Over the next eight years, the rising relevance of nutritional enrichment in food and drinks as a consequence of increased awareness of the necessity of maintaining a healthy lifestyle among individuals is likely to have a beneficial influence

The global Dairy Ingredients market size is expected to reach close to US$ 417.16 Billion by 2029 with an annualized growth rate of 7.5 % through the projected period.

Covid-19 Impact & Market Status

The growing advantages of milk protein are mostly driving demand for dairy components. Non-athletes' sportification has also helped to meet demand in a beneficial way. This is the outcome of consumers and athletes looking for less processed nutritious items. This, in turn, is zoning-in the non-athletic population among targeted sports nutrition consumers, ultimately raising dairy protein concentrate sales.

In wealthy and emerging nations such as the United States, the United Kingdom, India, Japan, and others, the growing number of vegans has stifled market development due to the advent of the plant protein consumption trend. Non-dairy proteins cater to the demands of lactose intolerant people as well as vegans.

Skimmed Milk Powder Is Expected To Drive The Dairy Ingredients Market Growth

SMP skimmed milk powder accounted for 25.3 percent of the volume share and is predicted to expand as the product's shelf life is extended due to its lower moisture content Increasing demand for the product in ready-to-eat meals or fortified blended foods, therapeutic, and supplementary foods would support the dairy ingredients market growth throughout the forecast period due to its low fat and moisture content.

Because of its widespread use in sweets, baked products, toppings, and dairy-based dry mixes, MPC & MPI is predicted to increase at a CAGR of 5.8 percent from 2022 to 2029. They offer viscosity, water binding, gelling, foaming/whipping, emulsification, and heat stability, among other things.

Dairy products Followed By Chocolate To Gain Highest Market Share In Dairy Ingredients Market.

In 2021, dairy products accounted for 41.5 percent of worldwide volume. The dairy business is expected to grow dramatically as demand for cream, yoghurt, cheese, ice cream, milk, buttermilk, butter, and lactose-free dairy products grows.

From 2022 to 2029, chocolate is predicted to expand at a CAGR of 5.3 percent in terms of volume. The use of milk powder is expected to increase as chocolate consumption in functional meals rises due to its stress-relieving properties. Furthermore, Mondelez's product innovation in the launch of dark chocolate is predicted to continue to be positive elements.

APAC Region Is Dominating The Dairy Ingredients Market Growth.

In 2020, Asia Pacific was the most important market, accounting for 44.8 percent of total volume. The regulatory inclination toward promoting investments in China's and India's food and beverage sectors is expected to boost baked goods and sports nutrition product manufacturing capacity. This tendency is expected to continue as a significant motivator for the usage of dairy components.

In 2020, Europe's demand was 3,439.2 kilo tonnes. Milk powder is predicted to become more popular as a functional component as sports professionals and working folks in Germany, France, the United Kingdom, and Russia spend more money on nutritional goods to improve muscle strength.

Vegetarians' increasing use of protein-fortified functional food items to satisfy their protein needs is expected to have a significant influence on the industry. Increased demand for protein supplements in food has led to new product introductions by food and beverage firms such as Kellogg, which is likely to boost demand for whey and milk powder.

The dairy ingredients market is expected to grow at a CAGR of 4.1 percent from 2022 to 2029, reaching $71.5 billion. Dairy ingredients are compounds taken from dairy products that are used to provide food and beverages texture and taste. These are kept in three different forms: dry, concentrated, and liquid. Emulsification, fat retaining, viscosity production, and gel formation are all provided by dairy components. Dairy components are significant tools for a food developer to use when creating desirable characteristics in dishes.

Ingredients in Whey Dairy components include milk powder, milk protein isolates and milk protein concentrates, casein and caseinates, lactose, and others. Rising consumer health and wellness concerns, increase in application areas, and new research and innovations to broaden applicability are some of the primary factors in the global dairy ingredients market. Growing incidences of lactose intolerance and milk allergies, as well as the availability of substitutes such as Plant Proteins, are some of the growth hurdles.

