Food & Beverages

Dairy Ingredients Market

By Segment, By Region, And Segment Forecasts, 2020 – 2030

Vertical: CFnBBase Year: 202212 Sections

Executive Summary

Dairy Ingredients Market — Snapshot

  • Market Size (2020)

    2020

    $59.57B

  • Projected (2030)

    2030

    $115.46B

  • CAGR (2020–2030)

    6.8%

    6.8%
  • Key Players

    105+

Global Dairy Ingredients market is expected to grow at 7.3% CAGR during the forecast period, 2022-2030. Rising importance of nutritional enrichment in food & beverages as a result of increasing awareness towards maintaining a healthy lifestyle among individuals is expected to have a positive impact over the next eight years.

Rising consumption of protein fortified functional food products by vegetarians to supplement their protein requirements is projected to have a strong impact on the market. Increasing demand for protein supplements in food items has resulted in new product launches by food & beverage companies including Kellogg, which is expected to fuel the demand for whey and milk powder.

Dairy ingredients in the form of milk powder are fortified in the formulation of infant products on account of providing exceptionally low microbiological levels, high heat stability, and facilitating long processing runs during infant formula production. The rising levels of innovation led by baby food manufacturers in emerging economies including China and India are expected to promote the demand for milk powder over the next years.

Key Insight

The Dairy Ingredients Market market is projected to grow at a CAGR of 6.8% from 2020 to 2030.

Market Performance Trend

Historical performance and future projections (2020–2030, USD Billion)

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Market Scope & Coverage

What this report covers

  • Geographic Coverage: This analysis covers 4 regions: North America, Europe, Asia Pacific, Rest of the World.
  • Market Segmentation: The market is analyzed across 5 segments: Milk Powders, Milk Protein Concentrate and Milk Protein Isolate, Whey Ingredients, Lactose, Others. Forecasts are provided for each segment from 2020 to 2030.
  • Competitive Landscape: 105 leading companies are profiled, covering market positioning, strategies, and recent developments.

Market Size (USD Mn)

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Market Overview

Dairy Ingredients Market — Growth Trajectory

Dairy ingredients precipitated from milk like casein and caseinates, and whey is a crucial raw material in the development of supplements and in other food processing applications. There is the application of dairy ingredients in cosmetics and personal care products in the form of an aqueous solution of casein and milk as a natural moisturizer. The components of dairy ingredients on the label are expanding for the sake of making food and beverage products more nutritional, proliferating demand for various dairy ingredients.

Dairy Ingredients Market — Growth Trajectory

Milk Powders
Milk Protein Concentrate and Milk Protein Isolate

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Market Size Trend (USD Mn)

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Market Dimensions

How this market is segmented

  • Product Type Product Type is broken down into: Milk Powders, Milk Protein Concentrate and Milk Protein Isolate, Whey Ingredients, Lactose, Others.
  • Form Form is broken down into: Powder, Liquid.
  • Category Category is broken down into: Organic, Regular.
  • End Use End Use is broken down into: Commercial, Residential.
  • Distribution Channel Distribution Channel is broken down into: Supermarkets/Hypermarkets, Convenience Stores, Specialty Stores, Online, Distribution Channel_Others.
  • Application Application is broken down into: Bakery and Confectionary, Food and Beverages, Infant Milk Formula, Application_Others.

Geographic Analysis

Regional market breakdown

  • North America North America market size reached $12.68B in 2020 and is projected to reach $21.70B by 2030, growing at a CAGR of 5.5%.
  • Europe Europe market size reached $14.26B in 2020 and is projected to reach $23.94B by 2030, growing at a CAGR of 5.3%.
  • Asia Pacific Asia Pacific market size reached $18.76B in 2020 and is projected to reach $42.13B by 2030, growing at a CAGR of 8.4%.
  • Rest of the World Rest of the World market size reached $13.87B in 2020 and is projected to reach $27.69B by 2030, growing at a CAGR of 7.2%.

