Dairy Ingredients Market Size, Share, and Trends 2024 to 2034

Dairy Ingredients Market Size to Reach USD 132.59 Bn by 2032

The dairy ingredients market size was valued at USD 69 billion in 2022 and is expected to hit around USD 132.59 billion by 2032, growing at a CAGR of 6.8% during the forecast period from 2023 to 2032.

Regional Insights

The Asia Pacific region dominated the dairy ingredients market in 2022 and is estimated to grow faster during the forecast period. The growth of this region is driven by the rising demand for plant-based diary alternatives. A rising number of consumers are adopting a plant-based or flexitarian diet for health, environmental, or ethical reasons. Plant-based dairy substitutes, such as almond milk, oat milk, and soy-based products, are gaining popularity and are being incorporated into a wide range of food and beverage products. For instance, companies like Oatly, a Swedish oat milk producer, have expanded their presence in the Asia Pacific region, capitalizing on the rising consumer interest in plant-based alternatives to conventional dairy. This shift reflects a broader movement toward sustainable and cruelty-free food choices.

In the North American market countries like United Kingdom, France and Germany where proteins are majorly used the demand for infant nutrition or formula food is growing in countries like France and Germany. New Horizons are added to this market by having organic whole milk powder, which has led to a growth in the market. The growth in various regions is primarily because of rapid urbanization, increased convenience stores and advancements in the dairy processing. As the production of milk is good in India, It provides a great potential for the dairy ingredients market to grow in the coming years.

Market Overview

Daily ingredients are there ingredients that are obtained from milk. They provide many health benefits and nutritional benefits, along with a good flavor which helps in the growth as it has a unique texture, flavor and excellent nutritional values. These dairy ingredients are used in many foods. Due to the disruptions in the supply chain and logistics, the pandemic had affected the dairy ingredients market. Due to strict lockdown and government regulations, there was a loss in the demand for liquid milk which also caused the pressure in procurement of milk for various reasons. The industry has grown spontaneously post pandemic. The International dairy trade has increased in the recent years. An extensive use of the dairy ingredients in many baby food products in various nations shall increase the demand for the dairy ingredients market.

Growth Factors

Increased awareness about the benefits of milk protein doesn't increase in the dairy ingredients market. Atheletes and sports people seek nutritional diets, there's an increase in the demand for dairy ingredients. An increasing trend of vegans worldwide and the vegetarians across the world there is an increase in the consumption of plant proteins. Vegan diet also helps in providing nutrition to lactose intolerant people hence the market is expected to grow during the forecast. The unique flavor, pleasant texture, and the nutritional values of the dairy ingredients have led to a growth in the market. In the upcoming years the dairy ingredient market is expected to grow as it is becoming a popular choice in the population. The awareness of the nutritional contents there is an increase in the consumption of ready to eat and functional foods the market for the dairy ingredients is growing. There is an increased awareness about dairy protein as consumers are maintaining a healthy lifestyle as they are rich in protein and have a superior content of amino acids.

Various ingredients like whey protein, milk protein or casein act as anti-aging components. Apart from staying fit, the consumption of dairy proteins also helps in reducing stress and improves immunity. It plays a vital role in the growth of a child. A rise in the disposable income in the developing nations has led to a growth of the market as increased advancement in the supply chain management of the dairy ingredients, the market is expected to grow during the forecast. As the milk powders are used in the preparation of infant products and as they have a high thermal Stability this acts as a driving factor for the growth of the dairy ingredients. Due to new research and innovations, present expansion in the applicability of dairy ingredients, increased collaboration, joint ventures and agreements are also expected to play a key role in the expansion of this market.

Report Scope of the Dairy Ingredients Market

Product Insights

Based on product, the milk powder segment is estimated to have the largest growth in the market and it is expected to grow at a CAGR of 3.9% during the forecast period. Out of all the most common types of dairy ingredients, this segment is expected to grow as it is a direct substitute for fluid milk. It is used in many applications like infant nutrition, bakery and even dairy. The hotel industry uses skimmed milk powder for many of its dishes. As milk powders are easy to store and they have a good shelf life compared to the pure milk. The market for milk powder is also expected to grow during the forecast. Milk powder also has an extensive application in infant foods, tea, coffee and other milk beverages.

Application Insights

The confectionery and the bakery segment had the largest market share for dairy ingredients market. Products like butter are extremely valuable for a bakery industry. It helps in bringing a nice color, taste and texture to various cakes, biscuits and croissants. Use of vvarious ingredients in bakery and confectionery have led to a growth in the market share. Use of butter, is strongly associated with a good image for the product.

Key market developments in the dairy ingredients market

• In 2021, Eurial Ingredients & Nutrition launched EuriNutri WPC,which is a whey protein concentrate ingredient that has about 80% of protein content. Sweet whey is used to make this product which is manufactured at the companies plant in France.
• In 2020, Arla Foods launched an organic ingredient for the first time namely MicelPure, a micellar casein isolate. This ingredient contains a minimum of 87% native milk protein and has low fat and lactose content.
• In 2020, Lactalis Ingredients launched a new skimmed milk powder, having high heat and heat stable qualities. This product is prepared in Lactalis plant situated in Germany, and the product is highly suitable for preparing condensed milk.

Key Market Players 

• Nestle S.A.
• Schreiber Foods Inc.
• Savencia S.A.
• Glanbia PLC.
• Gujarat Cooperative Milk Marketing Federation Ltd.
• Fonterra Cooperative Group
• Royal FrieslandCampina N.V.
• Arla Foods
• Lactalis Group
• Dairy Farmers of America Inc
• Agropur Cooperative

Market Segmentation

(Note*: We offer report based on sub segments as well. Kindly, let us know if you are interested)

By Product

• Milk Powder
• Casein & Caseinate
• Whey Ingredients
• Lactose
• Proteins

By Application

• Pediatrics
• Sports Nutrition
• Medical Nutrition
• Health Foods
• Bakery
• Dairy

By Livestock

• Cows
• Other livestock (Buffaloes, goats, sheep, and camels)

By Form

• Dry
• Liquid

By Production Method

• Traditional Method
• Membrane Separation
• Ultrafiltration
• Reverse Osmosis
• Nanofiltration

By Geography

• North America
• U.S.
• Canada
• Europe
• U.K.
• Germany
• France
• Asia-Pacific
• China
• India
• Japan
• South Korea
• Malaysia
• Philippines
• Latin America
• Brazil
• Rest of Latin America
• Middle East & Africa (MEA)
• GCC
• North Africa
• South Africa
• Rest of the Middle East & Africa