Dairy Ingredients Market by Type, Form, Source, Application

List of Tables

[184 Pages Report] The Dairy Ingredients Market size was estimated at USD 60.13 billion in 2023 and expected to reach USD 64.95 billion in 2024, at a CAGR 8.23% to reach USD 104.61 billion by 2030.

Dairy ingredients are components derived from milk that enhance a wide range of food products' nutritional value, flavor, and textural properties. These ingredients include milk powders, whey proteins, lactose, casein, and various milk fats and derivatives. Essential to the food industry, dairy ingredients play a critical role in food manufacturing, serving as vital elements in household items such as cheese, yogurt, ice cream, and baked goods, as well as in specialized products such as sports nutrition, infant formula, and medical nutrition. The increasing need for bakery and confectionery products worldwide boosts the demand for dairy ingredients. Additionally, growing consumer preferences for nutritional and healthy food propels the production of dairy ingredients. However, the health concerns and the complexity associated with dairy ingredients present a significant challenge for manufacturers and suppliers. Moreover, the rising consumer preference for clean-label and plant-based alternatives fosters the innovation of new formulations and presents a significant opportunity for manufacturers.

KEY MARKET STATISTICS
Base Year [2023]	USD 60.13 billion
Estimated Year [2024]	USD 64.95 billion
Forecast Year [2030]	USD 104.61 billion
CAGR (%)	8.23%

Type: Increasing uses of milk powder and proteins in daily meals offering several nutritional benefits

Milk powders, including various types such as whole milk powder and skimmed milk powder, are widely utilized in food and beverage industries due to their long shelf life and versatility. Their applications range from dairy products, bakery, and confectionery to sports nutrition and infant formulas. Colostrum powder is a highly nutritious dairy ingredient rich in antibodies and immunoglobulins. It is gaining popularity in dietary supplements and functional foods to boost immune health. Dairy protein fractions such as alpha-lactalbumin and beta-lactoglobulin are sought for their specific functional and nutritional characteristics, finding a place in specialized nutrition and high-protein fortified beverages. Milk and whey peptides are known for their functional properties, antimicrobial activity, and potential benefits in managing blood pressure and improving immune functions. Milk fat concentrates are used to enhance the creaminess and flavor of products. They are integral in producing full-fat dairy products, bakery items, and confectionery goods. Skimmed milk powder contains less fat than whole milk powder and is favored in low-calorie and fat-reduced formulations while providing essential nutrients and proteins. Whole milk powder is rich in fat and calories and is widely used in producing various dairy products, bakery, chocolate, and confectionery, offering a creamy texture and rich flavor. On the other hand, proteins derived from dairy, including casein, whey, and milk protein variants, provide a range of functionalities for food manufacturers, from improving texture and taste to enhancing nutrition profile. Milk protein concentrates (MPCs), containing casein and whey proteins, are versatile ingredients catering to sectors requiring high-protein content, such as sports nutrition, weight management, and medical nutrition. Meanwhile, milk protein isolates have a higher protein content and less fat and lactose, making them ideal for nutrition bars, dietary supplements, and high-protein beverage products. Whey protein concentrates are a by-product of cheese production and are popular among athletes and health-conscious consumers for their muscle-building and recovery properties. With a higher protein content than concentrates, whey protein isolates are virtually lactose-free and are commonly found in premium sports nutrition products and niche food applications.

Form: Utilization of dry and liquid dairy ingredients as per their need in confectionery and bakery products manufacturing

Dry dairy ingredients refer to dehydrated dairy products that have a low moisture content and are in powder form. This form is popular due to its long shelf life, ease of transport, and versatility in various applications. The dehydration process, often involving spray drying or roller drying, removes water from liquid dairy products, concentrating the proteins, fats, vitamins, and minerals. Dry dairy ingredients include whole milk powder, skimmed milk powder, whey protein concentrates and isolates, lactose, casein, and milk protein concentrates. These ingredients are commonly used in the manufacture of confectionery, bakery products, sports nutrition, infant formulas, and as functional additives in food processing. On the other hand, Liquid dairy ingredients are in a fluid state and typically feature a higher moisture content than their dry counterparts. These ingredients are valued for their freshness and relatively straightforward processing, often requiring pasteurization or ultra-pasteurization to ensure food safety. The range of liquid dairy ingredients includes fresh milk, cream, whey, buttermilk, condensed milk, and various milk concentrates. Liquid dairy ingredients are extensively used in fresh food products, dairy processing, beverage manufacturing, and culinary applications. Due to their perishable nature, liquid dairy ingredients often have a shorter shelf life and necessitate refrigerated transportation and storage to maintain quality and prevent spoilage.