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Research Methodology

Dairy Ingredients Market — How We Researched This Market

This report applies a rigorous multi-stage research process combining primary interviews, secondary data sources, and bottom-up market modelling to ensure accuracy and completeness across all segments and geographies.

  • Base Year

    2022

  • Historical Period

    2020 – 2022

  • Forecast Period

    2022 – 2030

  • Primary Interviews

    150+

Research Process

Historical data (2020–2022) and forecast period (2022–2030)

1

Problem Definition

  • Market scoping
  • Objective setting
  • Framework design
2

Secondary Research

  • Literature review
  • Data mining
  • Trend analysis
3

Primary Research

  • Expert interviews
  • Field visits
  • Surveys
4

Data Analysis

  • Quantitative modeling
  • Statistical testing
  • Validation
5

Insights & Reporting

  • Synthesis
  • Recommendations
  • Visualization

Research Depth

Our research process spans primary interviews with industry stakeholders combined with comprehensive secondary data analysis, validated through triangulation across multiple independent sources.

Historical vs. Forecast Data

Historical (observed)
Forecast (modelled)

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Competitive Landscape & Porter's Five Forces

Dairy Ingredients Market — Competitive Analysis

Bargaining Power Of Suppliers

Suppliers of raw materials, such as dairy farmers, can exert some influence on the market. However, the dairy ingredients market often has multiple suppliers, reducing individual supplier power. The availability of substitute ingredients and the ability of manufacturers to vertically integrate or switch suppliers can mitigate supplier bargaining power. Additionally, the industry may be influenced by fluctuations in milk prices and supply disruptions due to weather conditions or diseases affecting livestock.

Bargaining Power Of Buyers

Buyers of dairy ingredients, such as food manufacturers and retailers, have some leverage due to the availability of alternative suppliers and substitutes. The power of buyers can be influenced by factors such as the volume of purchases, product differentiation, and the ability to switch suppliers easily. Large-scale buyers may have more bargaining power, as they can negotiate better prices or demand customized products.

Threat Of New Entrants

The dairy ingredients market typically requires significant investments in production facilities, distribution networks, and research and development. This acts as a barrier to entry for new players. Established companies with economies of scale, strong supplier relationships, and brand recognition have a competitive advantage. However, the threat of new entrants could increase if there are low switching costs for buyers or if regulations become more lenient, allowing easier market entry.

Threat Of Substitutes

The dairy ingredients market faces the threat of substitutes, including plant-based alternatives and artificial ingredients. Consumer preferences for plant-based products or specific dietary requirements can drive demand for non-dairy substitutes. However, dairy ingredients often possess unique functional properties and nutritional profiles that can be challenging to replicate in substitutes. The threat of substitutes can vary depending on factors such as price, taste, and perceived health benefits.

Intensity Of Rivalry

The dairy ingredients market is characterized by intense competition among established players. Key factors contributing to rivalry include price competition, product differentiation, innovation, and brand loyalty. Companies invest in research and development to create new dairy ingredients, enhance functionality, and improve production efficiency. Competitive rivalry can be further influenced by factors like industry consolidation, market saturation, and the ability to enter new markets or distribution channels.

Quantitative Analysis

Regional Breakdown

Regional market breakdown for Dairy Ingredients Market.

Regional Market Size (USD Mn)

Market estimates by geography (2030)

USD Mn

InsightAsia Pacific leads with $42.13B by 2030.

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Regional Market Data

REGION202020222030CAGRSHARE
North America$12.68B$16.04B$21.70B5.5%19%
Europe$14.26B$17.88B$23.94B5.3%21%
Asia Pacific$18.76B$27.21B$42.13B8.4%36%
Rest of the World$13.87B$18.92B$27.69B7.2%24%
Total$59.57B$80.05B$115.46B6.8%100%

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Segment Revenue (2030)

Milk Powders
Milk Protein Concentrate and Milk Protein Isolate
Whey Ingredients
Lactose
Others
016161323224848364644

Segment Market Share

  • Milk Powders51%
  • Milk Protein Concentrate and Milk Protein Isolate30%
  • Whey Ingredients12%
  • Lactose4%
  • Others3%

Total Market Size

$115.46B

Market by Segment (2030)

APPLICATIONREVENUE ($B)GROWTH RATEMARKET PENETRATION
Milk Powders$58.77B6.8%
66%
Milk Protein Concentrate and Milk Protein Isolate$34.29B6.8%
87%
Whey Ingredients$13.85B6.8%
54%
Lactose$5.08B6.8%
72%
Others$3.46B6.8%
53%

* Revenue projections based on 2025 estimates. Growth rates represent CAGR 2024–2030. Market penetration indicates current adoption rate within addressable market segments.

