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Dairy Blends Market By Application (Infant Formula, Ice Cream, Bakery, Confectionery, Butter & Cheese Blends, Beverages, Others), Flavor (Regular, Flavoured), Form (Spreadable, Powder, Liquid), Distribution Channel (B2B, B2C) & Region - Forecast to 2022 – 2032

Dairy Blends Market By Application (Infant Formula, Ice Cream, Bakery, Confectionery, Butter & Cheese Blends, Beverages, Others), Flavor (Regular, Flavoured), Form (Spreadable, Powder, Liquid), Distribution Channel (B2B, B2C) & Region - Forecast to 2022 – 2032

Dairy Blends Market - Analysis, Outlook, Growth, Trends, Forecasts

Dairy Blends Market Snapshot

[200 Pages Report] The global dairy blends market is estimated to be valued at USD 2.4 Bn in 2022. According to a newly released report by Future Market Insights (FMI), the overall market value is expected to reach USD ~4.5 Bn by 2032, rising at a CAGR of ~7.0% during 2022-2032.



Market Size Value in 2022

USD ~2.4 billion

Market Forecast Value in 2032

USD ~4.5 billion

Global Growth Rate


Forecast Period


 In terms of flavor, the market can be bifurcated between regular and flavored. Of these, the regular segment is expected to lead the global dairy blends market.

Dairy blends are dairy mix ingredients from butter or cream concentration mixed with vegetable oils. Dairy blends are insipid and are hence mixed with non-dairy ingredients like sugar, cocoa powder, vegetable fats, dextrin, aroma, salt, and other flavorings to add flavor. Dairy as a functional food is renowned and hence dairy products are usually sold at a very high price but dairy blends can be imported at a much lower price in comparison to the dairy products list.

Use Of Dairy Blends

Dairy blends are in high demand across diverse sectors, among which the bakery segment has emerged as a key end-user. Dairy blends, in form of both spreadable blends and powder, are often used in making cakes and bread. These blends are often used to make cake toppings of different flavors.

Dairy plus milk blends have emerged as excellent substitutes to milk and butter, traditionally used as a key ingredient across bakeries.

Dairy blends are used in applications like ice cream, bakery, confectioneries, ready-to-eat foods, and infant formulas. Dairy as a carrier is widely prevalent in food processing. The use of dairy blends as an absolute and real taste enhancer to food products is widely prevalent.

Blending dairy blends along with some other sources of protein provides many nutritional benefits to consumers. In addition to this, the need of catering to health-conscious consumers will impel companies in the bakery sector to opt for dairy blends.

High Consumption of Spreadable Dairy Blends to Stoke Growth

The dairy blends market will receive an upswing with the high consumption of spreadable dairy blends that are becoming increasingly popular with consumers. Key contributing factors are its ability to be used as a low-fat alternative to butter and margarine.

Dairy blends’ popularity also hinges on their exquisite and intrinsic flavor attributes. Popular variants are vanilla and cocoa which are relished as ice-creams, toppings, and custards. Demand for dairy blends is also being upheld with high consumption among the heart patients and the geriatric pool of the population.

Innovation and Unique Packaging to Steer Market on an Upward Trajectory

The market for dairy blends is receiving tailwinds with leading market players innovating with different flavors. Attractive packaging and aggressive marketing strategies will continue to be key consumer touchpoints for dairy blends manufacturers.

With the landscape rife for opportunities, the dairy blends market is rapidly moving towards fragmentation from past consolidation. Another trend proliferating in the dairy blends market is that of enhancement of food products with fortification. This trend is enabling manufacturers to garner a larger market share.

Powder Dairy Blends as a Carrier

Powder dairy blends are widely used for various functions like enhancing taste, emulsifying, dispersion, and thickening. Powder dairy blends are a good example of dairy as a carrier in the food processing industry.

There is a presence of maltodextrin in the powder dairy blends which removes a peculiar smell, stabilizes nutrients, and improves the quality. Powder dairy blends do not contain any butter, so they are preferred by consumers with an aversion to fat content. These powder dairy blends have a good shelf life, can be refrigerated and stored.

Rising Urbanization to Fuel Growth Opportunities

Rising urbanization and hectic lifestyle as its most significant by-product have had a considerable impact on the dairy blends market. A busier lifestyle has made it more difficult for both men and women to cook food at home, truer in the case of working moms who are pressed for time managing both work and baby.

