Global Dairy Ingredients Market - Growth, Trends, and Forecast (2018 - 2023)
The global dairy ingredients market is expected to register a CAGR of 5.2% during the forecast period 2018-2023, due to a rise in the consumption of protein rich food products. Milk ingredients are being used in various applications, such as, supplementary foods and ready to use foods.
Due to the high demand for dairy ingredients from confectionaries, protein bars manufacturing units, and others, the market is growing at an incremental pace, globally. Increased consumption of dairy ingredients is being observed in vegetarians, as dairy serves as the primary source of protein and nutrition in their diet.
The growing prominence of nutritional enrichment in foods & beverages due to increased awareness towards maintaining healthy lifestyle among individuals, is projected to have a positive impact on the dairy ingredients market. The dairy ingredients market is also being driven by the regulatory support from the US FDA and UK government, which is intended to incorporate proteins in food and drinks. Further, the demand for dairy ingredients in protein supplements and food, has resulted in new product launches by the food & beverage companies, including Kelloggs, which is expected to fuel the demand for whey and milk powder.
The availability of alternatives, like plant protein, and low-costs of soy protein are hindering the market growth. The increase lactose intolerance and milk allergies are also anticipated to pose a challenge to the growth in the dairy ingredients market. Moreover, the prices of dairy ingredient products are highly volatile, due to unpredictable climatic conditions and inconsistent milk supply.
The rise in disposable income of the consumers, coupled with increased inclination to pay a premium price for food products with various health benefits is a key driver in the dairy ingredients market. Increasing demand for protein supplements in food items has resulted in new product launches by food & beverage companies, which is expected to fuel the demand for whey and milk powders.
The global dairy ingredients market is segmented on the basis of form, source, application, type, and region. Milk powder holds the major share of the market. Bakery & confectionery, dairy, convenience foods, and sports & clinical nutrition products are the major end-users of the dairy ingredients. Milk protein concentrates & milk protein isolates have higher growth prospects, due to the increasing popularity of sports.
Asia-Pacific is the largest segment in the diary ingredients market, followed by Europe and North America. An increase in the disposable incomes, along with a constant increase in the toddler and infant population in the region, are anticipated to benefit the global diary ingredients market.