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Dairy Ingredients Market By Source (Milk, Whey), By Type (Milk Powder, Whey Ingredients, MPC, MPI, Lactose & Its Derivatives, Casein & Caseinate, Milk Protein Hydrolysates, Other Dairy Ingredients), By Application (Bakery & Confectionery, Dairy Products, Convenience food, Infant Milk Formula, Sports & Clinical Nutrition, Other Food Products) - Growth, Future Prospects, Competitive Analysis And Forecast, 2016 - 2023

Dairy ingredients are made from milk and find application in chocolates, bakery products, ice creams, sports foods, prepared food products, and ready-to-eat food products, to name a few. Dairy ingredients are basically used for flavor and texture enhancement, offering viscosity, gel formation, emulsification, and fat-holding properties for the particular food and beverage product. Dairy ingredient types include milk, whey, and permeate.

Milk is an essential component of the human diet and has thus gained wide acceptance among consumers. Milk is dried and preserved in the form of powder owing to its benefits of having an increased shelf life and low moisture content, which makes it known as the dried form of milk. Other types of milk-derived dairy ingredients include casein and caseinate, milk protein concentrate, milk protein isolate, and others.

Whey ingredients are classified as whey protein isolate, whey protein concentrates, and others. Different types of dairy ingredients are used in the final product depending on the application.

International and domestic trade barriers have resulted in a complex system for the dairy industry worldwide in combination with price constraints in some of the major dairy markets, such as the European Union, the United States, Japan, and Canada.

As compared to all these barriers, the dairy industry offers wide potential, especially in the Asia Pacific, where factors such as urbanization, income growth, government plans and policies supporting the dairy industry, and the inclination of consumers toward milk and milk products are bolstering the dairy ingredients market growth.

The growing dairy industry is thus supporting the demand for dairy ingredients, especially in dairy food products, globally. However, price is a key concern among dairy ingredient manufacturers, which hinders overall dairy ingredient market growth.

Globally, the dairy ingredients market in Asia-Pacific is expected to be the largest in terms of value, followed by Europe and North America. Asia Pacific is further anticipated to exhibit the fastest CAGR during the forecast period, which is attributed to the growing food and beverage industries in China and India, which are leading to increased demand for dairy ingredients and new product launches catering to dairy food products, especially in China and India.

However, demand for dairy ingredients is expected to record moderate growth in Latin America, owing to increased consumption along with growing imports and exports of milk in Brazil, thereby leading to subsequent demand for dairy ingredients in the region.

The global dairy ingredients market is expected to be valued at US$ 48.6 billion by the end of 2016 and to grow at a CAGR of 5.4% between 2016 and 2023.

Purpose of the Report

The purpose of this strategic research study titled "Global Dairy Ingredients Market: Growth, Future Prospects, Competitive Analysis, and Forecast, 2016–2023" is to provide company executives, industry investors, and industry participants with in-depth insights to enable them to make informed strategic decisions regarding the opportunities in the global dairy ingredients market.

Target Audience

  • Industry Investors
  • Research Professionals
  • Emerging Companies
  • Dairy ingredient manufacturers
  • Oil and gas exploration and production companies
  • Downstream and midstream companies
  • Research Institutes

The global dairy ingredients market can be categorized on the basis of sources as follows:

  • Milk
  • Whey

The milk segment is anticipated to hold the largest market share by 2023's end in terms of revenue contribution. Owing to the increasing demand for milk protein concentrates (MPC) and milk protein isolates (MPI), the demand for milk as a source is anticipated to be significant throughout the forecast period.

Increasing consumer concerns regarding nutritional aspects and health consciousness related to food ingredients have led to the adoption and enhancement of dairy ingredients among manufacturers, thus driving the overall dairy ingredients market's growth.

In addition, dairy ingredients, basically in milk powder form, are expected to gain traction among food product manufacturers, which is attributed to benefits such as heat stability, low microbiological level, and an easy infant formula production process.

The whey segment is anticipated to record the highest growth during the forecast period, which is attributed to the rising demand for sports nutrition among consumers. Also, increasing consumption of functional food products owing to protein requirements among vegans across the globe is anticipated to drive the demand for dairy-based products, thereby leading to dairy ingredients market growth.

Moreover, governments of countries such as the U.S. and the U.K. are offering an increased inclination towards the addition of whey protein in food and beverage products, which is thus expected to have a substantial impact on the overall dairy ingredients market.