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Analytics

Dairy Ingredients Market — Key Findings

Analytical insights on Dairy Ingredients Market covering market dynamics, competitive landscape, and strategic outlook.

Key Analytical Findings

The Dairy Ingredients Market market is projected to reach $115.46B by 2030, growing at 6.8% CAGR. The Milk Powders segment holds the largest share.

Market Dynamics

The global dairy ingredients market drivers includes increasing demand for nutritious and functional food products, and growing consumption of dairy products in emerging products which support the market growth in the past recent years. In addition, increasing prevalence of lactose intolerance and dairy allergies, and health concerns and dietary preferences anticipated to hamper the market growth during the forecast period. Furthermore, rising demand for functional foods, and growing demand from emerging economies expected to offer lucrative opportunities for the market players during the forecast period.

Market Drivers

The rising consumer desire for wholesome and useful food products is one factor driving the growth of the worldwide dairy ingredients market. The important nutrients proteins, vitamins, minerals, and amino acids are abundant in dairy components. Numerous food products, including infant formula, baked goods, confectionary, sports nutrition, and dietary supplements, are made with these substances. Consumers are looking for food products that offer extra nutritional benefits as their focus on health and wellness increases. By improving the nutritional profile and practical qualities of diverse foods, dairy ingredients meet this requirement. The demand for dairy ingredients around the world has increased as a result of consumers growing preference for nutritious and useful food items.

Market Opportunities

One of the major prospects for the dairy ingredients industry is the rising demand for functional foods and drinks. Functional foods are those that offer additional health advantages to basic nutrition and are frequently enriched with certain nutrients or bioactive substances. Many dairy ingredients, including whey protein, casein, and lactose, are added to functional foods because they provide a variety of health benefits, including those that improve digestion, increase immunity, and speed up muscle recovery.

The demand for functional foods and beverages is anticipated to increase as consumers become more health-conscious and look for goods that can offer specific health advantages, opening up potential for dairy ingredient producers.

Market Restraints

People with lactose intolerance have trouble digesting lactose, a sugar present in milk and other dairy products. On the other hand, dairy allergies are immunological reactions brought on by milk proteins. Lactose intolerance and dairy allergies impact a sizable section of the world's population, and those who suffer from them must avoid or consume dairy products in moderation.

The global dairy ingredients market is constrained by the incidence of dairy allergies and lactose intolerance, which limits the market for goods containing dairy. Food and beverage producers must take these dietary limitations into account and come up with alternate solutions to meet the demands of consumers who are lactose intolerant or allergic to dairy. This includes creating lactose- or dairy-free equivalents utilizing non-dairy products or plant-based alternatives.

Market Challenges

Meeting regulatory and quality standards is one of the major obstacles facing the global dairy ingredients market. In order to guarantee food safety and consumer protection, dairy ingredients must adhere to tight rules and quality control procedures. Standards and laws governing the production, processing, and labelling of dairy substances vary between nations and regions. Significant infrastructure, technological, and quality control system expenditures are necessary to meet these demands.

