Dairy Blends Market Forecasts to 2028 – Global Analysis By Form (Liquid, Powder, Spreadable/Solid/Substitutes), Flavor (Flavoured, Regular), Distribution Channel (B2B (Wholesalers), B2C), Application (Food, Beverages, Infant Formula, Feed), and By Geograp

Dairy Blends Market Forecasts to 2028 – Global Analysis By Form (Liquid, Powder, Spreadable/Solid/Substitutes), Flavor (Flavoured, Regular), Distribution Channel (B2B (Wholesalers), B2C), Application (Food, Beverages, Infant Formula, Feed), and By Geography

According to Stratistics MRC, the Global Dairy Blends Market is accounted for $3.23 billion in 2021 and is expected to reach $6.38 billion by 2028 growing at a CAGR of 10.2% during the forecast period. Dairy blends are dairy combinations made from squashed cream, butter, or both. It is contrived from butter blends united with vegetable oils or from processed butterfat that is low in saturated fat. Moreover, dairy blends are widely used by fitness and health freak, as they have low fat content as compared to other butter and dairy products, which increases their demand in the global market. These blends are chosen over dairy products because of perks such as low cost, ease of spreadability, and several health benefits. Depending on the taste and preferences of the consumers, dairy blends can be mixed and blended with other components such as salt, vegetable oils, sugar, fragrance, and flavorings. One advantage of the dairy mix is that it is spreadable due to the presence of vegetable oil and can thus be consumed with bread. The use of dairy blends provides an absolute and genuine flavor boost to the products. Consumers gain nutritionally from combining dairy blends with another type of protein.

Market Dynamics:

Driver:

Surge in usage in the hotel & restaurant industry

There has been a significant rise in the use of dairy blend products by the hotel & restaurants, fast food chains, quick serving restaurants, and other food shops due to the low cost of products offered by the dairy processing units. Low-cost dairy blend products help to gain competitive advantage due to reduced cost of the cuisines, which, in turn, increases the profit margin and helps to reduce the expenditure. In addition, the street food stalls have started using butter and cheese blends for most of the food items due to the availability of low-cost dairy blends in the market.

Restraint:

Inefficient usage of buttermilk

The dairy industry's primary by-products are whey and buttermilk. Despite their promise as raw materials for the creation of new products, they are infrequently or never adequately utilized. This leads to buttermilk having very high concentrations of phospholipids as compared to whole milk products. Globally, consumers have become health aware of food consumption and buttermilk is one of the most synthetic forms of a dairy blend. One cup of whole buttermilk contains 640 kJ (152 kcal) and 8.1 grams of total fat. The inefficient use of buttermilk negatively affects the demand for buttermilk products which include buttermilk beverages, and, this in turn is hampering the growth of the dairy blends market during the forecast period.

Opportunity:

Growing urbanization

Growing urbanization and hectic lifestyle as its most important by-product have had a substantial impact on the dairy blends market. A busier lifestyle has made it more difficult for both men and women to cook food at home, truer in the case of working moms who are pressed for time managing both work and baby. Dairy blends have emerged as a preferred substitute to traditional baby foods such as porridge or rice. They reduce the overall time taken to cook and contain necessary nutrients required to promote healthy growth in the baby. These are vital factors encouraging growth provides enormous opportunities to the dairy blends market.

Threat:

Negative impact on the global dairy blends market due to disruptions in supply chain

The COVID-19 outbreak had a negligible negative impact on the dairy blends market because it has affected the normal working of the people adversely. Due to this global epidemic, one has to deal with financial crises along with health issues. This situation has pushed the economies towards forced recession. Owing to the lockdown period and post lockdown period most of the manufacturing units of the dairy blends market were shut down which resulted in a steep downfall of revenues and profit margins. The food and beverage sector and the constant demand for infant solutions added to the stable demand for dairy blends.

The spreadable/solid/substitutes segment is expected to be the largest during the forecast period

The spreadable/solid/substitutes segment is estimated to have a lucrative growth owing to the growth of this product is that it acts as a low-fat alternative to butter and margarine, which makes it healthy for consumption. These spreads are used with cocoa, vanilla, and various other flavors for taste preferences. This form has many applications in industries such as bakery, yogurt, ice cream, cheese & butter blends, infant formula, and feed. They are made using vegetable oils that eliminate the risk of heart diseases. Hence, such products are used as toppings in salad dressings, frozen custards, and ice creams. As a result, this has increased the consumption of ice creams and frozen custard by heart patients.

