Dairy Processing Equipment Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Dairy Processing Equipment Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Global Dairy Processing Equipment Market is projected to register a CAGR of 5.12% during the forecast period, 2022-2027.

Dairy processing equipment includes a wide range of machines that are involved in the production and processing of dairy products such as processed milk, butter & buttermilk, cheese, milk powder, processed cheese, and others.

Growing consumer awareness about the health benefits associated with dairy products such as digestive health, bone health, dental health, weight management, muscle mass and hydration, and reduction in the risk of diseases offered by the dairy products like milk, cheese, butter, etc, the demand for dairy is on the rise. Thus, the rising consumer awareness about these benefits has helped drive demand for dairy processing equipment.

High demand for dairy products is primarily seen in emerging economies such as India, China, and South American countries. This demand is ignited by population growth, rapid urbanization, increased disposable income, and the emergence & modernization of cold chain facilities such as refrigerated transport & storage. The increasing demand for dairy products in the global market has increased the international trade of dairy products, thereby fuelling the market for processing equipment.

However, the high cost of capital investment associated with installing various types of processing equipment restricts the market growth.

The dairy sector has proved notably resilient during the COVID-19 pandemic. Thus, the sector was not significantly impacted. However, the perishable nature of fresh liquid milk and fresh dairy products made them particularly vulnerable to supply chain disruptions.

Key Market TrendsGrowing Consumer Demand for Processed Dairy Products

The rise in demand for processed dairy products such as milk, cream, cheese, and yogurt, among others, owing to growing consumer awareness about the perceived health benefits of these products is trending in the dairy market. Milk is one of the highly preferred dairy products among people. As milk is a highly perishable item, processed milk allows the preservation of milk for days, weeks, or months and helps to reduce food-borne illness. This serves as one of the important reasons for preferring processed dairy products. In addition, for consumers who are lactose-intolerant, processing allows them the opportunity to still enjoy wholesome real dairy.

In the United States, states such as Alabama, Alaska, and Colorado, among others have passed laws to prohibit consumers from buying unpasteurized milk. In fact, both the Federal Drug Administration and the Centers for Disease Control warn of serious health risks when consuming unpasteurized milk which in turn, is increasing the consumer inclination toward processed dairy products.

The leading reason for processing is food safety. Consumers look forward to this growing trend as processing also allows key nutrients to be added to foods, a practice common among brands such as Dannon, Breyer's and yoplait, which fortify their yogurt products with vitamin D to help to close nutrition gaps.

Asia-Pacific is the Fastest Growing Region

Milk is one of the most consumed dairy products in the Asia-Pacific. According to the OECD-FAO agricultural outlook 2021-2030, the production of milk in India, the world’s largest milk producer, increased by 2.1% to 195 Mt. Hence, the market for pasteurizers and homogenizers has been rising in the Indian dairy processing equipment market.

In China, growth in dairy consumption is expected to remain strong during the forecast period. The International Farm Comparison Network (IFCN) reported that Chinese dairy demand would rise from 43 million tons of liquid milk in 2015 to 61 million tons by 2024, showing a growth of 42%. The governments in Japan and Korea have favorable government policies to support the growth and development of the dairy industries, which in turn boosts the dairy processing equipment growth.

Manufacturers' growing concern to improve product shelf life by pasteurization is projected to drive the dairy processing equipment market share in South Asia. The increasing number of hotels and restaurants, huge population base, rising family income, and expansion of the tourism sector are some of the major factors contributing to the growth of dairy products in the Asia-Pacific.

Competitive Landscape

The Global Dairy Processing Equipment Market is competitive owing to the presence of multiple regional and multinational companies offering a wide range of dairy processing equipment products and trying to maintain their leadership position in the market studied.

The major players in the market include ALFA LAVAL, Coperion GmbH, Feldmeier Equipment, Inc., I.M.A. INDUSTRIA MACCHINE AUTOMATICHE S.P.A, IDMC Limited, JBT., Paul Mueller Company, Scherjon Dairy Equipment Holland B.V., SPX FLOW, Inc, and Tetra Laval International S.A. These players hold a significant share of the market studied and have been embarking on business strategies including product innovations, partnerships, strengthening their hold over online and offline marketing, and mergers & acquisitions to expand their visibility and portfolio of offerings, thus, augmenting the growth of the market.

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• The market estimate (ME) sheet in Excel format
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