Penalties, product recalls, and reputational harm to producers of dairy ingredients are all possible outcomes of not adhering to these standards. As a result, upholding compliance with regulatory and quality standards is a crucial problem that calls for constant observation, adherence, and adaptation to changing legislation

Strategic Outlook and Future Directions

The COVID-19 outbreak has had a significant impact on the dairy ingredients market. The pandemic has disrupted global supply chains, leading to fluctuations in demand and supply dynamics. The closure of restaurants, cafes, and other foodservice establishments resulted in a decline in the demand for dairy ingredients used in these sectors. However, there has been a surge in demand for dairy products in retail channels as consumers stockpiled essential items during lockdowns. The shift in consumer preferences towards healthier and immune-boosting foods has also influenced the demand for dairy ingredients with functional properties. Additionally, there have been challenges in logistics and transportation, affecting the timely delivery of dairy ingredients. Companies have adapted by implementing safety measures, exploring online sales channels, and focusing on product innovation to cater to changing consumer needs. The long-term impact of the pandemic on the dairy ingredients market will depend on the duration and severity of the outbreak and the subsequent recovery of the global economy.

The COVID-19 outbreak has had a significant impact on dairy ingredients production. The implementation of lockdowns, travel restrictions, and workforce disruptions in various regions have led to challenges in dairy farms and processing facilities. Labor shortages, reduced milk collection, and limited access to processing plants have hampered production capabilities. The need for stringent health and safety measures has also affected production efficiency and capacity.

The dairy ingredients market has faced disruptions in the supply chain due to COVID-19. Movement restrictions, closures of borders, and logistical challenges have led to delays in transportation and distribution. Import and export activities have been affected, impacting the availability of raw materials and finished products. Supply chain disruptions have led to inventory management challenges, shortages, and imbalances in supply and demand.

The pricing dynamics in the dairy ingredients market have been influenced by the COVID-19 outbreak. Fluctuating demand and supply imbalances have led to price volatility. The closure of foodservice establishments and disruptions in the hospitality industry have shifted demand patterns, affecting pricing strategies. Moreover, increased production costs due to implementing safety protocols and adapting to changing market conditions have further impacted pricing dynamics.

Beyond production, supply chain, and pricing, the COVID-19 outbreak has presented other challenges and opportunities for the dairy ingredients market. Changing consumer behaviors, such as increased demand for long-lasting and pantry-stable products, have influenced product preferences. There has been a surge in online purchases and e-commerce platforms for dairy ingredient sales. Additionally, companies have focused on innovation, product diversification, and digital marketing to adapt to the evolving market landscape and cater to changing consumer needs. Government regulations, trade policies, and consumer sentiment during the pandemic have also influenced the dairy ingredients market.

Market Value by Segment (2030)

Value (USD Mn)
Milk Powders
Milk Protein Concentrate and Milk Protein Isolate
Whey Ingredients
Lactose
Others

Companies

Key companies profiled in Dairy Ingredients Market

Profiles of 105 companies operating in the Dairy Ingredients Market market, including revenue, employee count, and market positioning where available.

Showing 105 of 105 companies

Volac

Volac

Food & Beverages

Company Headquarters: Orwell, UK Founded: 1970 Workforce: ~418 Company Working: Volac is a dairy nutrition company that specializes in providing farming and food product solutions. The company prominently deals in animal nutrition, feed fats, forage preservations, and feed additives. The company has a strong presence in the European and South Asian markets. The company owns a modern dairy production facility in West Wales, which uses membrane filtration and drying technologies for producing whey protein isolates for the sports and active nutrition industry, lactose for various applications in a variety of food and beverage products and base powders for young animal milk formulas in the animal feed industry.

Revenue$0.3B
Employees418
Market CapN/A
Founded1969
Orwell, UK
Ornua Co-o

Ornua Co-operative Limited

Food & Beverages

Company Headquarters: Dublin, Ireland Founded: 1961 Workforce: ~2,900 Company Working: Ornua Co-operative Limited is one of the major Irish firms that operates its business in dairy products and dairy ingredients. The main activity of the company includes the processing of milk and selling of products on behalf of its members. The Ornua Co-operative Limited is the leading exporter of dairy products across Ireland and exports its products to approximately 110 nations across the globe. Ornua has annualized sales of Euro 2.5 billion along with strong and skilled employees. The company has 10 business units and 16 production units from where it operates around the world. Moreover, the company has skilled marketing and sales teams that focused on business development in the developed markets. Ornua Co-operative Limited operates its business from two segments that include Ornua Ingredients, and Ornua Foods. Kerrygold, Pilgrims Choice, BEO, Forto, Dubliner, and Kerrygold Advantage are the major brands under which the Ornua Food segment operates its business. The company has major markets with several production units in several European nations such as the UK, Germany, and Ireland, among others. Moreover, the company has a presence in Asia, the Americas, the Middle East & Africa. Under Ornua Ingredients business division, along with the sales of dairy ingredients to foodservice manufacturers and customers. The company focuses on the procurement of non-Irish and Irish dairy products, and the growth of Ornua ingredients is aided by production units and in-market teams in Spain, the US, Saudi Arabia, the UK, and the Middle East & Africa.

