Global Dairy Blend Market Size, Segmentation, Trends and Growth Analysis Forecast by 2030

Dairy Blend Market Overview and Analysis:

The Global Dairy Blends Market is currently valued at USD 2.68 billion in the year 2023 and is expected to grow at a CAGR of around 7.6% during the forecast period, 2023-2030.

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Dairy blends are used by industries like food and beverage, nutrition, and infant solutions to prepare dairy protein products. These dairy blends are mainly used as functional ingredients and as a mixture of non-dairy and dairy ingredients. 

The growth of the market would be fueled by the mounting interest of consumers in products that promote overall well-being, i.e., gravitating toward dairy blends owing to their remarkable nutritional benefits over traditional milk products. By combining dairy with other protein sources, these blends provide consumers with a range of essential nutrients. Apart from the essential nutrients, these blends comprise lower fat content, making it highly appealing to health-conscious customers who prioritize the nutritional content of their food choices.

Dairy Blend Market Latest Trends:

The implementation of dairy blends in food experiments is a new trend that is expected to drive the market’s growth. Dairy blends are commonly used in baby food, bakery, and ice creams, as they enrich food items with their emulsifying and condensing properties, making them tasty and presentable. The growing FMCG industry, along with new developments and an increasing number of restaurants, is expected to have a positive impact on the dairy blend market. The increasing number of food processing and confectioneries that consume a large portion of dairy blends is also expected to contribute to the market’s growth. The multi-application of dairy blends, from being used as a baby formula to industrial food use, is expected to drive steady growth during the forecast period.

Segmentation:

The Global Dairy Blends Market Size is Segmented

By Application

• Food, Beverages
• Infant Formula
• Other

Geography

• North America
• Europe
  Asia-Pacific
• South America
• Middle-East
• Africa

The report offers market size and forecast for dairy blends in value (USD million) for all the above segments.

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Drivers:

Increasing Health Consciousness Among Customers and Nutritional Benefits

Dairy products have gained significant popularity among health-conscious customers in recent years. The growing awareness of the importance of a healthy lifestyle has led to an increased demand for nutritious food options. Dairy products, such as milk, cheese, and yogurt, are rich in essential nutrients that contribute to overall well-being. The increasing health consciousness among customers has led to a surge in demand for organic and low-fat dairy products. Many individuals are opting for organic dairy products due to concerns about pesticides and hormones used in conventional farming practices. Low-fat or reduced-fat dairy options are preferred by those aiming to manage their weight or reduce their saturated fat intake. In conclusion, the rising health consciousness among customers has fueled the demand for dairy products. These products offer various nutritional benefits, including high calcium content, protein, vitamins, and minerals. Whether it’s a glass of milk or a serving of yogurt, incorporating dairy into a balanced diet can contribute to overall well-being.

Increasing Internet Penetration and Technological Development In addition, with the increasing Internet penetration, the online market for purchasing food items, including cheese, has seen rapid growth globally in the last three to four years. This category has attracted a few vertical specialists like Amazon, Walmart, Carrefour, etc. They are competing for a significant share of the online cheese market while riding the wave of increasing e-retailing growth. As a result of the rising global demand for processed cheese, the product is being manufactured in more places than ever before.

Furthermore, the new product launches are fueling the growth of the studied market. For instance, in February 2021, Heritage Foods entered the cheese product market by introducing processed and mozzarella cheese. The company claims that the processed cheese and mozzarella cheese offered by Heritage were made of pure cow milk. The newly launched cheese products launched by the company were claimed to contain a naturally occurring cheesy flavor suitable for consumption by people of all age groups.

Restraints:

High Cost of Products and Excess Use of Flavoring Agents and Preservatives

The cost of dairy products is influenced by various factors, including production costs, transportation costs, and market demand. Additionally, the use of flavoring agents and preservatives in dairy products can also contribute to their high cost. Flavoring agents are added to dairy products to enhance their taste and aroma. However, the use of artificial flavoring agents can increase the cost of dairy products. Preservatives are added to dairy products to increase their shelf life and prevent spoilage. However, the use of preservatives can also increase the cost of dairy products. Some preservatives, such as sodium benzoate or potassium sorbate, have been linked to health concerns. Therefore, it is essential to choose dairy products that are free from harmful preservatives. Thus, the high cost of dairy products can slow down the growth of the studied market.

