Dairy Ingredients Market - Forecasts from 2020 to 2025
The global dairy ingredients market is expected to grow at a CAGR of 5.94% over the forecast period to reach US$69.707 billion by 2025, increasing from US$49.308 billion in 2019. The products that are produced or contain the milk of mammals such as cows, buffaloes, and goats among others are called dairy ingredients. Expanding the dairy industry coupled with the growing demand for dairy products is expected to drive the growth of the market during the forecast period. However, the availability of substitutes and rising inclination towards a vegan diet is anticipated to restrain the growth of the market in the coming years.
Dairy products are considered as an important source of nutrients
Dairy products and milk are considered as nutrient dense food supplying energy, protein and micronutrients such as calcium, selenium, vitamin B12, and B5, and magnesium among others which are essential in reducing malnutrition and hunger. Even many countries have recommended dietary guidelines for dairy products as a component in a balanced diet. At the global stage, milk contributes on average 134 kcal of energy per capita per day to the global supply of energy, 8.3 g of protein per capita per day to the global supply of protein. In addition, it is the fifth-largest provider of energy and the third largest provider of protein and fat to human beings (Source: FAO).
Expanding the dairy industry
Milk and milk products are considered as one of the most produced and valuable agricultural commodities worldwide. According to the Food and Agriculture Organization, milk contributes nearly one fourth to the global value added of livestock and one tenth to that of agriculture. Milk and dairy products account for fourteen percent of the global agriculture trade and global milk production is projected to increase to 177 million tonnes by the end of 2025.
Rising prevalence of vegan diet is expected to hinder the growth of the market in the coming years
The rising preference of the vegan diet is a substantial contributing factor towards the meteoric adoption of non-dairy milk alternatives which is reducing the demand for dairy products. Presently consumers are proactively moving away from the bovine milk towards plant based milk mainly due to milk protein allergy, lactose intolerance, cultural influences, etc. In addition, companies are investing heavily in plant based milk alternative which further restrains the girth of the market. For instance, Califia Farms known for its range of plant-based kinds of milk that are inclusive of but are not limited to that of coconut and almond milk raised $50 million round of capital in the year of 2018 led by Ambrosia Investments.
By livestock, the cow is holding a significant share in the market during the forecast period
By livestock, the dairy ingredient market is segmented on the basis of cows, buffaloes, and others. Cows segment is expected to hold a significant share in the market on account of its large population and less complication in performing the whole milking process compared to others. Besides, India is the global leader in milk production and also holds the largest population of cows in the world showing a direct correlation between the milk production and cow’s population. Furthermore, other livestock based dairy ingredient is mostly present in specific regions leading to limited global reach.
The Asia Pacific is holding a significant share in the market
By geography, the dairy ingredients market is segmented as North America, South America, Europe, the Middle East and Africa, and the Asia Pacific. The dairy ingredients market in the Asia Pacific is estimated to hold a significant share in 2019 and is anticipated to grow rapidly on account of an increased investment by big market players in the countries like China and India. China which is the most populated country imports about thirty percent of its dairy products which is further expected to increase in the coming future. Also according to the National Dairy Development Plan, China should be 70% self-sufficient by the end of 2028. In addition, increasing disposable income in developing countries like India, China, and Indonesia is also expected to boost the demand for ready to eat or convenience foods made of dairy ingredients which propel the growth opportunities in the coming years. Simultaneously, in Europe and North America due to the availability of plant based milk ingredient the market for the dairy ingredient is anticipated to grow marginally during the forecast period.
Competitive Insights
Prominent key market players in the global dairy ingredients market include the FrieslandCampina, Arla Foods amba, Glanbia, Kerry Group, Groupe Lactalis, Amul, and Saputo among others. At present, these companies are holding a significant share in the market and are adopting various growth strategies such as new product launches, mergers and acquisitions, and partnerships to expand their global footprint. For instance, in September 2019, Arla Foods launched a new ingredient called whey protein hydrolysate without the bitter taste which is more readily absorbed than intact whey protein and gives body quicker access to amino acids and reduces muscle damage. Also in February 2019, Glanbia acquired Watson headquartered in the Connecticut United States for nearly US$89 million. Major players in the dairy ingredients market have been covered along with their relative competitive position and strategies in the recent years. The report also mentions recent deals and investments of different market players. The company profiles section details the business overview, financial performance (public companies) for the past few years, key products and services being offered along with the recent deals and investments of these important players in the dairy ingredients market.
