Global Fortified Dairy Products Market Recent Growth and Opportunities | Key Players - Nestlé S.A., BASF SE, General Mills, Inc., Danone, Bright Dairy & Food Co., Ltd., China Modern Dairy Holdings Ltd.

Fortification is a process where vitamins and minerals are added to food products in order to make the food more nutrient. Milk and milk products are broadly used for fortification owing to make a complete nutrient food product. Vitamin D, Vitamin A and Iron are usually fortified into milk and milk products. Fortification in milk and milk products is done to reduce the rate of common diseases and deficiencies among people especially among children. Federal regulation has mandated the fortification of milk with Vitamin A and Vitamin D in U.S. According to World Health Organization (WHO) there are many preschool children who are afflicted with vitamin A deficiency thus vitamin A fortified milk and milk products continuously reduce the deficiency among children. Moreover vitamin D improves the absorption rate of calcium and also helps to maintain calcium level in blood. Some others Vitamin and minerals such as vitamin C, zinc, copper, DHA, selenium are fortified to enrich milk and milk products. Folic acid fortified milk is also getting traction among the pregnant women. Some of the milk products that are fortified with vitamin and minerals includes milk power, yogurts, cheese, butter and buttermilk. Overall fortified milk and milk products market is expected to witness robust growth during the next five to six years.

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On the basis of product types fortified milk and milk products market is segmented into liquid milk and milk products. Furthermore, liquid milk and milk products is sub segmented by the fortified nutrition, such as vitamin and minerals. Further vitamin and mineral segment is categorized by the ingredient of nutrition, for instance vitamin segment is categorised with vitamin A, vitamin D, Vitamin C and others, and minerals segment is categorised with iron, zinc, copper, iodine, Docosahexaenoic acid (DHA), selenium, folic acid and others.

Geographically fortified milk and milk market is segmented into North America, Latin America, Eastern Europe, Western Europe, Asia Pacific excluding Japan, Japan and Middle East & Africa. North America, Western Europe are the most target market for the fortified milk and milk producer companies.

Disposable income and employment leads to enhanced livelihood among population, thus, driving the demand for fortified milk and milk products especially in emerging economies. Price is another factor that somewhat restraints the fortified milk and milk products market as economic and lower middle class population may not afford these products. Milk and milk product industry is very dynamic, where fortified milk and milk products are very niche segment. Fortified milk and milk products are very popular over North America, Western Europe and Japan. However with rapid urbanization, these products are gaining traction across other economies.

The dairy industry is considered to be a promising industry among wide range of applications in the food & beverage sector. Although dairy products serve as excellent resources of essential nutrients, several processing methods including ultra-heat treatment, spray drying, pasteurization, and heating lead to loss of specific nutrients. Replenishing lost nutrients is therefore imperative, and fortification of dairy products has emerged as an effective method for achieving this purpose.

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Dairy products are consumed by most people for various purposes, and are emerging as effective vehicles for fortification, thereby ensuring fortificants reach uniformly among the population worldwide. According to WHO, several school children are afflicted with deficiency of vitamin A. Vitamin A-fortified dairy products such as milk hold immense potential to curtail this deficiency. In addition, dairy products fortified with vitamin D helps in improving absorption rate of calcium and maintaining calcium level in blood. Health-conscious consumers have now commenced consumption of yogurts as healthier alternatives to dairy products such as ice cream and milkshakes that are rich in calories. Increasing penetration of the fortification technology in yogurt has further propelled sales of functional food products that play a pivotal role.

Countries across the globe are understanding the importance and accepting the concept of fortifying dairy products, which in turn is expected to boost sales of these products. However relatively higher cost of fortified dairy products than their non-fortified counterparts is likely to constrain their adoption to a certain extent.

According to a recently collated report of Future Market Insights, the global market for fortified dairy products has been envisaged to reflect a splendid rise between the forecast period 2017 and 2026. More than US$ 150,000 Mn worth of fortified dairy products are estimated to be sold around the world by 2026-end.

Asia-Pacific excluding Japan (APEJ) will continue latching on to its position of being the dominant region in the global fortified dairy products market, mainly driven by high demand from its emerging countries such as India and China. The flourishing food industry along with surging consumer awareness and growing penetration of food fortification technology will influenced development and demand for fortified food products in the region. Europe and North America will also prevail as remunerative regions for the market growth, owing to soaring demand for healthy dietary supplements among consumers in the region, who are becoming increasingly health-conscious.

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Milk has prevailed as the largest consumed dairy product globally, and is the prime source for micronutrients that include potassium, magnesium, calcium and vitamin D. Milk powder and formula are considered to be a step above than milk in offering these nutrients while retaining the effectiveness over time, and have gained immense traction among the global population. Fortified milk powder and formula therefore is expected to remain the leading revenue contributor to the market, based on product type. Flavored milk has also gained huge consumer interest on the back of their taste and flavor, and are also expected to remain a lucrative product in the market.

Key Research Findings from the Report

Vitamins will remain dominant among micronutrients in global fortified dairy products market, in terms of revenues
Modern trade is anticipated to spearhead the market based on sales channel, accounting for the largest revenue share of the market through the forecast period

With the rise in use of fortified dairy products, fortifying agent manufacturers are concentrating on the identification of new micronutrients along with the development of innovative solutions for end-product manufacturers. A key challenge for fortified dairy product manufacturers is the provision of high calcium comprising products meanwhile retaining their taste and appealing properties. Key companies that actively contribute to growth of the global fortified dairy products market include Nestlé S.A., BASF SE, General Mills, Inc., Danone, Bright Dairy & Food Co., Ltd., China Modern Dairy Holdings Ltd., Arla Foods UK Plc, GCMMF Ltd., Dean Foods Company, and Fonterra Group Cooperative Limited.

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