Dairy Cream - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2019 - 2029

Dairy Cream - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2019 - 2029

The Dairy Cream Market size is estimated at USD 15.43 billion in 2024, and is expected to reach USD 18.45 billion by 2029, growing at a CAGR of 3.64% during the forecast period (2024-2029).

Consumers are willing to opt for low-calorie cream cheese with cleaner ingredients or no artificial ingredients for flavoring and coloring, as well as higher protein content and an improved nutritional profile. Since it is ideal for keto dishes owing to its nutritional value and also used to enhance the taste and preference of the consumers.

Increased government-run health and wellness campaigns aimed at combating obesity and other health-related problems such as diabetes, high blood pressure, heart disease, and high cholesterol are encouraging consumers to buy healthier products like low-fat dairy creams. Companies entering this market are expected to have a high potential due to consumers' preference for functional/organic products. For example, Schulz organic dairy provides pure dairy cream, which is increasingly popular among Australian consumers.

Manufacturers engaged in the business of dairy cream emphasize new product development with a complete solution from which they satisfy several types of cooking requirements like restaurants, hotels, and homes. The nutrition aspect of the product appears to be the primary focus of the producers by offering pasteurized milk and cream, especially low-fat cream. Increasing health awareness among consumers has led to the demand for low-fat dairy creams in the global market.

However, increasing penetration from manufacturers towards plant-based cream products can hinder the potential market for dairy cream over the forecast period. For instance, In February 2023, Alamance Foods launched three distinct flavors of dairy-free substitutes for whipped cream such as oat, almond, and coconut.

Dairy Cream Market Trends

Increasing Demand for Sour Cream

Owing to the prevalence of lactose intolerance in various parts of the world has led to the demand for lactose-free sour cream. Demand for lactose-free organic sour cream is primarily driven by the rising consumption of baked goods and savory foods, which benefit from their lightening properties.

Moreover, healthy eating is a market trend that drives demand for lactose-free and organic sour cream products. The increased availability of lactose-free dairy products and their consumer acceptance represents a significant opportunity for dairy alternative manufacturers. In addition, consumers' growing cholesterol problem has paved the way for the demand for fat-free, low-fat, and other sour cream products which might in shaping the overall market for dairy cream.

Furthermore, the dairy industry's increasing emphasis on research and development activities is spurring new product innovations and product enhancement, benefiting the dairy cream market. For instance, in August 2021, Good Culture launched a lactose-free line and a squeezable, classic sour cream pouch. The products are made with simple ingredients, including gut-friendly live and active cultures as well as pasture-raised milk sourced from small farms in the Midwest. The products can be availed from retailers across the United States.

Gulf Cooperation Council Countries to Witness Steady Growth

The Gulf Cooperation Council dairy cream market is being driven by the region's growing population as well as rising disposable incomes. Consumers are increasingly demanding innovative and high-quality products such as vitamin-enriched, low-fat, or sugar-free options. The citizens of the Gulf Cooperation Council countries are also becoming more aware of the health benefits of dairy-based creams.

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.

Dairy Cream Industry Overview

The dairy cream market is highly competitive as 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 of 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, to gain a competitive advantage in the market. Key players in the market include Dairy Farmers of America Inc., Fonterra Co-operative Group, Arla Foods, Agropur Cooperative, Gujarat Co-operative Milk Marketing Federation Ltd (Amul), 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. For instance, in January 2023, The Bega Group expanded its product offerings and introduced cream cheese products derived from locally sourced milk. The product can be suitable for baking and cooking recipes and also ideal for snacking as a spread. The Bega Cream Cheese can be purchased from Woolworths and independent stores in Australia.

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