Dairy Blends Market - Global Market Share, Trends, Analysis and Forecast, 2023-2032

The global dairy blends market was estimated to be US$ 4.47 Billion in 2022 and is expected grow at a CAGR of 7.9% between 2023 to 2032.

Dairy blends are products made by combining dairy ingredients, such as milk fat and/or milk solids, with other ingredients such as vegetable oils or proteins, to create a customized ingredient with specific functional or nutritional properties for use in food production. They are often used as an alternative to 100% dairy ingredients in food manufacturing due to their lower cost and improved functionality.

Dairy Blends Market Drivers

Increasing demand for dairy alternatives is boosting the market growth

The global dairy blends market is being driven by several factors. Firstly, the expansion of the food and beverage industry has resulted in a growing demand for dairy blends as an essential ingredient in various food products, such as ice cream, cheese, and bakery goods.

Secondly, dairy blends are cost-effective and easy to transport, making them an attractive alternative to whole milk or other dairy products. This has resulted in a growing trend of using dairy blends in processed food products.

Thirdly, the trend of veganism and lactose-free diets has led to an increasing demand for dairy alternatives, creating significant opportunities for the dairy blends market. Finally, the busy lifestyles of modern consumers have resulted in a rise in demand for convenience and processed foods. Dairy blends are used as an ingredient in many processed food products, such as ready-to-eat meals and snacks, making them an essential component of the food industry.

Overall, the dairy blends market is expected to continue growing due to these factors, with various food manufacturers increasing their production capacity to meet the demand. The future of the dairy blends market is expected to be characterized by the development of new blends that cater to the changing consumer preferences and the advancement of technology in dairy blends production.

Product form segmentation of Global Dairy Blends Market

Powder segment is widely used in the production of processed foods

On the basis of form of the product, the market is segmented into Spreadable, Powder, and Liquid.

Among these, the powder form is the largest segment as it has several advantages over the other forms of the product. Powdered dairy blends have a longer shelf-life, are easier to transport and store, and are more cost-effective compared to liquid or spreadable blends.

The powder segment is widely used in the production of processed foods, such as baked goods, ready-to-eat meals, and snacks. The demand for powdered dairy blends is also driven by the increasing demand for convenience and processed foods.

The spreadable segment is the fastest-growing segment in the dairy blends market due to the rising demand for spreads and toppings. Spreadable dairy blends are used in the production of various spreads such as margarine, cheese spread, and peanut butter, among others.

The demand for spreadable blends is driven by the increasing demand for convenience foods, such as ready-to-eat snacks and sandwich spreads. Spreadable blends also offer convenience, as they are easy to spread on bread, crackers, and other foods.

Overall, both the powder and spreadable segments are expected to continue growing, driven by the increasing demand for convenience and processed foods, as well as the growing trend of veganism and lactose-free diets. The dairy blends market is expected to be driven by innovation, with new blends being developed to meet the changing consumer preferences.

Application segmentation of Global Dairy Blends Market

Bakery products segment holds the largest market share

On the basis of application, the market is segmented into Ice cream, Infant formula, Bakery products, and other applications.

Among these, the bakery products segment accounts for the largest share in the dairy blends market because of the extensive use of dairy blends in various baked goods, such as cakes, biscuits, and bread.

Dairy blends are used in baking to improve the texture, taste, and mouthfeel of the products, making them more appealing to consumers. The use of dairy blends in bakery products also allows manufacturers to produce baked goods that have a longer shelf life, are more cost-effective, and easier to transport.

The infant formula segment is expected to witness the fastest growth in the dairy blends market because of the growing demand for infant formula products, particularly in emerging economies. The use of dairy blends in infant formula is driven by their nutritional value, as they provide the essential nutrients that infants require for healthy growth and development. Dairy blends are also used in infant formula to improve the taste and texture of the product, making them more palatable for young children.

In addition to this, increasing awareness about the health benefits of breastfeeding has led to a rise in demand for alternative sources of nutrition for infants, such as infant formula. The rise in disposable income levels and urbanization have also led to changing lifestyles, resulting in an increased demand for convenient and ready-to-use infant formula products.

Overall, the infant formula segment is expected to continue growing due to these factors, making it an attractive opportunity for manufacturers in the dairy blends market.

