Dairy ingredients form a major part of a balanced diet. There are a few nutrients that a body requires to function properly, which may or may not be produced in the body. Hence, these ingredients are taken additionally in the form of food, beverages, and supplements. The usage of dairy ingredients is increasing considerably due to increasing health & wellness concerns and awareness about nutritional food products. The other factors that drive the market are the additional health benefits of certain dairy ingredients, advanced technological innovation, growth in application sectors, and growing premium food product demand.
The global dairy ingredients marketis projected to grow at a CAGR of 5.6% from 2015 to reach a value of USD 59.8 billion by 2020. In terms of volume, Asia-Pacific accounted for the largest share of 32% in the dairy ingredients market in 2014. Developing countries such as Brazil, India, and China are projected to be potential markets in the next five years.
Increasing demand for healthy and nutritional products, increasing awareness about health, and growing economies in developing countries with increasing demand for protein-based diets drive the dairy ingredients market. Even though there are many products available in the market, the dairy ingredients market is being explored and future years are likely to witness further improvements. Major players in the dairy ingredients market are making substantial investments in setting up and diversifying their research divisions. The same will lead to the emergence of new applications in expanding the dairy ingredients market.
The milk powder segment accounted for the largest market share of 61% in the dairy ingredients market in 2014. In terms of application, use of dairy ingredients is projected to be the highest in the dairy products segment in the next five years. Increasing demand for milk-based protein and health drinks is driving the market for dairy products.
Asia-Pacific is projected to be the fastest-growing regional market, between 2015 and 2020. Increasing demand for healthy food and increasing per capita spending on healthy food products in countries such as China and India are the major driving factors in the region. The North American and European markets are quite prominent for dairy ingredient manufacturers. Key players such as FrieslandCampina (The Netherlands), Fonterra Co-Operative Group (New Zealand), Dairy Farmers of America (U.S.), Arla Foods (Denmark), Glanbia Plc. (Ireland) Euroserum (France), Groupe Lactalis (Germany), Saputo Inc. (Canada), Volac international Limited (U.K.), and Murray Goulburn Co-Operative Co. Limited (Australia) have expanded their dairy ingredients business globally.