Dairy blends have emerged as a preferred alternative to traditional baby foods such as porridge or rice. They reduce the overall time taken to cook and contain essential nutrients required to promote healthy growth in the baby. These are crucial factors encouraging growth in the dairy blends market.

Health Consciousness is Affecting The Demand for Dairy Blends

The demand for dairy blend products is increasing at a faster pace, due to changes in social and economical patterns, as well as augmenting urbanization, buying power, and awareness about health and wellness foods, changes in meal pattern and existing food habits, and the desire to try new products.

They are becoming extremely popular, specifically among the working-class people, teenagers, children, and bachelors, among others. Healthy alternatives, such as dairy snacks from dairy blends, are convenient, ready-to-eat, and are also nutrient-dense, and fuel the body.

Region-wise Analysis

Regionally, the global dairy blends market covers North America, Latin America, Europe, APEJ, Japan, Oceania, and the Middle East, and Africa. Among these regions, North America currently leads the market, increasing consumption of dairy products will support the growth of the dairy blends market here.

In addition to this, the demand for dairy blends is expected to remain high in the Asia Pacific due to rising demand in China. The presence of leading Australian dairy blends manufacturers and those in New Zealand will support this growth.

Competitive Landscape

The Dairy Blends market is moving from a consolidated market dominated by big firms like Fonterra Group(New Zealand) to a fragmented one, thanks to consistent innovation, R&D, and support from government agencies to regional producers.

Key Players - Abbott Nutrition, Cape Food Ingredients, Hormel Specialty Products, All American Foods, Cargill, Agropour Ingredients, Friesland Capina, AgriMark Inc., SPX Flow, Landell Mills- sure, Pacificblends, Doehler Group, and others.

Scope of Report



Market Size Value in 2022

USD ~2.4 billion

Market Forecast Value in 2032

USD ~4.5 billion

Global Growth Rate


Forecast Period


Historical Data Available for


Market Analysis

USD Bn for Value

Key Regions Covered

North America, Latin America, Europe, Japan, APEJ, Oceania and MEA

Key Countries Covered

United States, Canada, Brazil, Mexico, Argentina,  EU5, Russia, Poland, China, ASEAN, Australia and New Zealand, Japan, GCC countries, North Africa, South Africa, others.

Key Market Segments Covered

Nature, Flavor, Application, Distribution Channel and Regions

Key Companies Profiled

  • Abbott Nutrition
  • Cape Food Ingredients
  • Hormel Specialty Products
  • All American Foods
  • Cargill
  • Fonterra Co-operative Group Ltd. 
  • Doehler Group
  • Agropur ingredients 
  • Royal FrieslandCampina N.V.
  • Kerry Group
  • Others


Available upon Request

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Dairy Blends Market Segmentation

The global dairy blends market is segmented in detail to cover every aspect of the market and present complete market intelligence to readers.

By Application :

  • Infant Formula
  • Ice Cream
  • Bakery
  • Confectionery
  • Butter & Cheese Blends
  • Beverages
  • Others

By Flavor :

  • Regular
  • Flavoured

By Form :

  • Spreadable
  • Powder
  • Liquid

By Distribution Channel :

  • B2B
  • B2C
    • Modern Trade
    • Convenience Store
    • Forecourt Retail
    • Online Retail

By Region :

  • North America
  • Latin America
  • Europe
  • APEJ
  • Japan
  • Oceania
  • Middle East & Africa

Key Questions Answered in the Report

What drives the dairy blends market?

Food choices of consumers around the world are never constant. Consumers moving towards low-fat content in foods, the insipid nature of blends, their readiness to add texture to flavors, and continuous innovation from producers are driving the dairy blends market.
Dairy blends market comprises players with extensive regional footprint and impressive production capacities. Besides new product launches, the market players often focus on forging strategic alliances to stay at the top of their game. Research and development are indispensable for the market.
Backed by the presence of a strong food sector and rising demand from countries such as the US, UK, Canada, Brazil, France, Middle-East countries, Germany, Spain, India, China, Australia, and New Zealand are likely to offer impressive sales opportunities.
To a large extent, growth witnessed in the dairy blends market is steered by the expansion of infant formulas. According to FMI, infant formulas are expected to account for the lion’s share in the market, based on application.
The demand for dairy blends is expected to remain high in North America and Europe. Regulatory support from authorities and technological advancement in the dairy industry will propel market growth in developed regions.

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