Regional trends of the Global Dairy Blends Market

United States is the largest market for dairy blends in North America

Geographically, the global dairy blends market is segmented into North America, Europe, Asia-Pacific, Middle East and Africa, and South America.

Following are some of the major trends in these regions –

North America is the largest market for dairy blends due to the high consumption of processed and convenience food products in the region. The increasing demand for dairy alternatives, coupled with the growing trend of veganism and lactose-free diets, is driving the growth of the dairy blends market in North America.

In addition, there is a growing demand for natural and organic dairy blends, particularly in the United States, which is driving the development of new blends that cater to this demand. The United States is the largest market for dairy blends in North America, followed by Canada.

Europe is another significant market for dairy blends, with a growing demand for processed and convenience food products in the region. The trend towards healthier and natural food products is also driving the growth of the dairy blends market in Europe, with a rising demand for organic and natural dairy blends.

The demand for customized blends that cater to specific consumer preferences is also driving the growth of the dairy blends market in Europe. The United Kingdom, Germany, and France are the largest markets for dairy blends in Europe.

The Asia-Pacific region is a significant market for dairy blends due to the growing demand for convenience and processed food products in the region. The increasing urbanization and rising disposable income of consumers in the region are driving the growth of the dairy blends market in Asia-Pacific.

In addition, the trend towards healthier and natural food products is also driving the growth of the dairy blends market in the region, with a growing demand for lactose-free and low-fat dairy blends. China, India, and Japan are the largest markets for dairy blends in the Asia-Pacific region.

The Middle East and Africa region is a growing market for dairy blends, driven by the increasing demand for convenience food products in the region. The growing trend of urbanization and changing consumer preferences are driving the growth of the dairy blends market in the Middle East and Africa.

The demand for customized blends that cater to specific consumer preferences is also driving the growth of the dairy blends market in the region. The United Arab Emirates, Saudi Arabia, and South Africa are the largest markets for dairy blends in the Middle East and Africa.

South America is a developing market for dairy blends, driven by the increasing demand for processed and convenience food products in the region. The growing trend of urbanization and changing consumer preferences are driving the growth of the dairy blends market in South America.

The demand for customized blends that cater to specific consumer preferences is also driving the growth of the dairy blends market in the region. Brazil, Argentina, and Colombia are the largest markets for dairy blends in South America.

Key players and market strategies:

Companies operating in the global dairy blends market are adopting various growth strategies to expand their market share and increase their customer base. One of the key growth strategies adopted by these companies is mergers and acquisitions. Companies are acquiring smaller players in the market to expand their product portfolio and increase their global presence.

For instance, in 2020, Glanbia PLC acquired Watson, Inc. to strengthen its position in the market and expand its range of ingredient solutions. In 2019, Agropur Cooperative acquired the assets of Scotsburn Co-Operative Services Ltd. to expand its presence in the Canadian dairy industry.

Another growth strategy adopted by companies is product innovation and development. Companies are investing in research and development to create new blends that cater to specific consumer preferences, such as lactose-free, low-fat, and organic dairy blends.

For instance, in 2021, Cargill announced the launch of a new organic dairy blend that can be used as an alternative to traditional dairy products in various food applications. Similarly, FrieslandCampina launched a new range of dairy blends that contain reduced sugar and fat content to cater to the growing demand for healthy and natural food products.

Some of the biggest companies operating in the global dairy blends market are Abbott Nutrition, Agropur, Cape Food Ingredients, Cargill Inc., Dohler Group, Fonterra, Intermix Australia Pty Ltd., Johnson & Johnson, Kerry, Royal FrieslandCampina N.V., and many more.

Global Dairy Blends Market Segmentation:

By Product Form

• Spreadable
• Powder
• Liquid

By Application

• Ice cream
• Infant formula
• Bakery products
• Other

By Region

• North America
  • United States
  • Canada
  • Rest of North America
• Europe
  • Germany
  • United Kingdom
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  
  • Japan
  • India
  • China
  • Australia
  • South Korea
  • Rest of Asia Pacific
• Middle East & Africa
  •  UAE
  • Saudi Arabia
  • South Africa
  • Rest of the Middle East & Africa
• South America
  • Brazil
  • Rest of South America