Dairy Ingredients Market Size, Share, Opportunities, COVID 19 Impact, And Trends By Type (Milk Powder, Milk Protein, Lactose & Derivatives, Others), By Livestock (Cows, Buffaloes, Others), By Application (Bakery & Confectionery, Dairy Products, Sports Nutrition Products, Infant Milk Formula, Others), By Form (Dry, Liquid), By Distribution Channel (Online, Offline), And By Geography - Forecasts From 2022 To 2027

  • Published : Sep 2022
  • Report Code : KSI061613503
  • Pages : 120

The global dairy ingredients market is estimated to grow at a CAGR of 6.16% to reach a market size of US$77.185 billion in 2027 from US$50.779 billion in 2020.

The products that are produced or contain the milk of mammals such as cows, buffaloes, and goats, among others, are called dairy ingredients. Expanding the dairy industry, coupled with the growing demand for dairy products, is expected to drive the growth of the market during the forecast period. However, the availability of substitutes and a rising inclination towards a vegan diet are anticipated to restrain the growth of the market in the coming years.

Dairy products are considered an important source of nutrients

Dairy products and milk are considered nutrient-dense foods, supplying energy, protein, and micronutrients such as calcium, selenium, vitamin B12, B5, and magnesium, among others, which are essential in reducing malnutrition and hunger.  Many countries have even recommended dietary guidelines for dairy products as a component of a balanced diet. On the global stage, milk contributes on average 134 kcal of energy per capita per day to the global supply of energy and 8.3 g of protein per capita per day to the global supply of protein.  In addition, it is the fifth-largest provider of energy and the third-largest provider of protein and fat to human beings (Source: FAO).

Expanding the dairy industry

Milk and milk products are considered one of the most produced and valuable agricultural commodities worldwide. According to the Food and Agriculture Organization, milk contributes nearly one-fourth of the global value-added of livestock and one-tenth of that of agriculture. Milk and dairy products account for fourteen percent of the global agriculture trade and global milk production is projected to increase to 177 million tonnes by the end of 2025.

The rising prevalence of the vegan diet is expected to hinder the growth of the market in the coming years

The rising preference for the vegan diet is a substantial contributing factor toward the meteoric adoption of non-dairy milk alternatives, which is reducing the demand for dairy products. Presently, consumers are proactively moving away from bovine milk towards plant-based milk, mainly due to milk protein allergy, lactose intolerance, cultural influences, etc. In addition, companies are investing heavily in plant-based milk alternatives, which further restrains the girth of the market. For instance, Califia Farms, known for its range of plant-based kinds of milk that are inclusive of but not limited to coconut and almond milk, raised a US$50 million round of capital in the year 2018 led by Ambrosia Investments.

By livestock, the cow  holds a significant share of the market during the forecast period

By livestock, the dairy ingredient market is segmented based on cows, buffaloes, and others. The cow's segment is expected to hold a significant share of the market on account of its large population and fewer complications in performing the whole milking process compared to others. Besides, India is the global leader in milk production and also holds the largest population of cows in the world, showing a direct correlation between milk production and cow population. Furthermore, another livestock-based dairy ingredient is mostly present in specific regions, leading to limited global reach.

The Asia Pacific is holding a significant share of the market

By geography, the dairy ingredients market is segmented into North America, South America, Europe, the Middle East, Africa, and the Asia Pacific. The dairy ingredients market in the Asia Pacific is estimated to hold a significant share in 2019 and is anticipated to grow rapidly on account of increased investment by big market players in the countries like China and India. China, which is the world’s most populated country, imports about thirty percent of its dairy products which is further expected to increase in the coming future. Also, according to the National Dairy Development Plan, China should be 70% self-sufficient by the end of 2028. In addition, increasing disposable income in developing countries like India, China, and Indonesia is also expected to boost the demand for ready-to-eat or convenience foods made of dairy ingredients which will propel growth opportunities in the coming years. Simultaneously, in Europe and North America, due to the availability of plant-based milk ingredients, the market for dairy ingredients is anticipated to grow marginally during the forecast period.

Recent Development and expansions

  • EuriNutri WPC, a whey protein concentrate component with 80% protein concentration, was introduced by Eurial Ingredients & Nutrition in 2021. This component is made from sweet whey that is produced at the company's French manufacturing facility.
  • Arla Foods introduced MicelPure, a micellar casein isolate, as its first organic ingredient in 2020. This component has a low fat and lactose level and at least 87 percent native milk protein.
  • A brand-new skim milk powder with excellent heat and heat-stable properties was introduced by Lactalis Ingredients in 2020. This product is made in a facility owned by a company that is located in Germany, and it is excellent for making condensed milk.
  • Dairy Farmers of America and Dean Foods signed an agreement in February 2020. The stalking horse bidder for the purchase of a sizable piece of Dean Foods' assets and business would be DFA.

COVID-19 Impact on Dairy Ingredients Market

The dairy ingredients market was affected by the COVID-19 epidemic, which interfered with processing and logistics throughout the year. Government regulations led to severe lockdowns and a decline in the demand for liquid milk. The cost of buying milk is also under pressure from these limitations. However, the industry expanded on its own after the liberalization of exports and imports in 2020. The increase in imports from China, Brazil, and other nations, as per the Food & Agriculture Organization of the United Nations, caused the global dairy trade to rise by 1.2 percent in 2020.

