Dairy Ingredients Market – Overview:

The use of dairy ingredients in a broad range of food and beverage products is expected to inspire market growth in the approaching years. Reports that examine the food, beverage and nutrition industry has been offered by Market Research Future, which produces reports on industry verticals that evaluate the market development and opportunities. The market is forecasted to gain with an optimistic CAGR in the forecast period.

Dairy Ingredients Market Size was valued at USD 66,489.65 million in 2022. The dairy ingredients market industry is projected to grow from USD 135,791.90 million by 2032, exhibiting a compound annual growth rate (CAGR) of 7.5% during the forecast period (2023 - 2032).

The rise in the number of health-conscious population is motivating the dairy ingredient market. The escalation of diabetes-related cases is spurring the market currently. Moreover, the augmented demand for baby food and infant formula is expected to have a positive influence on the development of the market for dairy ingredients. The strengthening demand for dairy products is expected to alter the dairy ingredient market globally in the upcoming years.


The segmentation of the dairy ingredients market is carried out on the basis of type, application, and region. On the basis of type, the dairy ingredients market comprises of whey ingredients, milk powder, protein ingredients, casein and caseinates, milk protein isolates, lactose and its derivatives, and others. Among all the segments, the milk powder is directing this segment, trailed by the whey ingredients segmented. The high application of these ingredients in sports & clinical nutrition and baby food & infant formula is backing up the global market growth. By application, the market is segmented into sports & clinical nutrition, bakery & confectionery, convenience foods, dairy and frozen desserts, baby food & infant milk formula, and others. The bakery & confectionery based segment of the dairy ingredients is governing the market. Though, the baby food and infant formula-based segment are expected to observe a high growth rate due to the intensifying demand for baby nutrition across the world. On the basis of regions, the dairy ingredient market is segmented into Asia Pacific, North America, Europe, and Rest of the World (RoW).

Detailed Regional Analysis:   

The regional evaluation of the dairy ingredients market comprises of regions such as North America, Europe, APAC, and Rest of the World (RoW). The European region is governing the dairy ingredients market, followed by the North American region. U.K and Germany are the foremost users of dairy ingredients due to growing awareness about the health benefits of consuming dairy ingredients. Additionally, elevated demand for low-calorie and high protein foods is considered to be the crucial driving factor in this region. Besides, the growing consumer awareness and expanding demand for many forms of dairy ingredients have elevated the demand in North American countries, such as the U.S. and Canada, which is expected to lift the growth of the dairy ingredients market throughout the forecast period. 

Competitive Landscape:

The market competitors are also carefully scrutinizing whether intervention is required to ensure efficient use of society’s resources. The development of the alternative courses of action in terms of both their expenses and consequences are steering the growth of the market. The trade-offs between the resources needed to manage the challenges in the market are being carried out increasingly to improve the market’s scope for development. The state of the assets is also thoroughly examined to determine whether an investment is required to maintain the marketing system in its existing, unimproved state. The need to establish cost-benefit analysis is leading to enhanced product development in the market. The market players are concentrating on strategies that lead to the highest degree of development in the market. They are also making the most effective use of resources which is dependent on an effective appraisal and planning process.

The global Key Dairy Ingredients Market Players are Fonterra Co-operative Group (New Zealand), Cargill (U.S.), Friesland Campina (The Netherlands), Glanbia Plc. (Ireland), Dairy Farmers of America (U.S.), Groupe Lactalis (Germany), and Arla Foods. (Denmark), among others.

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