Dairy Ingredients Market Research Insights with Upcoming Trends Segmentation Opportunities and Forecast to 2028

Dairy ingredients include milk powder, whey protein and casein, milk fat concentrates, lactose, and derivatives. Milk powder is produced by pasteurizing, evaporating, and spray drying whole milk. The spray-dried milk powder is used in dry baking mixes, confectioneries, spice mixes, and beverages. Whey protein is the by-product of cheese and is concentrated and spray-dried into a powder. Dairy ingredients are extensively used across food and beverages, pharmaceuticals and nutraceuticals, animal feed, and personal care industries.

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In the food and beverage industry, dairy ingredients find applications in bakery and confectionery products, frozen desserts, dairy products, beverages, and infant formula. Dairy ingredients, such as whey protein isolates and concentrates, whey powders, and demineralized whey, are used in bakery products to improve their texture and crumb strength. Whey proteins are extensively used to manufacture protein supplements. Whey protein is considered one of the significant sources of essential amino acids that help in improving muscle strength. It is also beneficial for preventing age-related muscle loss.

Hydrolyzed milk protein is an effective hair conditioner that penetrates the cortex, raising moisture levels and enhancing the hair's flexibility. It is also used in body care products like body lotions, moisturizers, soaps, and body washes since it hydrates the skin and gives it a natural glow. The rising demand for whey proteins across various end-use industries is likely to fuel the market growth over the forecast period.

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Key players in the global dairy ingredients market include Agropur, Arla Foods Ingredients Group P/S, Lactalis Ingredients, Frieslandcampina, Saputo Inc., Fonterra Co-Operative Group Limited, Kerry, Amco Proteins, Prolactal, and Glanbia Ireland, among few others.

Impact of COVID-19 Pandemic on Dairy Ingredients Market

The COVID-19 pandemic has affected economies and industries in various countries due to lockdowns, travel bans, and business shutdowns. The food & beverage industry is one of the leading industries, suffering severe disruptions, such as supply chain breaks and shutdowns of production plants due to the pandemic. The pandemic adversely affected the dairy industry owing to the raw material and labor shortage. Many small-scale dairy manufacturers faced a financial crisis due to the shutdown of manufacturing units. However, dairy ingredients, especially dairy proteins, witnessed significant demand due to increased health concerns.

People increasingly preferred immunity-boosting food products and supplements, which propelled whey proteins. These factors positively boosted the growth of dairy ingredients market. Furthermore, with the rising vaccination rates and relaxation of government restrictions, the dairy ingredients market is expected to register positive growth over the coming years.

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The report segments the dairy ingredients market as follows:
Based on the product type, the dairy ingredients market is segmented into milk powder, protein, milk fat concentrate, lactose & lactose derivatives, and others. Based on the application, the dairy ingredients market is segmented into food & beverages, pharmaceuticals & nutraceuticals, animal feed, and personal care. Based on the geography, the dairy ingredients market is segmented into North America, Europe, Asia-Pacific (APAC), the Middle East and Africa (MEA), and South and Central America (SAM).

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