Source: Growing popularity of buffalo and cow milk derived ingredients due to their health benefits, luxurious texture, and artisanal value

Buffalo is a significant source of dairy ingredients in many regions owing to its higher fat and protein content, which makes it ideal for crafting superior cheeses, butter, and sumptuous desserts. Its international appeal is rising, spurred by the milk's luscious taste, high calcium, and reduced cholesterol benefits. Camel milk ingredients are praised for their lower lactose levels, which are suitable for those with intolerance, and unique proteins that benefit people with diabetes despite their production being labor-intensive and deficient in performance data. Cow's milk ingredients reign as the cornerstone for dairy globally due to its production prowess and sophisticated breeding methods, forming the backbone of the dairy food chain with products such as cheese, butter, yogurt, and powdered milk, even as the industry grapples with environmental, ethical, and demand shifts towards plant-based alternatives. Despite its less industrialized system, goat milk ingredients are emerging as a digestible, hypoallergenic, and nutritionally rich option, favored in specialty cheese making and valued by health-minded niches. Meanwhile, ingredients derived from sheep milk are revered in traditional cheese-making and celebrated for their nutritional density, luxurious texture, and artisanal value.

Application: Increasing uses of milk ingredients in functional food and sport nutrition

Dairy ingredients such as whey proteins, lactose, and caseinates are incorporated into animal feed to enhance nutritional value and aid in livestock development. These ingredients can improve digestibility, provide essential amino acids, promote growth, and improve the overall health status of animals. The bakery sector extensively employs dairy ingredients to improve texture, flavor, and nutrition in bread, cakes, and pastries. Ingredients such as milk powder, whey proteins, and buttermilk powder contribute to the maillard reaction essential for the golden crust in baked goods, enhance moisture retention, and provide a richer taste. Dairy ingredients are also functional in fermentation processes and dough conditioning. In addition, dairy ingredients are utilized to enhance the nutritional profile, stabilize textures, and extend shelf life. Meanwhile, skim milk powder and whey concentrates are incorporated into yogurts, cheese, and ice cream. Dairy ingredients such as probiotics, lactoferrin, and bioactive peptides serve to enhance the health attributes of such food products. They are used to promote gut health, boost immune functions, and potentially reduce the risk of chronic diseases. Moreover, the infant and pediatric formula industry relies heavily on dairy ingredients that closely mimic the nutritional profile of human milk. Whey protein concentrates and isolates, lactose, and specific milk fats are integral for developing formulas that support the growth and development of infants and toddlers. Sports nutrition products utilize dairy ingredients such as whey protein isolates and caseins to support muscle repair, recovery, and growth. These high-quality protein sources are favored for their complete amino acid profiles and rapid absorption rates. They are used in protein powders, bars, and ready-to-drink beverages targeted at athletes and fitness enthusiasts seeking to optimize performance and post-exercise recovery.

Regional Insights

In the Americas, with a focus on the United States and Canada, the dairy ingredients market is highly developed with a strong emphasis on innovation and product diversification. The United States holds a strong position due to its high cheese and milk powder production, while Canada benefits from its robust dairy support programs. At the same time, the European Union (EU) countries are characterized by stringent quality controls and geographical indications for dairy products, ensuring high-quality dairy ingredients in their markets. A strong emphasis on food safety and quality also showcases demand for non-GMO and organic dairy products, reflecting a trend towards natural and environmentally friendly products amongst European consumers. Meanwhile, the Middle East region is seeing rapid growth in the demand for dairy ingredients, particularly in Gulf Cooperation Council (GCC) countries, driven by high per capita consumption and preference for imported premium dairy products. The dairy ingredients market in Asia is rapidly growing, with countries such as China, Japan, and India showing significant increases in production and consumption driven by urbanization and increasing income levels. Chinese consumers have a growing appetite for milk powders, particularly infant formula, and are increasingly open to trying new dairy products. At the same time, Japanese consumers are known for valuing the functional benefits of dairy products, such as probiotics in yogurts, which bodes well for the future growth of dairy ingredients driven by health and wellness trends.

FPNV Positioning Matrix

The FPNV Positioning Matrix is pivotal in evaluating the Dairy Ingredients Market. It offers a comprehensive assessment of vendors, examining key metrics related to Business Strategy and Product Satisfaction. This in-depth analysis empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success: Forefront (F), Pathfinder (P), Niche (N), or Vital (V).