Segmentation:
Dairy products are considered as an important source of nutrients
Dairy products and milk are considered as nutrient dense food supplying energy, protein and micronutrients such as calcium, selenium, vitamin B12, and B5, and magnesium among others which are essential in reducing malnutrition and hunger. Even many countries have recommended dietary guidelines for dairy products as a component in a balanced diet. At the global stage, milk contributes on average 134 kcal of energy per capita per day to the global supply of energy, 8.3 g of protein per capita per day to the global supply of protein. In addition, it is the fifth-largest provider of energy and the third largest provider of protein and fat to human beings (Source: FAO).
Expanding the dairy industry
Milk and milk products are considered as one of the most produced and valuable agricultural commodities worldwide. According to the Food and Agriculture Organization, milk contributes nearly one fourth to the global value added of livestock and one tenth to that of agriculture. Milk and dairy products account for fourteen percent of the global agriculture trade and global milk production is projected to increase to 177 million tonnes by the end of 2025.
Rising prevalence of vegan diet is expected to hinder the growth of the market in the coming years
The rising preference of the vegan diet is a substantial contributing factor towards the meteoric adoption of non-dairy milk alternatives which is reducing the demand for dairy products. Presently consumers are proactively moving away from the bovine milk towards plant based milk mainly due to milk protein allergy, lactose intolerance, cultural influences, etc. In addition, companies are investing heavily in plant based milk alternative which further restrains the girth of the market. For instance, Califia Farms known for its range of plant-based kinds of milk that are inclusive of but are not limited to that of coconut and almond milk raised $50 million round of capital in the year of 2018 led by Ambrosia Investments.
By livestock, the cow is holding a significant share in the market during the forecast period
By livestock, the dairy ingredient market is segmented on the basis of cows, buffaloes, and others. Cows segment is expected to hold a significant share in the market on account of its large population and less complication in performing the whole milking process compared to others. Besides, India is the global leader in milk production and also holds the largest population of cows in the world showing a direct correlation between the milk production and cow’s population. Furthermore, other livestock based dairy ingredient is mostly present in specific regions leading to limited global reach.
The Asia Pacific is holding a significant share in the market
By geography, the dairy ingredients market is segmented as North America, South America, Europe, the Middle East and Africa, and the Asia Pacific. The dairy ingredients market in the Asia Pacific is estimated to hold a significant share in 2019 and is anticipated to grow rapidly on account of an increased investment by big market players in the countries like China and India. China which is the most populated country imports about thirty percent of its dairy products which is further expected to increase in the coming future. Also according to the National Dairy Development Plan, China should be 70% self-sufficient by the end of 2028. In addition, increasing disposable income in developing countries like India, China, and Indonesia is also expected to boost the demand for ready to eat or convenience foods made of dairy ingredients which propel the growth opportunities in the coming years. Simultaneously, in Europe and North America due to the availability of plant based milk ingredient the market for the dairy ingredient is anticipated to grow marginally during the forecast period.
Competitive Insights
Prominent key market players in the global dairy ingredients market include the FrieslandCampina, Arla Foods amba, Glanbia, Kerry Group, Groupe Lactalis, Amul, and Saputo among others. At present, these companies are holding a significant share in the market and are adopting various growth strategies such as new product launches, mergers and acquisitions, and partnerships to expand their global footprint. For instance, in September 2019, Arla Foods launched a new ingredient called whey protein hydrolysate without the bitter taste which is more readily absorbed than intact whey protein and gives body quicker access to amino acids and reduces muscle damage. Also in February 2019, Glanbia acquired Watson headquartered in the Connecticut United States for nearly US$89 million. Major players in the dairy ingredients market have been covered along with their relative competitive position and strategies in the recent years. The report also mentions recent deals and investments of different market players. The company profiles section details the business overview, financial performance (public companies) for the past few years, key products and services being offered along with the recent deals and investments of these important players in the dairy ingredients market.
