While there is ongoing market growth for plant-based alternatives, dairy ingredients are increasing in market demand. Consumer demand for dairy has grown, given the health benefits of various dairy products, specifically yoghurt, which contain probiotics, proteins and more.
Consumers are moving towards maintaining good health and immunity through various diets. This shift is mainly due to the rise in sedentary jobs and stressful lifestyles, which are the major causes of diseases and result in weaker immune systems.
The Business Research Company announced a global market report regarding dairy ingredients. The global dairy ingredients market size grew from USD 64.1 billion in 2022 to USD 68.4 billion in 2023 at a compound annual growth rate of more than six percent. The dairy ingredients market share is expected to grow to USD 89.6 billion in 2027 at a compound annual growth rate of seven percent.
Dairy is a functional product that aligns with growing consumer demand for products that combine practical advantages with a clean label, organic, natural, or wholesome positioning in the food and sports nutrition markets. This demand is coupled with consumer inclinations towards clean-label products. Health concerns regarding additives, artificial flavours, enhancers, colours and preservatives drive away consumer interest, all things not found in clean-label dairy products.
Arla Foods Ingredients, a Denmark-based provider of whey ingredients for infant nutrition, baking, dairy, and other applications, launched a clean-label ambient stirred yoghurt idea, including five all-natural ingredients in response to both needs. To offer unrefrigerated yoghurts a premium status with all-natural components, it uses a 100 percent natural whey protein.
Furthermore, primary dairy ingredients market companies are concentrating on offering animal-free whey protein ingredients to provide sustainable ingredients to customers and strengthen their position in the market, as sustainability has become of increasing consumer concern.
According to the dairy ingredients market analysis, Asia-Pacific was the largest region in the dairy ingredients market in 2022, accounting for 32.3 percent of the total. It was followed by North America and then the other areas. Going forward, Asia Pacific and Western Europe will be the fastest-growing regions in the dairy ingredients market.
New Zealand as a significant player in dairy farming, has the potential to capitalise on growing market opportunities for functional ingredients, like dairy, as consumers continue to propel the health and sustainability snacking and food market forward through developing dietary and environmental awareness.