COVID-19 Impact On Dairy Blend Market:

The COVID-19 pandemic impacted various other markets globally and has impacted the dairy blend market. Since dairy was considered an essential commodity, dairy blends have witnessed increased demand as consumers stockpiled for an uncertain future. However, manufacturers faced challenges due to the shortage of milk from farms caused by the unavailability of transport facilities and labor supply disruptions. Despite these challenges, the demand for dairy blends is expected to rise as consumers become more health-conscious and seek out nutritious food options.

Segmental Analysis:

Cheese Segment is Expected to witness Significant Growth Over the Forecast Period

Cheese is a dairy product produced in various flavors, textures, and forms by coagulating milk protein casein. It comprises proteins and fat from milk, usually the milk of cows, buffalo, goats, or sheep. Demand for using processed cheese, such as Cheddar, Parmesan, and Romano, has increased in recent years due to factors such as the enhanced shelf-life of the product, the attractive flavor profile of processed cheese, and the versatility it offers at a much more economical price point than other types of cheese present in the market. Furthermore, the recent development can fuel the growth of the studied segment. For instance, in October 2021, one of the renowned dairy suppliers, Agropur, announced its plans to construct a brand-new, cutting-edge cheese factory in Little Chute for USD 168 million. It was announced that the state of Wisconsin would support Agropur Dairy Cooperative's expansion in Little Chute with up to USD 4.5 million in business tax credits from the Wisconsin Economic Development Corporation.

Thus, due to the above-mentioned reasons the segment is expected to witness significant growth over the forecast period.

North American region is expected to witness Significant Growth Over the Forecast Period

The dairy blends market in North America is projected to grow at a steady growth during the forecast period as the dairy blends are made from butter blends mixed with vegetable oils or treated butterfat that is free from saturated fat. 

They are commonly used in baby food, bakery, and ice creams, as they enrich food items with their emulsifying and condensing properties, making them tasty and presentable. The growing FMCG industry, along with new developments and an increasing number of restaurants, is expected to have a positive impact on the dairy blend market.

Moreover, the recent developments are expected to drive the growth of the studied market in the region. For instance, in January 2023, Cargill completed the acquisition of Owensboro Grain Company, a fifth-generation family-owned soybean processing facility & and refinery located in Owensboro, KY, to enhance its efforts toward increasing capacity across its North American oilseeds network in order to support the growing demand for oilseeds driven by food, feed, & renewable fuel markets.

The increasing number of food processing and confectioneries that consume a large portion of dairy blends is also expected to contribute to the market’s growth. The multi-application of dairy blends, from being used as a baby formula to industrial food use, is expected to drive steady growth during the forecast period.

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Competitive Landscape:

The dairy blend market is highly competitive, with the presence of numerous domestic and global players. The private-label brands have been gaining a competitive advantage in terms of product differentiation and cost-efficient solutions. The market is fragmented, and many players are focused on new product developments and expansion to maintain their market positions. Companies are focused on catering to newer industries and expanding the application of dairy blend ingredients. The market studied is dominated by

• All American Foods
• Batory Foods
• Royal Frieslandcampina NV
• Kerry Group
• Dana Foods Inc.
• Cargill

Recent Developments:

1) In 2022, International Flavors & Fragrances Inc. and Health & Biosciences expanded their YOY MIX ViV product portfolio by adding four new cultures to satisfy the needs of yogurt manufacturers. These new cultures aim to solve the problems of the manufacturers, enabling the formation of high-quality products.

2) In 2021, Arla Foods Ingredients launched Lacprodan premium ALPHA-10, a dry-blend protein ingredient that can be useful for infant formula manufacturers. This blend has whey protein from human milk consisting of essential amino acids.

Frequently Asked Questions (FAQ) :

Q1. What is the current Dairy Blend Market size?

Q2. What is the Growth Rate of the Dairy Blend Market?

Q3. What are the Growth Drivers of the Dairy Blend Market?

Q4. Which Region is expected to hold the highest Market share?