Dairy Ingredients Market Size, Share & Trends Analysis Report By Product (Skimmed Milk Powder, Whole Milk Powder, Buttermilk Powder), By Application, By Region, And Segment Forecasts, 2016 - 2024

Industry Insights

The global dairy ingredients market size was estimated at 13.7 million tons in 2015. Rising importance of nutritional enrichment in food & beverages as a result of increasing awareness towards maintaining a healthy lifestyle among individuals is expected to have a positive impact over the next eight years.

Rising consumption of protein fortified functional food products by vegetarians to supplement their protein requirements is projected to have a strong impact on the market. Increasing demand for protein supplements in food items has resulted in new product launches by food & beverage companies including Kellogg, which is expected to fuel the demand for whey and milk powder.

U.S. dairy ingredients market volume, by application, 2013 - 2024 (Kilo Tons)

Dairy ingredients in the form of milk powder, are fortified in the formulation of infant products on account of providing exceptionally low microbiological levels, high heat stability, and facilitating long processing runs during infant formula production. The rising levels of innovation led by baby food manufacturers Danone in emerging economies including China and India are expected to promote the demand for milk powder over the next eight years.

Regulatory support intended towards the incorporation of whey protein in food & drinks by the U.S. FDA, and UK government is expected to have a substantial impact over the next eight years. In August 2016, PowerBar launched a new whey product line under the brand name, Clean Whey that comprises two grams of sugar along with the absence of artificial sweetener formulations.

Milk powder comprises content of 21 types of regular amino acids, the elements of proteins, and levels of soluble mineral and vitamins. As per the United States Agency for International Development (USAID), the product comprises usual average quantities of primary nutrients, by mass, 52% carbohydrates, 1.3% calcium, 1.8% potassium, and 36% protein.

Product Insights

Skimmed milk powder (SMP) accounted for 23.3% of the volume share and is expected to witness growth as it increases the shelf life of the product owing to less moisture content in it. Rising demand for the product in ready-to-use foods (RUFs) or fortified blended foods (FBFs), therapeutic and supplementary foods owing to its low fat and moisture content will propel dairy ingredients market size over the forecast period.

MPC & MPI is expected witness volume growth at a CAGR of 5.5% from 2016 to 2024 on account of its high usage in desserts, baked goods, toppings, and dairy-based dry mixes. They provide various benefits including viscosity, water binding, gelling, foaming/whipping, emulsification, and heat stability.

Application Insights

Dairy products accounted for 38.5% of the global volume in 2015. The segment is expected to witness significant growth in light of increasing demand for cream, milk, buttermilk, yogurt, cheese, butter, ice cream, and lactose-free dairy products.

Global dairy ingredients market, by application, 2015 (%)

Chocolate is expected to witness volume growth at a CAGR of 4.3% from 2016 to 2024. Increasing chocolate consumption in functional foods owing to exhibiting stress-relieving property is projected to promote the usage of milk powder. Furthermore, product innovation by Mondelēz regarding the introduction of dark chocolate is expected to remain favorable factors.

Regional Insights

Asia Pacific was the largest market accounting for 40.8% of total volume in 2015. Regulatory inclination towards promoting investments in the food & beverage sectors of China and India is expected to enhance the manufacturing capacity of baked goods and sports nutrition products. This trend is projected to remain a major driving factor for promoting the use of dairy ingredients.

Europe's demand was 3,439.2 kilo tons in 2015. Rising expenditure of sports professionals and working individuals towards nutritional products in Germany, France, UK, and Russia for improving muscular strength is expected to promote the usage of milk powder as functional ingredients.

MEA is projected to foresee volume growth at a CAGR of 3.1% from 2016 to 2024. Shifting inclination of the governments of Middle East countries including Saudi Arabia, UAE, and Qatar from the upstream oil & gas sector for promoting investments in the domestic food & beverage sector is expected to open new avenues over the forecast period.

Dairy Ingredients Market Share Insights

Key industry participants include Dairy Farmers of America, Arla Foods, Volac, Fonterra, and Glanbia. The global dairy ingredient market is concentrated, and key industry participants have been adopting numerous competitive strategies to cater to the needs of the consumers located in emerging economies by increasing production capacities and gain industry share.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional & country levels and provides an analysis of the latest trends in each of the sub-segments from 2013 to 2024. For the purpose of this study, Grand View Research has segmented the global dairy ingredients market on the basis of product, application, and region:

• Product Outlook (Volume, Kilo Tons; Revenue, USD Million, 2013 - 2024)

  • Skimmed Milk Powder (SMP)

  • Whole Milk Powder (WMP)

  • Buttermilk Powder

  • Cream Powder

  • Blenders & Replacers

  • Rolled Dried Powder

  • Fat-filled Powder

  • Permeate Powder/Dried Permeate

  • Lactose & Derivatives

  • Casein & Caseinate

  • MPC & MPI

  • Whey Ingredients

• Application Outlook (Volume, Kilo Tons; Revenue, USD Million, 2013 - 2024)

  • Bakery & Confectionery

    • Chocolate

    • Ice-Cream

    • Others

  • Dairy Products

    • Recombinant Milk

    • Others

  • Convenience Foods

  • Infant Milk Formula

  • Sports & Clinical Nutrition

  • Others

• Regional Outlook (Volume, Kilo Tons; Revenue, USD Million, 2013 - 2024)

  • North America

    • The U.S.

    • Mexico

    • Canada

  • Europe

    • North Europe

      • Scandinavia

    • Western Europe

      • Germany

      • France

      • UK

    • Eastern Europe

      • Poland

      • Russia

      • Turkey

    • South Europe

      • Portugal

      • Spain

      • Italy

  • Asia Pacific

    • China

    • Japan

    • South Korea

    • India

    • Australia

    • New Zealand

    • South East Asia

      • Indonesia

      • Vietnam

      • Thailand

  • Central & South America

  • Brazil

  • Venezuela

  • MEA

    • South Africa