Dairy Blends Market Size, Share & Trends Report

Dairy Blends Market Size, Share & Trends Analysis Report By Product Form (Spreadable, Powder), By Application (Infant Formula, Bakery Products), By Region, And Segment Forecasts, 2019 - 2025

  • Published Date: Aug, 2019
  • Base Year for Estimate: 2018
  • Report ID: GVR-3-68038-293-8
  • Format: Electronic (PDF)
  • Historical Data: 2015 - 2017
  • Number of Pages: 80

Industry Insights

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. Rise in the birth rates has increased the demand for infant formula and baby food. This is expected to fuel market growth during the forecast period.

The working women population has witnessed significant growth in the recent years due to increase in urbanization in countries like India and China. Hectic lifestyle has made it difficult for such 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 essential nutrients required for the healthy growth of the baby. Hence, preference for dairy blends is increasing significantly, which is expected to fuel market growth from 2019 to 2025.

U.S. dairy blends market

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 consumer with disorders like obesity and high cholesterol levels. This is expected to increase product demand, thereby propelling market growth during the forecast period.

Liquid dairy blends are used with bakery products such as breads as a topping or spread. These blends can be mixed with salt, sugar, or flavorings depending on 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, manufacturing of dairy blends requires the end product to be compliant with the standards provided by 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.

Product Form Insights

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.  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 increasing 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 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 custard, 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.

Application Insights

Bakery products accounted for the largest share of 34.5% 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 to the traditional milk and butter due to significant innovation in 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.

Global dairy blends market

Infant formula is expected to witness the fastest growth with a CAGR of 9.1% from 2019 to 2025. Increase in the number of working women in the corporate world has led to a rise in 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.

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 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 overall market growth in the next few years.

Regional Insights

Asia Pacific occupied the largest share of 38.0% in 2018. Majority of the demand for dairy blends was driven by China due to 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 its 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, 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.

Dairy Blends Market Share Insights

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 use of the products as well its cost effectiveness. Many major players like Fonterra, Kerry, Agropur, and Döhler 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.

Report Scope

Attribute

Details

Base year for estimation

2018

Actual estimates/Historical data

2015 - 2017

Forecast period

2019 - 2025

Market representation

Revenue in USD Million & CAGR from 2019 to 2025

Regional scope

North America, Europe, Asia Pacific, Central & South America, and Middle East & Africa

Report coverage      

Revenue forecast, company share, competitive landscape, growth factors and trends

Country scope

U.S., Germany, U.K., China, India, and Brazil

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Segments Covered in the Report

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)

    • Spreadable

    • Powder

    • Liquid

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

    • Ice Cream

    • Infant Formula

    • Bakery Products

    • Other

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

    • North America

      • U.S.

    • Europe

      • Germany

      • U.K.

    • Asia Pacific

      • China

      • India

    • Central & South America

      • Brazil

    • Middle East & Africa

Key questions answered by the report
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