Segmentation:
- By Type
- Milk powder
- Milk protein
- Lactose & Derivatives
- Others
- By Livestock
- Cows
- Buffaloes
- Others
- By Application
- Bakery & Confectionery
- Dairy Products
- Sports Nutrition Products
- Infant Milk Formula
- Others
- By Form
- Dry
- Liquid
- By Distribution Channel
- Online
- Offline
- By Geography
- North America
- USA
- Canada
- Mexico
- South America
- Brazil
- Argentina
- Others
- Europe
- UK
- Germany
- France
- Spain
- Others
- Middle East and Africa
- Saudi Arabia
- South Africa
- Others
- Asia Pacific
- Japan
- China
- India
- Australia
- Others
1. INTRODUCTION
1.1. Market Definition
1.2. Market Segmentation
2. RESEARCH METHODOLOGY
2.1. Research Data
2.2. Assumptions
3. EXECUTIVE SUMMARY
3.1. Research Highlights
4. MARKET DYNAMICS
4.1. Market Drivers
4.2. Market Restraints
4.3. Porters Five Forces Analysis
4.3.1. Bargaining Power of Suppliers
4.3.2. Bargaining Power of Buyers
4.3.3. Threat of New Entrants
4.3.4. Threat of Substitutes
4.3.5. Competitive Rivalry in the Industry
4.4. Industry Value Chain Analysis
5. DAIRY INGREDIENTS MARKET ANALYSIS, BY TYPE
5.1. Introduction
5.2. Milk powder
5.3. Milk protein
5.4. Lactose & Derivatives
5.5. Others
6. DAIRY INGREDIENTS MARKET ANALYSIS, BY LIVESTOCK
6.1. Introduction
6.2. Cows
6.3. Buffaloes
6.4. Others
7. DAIRY INGREDIENTS MARKET ANALYSIS, BY APPLICATION
7.1. Introduction
7.2. Bakery & Confectionery
7.3. Dairy Products
7.4. Sports Nutrition Products
7.5. Infant Milk Formula
7.6. Others
8. DAIRY INGREDIENTS MARKET ANALYSIS, BY FORM
8.1. Introduction
8.2. Dry
8.3. Liquid
9. DAIRY INGREDIENTS MARKET ANALYSIS, BY DISTRIBUTION CHANNEL
9.1. Introduction
9.2. Online
9.3. Offline
10. DAIRY INGREDIENTS MARKET ANALYSIS, BY GEOGRAPHY
10.1. Introduction
10.2. North America (US$ Million) (KT)
10.2.1. North America Dairy ingredients Market, By Type (US$ Million) (KT)
10.2.2. North America Dairy ingredients Market, By Livestock (US$ Million) (KT)
10.2.3. North America Dairy ingredients Market, By Application (US$ Million) (KT)
10.2.4. North America Dairy ingredients Market, By Form (US$ Million) (KT)
10.2.5. North America Dairy ingredients Market, By Distribution Channel (US$ Million) (KT)
10.2.6. By Country
10.2.6.1. United States (US$ Million) (KT)
10.2.6.2. Canada (US$ Million) (KT)
10.2.6.3. Mexico (US$ Million) (KT)
10.3. South America (US$ Million) (KT)
10.3.1. South America Dairy ingredients Market, By Type (US$ Million) (KT)
10.3.2. South America Dairy ingredients Market, By Livestock (US$ Million) (KT)
10.3.3. South America Dairy ingredients Market, By Application (US$ Million) (KT)
10.3.4. South America Dairy ingredients Market, By Form (US$ Million)
10.3.5. South America Dairy ingredients Market, By Distribution Channel (US$ Million) (KT)
10.3.6. By Country
10.3.6.1. Brazil (US$ Million) (KT)
10.3.6.2. Argentina (US$ Million) (KT)
10.3.6.3. Others
10.4. Europe (US$ Million) (KT)
10.4.1. Europe Dairy ingredients Market, By Type (US$ Million) (KT)
10.4.2. Europe Dairy ingredients Market, By Livestock (US$ Million) (KT)
10.4.3. Europe Dairy ingredients Market, By Application (US$ Million) (KT)
10.4.4. Europe Dairy ingredients Market, By Form (US$ Million) (KT)
