Dairy ingredients market valued at USD 103.4 billion by 2032
Key factors contributing to this market expansion include the growing health and wellness trends, which are promoting the consumption of protein-rich and functional foods. Dairy ingredients such as whey protein and casein are increasingly used in dietary supplements and sports nutrition. As per the India Brand Equity Foundation (IBEF), the Agricultural and Processed Food Products Export Development Authority forecasts that the Indian food processing sector will grow at a 3% CAGR between 2022 and 2030, further boosting the demand for dairy ingredients globally.
Technological advancements in dairy processing and ingredient extraction are enhancing product quality and expanding their application in sectors like bakery, confectionery, and infant nutrition. The increasing demand for convenience foods and ready-to-eat meals is also driving the incorporation of dairy ingredients to improve taste and texture. Additionally, expanding markets in developing regions and the rise of lactose-free and low-fat dairy products to cater to diverse consumer preferences are expected to propel market growth.
The infant milk formula segment is projected to see significant growth due to the increasing awareness of infant nutrition and the need for high-quality, nutrient-rich formulas. Advancements in dairy processing are ensuring the safety and nutritional adequacy of these formulas. Rising birth rates and greater spending capacity in emerging markets are also fueling demand for premium infant milk formulas enriched with dairy ingredients.
The whey ingredients segment is expected to hold a substantial market share by 2032, driven by the popularity of protein-rich diets and fitness trends. Whey protein's versatility in improving texture and nutritional content makes it ideal for bakery, confectionery, and dairy products. Advancements in whey processing technology are further enhancing product quality and functionality, boosting segment growth.
Europe is anticipated to experience substantial gains in the dairy ingredients market between 2023 and 2032, supported by the increasing consumer demand for high-protein and functional foods, and advancements in dairy processing technology. The growing popularity of lactose-free and low-fat dairy products, alongside strong dairy consumption traditions and expanding markets in Eastern Europe, will further drive regional market growth.
Leading companies in the dairy ingredients market include Lactalis Group, FrieslandCampina, Arla Foods, Kerry Group PLC, Saputo Inc., Dairy Farmers of America, Glanbia PLC, Volac International Ltd., EPI Ingredients, Fonterra Co-operative Group, Sodiaal co-operative group, Ingredia SA, Amco Proteins, Kanegrade, and Batory Foods. These industry leaders are expanding their customer base through mergers and acquisitions, partnerships, and new product launches. For example, in March 2024, India’s dairy giant GCMMF launched fresh milk in the U.S. by partnering with Michigan Milk Producers Association (MMPA), the country's tenth-largest dairy cooperative.
