The global dairy ingredients market is projected to grow to $122.2 billion by 2030, from $81.3 billion in 2023, driven by increasing demand for processed foods and advancements in processing technologies. The growth reflects rising global consumption, particularly in Asia and Africa, and ongoing innovation in dairy ingredient functionalities.
The global dairy ingredients market is set to experience substantial growth, reaching an estimated value of $122.2 billion by 2030, up from $81.3 billion in 2023. This represents a compound annual growth rate (CAGR) of 6.0%, as highlighted in the latest “Dairy Ingredients – Global Strategic Business Report” from ResearchAndMarkets.com, released on August 26, 2024.
ResearchAndMarkets.com, a leading provider of market research reports, has identified several factors driving this impressive growth. The dairy ingredients sector is navigating challenges such as supply chain volatility, quality control issues, and complex regulatory landscapes. Seasonal variations, economic fluctuations, and environmental impacts pose risks to milk supply and ingredient availability, affecting production costs and consistency.
Technological advancements are playing a crucial role in driving innovation within the sector. New processing technologies, including advanced filtration and drying methods, are reducing environmental impact by minimizing energy consumption and waste. The increasing demand for healthier, more sustainable products has led to the development of dairy ingredients with enhanced functionalities, such as improved solubility and emulsification properties.
Market growth is further supported by rising global demand for processed foods, dietary supplements, and protein-rich diets. The expanding middle class in Asia and Africa is boosting the consumption of dairy-enriched products, which in turn drives the demand for dairy ingredients. The trend toward clean and transparent labeling is also encouraging the use of natural dairy ingredients over synthetic alternatives.
Key segments of the market include Milk Ingredients and Whey Ingredients. The Milk Ingredients segment is anticipated to grow significantly, reaching $92.9 billion by 2030 with a CAGR of 6.5%. Whey Ingredients are expected to grow as well, though at a slightly lower CAGR of 4.6%.
Regionally, the U.S. market, valued at $21.4 billion in 2023, remains a major player. However, China is projected to lead with a remarkable 9.0% CAGR, reaching $28.3 billion by 2030. Other regions, including Japan, Canada, Germany, and the broader Asia-Pacific area, are also expected to show strong growth, reflecting the global expansion of the dairy ingredients market.
This report underscores the dynamic nature of the dairy ingredients industry and highlights the significant opportunities and challenges facing the sector as it continues to evolve and expand globally.
