The market for dairy ingredients is expected to reach USD 95502.25 million by 2028 from an expected value of USD 63281.50 million in 2021, a compound annual growth rate (CAGR) of around 7.1 percent during the forecast period. The report analyzes the dairy ingredient market’s drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the dairy ingredient market.
As the emphasis on health and fitness has increased throughout the world, dairy ingredients have become increasingly popular, and the dairy ingredient market is expected to see high demand over the forecast period as well. The market potential for dairy ingredient will increase with increased investments in reinforcing the industrial infrastructure required to meet the high needs of the increasing population.
Other factors that influence the dairy ingredient market growth potential through 2028 are rising consumption due to population increase, rising demand for protein-based foods, rising consumption of protein supplements, and high utilization in several food industries.
Global dairy ingredient market
However, the world has seen a rise in the popularity of veganism and this is expected to have a negative impact on the dairy ingredient market growth through 2028. Increasing demand for alternative products has resulted in high availability of other plant based products which are in turn driving a negative sales trend for the dairy ingredient. Dairy ingredient companies are focusing on diversifying their offerings in order to keep up with the trend and avoid losses in the long run.
Multiple restrictions were put in place across the world and these resulted in multiple markets toppling and incurring losses. Dairy ingredient market growth was also negatively impacted in this pandemic owing to restricted manufacturing activity, disrupted supply chains, drop in sales etc. The global dairy Ingredient market experienced a major slump in 2020 owing to adverse market conditions due to lockdown restrictions across multiple countries.
However, as lockdown restrictions are lifted the dairy ingredient market is expected to make a steady recovery through 2028. The dairy ingredient market is expected to make a steady recovery in the post-pandemic era and see an increase in demand by the end of the forecast period as consumption of dairy products increases.
The global dairy ingredient market is segregated based on type, source, application, and region. Based on application, the global market is distinguished into pediatric, sports nutrition, medical nutrition, functional food, bakery, confectionery, dairy, animal feed, and others. The global dairy ingredient market will be led by bakery and confectionery segments over the forecast period and these segments will account for a major revenue share through 2028.