On the basis of type, the dairy ingredients market is categorized into the following types:

  • Milk Powder
  • Powdered Skim Milk
  • Whole Milk Powder
  • Whey Ingredients
  • Whey protein concentrates
  • Whey protein isolates
  • sweet whey powder
  • Others
  • Milk Protein Concentrates (MPC)
  • Milk Protein Isolates (MPI)
  • Lactose and its Derivatives
  • Casein and caseinate
  • Milk protein hydrolysates
  • Other Dairy Ingredients

Rising demand for healthy food products among consumers is leading to the development of such products, with a key focus on including milk powder and whey as ingredients in the final product. Of the different types, the milk powder segment holds the largest market share and is expected to maintain its dominance throughout the forecast period.

Mitigating efficient supply to mitigate the demand for healthy food products subsequently is a concern among manufacturers, thereby leading to the adoption of whey in food products. This is anticipated to lead to significant demand for these food products among consumers, thus leading to high growth in the near future.

Owing to benefits such as less moisture and a high shelf-life of the product, milk powder as a dairy ingredient type is expected to remain significant in the near future. Infant food applications are further contributing to the growth of this segment. Milk protein isolates and milk protein concentrates segments are collectively anticipated to account for a large share by 2023. This is attributed to the growing popularity of protein-rich food products among consumers.

The global dairy ingredients market can be categorized on the basis of application as follows:

  • Bakery & Confectionery
  • Dairy Products
  • Convenience food
  • Infant milk formula
  • Sports & Clinical Nutrition
  • Other Food Products

Dairy ingredients are used in various food products, including ice creams, chocolate, toppings, dietetics, infant formula, clinical nutrition, snacks, pork, ready-to-eat meals, prepared desserts, and soups.

Among the different applications undertaken in the report scope, the dairy food products segment accounted for around 40% of the total market share and is expected to remain dominant during the forecast period.

Globally, the application of dairy ingredients in dairy food products is anticipated to gain traction and is predicted to record significant growth during the forecast period. Food products that help with weight management, well-being, more minerals, antioxidants, and nutritional content delivery are gaining significant traction among consumers. This has further led dairy food manufacturers to develop technically advanced products to suit consumer demand and, thus, develop technically advanced ingredients.

Dairy ingredients offer nutrients that are essential for the maintenance of good health, which is expected to increase the application of dairy ingredients in food products, thus fueling the market growth.

Owing to increasing demand for food products offering active ingredients, improved digestion, vitamins, and minerals content, fortifying bones, improving health, and boosting immunity throughout different stages of life, especially during infant and child nutrition, a surge is occurring among consumers. Thus leading to the development of such ingredients by manufacturers of food products.

On the basis of geography, the global dairy ingredients market is segmented into the following regions and countries:

  • North America
  • U.S.
  • Canada
  • Europe
  • Germany
  • France
  • Italy
  • U.K.
  • Russia
  • Rest of Europe
  • Asia Pacific
  • India
  • China
  • Japan
  • Rest of Asia Pacific
  • Latin America
  • Brazil
  • Mexico
  • rest of Latin America
  • Middle East and Africa
  • GCC Countries
  • South Africa
  • Rest of the Middle East and Africa

In 2015, Europe was the leading market, followed by Asia Pacific. Both these regions together accounted for around 70% of the market in terms of value. However, growth is projected to be fastest in the Asia Pacific region during the forecast period of 2016–2023. The dairy ingredients market's growth in Asia Pacific is attributed to increasing consumer inclination towards health maintenance and the adoption of dairy ingredients in the regular diets of people of all age groups.

Furthermore, the growing popularity of food products rich in protein and the benefits associated with the consumption of dairy ingredients, primarily through dairy food products, is fueling market growth. The market for dairy ingredients in Latin America is anticipated to record significant growth, followed by North America. Brazil and Argentina serve as potential markets for companies operating in the dairy ingredients market in Latin America. The market for dairy ingredients in the Middle East and Africa is projected to grow at a steady rate during the forecast period.

Frequently Asked Question:

The market for Dairy Ingredients Market is expected to reach USD$ 70.2 Bn in 2023.

The Dairy Ingredients Market is expected to see significant CAGR growth over the coming years, at 5.4%.

The report is forecasted from 2016 -2023.

The base year of this report is 2015.

Dairy Farmers of America, Glanbia PLC, Euroserum, Arla Foods. are some of the major players in the global market.

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Trusted By
Godaddy
Published Date:  Dec 2016
Category:  Food & Beverage
Report ID:   58281
Report Format:   PDF
Pages:   120
Rating:    4.5 (65)
Delivery Time: 24 Hours to 48 Hours   
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