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The global functional milk market was valued at USD 27.00 billion in 2023 and is expected to grow at a CAGR of 7.53% from 2023-2029. Speak directly to the analyst to clarify any post sales queries you may have.
MARKET TRENDS & DRIVERS
Introduction of Clean Label Products in Functional Milk
The growing consumer preference for clean-label products has significantly increased the demand for functional milk. Clean-label products are characterized by simple and easily understandable ingredient lists, free from artificial additives and preservatives. As consumers become more health-conscious and seek transparency in their food choices, they are turning towards functional milk that provides essential nutrients and aligns with their clean eating preferences. Furthermore, functional milk, improved with vitamins, minerals, and other bioactive compounds, caters to consumers' health and wellness needs. These products often boast improved digestion, enhanced immune support, and better nutritional profiles. These functional milk products' clear and straightforward labeling resonates with consumers looking for wholesome, minimally processed options. For instance, Dairy Farmers of America focuses on developing clean label solutions such as no artificial color, no artificial flavor, and more, which increases the consumer base and demand for the products in the market.Vendors Focus on Product Innovation
Product innovation is pivotal in shaping the functional milk market dynamics, significantly impacting consumer preferences and industry competition. The introduction of novel ingredients, formulations, and technologies has the potential to revolutionize the way consumers perceive and engage with functional milk products. Innovations such as fortification with vitamins, minerals, probiotics, or other health-enhancing components can address evolving consumer demands for wellness and nutritional benefits. These advancements cater to health-conscious consumers and provide opportunities for market differentiation among competitors. Moreover, product innovation can stimulate consumer interest, drive market growth, and establish a brand's reputation as an industry leader. As the functional milk market evolves, businesses that embrace and implement innovative strategies will likely gain a competitive edge, fostering sustainability and growth in an increasingly dynamic market landscape.SEGMENTATION INSIGHTS
INSIGHTS BY FORM
The powder form segment dominated the global functional milk market in 2023 and is projected to continue the trend during the forecast period. This notable growth can be attributed to various factors. First, the appeal of powder lies in its extended shelf life, addressing concerns related to product longevity. In addition, the powdered form facilitates convenient transportation, making it an attractive option for both manufacturers and consumers. Moreover, the cost-effectiveness of powder production further contributed to its increased demand in the functional milk market. These factors fueled the demand for functional milk in powder form, highlighting its versatility and economic advantages in the evolving market landscape.Segmentation by Form
- Powder
- Liquid
INSIGHTS BY APPLICATIONS
The global functional milk market by applications is segmented into immunity & disease management, weight management, and clinical nutrition. In 2023, immunity & disease management had the highest share in the application segment. This surge in demand can be attributed to the increasing prevalence of various health concerns, including heart disease, osteoporosis, autoimmune diseases, and other related conditions. As individuals become more conscious about their health, the emphasis on bolstering immunity and effectively managing diseases has become paramount. This trend reflects a broader societal shift towards proactive healthcare measures, driving innovation and investments in technologies and solutions that cater to immunity enhancement and disease management. Furthermore, weight management exhibits a remarkable compound annual growth rate during the forecast period. This surge is attributed to the rising demand for functional milk, fueled by concerns related to obesity, cardiovascular diseases, and other health factors. The increasing emphasis on weight management reflects a growing awareness of health issues, driving the demand for functional milk products that contribute to overall well-being.Segmentation by Applications
- Immunity & Disease Management
- Weight Management
- Clinical Nutrition
- Others
INSIGHTS BY AGE
The 14-19 age segment accounted for the highest revenue share of the global functional milk market in 2023. With the demand for functional milk growing among the age group of 15-19 in the US, it is crucial to emphasize the potential health benefits associated with its consumption. The statistics on cancer diagnoses and deaths in this age range, marketing functional milk as a source of nutrients that may contribute to overall well-being and potentially aid in disease prevention could be effective. Highlighting ingredients known for their health properties, such as vitamins, minerals, and antioxidants, can be a key strategy. In addition, engaging in educational campaigns through various channels, including social media, to raise awareness about the importance of maintaining a healthy lifestyle, including dietary choices, may further boost the demand for functional milk among this demographic.Segmentation by Age
- 14-19
- 20-64
- 1-13
- 64 & Above
INSIGHTS BY DISTRIBUTION CHANNEL
The global functional milk market by distribution channel is segmented into hypermarkets, convenience stores, online grocery stores, specialty stores, and institutional sales. In 2023, the hypermarket distribution channel emerged as the dominant segment, capturing the highest market share of over 19%. Hypermarkets strategically employed various marketing techniques, such as discount offers, innovative bundling offers, and engaging in-store demonstrations, to highlight the numerous benefits of functional milk. These initiatives attracted health-conscious consumers and elevated the overall shopping experience. The hypermarket's effective communication of the advantages of functional milk through these promotional strategies played a pivotal role in securing its leading position in the market. Furthermore, convenience stores hold a significant position in the industry, and their success can be attributed to their ability to offer a convenient solution for swift, on-the-go purchases. Convenience stores strategically cater to a target demographic characterized by busy lifestyles, positioning themselves as an accessible and time-efficient choice for consumers.Segmentation by Distribution Channel
- Hypermarkets
- Convenience Stores
- Online
- Grocery Stores
- Specialty Stores
- Institutional Sales
GEOGRAPHICAL ANALYSIS
APAC dominated the global functional milk market share, accounting for over 31% in 2023. In APAC, demand for functional milk has experienced robust growth, driven by factors such as awareness, consumer willingness to pay more, and a heightened focus on preventive healthcare. Furthermore, the rising prevalence of chronic diseases in the APAC has heightened health consciousness, leading consumers to seek functional milk products with potential health benefits. The increasing aging population in China, Japan, and other countries in the APAC is likely to boost the demand for functional milk, driven by a growing focus on health and nutrition among older adults. The rising overweight and obesity in children and adults in the APAC is fueling an increasing demand for functional milk products as consumers seek healthier alternatives to address dietary and nutritional needs.Segmentation by Geography
- APAC
- China
- Japan
- South Korea
- Australia
- India
- Thailand
- Indonesia
- Philippines
- Malaysia
- Vietnam
- North America
- US
- Canada
- Europe
- Germany
- France
- UK
- Spain
- Italy
- Russia
- Latin America
- Brazil
- Mexico
- Argentina
- Middle East & Africa
- Turkey
- Saudi Africa
- Saudi Arabia
VENDOR LANDSCAPE
The global functional milk market is characterized by a high level of fragmentation, with several major international and regional players competing for industry share alongside smaller local companies. Despite this fragmentation, a few key players, including Nestlé, Danone, Abbott, and Lactalis International, wield significant influence, holding substantial functional milk market shares. Complementing these dominant players are numerous regional and smaller companies that contribute to the overall diversity of the industry.Key Developments in the Functional Milk Market
- In 2022, ABBOTT spent on research and development around USD 2,888 million to increase its consumer base and generate more revenue in the industry.
