The global anhydrous milk fat market is projected to grow from USD 2.8 billion in 2024 to USD 5.2 billion by 2034, driven by rising demand for shelf-stable dairy products, particularly in the baby food segment.
The anhydrous milk fat (AMF) market is projected to grow significantly, reaching an estimated USD 2.8 billion by 2024 and further climbing to USD 5.2 billion by 2034. This growth corresponds to a compound annual growth rate (CAGR) of 6.3%, largely driven by rising demand for shelf-stable dairy products, particularly in the baby food segment.
As consumer attitudes towards dietary fats evolve, the market for high-quality milk fats is expanding, especially in full-cream dairy products and daily beverages where taste and texture play critical roles in consumer choice. Producers are increasingly transitioning from sourcing premium milk to industrially producing high-quality milk fats to satisfy global demand.
E-commerce is also transforming the AMF market, with companies leveraging online platforms to reach a broader customer base while enhancing their presence in specialty stores, bakeries, and confectionery shops. Leading dairy companies such as Dairy Farmers of America and Fonterra are making substantial investments to upgrade their production capabilities to meet the rising demand for AMF. Regional producers are gaining ground by customizing products to align with local tastes and dietary needs.
The future of the anhydrous milk fat market appears bright, especially as plant-based diets gain popularity. Manufacturers are focusing on improving the nutritional value of their offerings, aiming for higher levels of vitamins and calcium to meet consumer expectations.
Key players in the industry are adopting measures to secure their supply chains by sourcing raw materials from exclusive dairy farms, thereby reducing costs and dependence on outside suppliers.
Key Industry Trends:
- Growing demand for shelf-stable dairy products in the baby food market.
- Increased focus on online sales and specialty retail channels.
- Major dairy players like Fonterra and Dairy Farmers of America enhancing production capabilities.
- Emphasis on improving nutritional content and catering to diverse cultural preferences.
As the anhydrous milk fat market evolves, industry stakeholders are well-positioned to leverage changing consumer trends and preferences in the global dairy sector.
