Dairy Ingredients Market Size - By Product Type (Milk Powders, Whey Ingredients, Lactose & Derivatives, Casein & Caseinates), Application (Bakery & Confectionery, Dairy Products, Infant Milk Formula, Sports & Clinical Nutrition), Form & Forecast, 2023 - 2

Dairy Ingredients Market Size - By Product Type (Milk Powders, Whey Ingredients, Lactose & Derivatives, Casein & Caseinates), Application (Bakery & Confectionery, Dairy Products, Infant Milk Formula, Sports & Clinical Nutrition), Form & Forecast, 2023 - 2032

The global dairy ingredients market is expected to grow at a CAGR of 6.2% during 2024-2032, propelled by a shift towards healthier lifestyle and increased awareness of the nutritional benefits of dairy products.

According to an article by Dairy Foods in 2022, for 40% of consumers, the choice of dairy is a health-driven one, as they associate it with nutrition-rich ingredients. The rising demand for functional and nutritional dairy products is a significant catalyst. Consumers are increasingly seeking products that not only satiate their taste buds but also offer health benefits. The inclusion of dairy ingredients in various food & beverage products enhances their nutritional profile, driving their popularity among health-conscious consumers.

Moreover, the expanding population, particularly in emerging economies, along with a rise in disposable incomes, and evolved dietary preferences push the demand for dairy ingredients. Additionally, the innovation in product development, including the introduction of value-added dairy ingredients, is attracting a wider consumer base.

The global dairy ingredients industry is classified based on product type, application, form, and region.

Whey ingredients segment is set to gain traction during 2024-2032, driven by growing popularity of protein rich product and increased awareness of high-quality protein content in whey. This ingredient finds application in a range of products, including protein bars, beverages, and dietary supplements. The versatility of whey ingredients makes them a preferred choice in the food & beverage sector, contributing significantly to the overall market growth.

The bakery & confectionery application segment is poised to grow significantly through 2032, owing to the widespread usage of dairy in bakery products. The inherent functionality and taste enhancement properties of dairy ingredients make them indispensable in preparation. Moreover, the demand is further bolstered by consumer preferences for indulgent and premium-quality treats.

Asia Pacific dairy ingredients market is expected to grow swiftly during the forecast period, driven by rapid urbanization, increasing disposable incomes, and a burgeoning middle class. China, India, Japan, and Southeast Asian countries are witnessing a surge in the consumption of dairy ingredients, with a notable preference for high-quality and nutritious dairy products. Moreover, the region is also witnessing a shift towards western dietary patterns, with a growing inclination towards dairy-based snacks, beverages, and desserts, further propelling industry growth.