- By 2025, DANONE will launch ≥85% vol Kids dairy fortified with relevant vitamins & minerals.
- In 2022, NESTLÉ introduced an infant formula with HMO, which helps increase brain myelination, support gut health, and strengthen immunity.
Key Company Profiles
- ABBOTT
- Danone
- Lactalis International
- Nestlé
Other Prominent Vendors
- Aroma Milk Products
- Arla Foods amba
- Best Way Ingredients
- Best Health Foods
- Bright LifeCare
- CAPSA
- Crediton Dairy
- Dairy Farmers of America
- Ehrmann
- Fonterra
- Glanbia
- GCMMF
- Heritage Foods
- INGREDIA
- Land O’ Lakes
- Lycotec
- MEGMILK SNOW BRAND
- Milligans Food Group
- Mother Dairy Fruit & Vegetable
- Parag Milk Foods
- SADAFCO
- SLEEPWELL
- Stolle Milk Biologics
- Synlait
- Tirlán
- Tesco
- Vindija d.d.
- Valfoo
- Vinamilk
- F&N Dairies
- FrieslandCampina
- Organic Valley
- Clover Sonoma
- Darigold
- Fairlife
- McNeil Nutritionals
- Agropur
- Gay Lea Foods Co-operative Ltd.
- Cayuga Milk Ingredients
- Procal Dairies
- HP Hood
KEY QUESTIONS ANSWERED:
1. How big is the functional milk market?2. What is the growth rate of the global functional milk market?
3. Which region dominates the global functional milk market share?
4. What are the significant trends in the functional milk market?
5. Who are the key players in the global functional milk market?
Table of Contents
1. Scope & Coverage
2. Premium Insights
4. Introduction
5. Market Opportunities & Trends
6. Market Growth Enablers
7. Market Restraints
8. Market Landscape
9. Form
10. Applications
11. Age
12. Distribution Channel
13. Geography
14. Apac
15. North America
16. Europe
17. Latin America
18. Middle East and Africa
19. Competitive Landscape
20. Key Company Profiles
21. Other Prominent Vendors
22. Report Summary
23. Quantitative Summary
24. Appendix
List of Exhibits
List of Tables
Companies Mentioned
- ABBOTT
- Danone
- Lactalis International
- Nestlé
- Aroma Milk Products
- Arla Foods amba
- Best Way Ingredients
- Best Health Foods
- Bright LifeCare
- CAPSA
- Crediton Dairy
- Dairy Farmers of America
- Ehrmann
- Fonterra
- Glanbia
- GCMMF
- Heritage Foods
- INGREDIA
- Land O’ Lakes
- Lycotec
- MEGMILK SNOW BRAND
- Milligans Food Group
- Mother Dairy Fruit & Vegetable
- Parag Milk Foods
- SADAFCO
- SLEEPWELL
- Stolle Milk Biologics
- Synlait
- Tirlán
- Tesco
- Vindija d.d.
- Valfoo
- Vinamilk
- F&N Dairies
- FrieslandCampina
- Organic Valley
- Clover Sonoma
- Darigold
- Fairlife
- McNeil Nutritionals
- Agropur
- Gay Lea Foods Co-operative Ltd.
- Cayuga Milk Ingredients
- Procal Dairies
- HP Hood
Methodology
Our research comprises a mix of primary and secondary research. The secondary research sources that are typically referred to include, but are not limited to, company websites, annual reports, financial reports, company pipeline charts, broker reports, investor presentations and SEC filings, journals and conferences, internal proprietary databases, news articles, press releases, and webcasts specific to the companies operating in any given market.
Primary research involves email interactions with the industry participants across major geographies. The participants who typically take part in such a process include, but are not limited to, CEOs, VPs, business development managers, market intelligence managers, and national sales managers. We primarily rely on internal research work and internal databases that we have populated over the years. We cross-verify our secondary research findings with the primary respondents participating in the study.
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 317 |
| Published | February 2024 |
| Forecast Period | 2023 - 2029 |
| Estimated Market Value ( USD | $ 27 Billion |
| Forecasted Market Value ( USD | $ 41.74 Billion |
| Compound Annual Growth Rate | 7.5% |
| Regions Covered | Global |
| No. of Companies Mentioned | 45 |
