Anhydrous Milk Fat Market Forecasts to 2030 – Global Analysis By Source (Dairy and Non-Dairy), Distribution Channel, Application and By Geography

Anhydrous Milk Fat Market Forecasts to 2030 – Global Analysis By Source (Dairy and Non-Dairy), Distribution Channel, Application and By Geography

According to Stratistics MRC, the Global Anhydrous Milk Fat Market is accounted for $2.8 billion in 2024 and is expected to reach $4.5 billion by 2030 growing at a CAGR of 8.3% during the forecast period. Anhydrous Milk Fat (AMF) is a concentrated dairy product driven from high-quality cream or butter by removing nearly all water and non-fat solids. It contains a minimum of 99.8% milk fat, making it a pure and versatile ingredient used across various food industries. Anhydrous milk fat is valued for its rich, creamy flavour and functional properties, such as enhancing texture, stability, and shelf life in products like chocolates, baked goods, and ice creams. It is often used in recipes where precise fat content is critical its extended shelf life and easy handling offer convenience to manufacturers and food processors worldwide.

Market Dynamics:

Driver:

Increasing demand for premium dairy products

Consumers are increasingly concerned about the quality and origin of ingredients in food products, leading to a steady demand for premium dairy products like cheeses, creams, and gourmet butter. A growing segment of health-conscious and affluent consumers is actively seeking premium products with natural ingredients, enhancing the appeal of anhydrous milk fat as a minimally processed and natural fat source driving the market growth.

Restraint:

Health concerns related to saturated fats

The rise in awareness about the negative effects of high saturated fat intake on health has led to a decrease in the consumption of products with high-fat content, including those made with animal-based fats (AMF). Consumers now prefer plant-based or low-fat alternatives, reducing anhydrous milk fat market share in certain segments. This shift creates challenges for anhydrous milk fat producers in positioning their products as healthier choices.

Opportunity:

Expanding bakery and confectionery industries

Anhydrous milk fat, a key ingredient in bakery and confectionery products, is gaining popularity due to its superior taste, aroma, and texture. As the industries expand, demand for high-quality ingredients like anhydrous milk fat increases. Manufacturers incorporate anhydrous milk fat to meet consumer expectations for premium, artisanal, and indulgent baked goods. AMF's excellent shortening properties improve flakiness, softness, and moisture retention in baked goods, making them more appealing to quality conscious consumers and boosting the market.

Threat:

Competition from plant-based alternatives

The rise of plant-based alternatives in the fat market has intensified competition, making it challenging for anhydrous milk fat to maintain its market position. These alternatives are sophisticated and appealing, attracting consumers who previously preferred dairy fats. Additionally, plant-based alternatives often come at a lower price point, potentially swaying cost-conscious consumers towards non-dairy options and further eroding anhydrous milk fat market share.

Covid-19 Impact

The COVID-19 pandemic significantly impacted the Anhydrous Milk Fat (AMF) market by disrupting global supply chains, causing production delays, and leading to shortages. Lockdowns and restrictions reduced consumer spending and demand in food service industries, affecting AMF usage. Supply chain challenges and logistical issues led to higher costs for manufacturers, impacting profitability. Recovery has been gradual, with a shift toward e-commerce and a rebound in demand as economies reopened.

The dairy segment is expected to be the largest during the forecast period

Over the forecasted timeframe, the dairy segment is anticipated to dominate the market share because anhydrous milk fat is an essential ingredient in dairy-based products like cheese, butter, and ice cream. Product innovation, such as new butter types or specialty dairy spreads, enhances AMF's texture, flavour, and shelf-life. Health and dietary trends, such as concerns about saturated fats and cholesterol, also affect the AMF market, as consumers opt for reduced-fat or plant-based alternatives.

The infant formulas segment is expected to have the highest CAGR during the forecast period

The infant formulas segment is expected to register lucrative growth during the estimation period due to undergoing new product development, focusing on improving nutritional value with probiotics and DHA. AMF, a natural ingredient, is used in these advanced products. With rising health and wellness awareness, there is a preference for organic and premium formulas, driven by anhydrous milk fats high-quality, grass-fed dairy.

Region with largest share:

Over the forecast period, the North America region is anticipated to hold the largest market share owing to the United States and Canada that are major dairy producers, contributing significantly to global milk production. Technological innovations and improved management practices have enhanced milk yield and quality; this advanced dairy processing infrastructure enables efficient production of AMF, meeting domestic and international demands.

Region with highest CAGR:

Asia Pacific is expected to hold the highest CAGR over the forecast period due to surge in disposable income, particularly in emerging economies like China and India, leading to a preference for higher-quality food products, including those containing AMF. Urbanization and lifestyle changes are also driving demand for convenient, processed food items, such as bakery products and dairy-based snacks. Additionally, rising health awareness and preference for premium dairy products are driving this trend.

Key players in the market

Some of the key players in Anhydrous Milk Fat market include Gloria Argentina SA, Vitusa Corp, Eurial Ingredients & Nutrition , Royal FrieslandCampina N.V., Asha Ram & Sons Pvt. Ltd., Polmlek Group, Interfood Holding BV, Lactalis Group, Royal VIVBuisman, UGA Group, Saputo Dairy Australia Pty Ltd., LACTALIS Ingredients, Synlait Milk Limited, Friesland Campina, Westland Milk Products and Meadow Foods.

Key Developments:

In May 2024, Virtusa Corporation announced the launch of Virtusa Helio, a new suite of platforms, accelerators, and consulting services that empowers organizations to leverage genAI effectively in their digital transformation initiatives.

In May 2024, FrieslandCampina, Agrifirm, Agravis and Alzchem have launched a one-year pilot with the manure additive Eminex, aimed at reducing methane emissions when storing manure. Ten member dairy farmers of FrieslandCampina in the Netherlands and Germany are taking part in the pilot.

Sources Covered:
• Dairy
• Non-Dairy

Distribution Channels Covered:
• Supermarkets/Hypermarkets
• Specialty Stores
• Online Channels
• Direct Sales
• Other Distribution Channels

Applications Covered:
• Bakery & Confectionery
• Dairy Products
• Savory Products
• Infant Formulas
• Other Applications

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements