Market for Fat Filled Milk Powder to Flourish as Consumers Opt for Alternatives with Equal Functional Attributes of Whole Milk

Feb 26,2019

Fat filled milk powder is gaining major popularity as an effective alternative to whole milk powder. Consisting of vegetable oil in place of dairy fat, the fat filled milk powder is emerging as an effective substitute for the whole milk powder and is available in variants with different specifications that differ in the content of protein and fat. Fat filled milk powder is finding its application in various end-use applications including bakery products, dairy products, ice cream, confectionary, and others. Moreover, fat filled milk powder is gaining major traction as a dairy ingredient. The processors are gaining profits on high butterfat prices while manufacturing fat filled milk powder in place of producing and selling skim milk powder as the vegetable oils are lower in price compared to butterfat. The competitive price of the fat filled milk powder is a major factor driving the increasing consumption of the product, especially in the food processing application.

The growing demand for fat filled milk powder is propelling companies operating in the fat filled milk powder landscape to introduce new offerings to the market. Companies are recognizing the need for effective alternatives for whole milk powder that are cost-effective, yet not compromising on the composition offered by the whole milk powder. In light of this, there are several companies adding new products with improved functional benefits to their product portfolio to attract major consumer attention.

For instance, a leading high-quality dairy ingredient manufacturer for the global food and nutrition industry, Lactalis Ingredients introduced a fat filled milk powder, Lactimilk with the 24 percent protein and 28 percent fat content. This product was manufactured with an aim to match the composition of whole milk powder. This fat filled milk powder is produced from vegetable fat and skimmed milk, having greater functional and competitive value, making it an ideal substitute to whole milk powder. Lactimilk could be used in place of whole milk powder in applications including, yogurt, drinks, tea, and coffee whiteners.

Another company providing natural, wholesome dairy products to manufacturers and consumers, Ornua Limited launched the new fat filled milk powder, Forto. This new product is said to be a rich in protein and Vitamin A and D. According to the company’s statement, this fat filled milk powder offers instant solvency and great taste, making it an ideal ingredient for homemade dishes.

Fat Filled Milk Powder Exports Surge in EU

Fat filled milk powder is gaining major preference by buyers owing to its cost-effectiveness over whole milk powder without compromising on the functions. With such an elevation in the demand, the distribution network is expanding significantly with time. There are several developments witnessed in the market for fat filled milk powder pertaining to the product exports. The European Union (EU) has emerged as a major market for fat filled milk powder. Moreover, manufacturers are expanding in regions such as Middle East & Africa and Malaysia, which are eyed to hold high potential for the fat filled milk powder providers.

For instance, there was a notable expansion of EU fat filled milk powder exports owing to the transformations made in the EU policies on skimmed milk powder purchase into the public sector support and intervention to the private storage schemes. This has triggered new product innovations, thereby expanding the fat filled milk powder outlets, mostly in West Africa.

As mentioned earlier, the Middle East has showcased significant growth in the recent time. Fat filled milk powder producers are leveraging the profitability in this market. For instance, according to the officials at NZMP, a Fonterra's brand of dairy ingredients and solutions, the Middle Eastern market is promising for mass-market protein products that enhance the wellness and health of consumers, although it is still far from the stage where it would create major demand for high-end nutrition products. In addition to its ready-to-mix protein powder range, the company has showcased its cost-effective nutrition ingredients, which include NZMP Buttery Blend and NZMP fat filled milk powder.

Fat Filled Milk Powder: Key Developments

With the ever-increasing demand for fat filled milk powder, there is a significant growth in the fat filled milk powder production landscape. Various developments are centered at boosting the production with a constant rise in consumer demand for dairy products. Similar development was witnessed in Ireland, where an equipment and process technology provider mainly for the food industry, GEA Group AG, received an order for Dairygold’s project, a milk powder plant based in Mallow, wherein the company would supply its equipment and systems to the new plant. The new production plant based in the Dairygold’s Nutritionals Campus Mallow would be in full production in March-2020 and would have a tremendous powder output capacity of 7.5 MT per hour of skim milk powder, fat filled milk powder, and whole milk powder.

Apart from the aforementioned developments, the fat filled milk powder producers are undergoing strategic changes in terms. Moreover, other companies are shifting their focus towards acquiring these producers. For instance, SADAFCO (Saudi Dairy and Foodstuff Company) acquired Mlekoma, a dairy producer that owns two production plants focusing on the production of powdered. Fluid, and condensed products along with cream, whole milk, buttermilk, and fat filled milk powder. This acquisition offers an alternative to purchase milk powder from their own production facility and gain profitability despite the challenges associated with the highly competitive market.

The global market for fat filled milk has expanded rather steadily, in the recent years. While consumers are increasingly opting for whole milk powder-like fat-filled milk powder, however, it remains to be seen if the market would tilt entirely towards cost-effective milk products such as fat filled milk powder.

All the insights in this article are sourced from a recent analytical report by Future Market Insights (FMI). Request actionable insights on the global fat filled milk powder market—which is expected to offer lucrative opportunities to companies in the food industry