Dairy Blends Market - Forecasts from 2022 to 2027

The dairy blends market is anticipated to reach US$4.438 billion by 2027 from US$2.723 billion in 2020, at a CAGR of 7.22%.

Dairy blends significantly affect food products, keeping up the quality, flavour, and taste, which has prompted its high demand over the globe. A mixture of concentrated cream blended in with butter is known as a dairy blend. They are comprised of butter blends or butterfat, which are free from saturated fat. Dairy blends contain vegetable oil; subsequently, it is spreadable and can consume with bread. They can mix with other fixings, for example, sugar, salt, aroma, flavourings, and vegetable oils that rely upon the taste and preferences of the consumers. Dairy blends enhance the absolute and genuine taste of the products. In any case, blending with other protein sources offers health benefits to consumers.

The market for worldwide dairy blends is expected to be driven by its cost-effective factor, less fat substance when compared to butter and margarine, and usage alongside different ingredients. Dairy products are generally imported at an exceptionally high cost, yet dairy blends can be imported at a much lower cost when compared to dairy products. We can use different ingredients like butter, cocoa powder, sugar, dextrin, and vegetable fats with dairy blends which subsequently drive the demand for them. Dairy blends, when added or mixed with soy or different proteins, improve the flavour of the product.

The significant driver behind the dairy blend is that it is not completely butter. This is why it is favoured by consumers, as it reduces the high segment of fats. Also, one of the reasons for its demand is that it can be stored and refrigerated. Other market drivers for this include the developing rice and bread shop industry, the nutraceutical food sector, and expanding prominence of certain food items like pizza and burgers. Dairy blends are also used in making juices which is also a driver for this market.

Ignorance about the uses of the product and the global cost decline of the milk blend products are a few constraints that are limiting the development of the dairy blend market. The manufacturers of food and beverages want to utilize butter and other traditional products rather than milk blend products. Some manufacturers have concerns about milk blends that they may weaken the flavour of the consumable item is one of the challenges for the industry.

Despite the many advantages of dairy blends, consumers are hesitant to use them over conventional dairy products. In some developed and developing markets, food and beverage makers want to utilize butter, margarine, and other conventional dairy items rather than dairy blends. There are concerns among manufacturers of food and beverages towards dairy blends that they reduce the flavour of food products is one of the challenges for the market.

Asia-Pacific is expected to develop at the highest CAGR for the dairy blends market during the forecast period. The major drivers for the growth of this market include growth in demand from developing and highly populated countries such as China, India, Japan, and South Korea and the presence of a large dairy sector in Australia and New Zealand.

Key developments: Product Launches/ Acquisitions:

• In February 2020, plant-based patty and ground products were launched by Cargill Corporation to provide quality protein and to maintain the taste of customers. These products help in drawing the consumers and thus help in sales productivity.
• International Flavors & Fragrances Inc. and Health & Biosciences added four new cultures to their YOY MIX ViV product portfolio in 2022 to meet the needs of yoghurt manufacturers. These new cultures strive to solve producers' difficulties, allowing for the creation of high-quality products.
• Lacprodan premium ALPHA-10, a dry-blend protein component that can be useful for infant formula manufacturers, was launched by Arla Foods Ingredients in 2021. This combination contains vital amino acids from whey protein derived from human milk.

Covid 19 Impact:

The demand for dairy mix products has not been affected by the epidemic. As an essential commodity, it was in higher demand than ever before, as consumers stocked up in anticipation of an uncertain future. Manufacturers were experiencing a lack of milk from farms due to transportation issues and labour shortages caused by the pandemic. In 2020, a global impact on food service will have a minor impact on the dairy blends industry's growth. Due to a supply chain disruption, industries such as bread and ice cream have been impacted in terms of output. Many significant U.S. dairy enterprises were forced to close as a result of the COVID-19 outbreak, causing the government to launch bailout plans. In April 2020, for example, the Trump administration unveiled a USD 15.5 billion rescue proposal for the US dairy industry. The industry's prospects have been brightened by the possibility of a shift away from meat-based protein and toward dairy-based protein. Furthermore, the epidemic has increased public awareness of the importance of eating a nutritious diet.

Segmentation:

By Type

• Dairy Mixtures
• Dairy Ingredients
• Dairy Carrier

By Form

• Spread
• Powder
• Liquid

By Application

• Ice cream
• Yogurt
• Bakery
• Butter
• Beverages
• Infant formula

By Geography

• North America
• United States
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Europe
• Germany
• Spain
• United Kingdom
• France
• Middle East and Africa
• Saudi Arabia
• South Africa
• Asia Pacific
• China
• Japan
• India
• Australia