Dairy Ingredients Market

Population Growth Acts as an Important Nudge

According to the United Nations, the world population is expected to reach 9.7 billion by 2050. Furthermore, according to the Population Reference Bureau, the annual population increase is likely to be over 1%. In spite of COVID-19 eradicating 0.75% of the people, growth is likely to aggrandize in the future.

Naturally, global food demand is experiencing an upsurge, with the Food & Agricultural Organization predicting there would be an additional 2 billion mouths to feed by 2030. In the wake of these trends, demand for dairy ingredients is bound to increase, as people will demand higher quantities of milk and milk products.

In addition, improved access to healthcare is elongating lifespans, meaning the proportion of geriatrics is burgeoning. This also means that age-related disorders such as orthopedic disorders are rising. To offset this burden, consumption of milk and dairy products among the elderly is on the rise, providing scope for expansion.

Strategic Alliances Aid Market Growth

Tremendous growth opportunities lay in store for dairy ingredient manufacturers across emerging economies, particularly across the Asia-Pacific. According to the International Dairy Federation, nearly 30% of global milk and dairy production happens across Asian countries, with India at the forefront.

In 2019, for instance, the New Zealand government offered assistance to India for ensuring best practices in the dairy sector by incorporating technological advancements. The assistance aims to leverage joint collaboration between India’s Future Group and New Zealand’s Fonterra co-operative dairy to develop and provide high value consumer products.

Likewise, in 2018, a partnership was established between China’s Jiangnan University and the U.S. Dairy Export Council to further educational and research opportunities in the American as well as Chinese dairy industries respectively. This development is especially beneficial for China, attributed to an increase in domestic production capacities.

High Demand for Milk Proteins

By product type, milk proteins are likely to remain lucrative, attributed to its widespread usage in manufacturing numerous dairy products. Milk protein concentrates rich in caseins and whey proteins are extensively used for manufacturing cultured products, dairy-based beverages and cheese products among others.

However, milk powder is expected to remain dominant, attributed to extensive applications across infant foods and growing consumption of ready-to-drink tea, coffee and other milky beverages. In addition, milk powder is easy to store and has greater shelf life as compared to pure milk.

Asia-Pacific Fastest Growing Market

The Asia-Pacific dairy ingredients market is expected to pivot global growth, spearheaded by India and China. As per the Indian Chamber of Food & Agriculture, India accounted for over 13% of global milk production in 2018. Furthermore, it also has the world’s largest dairy herd.

Consequently, it represents an attractive investment destination for numerous dairy ingredient manufacturers. The Gujarat Co-operative Milk Marketing Limited (GCMML) is the largest milk co-operative across India, controlling a major chunk of the domestic milk market, registering revenue worth US$ 5.2 billion in March 2020.

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Likewise, the Dairy Association of China reports a nearly 150-fold increase in total raw milk production until 2018. Milk and dairy consumption quadrupled among urban residents from 1995 to 2010 and expanded nearly six fold in rural areas. Such consumption trends are prompting manufacturers to foray into the Chinese market.

Global Dairy Ingredients Market- Prominent Players

The global dairy ingredients market is comprised of the following prominent players*:

• Lactalis Group
• AMCO Proteins
• Arla Foods
• Cayuga Dairy Ingredients
• Dairy Farmers of America
• Epi Ingredients
• Fonterra Co-operative Group
• FrieslandCampina
• Glanbia Plc
• Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF)
• Ingredia SA
• Kerry Group
• Megmilk Snow Brand Co. Ltd.
• Meiji Holdings Co. Ltd.

*This is an indicative list- full details about dairy ingredients market players is available upon request

Product launches, acquisitions, collaborations and advanced research and development are the primary strategies relied upon by the aforementioned market players. Furthermore, certain players also participate in exhibitions and trade fairs to extend product outreach to new customers. Additionally, they are looking to tap emerging markets.

Global Dairy Ingredients Market- Report Scope

Key questions answered in the report

• How will the global dairy ingredients market expand in the future?

  According to research conducted by Future Market Insights (FMI), the global dairy ingredients market is expected to remain on a positive trajectory, despite encountering a blip in the initial months of COVID-19. Heightened consumption of milk and associated products is keeping demand afloat

• What drivers underpin the global dairy ingredients market growth?

  The global dairy ingredients market is growing on the back of an exponentially surging global population which is generating higher demand for food products. Furthermore, manufacturers are establishing effective links with government entities to enhance their presence in local markets

• Which is the most prominent dairy ingredient type?

  Milk-based proteins are likely to garner impressive momentum, attributed to functional benefits offered by whey and casein protein bases. However, milk powder is expected to remain the dominant segment

• Which is the largest dairy ingredient market?

  Asia-Pacific is expected to be the fastest growing and largest dairy ingredient market, with majority of the growth being pivoted by India, the largest milk producing country in the world

• Which are the prominent dairy ingredients market players?

  Lactalis Group, AMCO Proteins, Arla Foods, Cayuga Dairy Ingredients, Dairy Farmers of America, Epi Ingredients, Fonterra Co-operative Group, FrieslandCampina, Glanbia Plc, Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF), Ingredia SA, Kerry Group, Megmilk Snow Brand Co. Ltd., Meiji Holdings Co. Ltd., are some of the prominent players operating in the dairy ingredients landscape

Enquiry before Buying

• Is the global dairy ingredients market research conducted by Future Market Insights?

  Yes, the global dairy ingredients market report has been compiled by expert analysts of Future Market Insights through a combination of primary and secondary research. To know more about how the research was conducted, you can speak to the research analyst

• What research methodology is followed by FMI?

  FMI follows a methodology that encompasses the demand side assessment of the market, and triangulates the same through a supply side analysis. This methodology is based on use of standard market structure, methods and definitions.

• Who are the respondents for primary research?

  FMI speaks to stakeholders across the spectrum, including C-level executives, distributors, product manufacturers, industry experts. For a full list of primary respondents, please reach out to us.

• What are the sources of secondary research?

  FMI conducts extensive secondary research through proprietary databases, paid databases, and information available in the public domain. We refer to industry associations, company press releases, annual reports, investor presentations, and research papers. More information about desk research is available upon request. 

• Is a sample of this report available for evaluation?

  Yes, you can request a sample and it will be sent to you through an email.

• How can I buy this report?

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Key Segments

Type

• Proteins
• Milk Powder
• Milk Fat Concentrates
• Lactose & Its Derivatives
• Other Types

Livestock

• Livestock
• Other Stock

Application

• Bakery & Confectionery
• Dairy Products
• Sports Nutrition Products
• Infant Formulas
• Other Applications

Distribution Channel

• E-Commerce
• Specialty Retailers
• Supermarket & Hypermarket
• Others

Region

• North America (U.S & Canada)
• Latin America (Brazil, Mexico & Rest of Latin America)
• Europe (Germany, Italy, France, U.K., Spain & Rest of Europe)
• South Asia & Pacific (India, Thailand, Indonesia, Malaysia, Australia & New Zealand and Rest of South Asia & Pacific)
• East Asia (China, Japan & South Korea)
• Middle East & Africa (GCC, South Africa, Israel & Rest of MEA)