The dairy blends market is anticipated to reach USD3.98 billion by 2025 from USD2.67 billion in 2019, at a CAGR of 7.14% from 2020. Dairy blends significantly affect food products, as far as keeping up the quality, flavor, and taste, which has prompted its high demand over the globe. A mixture of concentrated cream blended in with butter is known as dairy blends. They are comprised of butter blends or butterfat, which is free from saturated fat. Dairy blends contain vegetable oil, subsequently it is spreadable and can consume with bread. They can mix with other fixings, for example, sugar, salt, aroma, flavorings, and vegetable oils that rely upon the taste and preferences of the consumers. Dairy blends enhance the absolute and genuine taste of the products. In any case, blending with other protein sources offers healthy benefits to consumers.
The market for worldwide dairy blends is expected to be driven by its cost-effective factor, less fat substance when compared to butter and margarine, usage alongside different ingredients. Dairy products are normally imported at an exceptionally high cost yet dairy blends can be imported at a much lower cost when compared to dairy products. We can use different ingredients like butter, cocoa powder, sugar, dextrin, and vegetable fats with dairy blends which subsequently, drive the demand for them. Dairy blends when added or mixed with soy or different proteins improve the flavor of the product.
The significant driver behind the dairy blend is that it is not completely butter. This is the reason it is favored by consumers as it reduces high segment of fats. Also, one of the reasons for its demand is that it can be stored and refrigerated. Other market drivers for this include the developing rice, and bread shop industry, nutraceutical food sector, and expanding prominence of certain food items like pizza and burgers. Dairy blends are also used in making juices which is also a driver for this market.
Ignorance about the uses of the product and global cost decline of the milk blend products are a few constraints that are limiting the development of the dairy blends market. The manufactures of food and beverages want to utilize butter and other traditional products rather than milk blend products. Some manufacturers have concerns towards milk blend that they have weakened the flavor of the consumable item is one of the challenges for the industry.
In spite of lot of advantages of dairy blends, consumers are hesitant to use them over the conventional dairy products. In some of the developed and developing markets, food and beverage makers want to utilize butter, margarine, and other conventional dairy items rather than dairy blends. There are concerns among manufacturers of food and beverages towards dairy blends that they reduce the flavor of food products is one of the challenges for the market.
Asia-Pacific is expected to develop at the highest CAGR for the dairy blends market during the forecast period. The major drivers for the growth of this market include growth in demand from developing and highly populated countries such as China, India, Japan and South Korea and the presence of a large dairy sector in Australia and New Zealand.
Product Launches/ Acquisitions:
In February 2020, plant-based patty and ground products were launched by Cargill Corporation to provide quality protein and to maintain the taste of customers. These products help in drawing the consumers and thus help in sales productivity.