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Market for functional dairy ingredient estimated to witness healthy CAGR and projected to open new opportunities, says Fact.MR
With the growing awareness regarding health benefits of the dairy products, demand for new and improved functional dairy foods is set to rise. On the same lines, the popularity of functional dairy foods will further propel the functional dairy ingredient market during the review period.Following the popularity of functional dairy food, manufacturers are introducing more functional dairy ingredients in their product offerings to gain consumer traction and win over the intense market competition.
For instance, Ingredion Inc., the U.S. food company has introduced three new potato starches- the functional dairy ingredients to the product portfolio of its processed cheese providing better functionality and more options to consumers.
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The billions of dollars of baby food market has initiated the addition of functional dairy ingredients, in turn, driving the growth of the functional dairy ingredient market.
In addition, prebiotic fibers have become a popular plant-based functional dairy ingredient in several dairy products and functional beverages.
Further, with the increasing consumer preference for organic ingredients in the food and beverage sector, the functional dairy ingredient market is witnessing progress in organic functional dairy ingredients segment.
Moreover, with the clean label trend becoming streamlined for most food producers, demand for organic functional dairy ingredients is here to stay.
Given that, ‘clean label’, ‘non-GMO’ foods and rising health and fitness trends are few of the prime influencers of the functional dairy ingredient market during the review period.
Functional Dairy Ingredient Market Outlook
Fortified dairy products are now have shifted from a niche product segment to a mainstream product in the developed as well as in developing regions. This is attributed to increasing the consumption of functional food and beverages including functional dairy across the major urban conglomerations and tier 2 cities.
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This rise in demand for the functional dairy product is attributed towards the increase in demand for functional dairy ingredient over the near future. Functional dairy ingredient market has witnessed strong growth rates over past few years and is expected to continue the trend over the forecast period.
The key manufacturers are involving with a robust approach by not only broadening its product portfolio but also revamping manufacturing units to carter the rapidly changing ingredient demand fueled by tailor-made functional dairy products for the consumers.
The functional dairy ingredient market has an essence of large international player capturing a significant amount of the market share in the overall offering and key regional functional dairy ingredient players capturing specific offerings in their geographies.
A shift in product offering is expected to witness with players offering blends or multi-functional dairy ingredient over the forecast period.
Region wise Europe and the Asia Pacific to capture a significant amount of volume share in functional dairy ingredient market over the forecast period.
Increasing consumption of functional food is directly attributed towards the growth of the functional dairy ingredient market, globally.
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Global Functional Dairy Ingredient Market: Key Players
Some of the key players operating in the global functional dairy ingredient market are Angel Yeast Co., Ltd, Koninklijke DSM N.V, Glanbia Plc., Alra Ingredients, NZMP (Fonterra), Cargill Inc., Ganeden, Valio Oy, Ornua Co-op Limited, Lactalis Ingredients, Kerry Inc., FrieslandCampina International B.v, The Dow Chemical Company, Bunge Limited, E.I. du Pont de Nemours & Co, Chr. Hansen Holding A/S, Ingredion, BASF SE, Herbafood Ingredients Gmbh, Univar Inc., Archer Daniels Midland Co., Sensient Technologies Corporation, Alltech Inc., Ab Mauri, Ab Vista, and Lesaffre (Biospringer)
Opportunities for Functional Dairy Ingredient Market Participants
The opportunity for the participants in the global functional dairy ingredient market is optimistic with growing demand in Europe and the Asia Pacific where there is an increase production activity for infant food and other functional dairy products.
With increasing per capita spending over food and beverage products, Asia Pacific is anticipated to witness the highest growth rate over the forecast period in functional dairy ingredient market as manufacturers in the region to ramp up production activity to feed the demand in the region.
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