Dairy Ingredients Market Scope:


Report Metric Details
 Market Size Value in 2020  US$50.779 billion
 Market Size Value in 2027  US$77.185 billion
 Growth Rate  CAGR of 6.16% from 2020 to 2027
 Base Year  2020
 Forecast Period  2022–2027
 Forecast Unit (Value)  USD Billion
 Segments Covered  Type, Livestock, Application, Form, Distribution Channel, And Geography
 Regions Covered  North America, South America, Europe, Middle East and Africa, Asia Pacific
 Companies Covered FrieslandCampina, Arla Foods amba, Glanbia, Kerry Group, Groupe Lactalis, Amul, Saputo, Volac International Ltd., Dairy Farmers of America, Euroserum
 Customization Scope  Free report customization with purchase



  • By Type
    • Milk powder
    • Milk protein
    • Lactose & Derivatives
    • Others
  • By Livestock
    • Cows
    • Buffaloes
    • Others
  • By Application
    • Bakery & Confectionery
    • Dairy Products
    • Sports Nutrition Products
    • Infant Milk Formula
    • Others
  • By Form
    • Dry
    • Liquid
  • By Distribution Channel
    • Online
    • Offline
  • By Geography
    • North America
      • USA
      • Canada
      • Mexico
    • South America
      • Brazil
      • Argentina
      • Others
    • Europe
      • UK
      • Germany
      • France
      • Spain
      • Others
    • Middle East and Africa
      • Saudi Arabia
      • South Africa
      • Others
    • Asia Pacific
      • Japan
      • China
      • India
      • Australia
      • Others

Frequently Asked Questions (FAQs)

The global dairy ingredients market is estimated to reach a total market size of US$77.185 billion in 2027.
Expanding the dairy industry coupled with the growing demand for dairy products is expected to drive the dairy ingredients market growth during the forecast period.
Dairy Ingredients Market was valued at US$50.779 billion in 2020.
The dairy ingredients market is estimated to grow at a CAGR of 6.16% over the forecast period.
The Asia Pacific region is estimated to hold a significant share of the dairy ingredients market on account of increased investment by big market players in countries like China and India.
1. Introduction
1.1. Market Overview
1.2. Covid-19 Scenario
1.3. Market Definition
1.4. Market Segmentation

2. Research Methodology  
2.1. Research Data
2.2. Assumptions
3. Executive Summary
3.1. Research Highlights

4. Market Dynamics
4.1. Market Drivers
4.2. Market Restraints
4.3. Porters Five Forces Analysis
4.3.1. Bargaining Power of Suppliers
4.3.2. Bargaining Power of Buyers
4.3.3. Threat of New Entrants
4.3.4. Threat of Substitutes
4.3.5. Competitive Rivalry in the Industry
4.4. Industry Value Chain Analysis

5. Dairy Ingredients Market Analysis, By Type
5.1. Introduction
5.2. Milk powder
5.3. Milk protein
5.4. Lactose & Derivatives
5.5. Others

6. Dairy Ingredients Market Analysis, By Livestock
6.1. Introduction
6.2. Cows
6.3. Buffaloes
6.4. Others 

7. Dairy Ingredients Market Analysis, By Application
7.1. Introduction
7.2. Bakery & Confectionery
7.3.  Dairy Products
7.4. Sports Nutrition Products
7.5. Infant Milk Formula
7.6. Others

8. Dairy Ingredients Market Analysis, By Form
8.1. Introduction
8.2. Dry
8.3. Liquid

9. Dairy Ingredients Market Analysis, By Distribution Channel
9.1. Introduction
9.2. Online
9.3. Offline

10. Dairy Ingredients Market Analysis, By Geography
10.1. Introduction
10.2. North America (US$ Million) 
10.2.1. United States (US$ Million) 
10.2.2. Canada (US$ Million)
10.2.3. Mexico (US$ Million) 
10.3. South America (US$ Million) 
10.3.1. Brazil (US$ Million)
10.3.2. Argentina (US$ Million) 
10.3.3. Others
10.4. Europe (US$ Million) 
10.4.1. UK (US$ Million) 
10.4.2. Germany (US$ Million) 
10.4.3. France (US$ Million) 
10.4.4. Spain (US$ Million) 
10.4.5. Others
10.5. Middle East and Africa (US$ Million) 
10.5.1. Saudi Arabia (US$ Million) 
10.5.2. South Africa (US$ Million) 
10.5.3. Others
10.6. Asia Pacific (US$ Million)
10.6.1. Japan (US$ Million) 
10.6.2. China (US$ Million) 
10.6.3. India (US$ Million)
10.6.4. Australia (US$ Million)
10.6.5. Others

11. Competitive Environment and Analysis            
11.1. Major Players and Strategy Analysis        
11.2. Emerging Players and Market Lucrativeness        
11.3. Mergers, Acquisitions, Agreements, and Collaborations        
11.4. Vendor Competitiveness Matrix      
12. Company Profiles             
12.1. FrieslandCampina        
12.2. Arla Foods amba        
12.3. Glanbia        
12.4. Kerry Group    
12.5. Groupe Lactalis        
12.6. Amul        
12.7. Saputo        
12.8. Volac International Ltd        
12.9. Dairy Farmers of America        
12.10. Euroserum        


Arla Foods amba


Kerry Group

Groupe Lactalis



Volac International Ltd.

Dairy Farmers of America