Dairy ingredients to grow by 2025
The global dairy ingredients market is estimated to be valued at US$53.8 billion (€49.4bn) in 2019 and is projected to reach US$81.4 billion by 2025, recording a CAGR of 7.1%, according to a report from Research and Markets.
The milk powder segment is projected to be the largest segment in the dairy ingredients market during the forecast period. An increase in the shift toward a healthy lifestyle has altered the food consumption habits among consumers. As a result, the demand for snacks and beverages options, which are indulging as well as nutritional, has been on the rise. Milk powder is used to provide texture, colour and flavour to food products. Milk powder provides enriched taste and texture to food products. It is used to provide mouthfeel texture to food without being high in fat content.
The bakery and confectionery segment is the dominant one regarding applications of dairy ingredient. Consumers are indulging in more healthy snacking habits now, which has also increased the demand for functional and fortified ingredients. Milk powder and whey concentrate find various applications in the bakery segment. They are used to provide texture and colour to products. They are also used as browning agents for bread. They are used for increasing the richness of the bread and other related products. As a result of their low fat content, they are popular among manufacturers.
Currently, the Asia Pacific region is the dominating market for dairy ingredients; it is estimated to be the fastest-growing market in the coming years, as well. The high population and increase in the purchasing capacity have enabled consumers to demand functional and fortified food products. The low mortality rate and improved living standards have also enabled them to invest in health and health-related services more than before. This has increased the market for all kinds of nutritional and ready-to-eat food options.