Dairy Ingredients Market Size, Share & Trends Analysis Report By Source (Milk, Whey), By Type (Milk Powder, Whey Protein, Milk Protein, Third- Generation Ingredient, Casein, Butter Milk Powder, Whey Permeate, Lactose), By Application (Pediatric, Sports Nutrition, Medical Nutrition, Functional Food, Bakery, Confectionery, Dairy, Animal Feed, Others), Global Economy Insights, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2023-2031

Region: Global | Format: Word, PPT, Excel | Report Status: Published

Market Overview:

The Dairy Ingredients Market size was USD 66.10 billion in 2022. Covid-19's impacts the dairy industry due to various factors such as supply chain disruptions, reduced consumer demand, and reduced availability of labor. The demand for dairy products has been affected by the closure of restaurants and cafes, which has reduced the consumption of dairy products. Between 2023 and 2031, the market is projected to grow at a CAGR of 6.90%, from USD 70.48 billion in 2023 to USD 117.83 billion in 2031. The sudden rise in CAGR is attributed to this market growth returning to the pre-pandemic level once the pandemic is over.

Market Scope and Definition:

The dairy ingredients market refers to the global market for various ingredients derived from dairy products. Dairy ingredients are typically obtained from milk or milk by-products and are used as key components in various food and beverage products. These ingredients can undergo processing, such as drying or concentration, to extend their shelf life and enhance their functionality in different applications. Dairy ingredients include a wide range of products, such as milk powder, whey powder, lactose, casein, caseinates, butter, cheese, and others.

The scope of the dairy ingredients market encompasses various aspects related to the production, distribution, and consumption of dairy-based ingredients. The dairy ingredients market is broad and continually evolving as new product developments, consumer demands, and industry trends emerge. Several key players in the market are adopting strategies such as mergers, acquisition, partnerships, and collaboration for the expansion their product portfolio. For instance,

  • In December 2021, Lactalis Ingredients launched high-protein concepts with two native protein sources, including Ponativ’s Native Micellar Casein and Pronativ’s Native Whey Protein targeting sports nutrition and healthy aging. This collaboration enables Lactalis Ingredients to expand its product portfolio and cater to the growing demand for high-quality protein ingredients in the sports nutrition and healthy aging markets.
Market Drivers:

Increasing Consumer Demand for Nutritious and Healthy Products is the Driver of the Dairy Ingredients Market

Consumers are increasingly seeking food and beverage products that offer nutritional benefits and support a healthy lifestyle. Dairy ingredients, such as whey protein, casein, and milk powders, are rich sources of essential nutrients, including proteins, vitamins, minerals, and bioactive compounds. The growing awareness of the health benefits associated with dairy ingredients is driving their demand in various applications.

Growing Consumption of Dairy Products Drives the Market Growth

Dairy products, such as milk, cheese, yogurt, and butter, continue to be widely consumed worldwide. The demand for dairy ingredients is closely linked to the consumption of these products. Factors such as population growth, urbanization, and increasing disposable incomes in emerging markets are driving the consumption of dairy products and, consequently, the demand for dairy ingredients.

The global population continues to grow, particularly in emerging markets. As the population increases, so does the demand for food, including dairy products. With a larger consumer base, there is a greater need for dairy ingredients to meet the production requirements of dairy products.

Fonterra is a global dairy nutrition company based in New Zealand and is one of the largest dairy ingredient suppliers in the world. Here's how Fonterra leverages the growing consumption of dairy products.

Market Trends:

Sustainable Sourcing and Production is the Market Trend of Dairy Ingredients Market.

Sustainability is a key concern for consumers, leading to increased demand for dairy ingredients from sustainable sources. Companies are adopting practices like regenerative agriculture, energy-efficient processing, and packaging innovations to minimize their environmental impact and meet the sustainability expectations of consumers.

05 May 2021 --- Lactalis Ingredients is launching an organic whole milk powder, expanding its portfolio of milk powders, amid rising consumer interest in health and food quality issues. Lactalis Ingredients' launch of organic whole milk powder represents an expansion of their milk powder portfolio. By introducing this new product, the company aims to meet the increasing demand for organic and high-quality ingredients in the food industry.

