schedules, and goods sales. Multiple companies have already announced possible delays in product deliveries and a decline in future sales of their products. Furthermore, the import-export restrictions governments impose in North America, Asia, and Europe hinder geographical expansion, business collaboration and partnership opportunities. Thus, these factors are hindered the growth of the ultra-pasteurized cream market in the food and beverage industry.

The global ultra-pasteurized cream market report would provide an access to approximately 53 market data tables, 42 figures and 170 pages.