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

The infant formula segment is anticipated to witness the fastest CAGR growth during the forecast period, due to an augment in the numeral of working women in the corporate world has led to a rise in the consumption of infant formulas as they reduce the preparation time required to cook baby food. The use of dairy blends in infant formula gives flexibility with respect to the usage of dairy ingredients, increases protein, and reduces fat contents. Moreover, the infant formula will be a major segment for dairy blend suppliers for the next few years. The market is dominated by Europe, while North America and the Asia-Pacific show high-growth opportunities, owing to increase in demand for infant formula in the regions. Increasing women workforce reduced the time for cooking baby food, the growing trend in nutritional baby food providing different variants in the market have increased the demand for infant formula, which is directly affecting the demand for dairy blends.

Region with highest share:

Asia Pacific is projected to hold the largest market share during the forecast period, due to growing middle-class population in the region with increase in disposable incomes and the demand for non-conventional food that offers on-the-go consumption. The per capita consumption of dairy blends in the Asia-Pacific region is driven by growing economies such as Australia & New Zealand, China, Japan, and South Korea. A large number of dairy companies have expanded their reach in these countries, which has also driven the market for dairy blends. The majority of the demand for dairy blends was driven by China due to the high birth rate, which increased the demand for baby food and infant formula. Additionally, major global providers of dairy products are situated in Australia and New Zealand.

Region with highest CAGR:

North America is projected to have the highest CAGR over the forecast period owing to increasing consumption of dairy products in this region, change in the consumer’s preference for healthy products with low calories and proper nutrition, and increase in the disposable income of the consumers. North America has the largest service provider of whey protein that captured major health industry of the world. The producers of dairy blends in this region provide their consumers with different options and source for nutritional intakes such as baking mixes, beverages, snacks, and others in this region. The U.S has observed a decent growth in the past few years and is the fourth largest global milk-based product exporter, overall dairy exports were USD 6.03 billion in 2019 which resulted into the increased demand for dairy blends market. As per the USDA Economic Research Service, per capita consumption of cheese, butter, and yogurt in the region reached a record high in 2019 and has continued to grow.

Key players in the market

Some of the key players profiled in the Dairy Blends Market include Cargill, Incorporated, Kerry Group Plc, Döhler Group, Dairy Farmers of America (DFA), Fonterra Co-Operative Group Limited, Advanced Food Products LLC, Dana Foods Inc., Agropur Ingredients, Royal Frieslandcampina N.V., Cape Food Ingredients, Abbott Nutrition, Intermix Australia Pty Ltd., Galloway Company, Inc., ACE International, Hormel Specialty Products, and Batory Foods.

Key Developments:

In November, 2021, Fonterra Co-Operative Group Limited acquired Connecterra’s Ida. The Ida (Intelligent Dairy Assistant) platform from Connecterra integrates data from proprietary collar-mounted sensors with data from internet-connected farm systems, farm equipment, and third-party sources to create an intelligent dairy assistant.

In June, 2021, Cargill announced that along with Continental Grain Company, will purchase Sanderson farms for $203 per share in cash, reflecting a total equity value of $4.53 billion. This will allow the company to improve its customer service in both retail and foodservice, as well as promote organic growth in an industry fueled by affordability and important consumer trends.

In August 2019, Dairy Farmers of America (DFA) launched a product line that combines blends of dairy and vegetable milk. There are five variants: Dairy Plus Original, Dairy Plus Almond Van unsweetened, Dairy Plus Almond Sweetened Vanilla, Dairy Plus Almond Chocolate, Dairy Plus Almond Oat Original. The company aims to expand its current portfolio with this launch.

Forms Covered:
• Liquid
• Powder
• Spreadable/Solid/Substitutes

Types Covered:
• Dairy/Non-Dairy Ingredients
• Dairy as a Carrier
• Dairy Mixture
• Dairy as a Functional Ingredient
• Other Types

Flavors Covered:
• Flavoured
• Regular

Distribution Channels Covered:
• B2B (Wholesalers)
• B2C

Blend Types Covered:
• Whey Protein Concentrate Blends
• Whey Protein Blends
• Skim Milk Blends
• Milk Concentrate Blends

Packaging’s Covered:
• Packet
• High-Density Polyethylene (HDPE) Bottle
• Pouch

Applications Covered:
• Food
• Beverages
• Infant Formula
• Feed

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

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