Market Restraining Factors:

Health Concerns and Dietary Shifts and Environmental Impact is a Restraining Factor in the Dairy Ingredients Market

Changing dietary preferences, such as the rise of plant-based diets and lactose intolerance, have led some consumers to reduce or eliminate dairy products from their diets. This shift in consumer behaviour can impact the demand for dairy ingredients and necessitate the development of alternative ingredient options.

The dairy industry is associated with environmental challenges, including greenhouse gas emissions, water usage, and waste generation. Increasing consumer awareness and concerns about sustainability can pose restraints on the industry, pushing companies to adopt more sustainable practices and develop eco-friendly alternatives.

Scope of Dairy Ingredients Market Report:

A recent market research report added to repository of Intellectual Market Insights Research is an in-depth analysis of Global Dairy Ingredients Market. On the basis of historic growth analysis and current scenario of Dairy Ingredients market place, the report intends to offer actionable insights on global market growth projections. Authenticated data presented in report is based on findings of extensive primary and secondary research. Insights drawn from data serve as excellent tools that facilitate deeper understanding of multiple aspects of global Dairy Ingredients market. This further helps users with their developmental strategy.

This report examines all the key factors influencing growth of global Dairy Ingredients market, including demand-supply scenario, pricing structure, profit margins, production and value chain analysis. Regional assessment of global Dairy Ingredients market unlocks a plethora of untapped opportunities in regional and domestic market places. Detailed company profiling enables users to evaluate company shares analysis, emerging product lines, pricing strategies, innovation possibilities and much more.

The report covers the all the aspects of industry with dedicated study of key players that includes market leaders, followers and new entrants by region. PORTER, SVOR, PESTEL analysis with the potential impact of micro-economic factors by region on the market have been presented in the report. External as well as internal factors that are supposed to affect the business positively or negatively have been analyzed, which will give clear futuristic view of the industry to the decision makers.

Key Players Strategies in the Market:

  • In December 2021, Eurial Ingredients & Nutrition launched EuriNutri WPC, a whey protein concentrate ingredient that contains approximately 80% protein content. Whey protein concentrate is a popular dairy ingredient used in various applications, including sports nutrition, functional foods, and beverages.
  • In June 2020, Lactalis Ingredients introduced a new skimmed milk powder with high-heat and heat-stable qualities. This indicates that the product can withstand high temperatures during processing without significant changes in its functional properties.
  • In October 2021, Royal DSM, a Dutch company specializing in health and nutrition solutions, acquired First Choice Ingredients. First Choice Ingredients is a US-based manufacturer of concentrated dairy flavours.

Dairy Ingredients Market Players Analysis:

•    Nestle S.A.
•    Fonterra Cooperative Group
•    Royal FrieslandCampina N.V.
•    Arla Foods
•   Lactalis Group
•   Dairy Farmers of America Inc.
•   Agropur Cooperative
•   Schreiber Foods Inc.
•   Savencia S.A.
•   Glanbia PLC.
•   Gujarat Cooperative Milk Marketing Federation Ltd. (AMUL)
•   Meiji Holdings Co., Ltd.
•   Mengniu Dairy Co., Ltd.
•   Megmilk Snow Brand Co., Ltd.
•   Kerry Group
•   Saputo Inc.
•   Kraft Heinz Company
•   Agropur Inc
•   Morinaga Milk Co., Ltd.

Key Industry Developments:
  • In July 2022 NZMP, the global ingredient business of Fonterra, collaborated with Tillamook County Creamery Association (TCAA) and Three Mile Canyon Farms to form a joint venture. This collaboration brings together the expertise and resources of these companies to develop and market Pro-OptimaTM, a grade A functional whey protein concentrate.
  • In May 2022, Arla officially inaugurated a new production plant at Pronsfeld Dairy in Germany. This expansion represents Arla's largest dairy investment and is aimed at meeting the growing international demand for sustainable, affordable, and nutritious dairy products.
  • In May 2022, Fonterra launched myNZMP, an online dairy platform designed to enhance the purchasing experience for ingredients customers. The platform provides customers with a convenient and flexible way to order a wide range of dairy ingredients, including milk powder and specialty dairy proteins.

