Demand for dairy nutritional and nutraceutical products has grown significantly in recent years. Higher consumption of dairy protein is forcing dairy food processing companies to increase their production volume. Milk is the major ingredient in all dairy nutritional products. The global production volume of milk is increasing perennially owing to the ever expanding application base of the product. Global sales of dairy nutritional and nutraceutical ingredients was valued at US$ xx Bn in 2018 and is projected to be valued at US$ XX Bn by 2025. Sales revenue is expected to register a CAGR of XX% during the forecast period (2018–2025).
Dairy farms owners are adopting advanced dairy farm management systems and deploying latest milking equipment. For instance, introduction of advanced robotic milking technology or automatic milking system that can assist in both herd management and milk production are fulfilling the requirements of lactating dairy. These latest technologies are expected to enhance the essential farm components and farm management systems. Few popular milk-based confectionary items include yogurt and cheese, ice cream, dietetic formulations, desserts, energy bars, infant formulae toppings, baked goods, low-fat spreads, sports beverages, and geriatric nutritional products.
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The market for dairy nutritional and nutraceutical ingredients is majorly driven by factors such as increasing awareness on benefits of dairy nutritional ingredients, easy availability of caseinate and caseins and growing demand for milk-based hair and skin care cosmetics. In addition, the steady rise in demand for dairy nutraceutical ingredients from the food processing sector is further expected to influence the overall market growth. Health benefits of consuming such nutritional products may include lower risk of cholesterol, cardiovascular disease, healthy bone growth and improved digestive health.
Some of the key players identified in the global dairy nutritional and nutraceutical ingredients market include Fonterra Co-operative Group Ltd., Koninklijke DSM N.V., Proliant Inc., Arla Foods amba, E.I. DuPont De Nemours and Co., Cargill Inc., APS Biogroup, Groupe Lactalis S.A., Nestlé SA, and Danone SA.
The Growing Consumer Expectation
Dairy food manufacturers are incessantly increasing the use of ingredients such as dairy protein, prebiotics, colostrum, and nucleotides in their products in order to meet consumer expectation. Modern day consumers are highly conscious about maintaining a fit and healthy body and demand pleasant yet healthy products. Thus companies focus on offering healthier indulgent food and beverages. Innovative ingredients that add both taste and texture in food items are witnessing a healthy amount of success and are being appreciated by consumers. Adding nutritional ingredients such as dairy protein to infant formula, clinical nutrition and functional food greatly improve their food value.
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Most dairy food processing companies are emphasizing on offering higher food value to consumers. Thus, structurally modifying functional properties of the ingredients. The companies are employing qualified management staff for further developing and enhancing their products. The ever-increasing quality requirement is resulting in further development of solutions tailored to meet specific customer request accordingly. For instance, Epi Ingredients a leading dairy ingredient producing company based in Europe has recently showcased its latest EPILAC powders at Health Ingredients (Hi) Europe 2016. The powder is available in all-natural premium fermented flavors (fermented milk powder, yoghurt powder and quark powder).
In 2018, the global sales of dairy nutritional and nutraceutical ingredients surpassed US$ XX Billion and is anticipated to reach US$ XX Billion by the end of 2025. The market for dairy nutritional and nutraceutical ingredients is relatively larger in North America than other regions. Growing preference for dairy protein ingredients in clinical nutrition, functional food, bakery & confectionaries, infant formula, personal care and dairy products preparation is well supporting the market growth in North America. In addition, the presence of major dairy protein manufacturers in North America is further expected to benefit the market in the region.