The global dairy blends market size was valued at USD 3.6 billion in 2018 and is anticipated to expand at a CAGR of 7.9% over the forecast period. Dairy blends are majorly used in infant formulas, ice cream, and yogurt premix. The rise in birth rates has increased the demand for infant formula and baby food. This is expected to fuel the market growth during the forecast period.
The working women population has witnessed significant growth in recent years due to an increase in urbanization in countries like India and China. Hectic lifestyle has made it difficult for women to cook baby food. Dairy blends are excellent alternatives to traditional baby foods like rice and porridge as they reduce the time required for cooking baby food. Moreover, these products contain all the essential nutrients required for the healthy growth of the baby. Hence, the preference for dairy blends is increasing significantly, which is expected to fuel market growth from 2019 to 2025.
Dairy blends are healthier alternatives to traditional dairy products like whole milk. They contain all the essential dairy nutrients and have low-fat content. This benefit has increased the popularity of the product among consumers with disorders like obesity and high cholesterol levels. This is expected to increase product demand, thereby propelling the market growth during the forecast period.
Liquid dairy blends are used with bakery products such as bread as a topping or spread. These blends can be mixed with salt, sugar, or flavorings depending on the taste and preference of the consumers. Hence, manufacturers are focusing on providing innovative flavored dairy blends. This is expected to increase product demand over the forecast period.
However, the manufacturing of dairy blends requires the end product to be compliant with the standards provided by the Codex Alimentarius Commission. Codex is a regulatory body established by the Food and Agriculture Organization (FAO) of the United Nations and the World Health Organization (WHO). These standards are very stringent and apply to the applications of dairy products as well. This may become a potential threat to the global market during the projected period.
The powdered dairy blend is the most popular form of dairy blends. This segment accounted for more than 50.0% share of the overall revenue in 2018. The powder form is largely used in making baby food products or infant formulation. It also works as a sweetener and stabilizer in ice cream and yogurts. Moreover, it is easy to store and has a longer shelf life owing to its dry form. Since the powder is made usually by spray-drying milk, it contains all the nutritional values as of a regular cow’s milk. These factors are anticipated to drive the segment.
Spreadable dairy blends are increasingly becoming popular and are expected to witness the fastest growth with a CAGR of 8.1% from 2019 to 2025. The major factor contributing to the growth of this product is that it acts as a low-fat alternative to butter and margarine, which makes it healthy for consumption. These spreads are used with cocoa, vanilla, and various other flavors for taste preferences. They are made using vegetable oils that eliminate the risk of heart diseases. Hence, such products are used as toppings in salad dressings, frozen custards, and ice creams. As a result, this has increased the consumption of ice creams and frozen custard by heart patients. This is expected to fuel segment growth from 2019 to 2025.
Bakery products accounted for the largest share of 34.3% in 2018. Powder and spreadable blends both are used in bread making and cakes. Many cake toppings are made by mixing various different flavors to these blends. These blends serve as excellent substitutes for the traditional milk and butter due to significant innovation in the manufacturing of bakery products in order to cater to the demand of the health-conscious population. Moreover, manufacturers provide customized dairy blends that have different nutritional values as per the consumer’s preference. This is anticipated to boost the product demand in the bakery products segment.
Infant formula is expected to witness the fastest growth with a CAGR of 9.0% from 2019 to 2025. An increase in the number of working women in the corporate world has led to a rise in the consumption of infant formulas as they reduce the preparation time required to cook baby food. This is expected to propel market demand in the next few years.
The dairy blend is used as a substitute to skimmed milk and is used in ice cream. It performs the functions of an ice cream sweetener and stabilizer, which improves the consistency and enhances the taste of the end product. Moreover, improved product visibility of powdered blends has increased the consumption of the product in home-made ice creams. This is expected to boost the growth of this segment at a steady rate during the forecast period.
Dairy blends are also used in making varieties of yogurts, animal feeds, salad dressings, and coffee creamers. Yogurts are known to strengthen the immune system, protect against osteoporosis, and promote weight management. This is expected to increase the demand for yogurts, which will positively influence market growth. However, rising prices of dairy products are expected to hamper the overall market growth in the next few years.
Asia Pacific occupied the largest share of 38.0% in 2018. The majority of the demand for dairy blends was driven by China due to the high birth rate, which increased the demand for baby food and infant formula. Additionally, major global providers of dairy products are situated in Australia and New Zealand. Moreover, dairy blends are cheap, easy to store, and have a longer shelf life as compared to their alternatives such as milk and butter. This is anticipated to increase dairy blends market growth during the forecast period.
North America accounted for the second-largest market share in 2018. Increasing consumption of dairy products in this region is driving the market. However, due to stringent regulations imposed on these products by FAO, the market is not expected to grow significantly. Additionally, the introduction of dairy alternatives like soy-based foods and beverages is expected to hinder market growth in North America and Europe.
Central and South America and Middle East and Africa are expected to witness substantial growth as many manufactures are focusing on tapping the underdeveloped countries in these regions to increase their sales. However, market growth in these countries may prove to be challenging in the forecast period due to consumer preference for traditional dairy products and forms.
Some of the key players operating in the market are Fonterra; Kerry; Royal FrieslandCampina N.V.; Agropur; Dohler Group; Intermix Australia Pty Ltd.; Abbott Nutrition; Johnson & Johnson; Cargill Inc.; and Cape Food Ingredients.
The global market is moving towards fragmentation due to awareness regarding the use of the products as well as its cost-effectiveness. Many major players like Fonterra, Kerry, Agropur, and DoÌˆhler are innovating varieties of blends and creating awareness by attractive packaging. Another trend adopted by major manufacturers is enhancing the nutritional content of blends by fortification. This is expected to increase market growth in the forecast period.
Base year for estimation
Actual estimates/Historical data
2015 - 2017
2019 - 2025
Revenue in USD Million & CAGR from 2019 to 2025
North America, Europe, Asia Pacific, Central & South America, and Middle East & Africa
Revenue forecast, company share, competitive landscape, growth factors and trends
U.S., Germany, U.K., China, India, and Brazil
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This report forecasts revenue growth at the 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 dairy blends market report on the basis of product form, application, and region:
Product Form Outlook (Revenue, USD Million, 2015 - 2025)
Application Outlook (Revenue, USD Million, 2015 - 2025)
Regional Outlook (Revenue, USD Million, 2015 - 2025)
Central & South America
Middle East & Africa
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