The dairy ingredients market has been segmented on the basis of type, application, source, and nature, which are further divided into their subsegments. It has been segmented on the basis of region into North America, Europe, Asia-Pacific, and the Rest of the World (RoW). The market for dairy ingredients is projected to grow at a CAGR of 5.61% from 2016 and reach a market value of USD 66.11 billion by 2022. Increase in health & wellness concerns and awareness regarding nutritional food products have made way for new opportunities in the dairy ingredients market. The other factors that drive the market are the additional health benefits of the dairy ingredients such as its use in therapeutic food products, advancement in technological innovation, growth in application sectors, and increase in premium food product demand.
Increasing research is being carried out by companies to understand and enhance the functionality of dairy ingredients regarding their use in nutritional specialty products. The constantly evolving and cost-effective technology aids cheese and milk processors to produce high-quality dairy functional products by separating components of milk at a micro-nutrient level.
Key players identified in the market for dairy ingredients include FrieslandCampina (Netherlands), Fonterra Co-operative Group (New Zealand), Dairy Farmers of America (U.S.), Arla Foods (Denmark), Glanbia PLC (Ireland), Saputo Inc. (Canada), Groupe Lactalis (Germany), and Devondale Murray Goulburn (Australia). These players have a strong presence in the global dairy ingredients market.
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The key market players adopted various growth strategies such as acquisitions & mergers, new product launches & developments, and expansion of business operations to meet the growing demand for nutrient-rich food. The leading players focused on expanding their operations in emerging markets and strengthening their R&D capabilities by investing in advanced technology, to offer a diversified product portfolio for different applications. The key driving factors of the dairy ingredients market include increase in demand for healthy and nutritional products, rise in number of health conscious consumers, and economic growth in developing countries with increase in demand for protein-based diets.
The core strengths of the key players in this market are their strategic expansions, acquisitions, and agreements to diversify their businesses geographically, enhance their product offerings & technical know-how, and increase their production capacities, which would consequently strengthen their position in the global dairy ingredients market. Market leaders such as Fonterra Co-operative Group Limited (New Zealand), Devondale Murray Goulburn (Australia), FrieslandCampina (Netherlands), Dairy Farmers of America (U.S.), Groupe Lactalis (Germany), and Arla Foods (Denmark) have successfully tapped the potential markets through expansions and investments. Key players in the dairy ingredients market have been making substantial investments in setting up and diversifying their research divisions, which will lead to the emergence of new applications in the dairy ingredients market.
Fonterra Co-operative Group is one of the key players in the dairy ingredients market. Key strategies of the company have been expansions and investments to enter new markets and strengthen its position in the existing market. Fonterra strategically entered into a number of agreements and partnerships, which helped the company to reach a greater number of users in emerging economies such as China. In September 2016, the group invested in the capacity expansion of its Wynyard plant in Tasmania, which would improve the cheese and whey capacity of the facility.
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Arla Foods has been one of the prominent players in the global dairy ingredients market. The company, as a part of its strategy, entered into acquisitions, new product launches, agreements, and expansion contracts to strengthen its product portfolio and improve its capabilities in various types of dairy ingredients such as dairy protein hydrolysates. The company has been expanding its geographical presence with the help of investments in new plants and expansion of its existing manufacturing capacity. Its agreements and collaborations helped it to commercialize its products in diverse regions. For instance, in May 2015, Arla Foods and an Egypt-based dairy company—Juhayna— entered into a joint venture, which would sell Arla’s products across Egypt.
