The dairy ingredients market has seen considerable growth due to a variety of factors.
• In recent years, the dairy ingredients market has experienced substantial growth. With an expansion projected from $74.85 billion in 2024 to $80.38 billion in 2025, it is set to enjoy a compound annual growth rate (CAGR) of 7.4%.
This growth throughout the historic period is due to the robust economic progress in emerging markets, worldwide population growth, and the increasing number of health-aware consumers.
The dairy ingredients market is expected to maintain its strong growth trajectory in upcoming years.
• The market size of dairy ingredients is predicted to experience robust growth in the upcoming years, escalating to $111.9 billion in 2029 with a compound annual growth rate (CAGR) of 8.6%.
This expected growth during the projection period can be ascribed to factors such as a surge in diseases, population growth, the increased reach of organized retailers, improvements in cold chain systems, a rise in health and diet consciousness, and heightened demand for sports nutrition. The primary trends projected for this period include a focus on automation, attention on dairy protein supplements, utilization of IoT, collaboration with e-commerce businesses, emphasis on clean-label products, concentration on partnerships and acquisitions, innovation in whey protein ingredients, the use of 3D printing, and concentration on the progression of separation technologies.
The dairy ingredients market is benefiting from an increase in health consciousness among the population. People aiming to maintain a healthy lifestyle are incorporating more dietary products, including those derived from dairy, into their routines. A perfect exemplification of this trend is an online survey conducted in June 2024 by the International Food Information Council (IFIC), a non-profit organization in the US that produces scientifically backed information on food safety, nutrition and health. The survey of 3,000 Americans found that 54% adhered to a healthy eating plan or diet in 2024, marking an increase from 52% in 2023. Such growing attentiveness to health is expected to fuel the expansion of the dairy ingredients market.
The dairy ingredients market covered in this report is segmented –
1) By Type: Milk Powder, Whey Protein, Milk Protein, Third- Generation Ingredient, Casein, Butter Milk Powder, Milk Permeate, Whey Permeate, Lactose
2) By Source: Milk, Whey
3) By Form: Powder, Liquid
4) By Production Method: Traditional Method, Membrane Separation
5) By Application: Dairy Products, Convenience Food, Bakery And Confectionery, Infant Milk Formula, Sports Nutrition, Medical Nutrition, Animal Nutrition, Other Applications
Subsegments:
1) By Milk Powder: Whole Milk Powder, Skimmed Milk Powder
2) By Whey Protein: Whey Protein Concentrate (WPC), Whey Protein Isolate (WPI)
3) By Milk Protein: Casein Protein, Milk Protein Concentrate (MPC)
4) By Third-Generation Ingredient: Dairy Protein Isolates
5) By Casein: Micellar Casein, Caseinates
6) By Butter Milk Powder: Regular Buttermilk Powder, Low-Fat Buttermilk Powder
7) By Milk Permeate: Powdered Milk Permeate
8) By Whey Permeate: Powdered Whey Permeate
9) By Lactose: Anhydrous Lactose, Lactose Monohydrate
Leading firms in the dairy ingredient market are leaning towards innovative ingredients, such as milk protein concentrates, to create a competitive edge. Milk protein concentrate is a dairy ingredient richer in milk proteins, frequently incorporated to boost protein levels and enhance the taste and texture of many food items. For instance, Valio, a dairy company based in Finland, launched Valio Eila MPC 65 in November 2023. It's a fresh milk protein concentrate tailored to assist producers in crafting more delicious and healthier high-protein goods to cater to the growing worldwide demand. Valio, with its strong background in lactose-free milk protein formation, has emphasized improving the flavor and texture of final commodities using this inventive concentrate. Valio Eila MPC 65, which is devoid of lactose for superior digestive ease, is ideally suited to raise the standard of protein puddings, shakes, ice-creams, and drinks.
Major companies operating in the dairy ingredients market include:
• Fonterra Co-operative Group
• Dairy Farmers of America
• Groupe Lactalis
• Agropur Dairy Cooperative
• Saputo Inc
• Arla Foods
• Sodiaal Group
• Glanbia PLC
• Kerry Group
• Milk Specialties
• Pacific Dairy Ingredients
• ProviCo
• Amul
• Pacific Dairy
• China Mengniu Dairy Company Limited
• Milk Powder Co.Ltd
• China Shengmu Organic Milk Limited
• Mother Dairy
• Kwality Limited
• Dynamix Dairy
• AAVIN
• MILMA
• Dudhsagar Dairy
• Bates Dairy
• Muller UK & Ireland
• Dairy Crest
• Meadow Foods
• Dale Farm
• Yeo Valley
• Glanbia Cheese
• Lactalis International
• Danone S.A
• Savencia Fromage & Dairy
• Dutch Dairy Center
• Holland Dairy Star BV
• Michael and Augustine
• Bel Group
• J.N Dairies
• Carron Lodge Ltd
• County Milk Products Ltd
• Kompaniya Pavlov
• Molvest
• Olam
• Rusmolco
• CLAL
• Siemens Dairy industry
• Gabrovo Milk Ltd
• JOSSI Ltd
• Kondov Ecoproductia
• Lactalis
• Nestle
• Danone North America
• Schreiber Foods
• Kraft Heinz Co
• ConAgra Brands
• Prairie Farms Dairy Inc
• California Dairies Inc
• Sunopta Inc
• GLORIA SA
• NESTLE PERU SA
• SANCOR COOPERATIVAS UNIDAS LIMITADA
• Italac
• Piracanjuba
• La Serenisima
• Colun
• Ilolay
• The Hain Celestial Group Inc
• Earth's Own Food Company
• Eden Foods Inc
• Al Safi Danone Ltd
• Nada Dairy
• Nadec
• Saudia Dairy and Foodstuff Company (Sadfco)
• Ornua
• Danya Foods Ltd
• Al Amoudi Group
• Yalla Protein
• Almarai
• Pinar Dairy Food Co
• Friesland Arabia Ltd
• Tara Dairy
• Arla Food Inc
• Dano Milk Nigeria
• Fan Milk Plc
• FrieslandCampina
• Bandini Cheese (Pty) Ltd
• Clover SA (Pty) Ltd
• Coega Dairy (Pty) Ltd
• Danone Southern Africa (Pty) Ltd
• Darling Romery (Pty) Ltd
• Denmar Estates (Pty) Ltd
• The Arab Dairy Products Co
• Brego Food Industries
Asia-Pacific was the largest region in the dairy ingredients market in 2024. North America was the second-largest market in dairy ingredients market in 2024. The regions covered in the dairy ingredients market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.