Press release
Milk Fat Fractions Market Poised for 6 % Growth, Set to Hit $21.9 Billion by 2029
What industry-specific factors are fueling the growth of the milk fat fractions market?The growth of the milk-fat fractions market is anticipated to be fueled by the escalating demand for dairy products. Dairy items include milk and any food products made from milk, like butter, cheese, ice cream, yogurt, as well as condensed and dried milk. The texture, flavor, color, three-dimensional structure, and functional behavior of milk-based products such as butter, cream, cheese, and dairy powders are heightened by milk fat fractions. Hence, a rise in the demand for dairy goods naturally leads to an increased demand for the milk fat fractions market. For instance, the International Dairy Foods Association, a US-based trade association, reported in November 2023 that cheese consumption steeply rose, hitting a historic high in 2022, with almost 42 pounds per person. This indicates an increase of a half-pound per person from 2021. As such, the explosion in the demand for dairy items is propelling the milk fat fractions market's advancement.
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What Is the projected market size and growth rate for the milk fat fractions market?
The market for milk fat fractions has experienced significant growth in recent years and is estimated to expand from a value of $16.18 billion in 2024 to $17.31 billion in 2025, reflecting a compound annual growth rate (CAGR) of 7.0%. This momentum during the historic period has been fuelled by several factors such as the expansion of the dairy industry, consumer inclination towards healthy fats, the demand in the processed food industry, utilization in confectionery and bakery products, dairy product advancements, as well as international trade and globalization.
The market size for milk fat fractions is projected to witness notable expansion in the coming years, reaching "$21.9 billion by 2029 with a compound annual growth rate (CAGR) of 6.1%. This robust growth over the forecast period can be ascribed to the escalating demand for unique ingredients, plant-derived alternatives, functional dairy products, broader e-commerce presence, and widespread expansion of the dairy markets globally. Key trends anticipated in this forecast period encompass clean label and natural ingredients, bespoke and customised solutions, innovation in dairy products, advancements in fractionation technology, alongside collaborations and partnerships.
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What new trends are reshaping the milk fat fractions market and its opportunities?
Prominent firms involved in the Milk Fat Fractions market are focusing on creating strategic alliances to attain a competitive leverage in the market. These alliances are key to fulfilling customer needs and more efficiently overcoming market obstacles. For example, Nourish Ingredients, a technology company from Australia, teamed up with Fonterra, a dairy company from New Zealand, in July 2024. The objective of this alliance is to invent novel dairy products using fermentation-based, animal-like fats. The goal is to exploit Nourish's know-how in fabricating specialty fats. Additionally, this alliance underscores the growing trend in the food sector where well-established firms collaborate with innovative startups to investigate new ingredient technologies.
What major market segments define the scope and growth of the milk fat fractions market?
The milk fat fractions market covered in this report is segmented -
1) By Type: Low Melting Fractions, Medium Melting Fractions, High Melting Fractions
2) By Technology: Dry fractionation, Solvent fractionation, Supercritical fluid extraction, Short-path distillation
3) By Form: Texturized, Concentrated, Isolated
4) By Application: Nutritional And Nutraceuticals, Cold Spreadable Butter, Sports Nutrition, Infant Formulas, Confectionery, Bakery, Other Applications
Subsegments:
1) By Low Melting Fractions: Butterfat, Cream Fractions, Milk Fat Globs
2) By Medium Melting Fractions: Anhydrous Milk Fat (AMF), Cream Cheese, Milk Fat Concentrates
3) By High Melting Fractions: Ghee, Butter Oil, Fractionated Milk Fat
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Which region dominates the milk fat fractions market?
North America was the largest region in the milk fat fractions market in 2024. Asia-Pacific is expected to be the fastest-growing region in the global milk fat fractions market during the forecast period. The regions covered in the milk fat fractions market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
Which key market leaders are driving the milk fat fractions industry growth?
Major companies operating in the milk fat fractions market include Glanbia plc, Uelzena Milchwerke eGmbH, FIT Company, Oleo-Fats Incorporated, Koninklijke VIV Buisman B.V., Flechard S.A.S., Wilmar International Limited, MCT Dairies Inc., The Tatua Co-operative Dairy Company Ltd., Comarco Group, Anand Milk Union Limited, Saputo Dairy, Shanghai Guangyu Food Co. Ltd., United Dairy Group Ltd., Royal FrieslandCampina N.V., Groupe Lactalis, Arla Foods, Agropur Cooperative, Land O'Lakes Inc., Dairy Farmers of America, DMK Deutsches Milchkontor GmbH, Meggle Group, Hoogwegt Group, Molkerei MEGGLE Wasserburg GmbH & Co. KG, Armor Proteines, Lactoprot Deutschland GmbH, Carbery Group, Orafti S.A.
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What Is Covered In The Milk Fat Fractions Global Market Report?
• Market Size Forecast: Examine the milk fat fractions market size across key regions, countries, product categories, and applications.
• Segmentation Insights: Identify and classify subsegments within the milk fat fractions market for a structured understanding.
• Key Players Overview: Analyze major players in the milk fat fractions market, including their market value, share, and competitive positioning.
• Growth Trends Exploration: Assess individual growth patterns and future opportunities in the milk fat fractions market.
• Segment Contributions: Evaluate how different segments drive overall growth in the milk fat fractions market.
• Growth Factors: Highlight key drivers and opportunities influencing the expansion of the milk fat fractions market.
• Industry Challenges: Identify potential risks and obstacles affecting the milk fat fractions market.
• Competitive Landscape: Review strategic developments in the milk fat fractions market, including expansions, agreements, and new product launches.
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Milk fat was fractionated by solvent (acetone) fractionation and dry fractionation. Based on their fatty acid and acyl-carbon profiles, the fractions could be divided into three main groups: high-melting triglycerides (HMT), middle-melting triglycerides (MMT), and low-melting triglycerides (LMT).
Fractionated Milk Fat has been witnessed increased…