The dairy blends market is projected to register a CAGR of 7.8% during the forecast period (2022-2027).

The COVID-19 outbreak had a negligible negative impact on the dairy blends market. As they are essentially used in the food and beverage sector, the demand for dairy blends increased due to the demand for different processed foods. According to the International Trade Administration (ITA), in 2019, the Chinese food and beverage industry experienced a 7.8% increase than in 2018, with an expected growth of 16% in 2021. The food and beverage sector and the constant demand for infant solutions added to the stable demand for dairy blends.

The increasing health consciousness among customers and the nutritional benefits of these products have encouraged the consumers to opt for dairy blends, as they have various health benefits like enhanced immune function and a reduced risk of several diseases, like diabetes. The presence of essential nutrients with lesser fat content adds to the surging growth of dairy blends in the market.

The availability of numerous flavors also fuels the demand for dairy blends. Companies are trying to experiment with various combinations of flavors to cater to the growing demand for innovation. Moreover, dairy blends can be used in various forms in different industries. For instance, powdered dairy blends can be used as sweeteners and stabilizers in many yogurts and ice creams.

Dairy Blends Market Trends

Demand for Dairy Blends in Numerous Industries

The demand for dairy blend products is increasing rapidly due to their multiple uses in different industries, including food and beverage and infant formula. The most prominent use of dairy blends can be seen in the food and beverage industry. These dairy blends also act as functional ingredients in many processed foods. The combination of non-dairy and dairy ingredients is the most popular dairy blend, with additional health benefits and rich nutrition content. Due to changes in social and economic patterns and growing awareness about healthy foods, functional dairy blends are being applied in many food processing units. The production of ready-to-eat and convenience food requires dairy blends, adding to their surging demand. The rising demand for protein dairy blends like whey protein blends in the nutraceutical industry is also boosting their demand.

Asia-Pacific May Witness Significant Growth in Dairy Blends Market

The growing demand for dairy proteins in the food industry due to their nutritional benefits further boosted the market for dairy blends worldwide. Asia-Pacific is expected to witness the highest growth in the dairy blends market during the forecast period due to the growing preference for dairy-based products. The Asia-Pacific dairy market shows a growing interest in dairy blends as the standard demand for milk fat grows. In contrast to vegetable fats, milk fat is a natural product and offers a better taste. Therefore, the production of dairy blends satisfies the growing demand. Counties like India produces the highest amount of milk and milk fats in the region, adding to the dairy blends market.

Dairy Blends Market Competitor Analysis

The dairy blends market is highly competitive, with the presence of numerous domestic and global players. The private-label brands have been gaining a competitive advantage in terms of product differentiation and cost-efficient solutions. The market studied is dominated by All American Foods, Batory Foods, Royal Frieslandcampina NV, Kerry Group, Dana Foods Inc., and Cargill. The market is fragmented, and many players are focused on new product developments and expansion to maintain their market positions. Companies are focused on catering to newer industries and expanding the application of dairy blend ingredients.

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