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Meticulous Research®—a leading global market research company, published a research report titled ‘Dairy Ingredients Market Size, Share, Forecast, & Trends Analysis by Source (Milk, Whey), Type (Milk Powder, Whey Protein, Milk Protein, Lactose, Buttermilk Powder, Whey Permeate), Application (Food {Dairy Products}, Beverages) - Global Forecast to 2031’, the dairy ingredients market is expected to reach $93.22 billion by 2031, at a CAGR of 4.9% from 2024 to 2031.
The growth of this market can be attributed to several factors, including the growing adoption of dairy ingredients in the food industry, increasing health & wellness trends, improvements in supply chain management, rising consumer awareness regarding nutritional foods, and increasing milk production. However, the key factors that may restrain the growth of this market include the demand for plant-based dairy alternatives and the increasing incidence of lactose intolerance.
Moreover, strong growth from emerging economies and technological advances in the dairy industry is expected to create growth opportunities for the stakeholders operating in this market. However, rising consumer awareness about the benefits of a vegan diet is a major challenge impacting the growth of the dairy ingredients market.
Moreover, healthy snacking is the recent trend in the dairy ingredients market.
Key Players
The dairy ingredients market is characterized by a moderately competitive scenario due to the presence of many large- and small-sized global, regional, and local players. The key players operating in the dairy ingredients market are Lactalis Group (France), Dairy Farmers of America, Inc. (U.S.), Fonterra Co-Operative Group Limited (New Zealand), Arla Foods amba (Denmark), Saputo Inc. (Canada), Royal FrieslandCampina N.V. (Netherlands), Savencia SA (France), Sodiaal International (France), Glanbia PLC (Ireland), Agropur Cooperative (Canada), Schreiber Foods Inc. (U.S.), Morinaga Milk Industry Co., Ltd. (Japan), AMCO Proteins (U.S.), KOMOS GROUP LLC (Russia), and Prolactal GmbH (Austria).
The dairy ingredients market is categorized by source (milk, whey), type (milk powder {whole milk powder, skim milk powder, fat-filled milk powder}, whey protein {whey protein concentrate, whey protein isolate, whey protein hydrolysate}, milk protein {milk protein concentrate, milk protein isolate, milk protein hydrolysate}, casein and caseinates, third-generation dairy ingredients {lactoferrin, lactorperoxidase, alpha-lactaalbumin}, lactose, lactose derivatives {lactulose, galactose, lactitol, lactosucrose, other lactose derivatives}, buttermilk powder, whey permeate), application (food {dairy products, bakery & confectionery, infant food, other food applications}, beverages {energy drinks, sports drinks, dairy-based beverages, other beverages}, nutritional health supplements, animal feed, other applications), and geography (North America, Europe, Asia-Pacific, Latin America, the Middle East & Africa). This study also evaluates industry competitors and analyzes the regional and country-level markets.
Based on source, this market is categorized into milk and whey. In 2024, the milk category is expected to account for a larger share of 78.9% of the dairy ingredients market. This category’s significant market share is attributed to milk's high functional qualities, adaptability, and broad variety of applications. Due to its high protein and vitamin content, milk is additionally used as a staple food, which promotes the growth of this category.
Based on type, this market is categorized into milk powder, whey protein, milk protein, casein, and caseinates, third-generation dairy ingredients, lactose, lactose derivatives, buttermilk powder, and whey permeate. In 2024, the milk powder category is expected to account for the largest share of 65.5% of the dairy ingredients market. The milk powder category’s substantial market share is due to its extended shelf life, various nutritional benefits, wide range of applications, and lower transportation and storage costs.
Based on application, this market is categorized into food, beverages, nutritional health supplements, animal feed, and other applications. In 2024, the food category is expected to account for the largest share of 37.3% of the global dairy ingredients market. Dairy ingredients are commonly used during food processing to enhance their functionality with the growing consumption of functional food products and increasing demand for nutritional & fortifying food products, which is contributing to the major share of the food category.
Geographical Review
This research report analyzes major geographies and provides a comprehensive analysis of North America (U.S., Canada), Europe (Germany, Russia, U.K., Spain, France, Italy, Rest of Europe), Asia-Pacific (China, India, Japan, Australia, Thailand, New Zealand, Rest of Asia-Pacific), Latin America (Brazil, Mexico, Argentina, Rest of Latin America), and Middle East & Africa.
In 2024, APAC is expected to account for the largest share of 36.9% of the dairy ingredients market. This regional market is estimated to be worth USD 24.66 billion in 2024. This regional market’s large market share is mainly attributed to the growing demand for sports nutrition, growing preferences for milk & milk-based products in the diet, increasing focus on creating functional food items, changing food consumption choices, and government policies & initiatives to assist dairy production & processing businesses.
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