The global dairy ingredients market is poised to experience a positive growth trajectory amid COVID-19, attributed to rising consumption of milk and milk products, leading to it being categorized as an essential service. Consumption of cheese, yogurt, curd and other dairy products have especially climbed due to presence of calcium.
While sales declined substantially in the initial months, attributed to imposition of lockdowns, demand has rebounded in due course. As governments extend fiscal stimuli, dairy producers are nudged to increase output, thereby keeping the market afloat.
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.
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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.
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
- 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
Historical Data Available for
US$ Mn for Value & ‘000 Tons for Volume
Key Regions Covered
North America, Latin America, Europe, South Asia & Pacific, East Asia and Middle East & Africa
Key Countries Covered
U.S, Canada, Mexico, Brazil, Germany, Italy, France, U.K, Spain, China, Japan, South Korea, India, Thailand, Indonesia, Malaysia, Australia & New Zealand, GCC, South Africa and Israel
Key Segments Covered
Type, Livestock, Application & Distribution Channel
Key Companies Profiled
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., Nestle S.A., Saputo, Schreiber Foods Inc., Sodiaal Group and Volac International Ltd.
Market Overview, Key Market Trends, Risk & Opportunity Analysis, COVID-19 Impact Analysis, Demand Analysis, Market Background, Segmental Overview, Regional Profiling, Market Structure Analysis & Competition Analysis
Customization & Pricing
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
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- Milk Powder
- Milk Fat Concentrates
- Lactose & Its Derivatives
- Other Types
- Other Stock
- Bakery & Confectionery
- Dairy Products
- Sports Nutrition Products
- Infant Formulas
- Other Applications
- Specialty Retailers
- Supermarket & Hypermarket
- 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)