Market Share Analysis

The Market Share Analysis is a comprehensive tool that provides an insightful and in-depth examination of the current state of vendors in the Dairy Ingredients Market. By meticulously comparing and analyzing vendor contributions in terms of overall revenue, customer base, and other key metrics, we can offer companies a greater understanding of their performance and the challenges they face when competing for market share. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With this expanded level of detail, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.

Key Company Profiles

The report delves into recent significant developments in the Dairy Ingredients Market, highlighting leading vendors and their innovative profiles. These include Ajinomoto Co., Inc., Amco Proteins, Archer-Daniels-Midland Company, Arla Foods Ingredients Group P/S, Batory Foods, Cargill, Incorporated, Cayuga Milk Ingredients, Dairy Farmers of America Inc., Dairy Ingredients Inc., Danone S.A., Epi Ingredients, Euroserum, Fonterra Co-operative Group Limited, Glanbia PLC, Gujarat Cooperative Milk Marketing Federation Ltd., Hoogwegt Groep B.V., ICL Food Specialties, Ingredia SA, International Food Products Corporation, Kansas Dairy Ingredients, Kerry Group PLC, Koninklijke DSM N.V., Lactalis Ingredients, Lacto Japan Co., Ltd., LAND O'LAKES, INC., Olam Group, Ornua Co-operative Limited, Pacific Dairy Ingredients, Prolactal GmbH, Saputo Inc., and Valio Group.

Market Segmentation & Coverage

This research report categorizes the Dairy Ingredients Market to forecast the revenues and analyze trends in each of the following sub-markets:

Type
- Milk Powder
  - Colostrums
  - Dairy Protein Fractions
  - Lactose & Its Derivatives
  - Milk & Whey Peptides
  - Milk Fat Concentrates
  - Skimmed Milk Powder
  - Whole Milk Powder

Proteins
- Casein & Caseinates
- Milk Protein Concentrates
- Milk Protein Hydrolysates
- Milk Protein Isolates
- Whey Protein Concentrates
- Whey Protein Isolates

Form
- Dry
- Liquid

Source
- Buffaloes
- Camels
- Cows
- Goats
- Sheep

Application
- Animal Feed
- Bakery
- Confectionery
- Dairy Products
- Functional Food
- Infant & Pediatric Formula
- Sports Nutrition

Region
- Americas
  - Argentina
  - Brazil
  - Canada
  - Mexico
  - United States
    - California
    - Florida
    - Illinois
    - New York
    - Ohio
    - Pennsylvania
    - Texas
- Asia-Pacific
  - Australia
  - China
  - India
  - Indonesia
  - Japan
  - Malaysia
  - Philippines
  - Singapore
  - South Korea
  - Taiwan
  - Thailand
  - Vietnam

Europe, Middle East & Africa
- Denmark
- Egypt
- Finland
- France
- Germany
- Israel
- Italy
- Netherlands
- Nigeria
- Norway
- Poland
- Qatar
- Russia
- Saudi Arabia
- South Africa
- Spain
- Sweden
- Switzerland
- Turkey
- United Arab Emirates
- United Kingdom

The report offers valuable insights on the following aspects:

1. Market Penetration: It presents comprehensive information on the market provided by key players.

2. Market Development: It delves deep into lucrative emerging markets and analyzes the penetration across mature market segments.

3. Market Diversification: It provides detailed information on new product launches, untapped geographic regions, recent developments, and investments.

4. Competitive Assessment & Intelligence: It conducts an exhaustive assessment of market shares, strategies, products, certifications, regulatory approvals, patent landscape, and manufacturing capabilities of the leading players.

5. Product Development & Innovation: It offers intelligent insights on future technologies, R&D activities, and breakthrough product developments.

The report addresses key questions such as:

1. What is the market size and forecast of the Dairy Ingredients Market?

2. Which products, segments, applications, and areas should one consider investing in over the forecast period in the Dairy Ingredients Market?

