According to a new report published by MarketsandMarkets , the dairy ingredients market was valued at $42.2 billion in 2013 and is estimated to grow at a healthy CAGR, resulting in a market worth $50.0 billion by 2018. In 2013, Europe led the global market with the largest share followed by North America and Asia-Pacific in terms of market value.
The report also identifies the driving and restraining factors for the global market with an analysis of trends, opportunities, winning imperatives, and challenges. The market is segmented and values and volumes are forecasted on the basis of major regions, such as North America, Europe, Asia-Pacific (APAC), and Rest of the World (ROW).
Dairy ingredients are ingredients manufactured from fluid milk, with an exclusive composition delivering an inherent nutrient content for food applications, the report notes, pointing out that, although the multi-functional nature of these ingredients was known, the proper appreciation of their benefits is only a recent phenomenon. More and more research is being undertaken to come up with innovative dairy ingredients which can be used in different food and beverage applications, says Marketsand Markets, and the rising popularity of protein-enriched foods and beverages has led to consumers becoming more conscious of the health benefits related with a dairy-rich diet.
Rising levels of health consciousness and aging baby boomer population are a few of the drivers helping the growth of the market. The dairy ingredients market is largely driven by the volume growth in its end-use industries. The penchant for consumption of products such as functional food, beverage, dairy, meat products, and infant milk formulas is resulting in the growth of this industry. Consumers’ willingness to pay premium price for fortified products with proven benefits is a key driver for these segments.
The North American and European markets are expected to show a steady growth trend, owing mainly to the functional foods markets and high penetration levels of dairy ingredients-based supplements. The growing economies of the Eastern European region are exhibiting strong growth providing the much needed impetus to the European dairy ingredients market. Growing health awareness among consumers and the rising number of sports enthusiasts resulted in rapid growth in sports and clinical nutrition segments. The increasing number of working women, the rising middle class, and urbanization in regions such as Asia-Pacific and Rest of the World translate into high demand for infant milk formula products.
The report notes that the dairy ingredients market consists of various stake holders such as raw material producers, suppliers, ingredient processors, distributors, and end-use manufacturers such as food and beverage industries, with companies enjoying substantial market share including Fonterra, FrieslandCampina, Arla Foods, Glanbia and Dairy Farmers of America.