10.4.5. Europe Dairy ingredients Market, By Distribution Channel (US$ Million) (KT)
10.4.6. By Country
10.4.6.1. UK (US$ Million) (KT)
10.4.6.2. Germany (US$ Million) (KT)
10.4.6.3. France (US$ Million) (KT)
10.4.6.4. Spain (US$ Million) (KT)
10.4.6.5. Others
10.5. Middle East and Africa (US$ Million) (KT)
10.5.1. Middle East And Africa Dairy ingredients Market, By Type (US$ Million) (KT)
10.5.2. Middle East And Africa Dairy ingredients Market, By Livestock (US$ Million) (KT)
10.5.3. Middle East and Africa Dairy ingredients Market, By Application (US$ Million) (KT)
10.5.4. Middle East and Africa Dairy ingredients Market, By Formulation (US$ Million) (KT)
10.5.5. Middle East And Africa Dairy ingredients Market, By Distribution Channel (US$ Million) (KT)
10.5.6. By Country
10.5.6.1. Saudi Arabia (US$ Million) (KT)
10.5.6.2. South Africa (US$ Million) (KT)
10.5.6.3. Others
10.6. Asia Pacific (US$ Million) (KT)
10.6.1. Asia Pacific Dairy ingredients Market, By Type (US$ Million) (KT)
10.6.2. Asia Pacific Dairy ingredients Market, By Livestock (US$ Million) (KT)
10.6.3. Asia Pacific Dairy ingredients Market, By Application (US$ Million)
10.6.4. Asia Pacific Dairy ingredients Market, By Form (US$ Million) (KT)
10.6.5. Asia Pacific Dairy ingredients Market, By Distribution Channel (US$ Million) (KT)
10.6.6. By Country
10.6.6.1. Japan (US$ Million) (KT)
10.6.6.2. China (US$ Million) (KT)
10.6.6.3. India (US$ Million) (KT)
10.6.6.4. Australia (US$ Million) (KT)
10.6.6.5. Others
11. COMPETITIVE ENVIRONMENT AND ANALYSIS
11.1. Major Players and Strategy Analysis
11.2. Emerging Players and Market Lucrativeness
11.3. Mergers, Acquisitions, Agreements, and Collaborations
11.4. Vendor Competitiveness Matrix
12. COMPANY PROFILES
12.1. FrieslandCampina
12.2. Arla Foods amba
12.3. Glanbia
12.4. Kerry Group
12.5. Groupe Lactalis
12.6. Amul
12.7. Saputo
12.8. Volac International Ltd.
12.9. Dairy Farmers of America
12.10. Euroserum
1.1. Market Definition
1.2. Market Segmentation
2. RESEARCH METHODOLOGY
2.1. Research Data
2.2. Assumptions
3. EXECUTIVE SUMMARY
3.1. Research Highlights
4. MARKET DYNAMICS
4.1. Market Drivers
4.2. Market Restraints
4.3. Porters Five Forces Analysis
4.3.1. Bargaining Power of Suppliers
4.3.2. Bargaining Power of Buyers
4.3.3. Threat of New Entrants
4.3.4. Threat of Substitutes
4.3.5. Competitive Rivalry in the Industry
4.4. Industry Value Chain Analysis
5. DAIRY INGREDIENTS MARKET ANALYSIS, BY TYPE
5.1. Introduction
5.2. Milk powder
5.3. Milk protein
5.4. Lactose & Derivatives
5.5. Others
6. DAIRY INGREDIENTS MARKET ANALYSIS, BY LIVESTOCK
6.1. Introduction
6.2. Cows
6.3. Buffaloes
6.4. Others
7. DAIRY INGREDIENTS MARKET ANALYSIS, BY APPLICATION
7.1. Introduction
7.2. Bakery & Confectionery
7.3. Dairy Products
7.4. Sports Nutrition Products
7.5. Infant Milk Formula
7.6. Others
8. DAIRY INGREDIENTS MARKET ANALYSIS, BY FORM
8.1. Introduction
8.2. Dry
8.3. Liquid
9. DAIRY INGREDIENTS MARKET ANALYSIS, BY DISTRIBUTION CHANNEL
9.1. Introduction
9.2. Online
9.3. Offline
10. DAIRY INGREDIENTS MARKET ANALYSIS, BY GEOGRAPHY
10.1. Introduction
10.2. North America (US$ Million) (KT)
10.2.1. North America Dairy ingredients Market, By Type (US$ Million) (KT)
10.2.2. North America Dairy ingredients Market, By Livestock (US$ Million) (KT)