3. What are the technology trends and regulatory frameworks in the Dairy Ingredients Market?

4. What is the market share of the leading vendors in the Dairy Ingredients Market?

5. Which modes and strategic moves are suitable for entering the Dairy Ingredients Market?

Product Code: MRR-3D2FD205CA18

1. Preface

1.1. Objectives of the Study
1.2. Market Segmentation & Coverage
1.3. Years Considered for the Study
1.4. Currency & Pricing
1.5. Language
1.6. Stakeholders

2. Research Methodology

2.1. Define: Research Objective
2.2. Determine: Research Design
2.3. Prepare: Research Instrument
2.4. Collect: Data Source
2.5. Analyze: Data Interpretation
2.6. Formulate: Data Verification
2.7. Publish: Research Report
2.8. Repeat: Report Update

3. Executive Summary

4. Market Overview

5. Market Insights

5.1. Market Dynamics
- 5.1.1. Drivers
  - 5.1.1.1. Increasing Demand for Bakery and Confectionery Products
  - 5.1.1.2. Growing Consumer Awareness of Nutritional and Healthy Food
  - 5.1.1.3. Rising Government Support for the Development of Dairy Business
- 5.1.2. Restraints
  - 5.1.2.1. Manufacturing Complexities and Health Risk Associated with Dairy Ingredients
- 5.1.3. Opportunities
  - 5.1.3.1. Introduction of Innovative Products in Dairy Ingredients
  - 5.1.3.2. Ongoing Investment and Strategic Alliances to Produce Dairy Ingredients
- 5.1.4. Challenges
  - 5.1.4.1. Availability of Plant Based Non-Dairy Alternatives
5.2. Market Segmentation Analysis
- 5.2.1. Type: Increasing uses of milk powder and proteins in daily meals offering several nutritional benefits
- 5.2.2. Form: Utilization of dry and liquid dairy ingredients as per their need in confectionery and bakery products manufacturing
- 5.2.3. Source: Growing popularity of buffalo and cow milk derived ingredients due to their health benefits, luxurious texture, and artisanal value
- 5.2.4. Application: Increasing uses of milk ingredients in functional food and sport nutrition
5.3. Market Trend Analysis
5.4. Cumulative Impact of Russia-Ukraine Conflict
5.5. Cumulative Impact of High Inflation
5.6. Porter's Five Forces Analysis
- 5.6.1. Threat of New Entrants
- 5.6.2. Threat of Substitutes
- 5.6.3. Bargaining Power of Customers
- 5.6.4. Bargaining Power of Suppliers
- 5.6.5. Industry Rivalry
5.7. Value Chain & Critical Path Analysis
5.8. Regulatory Framework Analysis
5.9. Client Customization

6. Dairy Ingredients Market, by Type

6.1. Introduction
6.2. Milk Powder
6.3. Proteins

7. Dairy Ingredients Market, by Form

7.1. Introduction
7.2. Dry
7.3. Liquid

8. Dairy Ingredients Market, by Source

8.1. Introduction
8.2. Buffaloes
8.3. Camels
8.4. Cows
8.5. Goats
8.6. Sheep

9. Dairy Ingredients Market, by Application

9.1. Introduction
9.2. Animal Feed
9.3. Bakery
9.4. Confectionery
9.5. Dairy Products
9.6. Functional Food
9.7. Infant & Pediatric Formula
9.8. Sports Nutrition

10. Americas Dairy Ingredients Market

10.1. Introduction
10.2. Argentina
10.3. Brazil
10.4. Canada
10.5. Mexico
10.6. United States

11. Asia-Pacific Dairy Ingredients Market

11.1. Introduction
11.2. Australia
11.3. China
11.4. India
11.5. Indonesia
11.6. Japan
11.7. Malaysia
11.8. Philippines
11.9. Singapore
11.10. South Korea
11.11. Taiwan
11.12. Thailand
11.13. Vietnam

12. Europe, Middle East & Africa Dairy Ingredients Market

12.1. Introduction
12.2. Denmark
12.3. Egypt
12.4. Finland
12.5. France
12.6. Germany
12.7. Israel
12.8. Italy
12.9. Netherlands
12.10. Nigeria
12.11. Norway
12.12. Poland
12.13. Qatar
12.14. Russia
12.15. Saudi Arabia
12.16. South Africa
12.17. Spain
12.18. Sweden
12.19. Switzerland
12.20. Turkey
12.21. United Arab Emirates
12.22. United Kingdom

13. Competitive Landscape

13.1. Market Share Analysis, 2023
13.2. FPNV Positioning Matrix, 2023
13.3. Competitive Scenario Analysis
- 13.3.1. ADM Adds New Capabilities to Its Industry-Leading Flavor Business with Agreement to Acquire Revela Foods
- 13.3.2. FrieslandCampina Ingredients launches Nutri Whey ProHeat
- 13.3.3. Danone Launches Global Strategic Partnerships Programme Alongside Chr Hansen

14. Competitive Portfolio

14.1. Key Company Profiles
14.2. Key Product Portfolio