Market Overview
Global Dairy Ingredients Market reached US$ 58.5 billion in 2022 and is expected to reach US$ 83.1 billion by 2030 growing with a CAGR of 4.5% during the forecast period 2023-2030.
Dairy ingredients are highly significant in the food industry because of their multifunctionality, and they are regarded as a necessary component in food production. Dairy ingredients have a variety of qualities that are helpful for a variety of uses in the food and beverage industry, which is driving up demand among producers. They are also recognized to have various nutritional properties, making them popular among customers.
Consumers are increasingly seeking clean label products, which has led to a rise in demand for natural and minimally processed dairy ingredients. There is a rising demand for protein-rich food products, driven by increased awareness of the importance of protein in a balanced diet. Dairy ingredients, such as whey protein concentrates and isolates, offer high-quality protein with a complete amino acid profile.

Market Dynamics
Increase in the Consumption of Ready to Eat Food Products Helps to Boost Demand of Dairy Ingredients
RTE food products offer convenience and time efficiency to consumers, particularly those with busy lifestyles or limited cooking skills. These products are pre-prepared and require minimal or no cooking, making them convenient for quick meals or snacks. Dairy ingredients such as cheese, butter and butterfat, cream, and milk powders are commonly used in RTE food products to enhance flavor, texture, and nutritional value.
Also, the rapid growth in working population specifically women resulted in the rise in demand for ready-to-eat food which is driving the growth of the market. For instance, in 2022, according to phD Eassy, almost 100% women have working hours more than 9-10 hours, 60% don’t get time to cook themselves. 30% women prefer ready-to-eat food products more than once. Thus, increasing demand for ready-to-eat food across the regions is driving the growth of the dairy ingredients market.
Increase in the Industrial Applications of the Dairy Ingredients Drives the Market Growth
Dairy ingredients are extensively used in the food and beverage industry for their functional properties, nutritional value, and taste enhancement. They are used in bakery products (e.g., bread, cakes, pastries) to improve texture, moisture retention, and flavor. Dairy ingredients like milk powders, cream, milk fat, and condensed milk are used in the production of chocolates, ice creams, confectionery, desserts, and dairy-based beverages. They also serve as emulsifiers, stabilizers, and thickeners in a variety of food products.
Dairy ingredients play a vital role in the production of various dairy products. They are used in the manufacturing of cheese, yogurt, butter, dairy cream, and other dairy-based products. For example, cultures and starter cultures containing dairy ingredients are used in cheese and yogurt production to initiate fermentation and develop specific flavors and textures. Dairy ingredients, especially specialized infant formula, are widely used in the production of infant nutrition products.
Allergies and Intolerances Occurred by Milk Hampers Market Growth
Dairy ingredients are derived from milk proteins like casein and whey which can trigger allergies or intolerances in some individuals. Lactose intolerance affects a significant portion of the population, leading to discomfort and digestive issues when consuming dairy products. These intolerances and allergies can limit the market potential for dairy ingredients and drive the demand for alternative non-dairy options.
Symptoms of a milk allergy can range from mild to severe and may include skin rash, hives, respiratory problems, swelling, digestive issues (nausea, vomiting, diarrhea), and in rare cases, anaphylaxis, a severe and potentially life-threatening allergic reaction. People with a milk allergy need to strictly avoid all sources of milk proteins, including dairy ingredients, and require alternative non-dairy options for their nutritional needs.
COVID-19 Impact
In the covid 19 pandemic dairy product prices are fall down by 4-7%. In the first month of pandemic milk demand is decrease by 25–30%. According to the survey conducted by the stakeholders of milk value chain in the USA, there is decrease in the prices of milk due to the closure of breakup of schools and catering trade. The pandemic led to disruptions in the global supply chains, including the dairy industry. R
estrictions on transportation, labor shortages, and lockdown measures affected the production, processing, and distribution of dairy ingredients. These disruptions resulted in temporary shortages and challenges in meeting the demand for dairy ingredients. The pandemic caused significant shifts in consumer behavior and preferences. During the initial phases of the pandemic, panic-buying and stockpiling led to increased demand for dairy products and ingredients.
Russia-Ukraine Impact Analysis
The war between Russia and Ukraine negatively impacted on the pricing of dairy ingredients. Fluctuations in exchange rates, trade restrictions, and uncertainties in supply impacted the cost of raw materials and transportation, which affects the pricing of dairy ingredients in the market. Manufacturers and consumers experience price volatility and the need to adjust pricing strategies accordingly.
The conflicts between Russia and Ukraine result in logistical challenges and delays in exporting and importing dairy ingredients. Increased border controls, customs procedures, and political tensions lead to disruptions in the movement of goods, affecting the timely delivery and availability of dairy ingredients. These challenges impacted domestic and international dairy ingredient markets.

Segment Analysis
The global dairy ingredients market is segmented based on source, type, livestock, application and region.
The Bakery Segment is the Dominant One Regarding Applications of Dairy Ingredients.
The global dairy ingredients market by application has been segmented by pediatric, sports nutrition, medical nutrition, functional food, bakery, animal feed and others.
Consumers are adopting healthier snacking habits, which has increased the demand for functional and fortified ingredients. In the baking industry, milk powder and whey concentrates are used in various ways. They are used to give items texture, color, utilized as bread browning agents, boost the nutritional value of bread and other baked products. The substantial share of this category can be attributable to factors including increased per capita consumption of bakery and confectionery products and rising adoption of sugar-free, healthy, and functional ingredient-based bakery products around the world.
Bakery items are consumed widely by people of all ages due to their taste, color, and easily digestible nature. Global appetite continues to expand with emerging novel bakery and confectionery products. Furthermore, the bakery market is expected to rise due to the rising demand for trendy fruit snacks, sweet biscuits, and snack bars with fewer additives and natural ingredients.
Geographical Analysis
The Increasing Demand for Dairy Ingredients in Asia Pacific Region Due to its Health Benifits
Food companies in India are increasingly looking for high-quality, distinctive raw materials to use in their product formulations, presenting promising prospects for dairy ingredient manufacturers to invest in research and development and, as a result, create remarkable goods options. According to the information given by Bureau of Government of India, milk production in India is around 210 million tonnes in 2020-21. Milk production is increased by the rate of 2% in the whole world but in India it is increasing by the rate of 6%.
Some of the major key players in the Asia Pacific region are Arla Foods Ingredients Group, Euroserum SAS, Glanbia plc., Saputo Inc, Lactalis Ingredients, Gujarat Cooperative Milk Marketing Federation and Hoogwegt Groep B.V. among others. These key players launched new products in the market which helps to boost regional growth over the forecast period.Also, these key players focusing on research and development to launched innovative dairy ingredients in the market.

Competitive Landscape
The major global players include Fonterra Co-operative Group Limited, Saputo Inc., Volac International Limited, Arla Foods, Dairy Farmers of America, Nestle S.A, Hatsun Agro Products, Glanbia PLC, Groupe Lactalis, Devondale Murray Goulburn.
Why Purchase the Report?

    • To visualize the global Dairy Ingredients market segmentation based on source, type, livestock, application, and region, as well as understand key commercial assets and players.
    • Identify commercial opportunities by analyzing trends and co-development.
    • Excel data sheet with numerous data points of dairy ingredients market-level with all segments.
    • PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
    • Product mapping available as excel consisting of key products of all the major players.

The global Dairy Ingredients market report would provide approximately 71 tables, 72 figures and 122 Pages.
Target Audience 2023

  • • Manufacturers/ Buyers
    • Industry Investors/Investment Bankers
    • Research Professionals
    • Emerging Companies