Revenue$2.9B
Employees2,900
Market CapN/A
Founded1960
Dublin, Ireland
Dairy Farm

Dairy Farmers of America Inc.

Food & Beverages

Company Headquarters: Kansas, United States Founded: 1998 Workforce: ~ 18,000 Company Working: Dairy Farmers of America Inc. (DFA) is a farmer-owned organization that is a national milk marketing cooperative. The company offers raw milk and sells milk and derivative products that include food components, dairy products, ingredients, and shelf-stable dairy products to wholesale buyers both domestically and abroad. The company is present in more than 6000 countries. The company's production facilities are present across the countries where the company processes its farm fresh milk. The company sells its product under the brand names alta dena dairy, Borden Cheese, breakstone’s Butter, cachevalley, cass clay, country fresh, deans’ dairy, Gandy’s Dairy, and many more. Dairy products are the company’s specialty, it assists in delivering high-quality ingredients with flavor and texture in the dairy products like ice cream, yogurt, cheese, and more.

RevenueN/A
Employees18,000
Market CapN/A
Founded1997
Kansas, United States
Arla Foods

Arla Foods

Food & Beverages

Company Headquarters: Viby, Denmark Founded: 2000 Workforce: ~ 10,000 Company Working: Dairy product production and marketing are activities that Arla Foods engages in. It provides a range of goods for the food sector, including lactose, minerals, bioactive phospholipids, functional and nutritious milk proteins, permeate, and milk-based additives. It sells goods under numerous names, including Apetina, Lurpak, Arla & More, Castello, Arla Kargarden, Arla Cream Cheese, Arla Buko, and Arla Cheesy. It has one owned production facility in Denmark and produces jointly with partners at facilities in Germany and Argentina. Products from Arla Foods are offered in 153 different nations. Moreover, A long-term strategic license deal grants Arla the right to produce, distribute and sell Starbucks premium ready-to-drink coffee products. In addition, Arla is the holder of a long-term license arrangement for the production, distribution, and marketing of cheese products under the Kraft brand throughout the MENA region. These license agreements do not have any accepted values.

Revenue$11.6B
Employees10,000
Market CapN/A
Founded1999
Viby, Denmark
FrieslandC

FrieslandCampina N.V.

Food & Beverages

Company Headquarters: Amersfoort, Netherlands Founded: 2008 Workforce: ~21,715 Company Working: FrieslandCampina N.V. (FrieslandCampina) manufactures and markets consumer goods such as dairy-based beverages, baby food, cheese, and desserts in several European, Asian, and African countries through its businesses. Dairy products are exported worldwide from the Netherlands. Additionally, professional customers that use cream and butter products, including bakeries and catering establishments, are given supplies. Manufacturers of newborn feeding, the food industry, and the pharmaceutical industry all around the world purchase materials and partially finished goods from FrieslandCampina. More than 36 countries host offices for it, and it distributes goods to more than 100 nations. The Company has established various state-of-the-art manufacturing facilities in different locations to produce its quality products. The company works with its major brands such as Friso, Peak, Campina, Dutch Lady, Debic, Frisian Flag, and Olpser in countries like the Netherlands, Indonesia, Philippines, Germany, and Nigeria.

