Concentrated Milk Fat Market Size, Share & Trends Analysis Report By Product (Organic, Conventional), By Application (Bakery & Confectionery, Dairy, Nutraceuticals), By Region, And Segment Forecasts, 2019 - 2025

Report Overview

The global concentrated milk fat market size was valued at USD 2.92 billion in 2018 and is anticipated to expand at a CAGR of 10.28% from 2019 to 2025. The growth is driven by increasing application of concentrated milk fat in food and beverage industry, primarily due to its longer shelf life and ease of transportation and storage. These benefits reduce the overall cost giving an advantage to the foodservice providers and therefore accelerating the growth.

The production and sales of concentrated milk fat have increased in the past few years, owing to its wide range of application in the food and beverage industry. It finds application in chocolates, oils, and ice creams among other food products. Increased consumption of these food products is resulting in anticipated to drive the market in near future. For instance, the global market for ice cream was estimated to be 54.80 billion in 2016, and is expected to expand at a CAGR of 4.1 % from 2019 to 2025, driving the demand for concentrated milk fat.

The market is growing rapidly, driven by the rising application of the product to enhance flavor, consistency, and texture of bakery products. These benefits help improve the quality and help cut the overall cost of the final product. These fats have very less moisture content and can be stored at room temperature for several months, resulting in longer shelf life and bulk storage and transportation, thus reducing the overall cost. For instance, Grassland Dairy Products Inc. provides fresh cream with concentrated milk fat in containers of 25 and 14 kilograms.

The organic content in the product is helpful due to the rising health concerns among the consumers. The product contains high levels of omega 3 fatty acids, vitamins, and antioxidants helpful for the prevention of heart and skin diseases. The factors that are likely to hamper the market growth are the saturated fats present in the concentrated milk fat, which might cause diabetes, obesity, and some cardiovascular diseases if consumed in large quantities. However, health problems can be avoided entirely with limited usage.

Product Type Insights

By product type, the concentrated milk fat market is segmented into organic and conventional products. Conventional products hold the leading market share of more than 88% in 2018. These products are used on a daily basis and therefore have a large consumer base. Conventional products with concentrated milk fats are expected to maintain their market share over the forecast period.The product is likely to maintain its high market share in the forecast period due to its antimicrobial, anti-cancer, anti-fungal, and anti-viral properties. Moreover, ability of the products to prevent gut health problems, is likely to help maintain the segment growth in the forthcoming years.

Organic product is anticipated to register a CAGR of 14.08%, over the forecast period. The market for organic products is driven by the benefits of these products such as reduced risk of eczema, presence of higher vitamin concentration which acts as antioxidant, and healthy level of essential fatty acids among others. Moreover, with rise in inclination of consumers towards a healthy lifestyle, the demand for organic food ingredients is also increasing, thereby driving the demand.

Application Insights

On the basis of application, the market is segmented into bakery and confectionery, dairy products, nutraceuticals, and others. The bakery and confectionery segment held the largest market share of over 45% in 2018 owing the use of concentrated milk fat products in almost all the bakery and confectionery products. A variety of flavors and texture benefits provided through the bakery and confectionery products maintain its demand in the global industry. Moreover, the use of milk and milk fat products in the confectionery items such as chocolates and bars drives its demand.

The dairy products segment is anticipated to witness the fastest CAGR of 11.48% from 2019 to 2025. The rise in demand for dairy products in several countries such as the U.S., China, and India is spurring the growth of this segment. In the U.S., the demand for butter is increasing at a rapid rate of around 7.2% and is expected to grow further over the forecast period. Moreover, the added contents such as flavors, sweeteners, colorings, and preservatives in the dairy industry provide a boost in demand for milk products.

Regional Insights

Asia Pacific held the largest market share of more than 35% in 2018. The demand for concentrated milk fat is high in this region due to the highest import value in countries such as India and China. Moreover, a significant rise has been observed in per capita consumption of dairy products, in the past five years. In China, per capital consumption of milk fat grew to about 25 times to 31 kg in the year 2017. The region is expected to maintain this share thus making it a top market for producers to expand their business. The growing health awareness and middle-class population in the country is driving the demand for dairy products, thereby boosting product sales.

Europe is anticipated to expand at the highest CAGR of 12.59% from 2019 to 2025, due high consumption of dairy products in Germany and France in the Western Europe. The demand for dairy products is increasing at a fast rate, which is projected to drive the regional product demand over the forecast period.

Key Companies & Market Share Insights

The key market players include Darigold, Inc.; Lactalis Ingredients; Campina Original; California Dairies, Inc.; Grassland Dairy; Fonterra; FIT; Hoogwegt U.S.; G&R Foods Inc.; Pine River Dairy; MCT Dairies; and JLS Foods; among others. The competitive strategies for growth include mergers and acquisitions, innovating new products, and spreading awareness about the benefits of the product.

Concentrated Milk Fat Market Report Scope 

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2015 to 2025. For the purpose of this study, Grand View Research has segmented the global concentrated milk fat market report on the basis of product, application, and region:

• Product Type Outlook (Revenue, USD Million, 2015 - 2025)

  • Organic

  • Conventional

• Application Outlook (Revenue, USD Million, 2015 - 2025)

  • Bakery & Confectionery

  • Dairy Products

  • Nutraceuticals

  • Others

• Regional Outlook (Revenue, USD Million, 2015 - 2025)

  • North America

    • U.S.

  • Europe

    • Germany

    • France

  • Asia Pacific

    • India

    • China

  • Central & South America

  • Middle East & Africa