People's health concerns are expanding, as are R&D efforts connected to novel dairy ingredient solutions, expansion in application industries such as confectionery and dairy, and urbanisation. However, the availability of dairy component replacements, as well as the incidence of lactose intolerance and milk allergies, stymie this expansion. CO2 injection was used to create milk protein concentrates (MPC), which have comparable functional qualities as acid casein and might be used to substitute casein and caseinate components. Recent advances in sophisticated technology, like as adsorption chromatography, have been discovered to create prebiotic-beneficial substances, offering a significant business potential.

Dairy components, such as milk powder, are enriched in infant formula formulations because they have extraordinarily low microbiological levels, are highly heat stable, and allow for lengthy processing runs during infant formula preparation. Over the next eight years, increased levels of innovation driven by Danone, a baby food maker, are predicted to boost demand for milk powder in emerging nations such as China and India.

During the next eight years, the FDA and the UK government are expected to have a substantial impact on the inclusion of whey protein in foods and beverages. Clean Whey, a new whey product line from PowerBar, Under the Clean Whey brand, PowerBar introduced a new whey product range with two grams of sugar and no artificial sweetener formulas. Milk powder contains 21 different types of normal amino acids, protein components, and soluble mineral and vitamin levels.

Protein is abundant in dairy products. Whey, for example, is recognized for having a high amino acid content as well as a good absorption quality. Dairy proteins, such as milk and whey protein, may potentially have anti-aging properties, according to researchers. Dairy proteins are proven to help people stay fit and healthy by reducing stress, lowering cortisol levels, and improving immunity. Furthermore, dairy protein is critical for a child's development. Medical nutrition products also contain dairy protein. For example, in 2021, Arla Foods Ingredients introduced whey protein hydrolysate as a medical nutrition component to address the taste issues that patients with maldigestion and malabsorption suffer.

Some of the key participants in the dairy ingredients industry are Arla Food amba, Fonterra Co-Operative Group Limited, Saputo, Inc., Groupe Sodiaal, Hoogewegt Group B.V., and Royal FrieslandCampina N.V. and others.

Through the Dairy Development Program, companies like Royal FrieslandCampina N.V. help local dairy farmers by improving their farm management and milk quality (DDP). These businesses also use celebrity endorsement to promote their products. This aids in increasing their social media exposure while also projecting a favourable picture of the brand and product in question.

Latest Innovation in the Global Dairy Ingredients Market: A snapshot

• Eurial Ingredients & Nutrition introduced EuriNutri WPC, an 80 percent protein whey protein concentrate component, in 2021. This component is made from sweet whey, which is produced in the company's French facility.
• Arla Foods will introduce MicelPure, a micellar casein isolate, as an organic ingredient for the first time in 2020. This component is minimal in fat and lactose and includes at least 87 percent natural milk protein.
• Lactalis Ingredients introduced a new skimmed milk powder with strong heat and heat stability in 2020. This product is made in the Lactalis facility in Germany and is ideal for making condensed milk. Lactalis Ingredients introduced a new skimmed milk powder with strong heat and heat stability in 2020. This product is made in the Lactalis facility in Germany and is ideal for making condensed milk.

Dairy Ingredients Market Scope

Key Segments of the Global Dairy Ingridients Market

Type Overview, 2022-2029 (USD Billion)

• Whole Milk Powder (WMP)
• Skimmed Milk Powder (SMP)
• Buttermilk Powder
• Rolled Dried Powder
• Fat-filled Powder
• Cream Powder
• Blenders & Replacers
• Permeate Powder/Dried Permeate
• MPC & MPI
• Whey Ingredients
• Lactose & Derivatives
• Casein & Caseinate

Application Overview, 2022-2029 (USD Billion )

• Bakery & Confectionery

• Ice cream
• Chocolate
• others

• Dairy products
• Convenience Foods
• Infant Milk Formula
• Sports & Clinical Nutrition
• Others

Regional Overview, 2022-2029 (USD Billion )

North America

• U.S
• Canada

Europe

• Germany
• France
• UK
• Rest of Europe

Asia Pacific

• China
• India
• Japan
• Rest of Asia Pacific

South America

• Mexico
• Brazil
• Rest of South America

Middle East and South Africa