Revenue$11.4B
Employees21,715
Market CapN/A
Founded2007
Amersfoort, Netherlands
Groupe Lac

Groupe Lactalis

Food & Beverages

Company Headquarters: Laval, France Founded: 1933 Workforce: ~85,500 Company Working: Groupe Lactalis manufactures and sells various products associated with dairy. Besnier S.A. is the former name of Groupe Lactalis, the company is the largest producer of dairy products and the largest cheese producer across France. Bridel, Locatelli, Lactel, Rondele, and Sorrento are the major brands under which the company offers its products. Groupe Lactalis has a presence in more than 140 nations across the globe and has 65 manufacturing units in France and 13 in different nations. Apart from that the company has 270 sites for production in 52 countries around the world. Groupe Lactalis is a privately held business owned by the Besnier family. The main product lines of the company include milk (liquid), cheese, cream & butter, frozen or chilled products, dairy ingredients, and several other nutritional products. The products offered by the company have a range of applications for the production of confectionery products & chocolates, dairy products, frozen desserts, croissant-type pastries, cheeses, cooked meats, bread, clinical and infant nutrition products, biscuits, ready meals, and animal nutrition products. Galbani, Parmalat, Ambassador, Sante, Picot, Laicran, Lactel, Celia, President, Puleva, and Societe are the major brands under which the company markets its products, among these, there are three brands operates across the globe. The company has a significant presence across the globe with its industrial units, owing to its strong business strategies such as innovations in the product portfolio, development of brands, and sustainable methods for production.

Revenue$25.9B
Employees85,500
Market CapN/A
Founded1932
Laval, France
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About the Author

Food & Beverages Research Team

Food & Beverages

Wantstats' food and beverage analysts wrote this report from primary sources — retail data, ingredient sourcing trends, and direct conversations with people in the industry. Every figure has been checked against proprietary datasets and reviewed internally before release.

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I have been reading the first document or the study, the Global HVAC and FP market report 2021 till 2026. Must say, good info! I have not gone in depth at all parts, but got a good indication of the data inside!
Jason Lee

R&D Director, Seojin

Thanks for your great support. Appreciate it. Well received report. It helps us to understand market well. We're planning other area of survey in the future, let's keep in touch.
Akif Moroglu

Strategy & Business Development Director, Dogan Holding

We got the report in time, we really thank you for your support in this process. I also thank to all of your team as they did a great job.
Noah Malgeri
Noah Malgeri

Co-Founder, Mojave Rail Fabrication Limited

This is really good guys. Excellent work on a tight deadline. I will continue to use you going forward and recommend you to others. Nice job.
Michael Robert

Manager, JavolVision

Thanks, I am so happy that we worked together. Maybe we still can work together in the future.
Joseph Aguayo
Joseph Aguayo

Sales Operations & Pricing Manager, Intel

Thanks. It's been a pleasure working with you, please use me as reference with any other Intel employees.
Bong Lau

Sales Leader, Bamberg

We bought your "2025 report" in 2020. Everything is fine and very good.
Peter Groot Koerkamp
Peter Groot Koerkamp

Account and Business Manager, EFS-Holland BV

Thanks for sending the report it gives us a good global view of the Betaïne market.
Younghwan Choi
Younghwan Choi

Senior Retail Manager, LG Chem

We found the report very insightful! we found your research firm very helpful. I'm sending this email to secure our future business.
Mark Irwin

Management Consultant, Level 21

I am very pleased with how market segments have been defined in a relevant way for my purposes (such as "Portable Freezers & refrigerators" and "last-mile"). In general the report is well structured. Thanks very much for your efforts.
Rob Kooiker

Group Product Manager HVAC & Fire Protection GMA, Rockwool

I have been reading the first document or the study, the Global HVAC and FP market report 2021 till 2026. Must say, good info! I have not gone in depth at all parts, but got a good indication of the data inside!
Jason Lee

R&D Director, Seojin

Thanks for your great support. Appreciate it. Well received report. It helps us to understand market well. We're planning other area of survey in the future, let's keep in touch.
Akif Moroglu

Strategy & Business Development Director, Dogan Holding

We got the report in time, we really thank you for your support in this process. I also thank to all of your team as they did a great job.

Dairy Ingredients Market

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