10.2.3. North America Dairy ingredients Market, By Application (US$ Million) (KT)
10.2.4. North America Dairy ingredients Market, By Form (US$ Million) (KT)
10.2.5. North America Dairy ingredients Market, By Distribution Channel (US$ Million) (KT)
10.2.6. By Country
10.2.6.1. United States (US$ Million) (KT)
10.2.6.2. Canada (US$ Million) (KT)
10.2.6.3. Mexico (US$ Million) (KT)
10.3. South America (US$ Million) (KT)
10.3.1. South America Dairy ingredients Market, By Type (US$ Million) (KT)
10.3.2. South America Dairy ingredients Market, By Livestock (US$ Million) (KT)
10.3.3. South America Dairy ingredients Market, By Application (US$ Million) (KT)
10.3.4. South America Dairy ingredients Market, By Form (US$ Million)
10.3.5. South America Dairy ingredients Market, By Distribution Channel (US$ Million) (KT)
10.3.6. By Country
10.3.6.1. Brazil (US$ Million) (KT)
10.3.6.2. Argentina (US$ Million) (KT)
10.3.6.3. Others
10.4. Europe (US$ Million) (KT)
10.4.1. Europe Dairy ingredients Market, By Type (US$ Million) (KT)
10.4.2. Europe Dairy ingredients Market, By Livestock (US$ Million) (KT)
10.4.3. Europe Dairy ingredients Market, By Application (US$ Million) (KT)
10.4.4. Europe Dairy ingredients Market, By Form (US$ Million) (KT)
10.4.5. Europe Dairy ingredients Market, By Distribution Channel (US$ Million) (KT)
10.4.6. By Country
10.4.6.1. UK (US$ Million) (KT)
10.4.6.2. Germany (US$ Million) (KT)
10.4.6.3. France (US$ Million) (KT)
10.4.6.4. Spain (US$ Million) (KT)
10.4.6.5. Others
10.5. Middle East and Africa (US$ Million) (KT)
10.5.1. Middle East And Africa Dairy ingredients Market, By Type (US$ Million) (KT)
10.5.2. Middle East And Africa Dairy ingredients Market, By Livestock (US$ Million) (KT)
10.5.3. Middle East and Africa Dairy ingredients Market, By Application (US$ Million) (KT)
10.5.4. Middle East and Africa Dairy ingredients Market, By Formulation (US$ Million) (KT)
10.5.5. Middle East And Africa Dairy ingredients Market, By Distribution Channel (US$ Million) (KT)
10.5.6. By Country
10.5.6.1. Saudi Arabia (US$ Million) (KT)
10.5.6.2. South Africa (US$ Million) (KT)
10.5.6.3. Others
10.6. Asia Pacific (US$ Million) (KT)
10.6.1. Asia Pacific Dairy ingredients Market, By Type (US$ Million) (KT)
10.6.2. Asia Pacific Dairy ingredients Market, By Livestock (US$ Million) (KT)
10.6.3. Asia Pacific Dairy ingredients Market, By Application (US$ Million)
10.6.4. Asia Pacific Dairy ingredients Market, By Form (US$ Million) (KT)
10.6.5. Asia Pacific Dairy ingredients Market, By Distribution Channel (US$ Million) (KT)
10.6.6. By Country
10.6.6.1. Japan (US$ Million) (KT)
10.6.6.2. China (US$ Million) (KT)
10.6.6.3. India (US$ Million) (KT)
10.6.6.4. Australia (US$ Million) (KT)
10.6.6.5. Others
11. COMPETITIVE ENVIRONMENT AND ANALYSIS
11.1. Major Players and Strategy Analysis
11.2. Emerging Players and Market Lucrativeness
11.3. Mergers, Acquisitions, Agreements, and Collaborations
11.4. Vendor Competitiveness Matrix
12. COMPANY PROFILES
12.1. FrieslandCampina
12.2. Arla Foods amba
12.3. Glanbia
12.4. Kerry Group
12.5. Groupe Lactalis
12.6. Amul
12.7. Saputo
12.8. Volac International Ltd.
12.9. Dairy Farmers of America
12.10. Euroserum
