Upcoming Growth Trends in the Dairy Ingredients Market

The dairy ingredients market is projected to reach USD 89.9 billion by 2026, at a CAGR of 7.2% from 2021. The growing demand for whey protein isolate from emerging economies such as India and China is propelling dairy ingredients market growth. Use of dairy ingredients as a raw material in food and beverages, sport, and pharmaceutical industries to drive its market growth.

The key players in this market include FrieslandCampina (Netherlands), Arla Foods (Denmark), Fonterra Co-operative Group (New Zealand), Kerry Group (Ireland), and Glanbia (Ireland). New product launches, expansions & investments, joint ventures, agreements, and partnerships were some of the core strengths of the leading players in the dairy ingredients market.

Frieslandcampina (Netherlands) provides consumer products such as cheese, milk, desserts, yogurt, and infant nutrition for commercial market. Plus, the company is the leading supplier of dairy ingredients, semi-finished products, butter, and cream for manufacturers of infant nutrition and food industry. In December 2018, the company acquired US-based Best Cheese Corporation to expand its footprint in the US market. Best Cheese Corporation is an importer and supplier of specialized cheeses in the US. This acquisition to support Frieslandcampina to solidify its position in the dairy ingredients market. Furthermore, in May 2022, in order to expand in southeast Europe, Frieslandcampina opened up new pressed cheese manufacturing line in its Napolact unit Romania followed by USD 3 million investment.

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Arla Foods (Denmark) is one of the major players in the dairy ingredients market. It is one of the oldest dairy co-operatives. The company is engaged in activities that support sustainable dairy production through its five-year strategy named as Future26; launched in the year 2021. The company is primarily aimed on introducing new products. In 2019 Arla Foods Ingredients developed two maternal supplementation concepts. The Smart Mama bar and Smart Mama drink prototypes that were introduced to support children’s cognitive growth and lactation during pregnancy. These contain the ingredient Lacprodan MFGM-10 – a whey protein concentrate. Apart from this, in May 2022, Arla Foods constructed new manufacturing plant at Pronsfeld dairy, Germany in order to meet global demand for affordable dairy nutrition. As part of this expansion, Arla Foods has invested EUR 190 million. Such strategic moves could help the company to become one of the significant players in the global dairy ingredients market.

Fonterra Co-operative Group (New Zealand) is one of the foremost participants in the dairy ingredients market. The company’s portfolio includes some of the well-known dairy brands such as Anmum, Anlene, NZMP, Anchor, and Farm Source. Out of these brands NZMP is dealing in the dairy ingredients market. To cater larger group of customers, in May 2022, Fonterra launched online dairy platform named as myNZMP. This new platform to make simpler for ingredients customers who are willing to purchase Fonterra’s wide range of products from milk powder to specialty dairy proteins. Moreover, in January 2021, the company’s NZMP brand had launched milk phospholipids specifically for US active lifestyle market. With this new launch the company has entered into mental wellbeing space and solidified its position in the global dairy ingredients market.

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Kerry Group (Ireland) is a world leader in food ingredients and flavors serving the food and beverage industry, it is also a leading supplier added value brands and customers branded foods to the Irish and UK markets. In May 2022, Kerry, has started 6 million euros dairy sustainability program that will promote the acceleration of best practices and science-backed sustainability activities across Irish farms. The newly launched program to provide technical and financial support to the company’s milk suppliers that eventually help them transition to more sustainable farming practices. Around 3,000 farm families in the southwest of Ireland to be benefitted through this programme.

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