Dairy Ingredients Market Players & Competitor Analysis:

The report covers the key players of the industry including Company Profile, Product Specifications, Production Capacity/Sales, Revenue, Price and Gross Margin 2023-2031 & Sales with a thorough analysis of the market’s competitive landscape and detailed information on vendors and comprehensive details of factors that will challenge the growth of major market vendors.

Dairy Ingredients Market Segmentation Analysis:

The market scope is segmented on the basis of by source, by type, by application and by region.

By Source

Based on the source the market is segmented into Milk and Whey.

Milk: Milk holds the largest share in the dairy ingredients market. It is a fundamental and versatile ingredient used in the production of various dairy products and forms the basis for many other dairy ingredients.

Whey: Whey is a highly valuable dairy ingredient that plays a significant role in the dairy industry. It is a by-product of cheese production and is obtained during the process of separating milk into curds and whey. Whey contains proteins, lactose, minerals, and other nutrients.

By Type

Based on the type of the market is segmented into Milk Powder, Whey Protein, Milk Protein

Third- Generation Ingredient, Casein, Butter Milk Powder, Whey Permeate and Lactose.

Milk Powder: Milk powder is one of the key dairy ingredients in the dairy industry. It is obtained by evaporating milk to remove water content, resulting in a dry powder form. Milk powder has a longer shelf life compared to liquid milk and is convenient for storage, transportation, and usage in various applications.

Whey Protein: Whey protein is a highly sought-after dairy ingredient in the dairy industry. It is derived from whey, which is a by-product of cheese production. Whey protein is obtained by separating the liquid whey from the curds and then further processing it to concentrate the protein content.

By Application

Based on application the market is segmented into Pediatric, Sports Nutrition, Medical Nutrition, Functional Food, Bakery, Confectionery, Dairy, Animal Feed and Others.

Confectionery: The confectionery industry is one of the key sectors that utilizes dairy ingredients in its products. Dairy ingredients play a vital role in providing taste, texture, and functionality to various confectionery products.

Paediatric: The paediatric segment is an important market within the dairy ingredients industry. Dairy ingredients play a crucial role in the formulation of various paediatric products, such as infant formulas and baby food. These products are specifically designed to meet the nutritional needs of infants and young children.

The report also helps in understanding Global Dairy Ingredients Market dynamics, structure by analyzing the market segments, and project the Global Dairy Ingredients Market size. Clear representation of competitive analysis of key players by type, price, financial position, product portfolio, growth strategies, and regional presence in the Global Dairy Ingredients Market make the report investor’s guide.

Regional Snapshots:

North America: The North America region is a significant market for dairy ingredients, with a high demand for dairy products and a strong focus on health and wellness. The market is driven by the presence of major dairy ingredient manufacturers in the region, including Fonterra, Glanbia, and Dairy Farmers of America. The United States is the largest market for dairy ingredients in North America.

Europe: Europe is a prominent market for dairy ingredients, known for its strong dairy industry and consumption of dairy products. The region has a rich tradition in dairy farming and production.

Asia-Pacific: Asia-Pacific is a significant and rapidly growing market for dairy ingredients. The region is experiencing increasing urbanization, population growth, and rising disposable incomes, which have led to a surge in the consumption of dairy products. Countries such as China, India, Japan, Australia, and New Zealand play a vital role in the Asia-Pacific dairy ingredients market.

Middle East and Africa: The Middle East and Africa region is an emerging market for dairy ingredients. While the consumption of dairy products in this region is traditionally lower compared to other regions, there has been a growing demand for dairy products and dairy ingredients in recent years.

Global Dairy Ingredients Market Regional Analysis:

North America accounted for the highest xx% market share in terms of revenue in the Dairy Ingredients market and is expected to expand at a CAGR of xx% during the forecast period. This growth can be attributed to the growing adoption of Dairy Ingredients. The market in APAC is expected to witness significant growth and is expected to register a CAGR of xx% over upcoming years, because of the presence of key Dairy Ingredients companies in economies such as Japan and China.

