Fortified Dairy Products Market to record an impressive CAGR during the forecast period, 2017 to 2026.
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With soaring utilization of fortified dairy products, the fortifying agent manufacturers have been concentrating on identification of novel micronutrients in accordance with the development of new, innovative solutions for manufacturers of end-products. A major challenge that prevails for manufacturers of fortified dairy products is the provision of required calcium content comprising products while retaining the products’ taste and appealing properties. Companies actively contributing to growth of global fortified dairy products market, as profiled by FMI’s report, include Fonterra Group Cooperative Limited, BASF SE, Nestlé S.A., General Mills, Inc., Bright Dairy & Food Co., Ltd., Danone, China Modern Dairy Holdings Ltd., GCMMF Ltd., Arla Foods UK Plc, and Dean Foods Company.
Need to Replenish Lost Nutrients drives Penetration of Fortification into Dairy Products
The dairy industry is one of the most promising among various applications in the food and beverage sector. Although dairy products are deemed as excellent source of essential nutrients, many processing methods that include ultra-heat treatment, pasteurization, spray drying, and heating result into loss of certain imperative nutrients. Replenishing lost nutrients has therefore become imperative, and fortification has emerged as a highly effective method for retaining lost nutrients in dairy products. Moreover, dairy products that are fortified with vitamin D enable improvement in the absorption rate of calcium along with maintaining blood calcium level.
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Health-conscious consumers have commenced consumption of yogurts, eyeing them as healthier alternatives to the dairy products including ice creams and milkshakes, which are rich in calories. Accelerated penetration of fortification technology into yogurts has further propelled sale of functional food products. Several countries around the world are better understanding importance of fortification and accepting practice of fortifying dairy products, thereby boosting sales of these products. On the other hand, relatively higher price of fortified dairy products compared to their non-fortified counterparts will curb their adoption among developing and low-income countries to a certain extent.
APEJ to Dominate Global Fortified Dairy Products Market
The global market for fortified dairy products will continue to be dominated by Asia-Pacific excluding Japan (APEJ), with sales poised to reach nearly US$ 50,000 Mn in revenues by 2026-end. Revenues from the market in APEJ are slated to exhibit the highest CAGR through 2026, followed by North America. Europe will prevail as the second most lucrative market for fortified dairy products. The market in North America will rise at a relatively higher CAGR than that in Europe through 2026.
Milk powder and formula is expected to remain the leading revenue contributing product in the market, trailed by milk and flavored milk. Flavored milk is expected to persist as the fast-selling product in the market through 2026. Sales of dairy-based yogurt and milk in the global fortified dairy products market are expected to record a parallel rise through 2026.
Modern Trade to Remain Leading Sales Channel for Fortified Dairy Products
In terms of revenues, modern trade is expected to remain the leading sales channel for fortified dairy products, with an estimated market share of over 30% during the forecast period. Revenues from fortified dairy products sales in convenience stores and departmental stores will also remain significant, collectively poised to close in approximately similar to those obtained from sales in modern trade.
Although vitamins will remain dominant among micronutrients used for fortifying dairy products in terms of revenues, sales of minerals are expected to register the fastest growth in the market through 2026.
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