Dairy Ingredients Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)
The global dairy ingredients market is projected to grow at a CAGR of 5.83% during the forecast period (2021 - 2026).
The global marketplace has been witnessing a paradigm shift toward a healthy lifestyle, created by the rise of lifestyle-related illness, social media's influence, increasingly health-conscious consumers, etc.
As a result, consumers continue to prioritize their health and actively search for healthy alternatives and fitness activities, in order to prevent lifestyle-related illness. This in turn is zoning-in the non-athletic population, among targeted consumers of sports nutrition, eventually driving the sales of dairy protein concentrates.
The coronavirus pandemic has taken its toll on the industry causing logistical and processing disruption, throughout the year. The closure of HORECA and the hospitality industry led to the loss in demand for liquid milk, causing pressure on milk procurement prices. Major dairy producing countries ike India, even experienced an oversupply of milk with respect to (reduced) demand, leading to ingredients like SMP prices crashing domestically.
The conditions, however started to change soon after countries lifted lockdowns and eased restrcitions on logistics, bringing the growth trajectory back to normal of the market studied.
The growing prominence of nutritional enrichment in foods & beverages due to increased awareness towards maintaining a 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 United States FDA and United Kingdom government, which is intended to incorporate proteins in food and drinks. 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.
Asia-Pacific is the largest segment in the dairy ingredients market, followed by Europe and North America. The European and North American markets are also projected to witness growth over the forecast period. High-concentrate ingredients, such as whey proteins and milk protein isolates, are majorly used in developed nations, such as the United States, Germany, and France. On the other hand, low-concentrate ingredients are prevalent in developing countries. An increase in disposable incomes, along with a constant increase in the toddler and infant population in the Asia -Pacific region, is anticipated to benefit the global dairy ingredients market.
The global dairy ingredients market is highly fragmented, owing to a number of players involved in the market. Arla Food Ingredients, Fonterra Co-Operative, and Royal Friesland Campina are some of the major players operating in the dairy ingredients market. The major players that are operating in the dairy ingredients industry are strengthening their presence with product innovations, partnerships, and expansions.