The objective of the report is to present comprehensive analysis of Global Dairy Ingredients Market including all the stakeholders of the industry. The past and current status of the industry with forecasted market size and trends are presented in the report with the analysis of complicated data in simple language.

Dairy Ingredients Market Report is also available for below Regions and Country Please Ask for that

North America

  • U.S.
  • Canada


  • Switzerland
  • Belgium
  • Germany
  • France
  • U.K.
  • Italy
  • Spain
  • Sweden
  • Netherland
  • Turkey
  • Rest of Europe


  • India
  • Australia
  • Philippines
  • Singapore
  • South Korea
  • Japan
  • China
  • Malaysia
  • Thailand
  • Indonesia
  • Rest Of APAC

Latin America

  • Mexico
  • Argentina
  • Peru
  • Colombia
  • Brazil
  • Rest of South America

Middle East and Africa

  • Saudi Arabia
  • UAE
  • Egypt
  • South Africa
  • Rest Of MEA

Report Coverage:

The report will cover the qualitative and quantitative data on the global dairy ingredients market. The qualitative data includes latest trends, market players analysis, market drivers, market opportunity, and many others. Also, the report quantitative data includes market size for every region, country, and segments according to your requirements. We can also provide customize report in every industry vertical.

Report Scope and Segmentations:

Study Period


Base Year


Estimated Forecast Year


Growth Rate

CAGR of 6.90% from 2023 to 2031


By Source, By Type, By Application, By Region


USD Billion

By Source

  • Milk
  • Whey

 By Type

  • Milk Powder
  • Whey Protein
  • Milk Protein
  • Third- Generation Ingredient
  • Casein
  • Butter Milk Powder
  • Whey Permeate
  • Lactose

By Application

  • Pediatric
  • Sports Nutrition
  • Medical Nutrition
  • Functional Food
  • Bakery
  • Confectionery
  • Dairy
  • Animal Feed
  • Others

By Region

  • North America (U.S., Canada, Mexico)
  • Europe (Germany, France, UK, Italy, Spain, Russia, Rest of Europe)
  • Asia-Pacific (China, India, Japan, ASEAN, Rest of Asia-Pacific)
  • LAMEA (Latin America, Middle East, Africa)

Points Covered in the Report:

The points that are discussed within the report are the major market players that are involved in the market such as market players, raw material suppliers, equipment suppliers, end users, traders, distributors and etc.

The complete profile of the companies is mentioned. And the capacity, production, price, revenue, cost, gross, gross margin, sales volume, sales revenue, consumption, growth rate, import, export, supply, future strategies, and the technological developments that they are making are also included within the report. This report analysed 12 years data history and forecast.

The growth factors of the market are discussed in detail wherein the different end users of the market are explained in detail.

Data and information by market player, by region, by type, by application and etc., and custom research can be added according to specific requirements.

The report contains the SWOT analysis of the market. Finally, the report contains the conclusion part where the opinions of the industrial experts are included.

Key Reasons to Purchase:

To gain insightful analyses of the Dairy Ingredients market and have comprehensive understanding of the global market and its commercial landscape.

Assess the production processes, major issues, and solutions to mitigate the development risk.

To understand the most affecting driving and restraining forces in the market and its impact in the global market.

Learn about the Dairy Ingredients market strategies that are being adopted by leading respective organizations.

To understand the future outlook and prospects for the Dairy Ingredients market. Besides the standard structure reports, we also provide custom research according to specific requirements.

Research Scope of Dairy Ingredients Market:
  • Historic year: 2018- 2021
  • Base year: 2022
  • Forecast: 2023 to 2031
  • Representation of Market revenue in USD Million

Dairy Ingredients Market Trends: Market key trends which include Increased Competition and Continuous Innovations Trends:

Frequently Asked Questions

  • PUBLISHED ON : July, 2022
  • BASE YEAR : 2022
  • STUDY PERIOD : 2020-2032
  • NO OF PAGES : 194

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