Dairy Cream Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Dairy Cream Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The dairy cream market is forecast to register a CAGR of 4.11% during the forecast period (2022-2027).

The COVID-19 outbreak caused some disruptions in the dairy industry. Since hotels, restaurants, and bakeries were closed, there was a shift away from wholesale foodservice sectors. Some milk processors were reporting difficulty, including drivers, to transport milk from farms amid covid fears. Despite these setbacks, the demand for dairy products increased for a number of reasons, including rising interest in home baking, which resulted in increasing demand for dairy products such as milk, butter, and cream in retail sales. Another reason driving up demand for liquid milk is the growing number of people working from home, which has increased the demand for milk for teas and coffees.

The high production costs and health consciousness leading to low-fat consumption are found to be obstacles for the industry. Innovative product development with low trans-fat and organic cream products is expected to be further growth opportunities in this industry.

Increasing product launches with innovative ideas such as flavored, low-calorie, and low-fat creams are expected to accelerate the growth of the market. Additionally, wide applications of dairy cream, ranging from bakery to confectionery, increase the market size.

Key Market TrendsIncreasing Demand for Low-fat Cream Products

Factors, such as increasing government-run health and wellness campaigns, designed to combat obesity and related problems (diabetes, high blood pressure, heart disease, and high cholesterol), are encouraging consumers to purchase healthier products such as low-fat dairy ream. Owing to the consumers’ preference for functional/organic products, the companies entering this market are expected to witness a high potential. Moreover, there is a rise in demand for fortified yogurt. For instance, Schulz organic dairy offers pure dairy cream, which is increasingly being appreciated by Australian Consumers. According to United States Department of Agriculture, in 2020, the total consumption of low-fat ice creams in United States amounted to 2.21 billion pounds as compared to 2.12 billion pounds in 2017.

Gulf Cooperation Council Countries to Witness Steady Growth

The Kuwaiti dairy industry is witnessing an increasing prevalence of strategic partnerships and alliances between dairy companies to alleviate the shortage of dairy products in the country. Companies like Arla Foods are also investing in production facilities and implementing expansion strategies to expand their dairy production facilities. Arla Foods is also developing its sales and distribution in Lebanon, Qatar, and Kuwait to expand its dairy capacity in such countries. Such partnerships play a prominent role in dairy companies’ development, maintaining their quality of performance and competitiveness in the market. Thus, the increasing number of strategic initiatives, especially partnerships and alliances between companies to revolutionize the dairy market in Kuwait, is, in turn, boosting the market’s growth in the country.

Competitive Landscape

The dairy cream market is highly competitive because it comprises regional and international competitors. The leading players in the market enjoy a dominant presence worldwide. These players focus to leverage opportunities posed by emerging markets to expand their product portfolio so that they can cater to the requirements for various product segments, especially sour cream, fresh cream, and whipping cream. Companies compete on different factors, including product offerings, quality, price, functionality, size, packaging, and marketing activities, in order to gain a competitive advantage in the market. Key players in the market include Land O'Lakes Inc., Fonterra Co-operative Group, Dean Foods, Lactalis, and Nestle SA. Key players in this market are now focusing on social media platforms and online distribution channels for the online marketing and branding of their products to attract more customers. Manufacturers are focusing on innovations such as flavored cream, cream enhanced with omega-3 fatty acid, or whole functional cream that helps to maintain or reduce heart disease, cholesterol, and hypertension.

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• The market estimate (ME) sheet in Excel format
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