Concentrated Milk Fat Market Report 2025

The concentrated milk fat market size has grown rapidly in recent years. It will grow from $5.31 billion in 2024 to $5.89 billion in 2025 at a compound annual growth rate (CAGR) of 10.9%. The growth in the historic period can be attributed to dairy industry demand, food processing and baking, confectionery and chocolates, flavor enhancement, international trade and export.

The concentrated milk fat market size is expected to see rapid growth in the next few years. It will grow to $8.92 billion in 2029 at a compound annual growth rate (CAGR) of 10.9%. The growth in the forecast period can be attributed to health-conscious alternatives, customized fat blends, clean label and natural ingredients, plant-based alternatives. Major trends in the forecast period include bakery and confectionery innovations, plant-based alternatives, sustainable sourcing and production, global trade and export, customization for foodservice.

The robust expansion of the dairy industry is significantly contributing to the growth of the concentrated milk fat market in the future. The dairy industry encompasses the production of milk on dairy farms and the processing of milk and dairy products at processing plants. Concentrated milk fat is widely utilized in the dairy industry for the production of cheese, ice cream, and dairy creams, which in turn drives market growth. For example, in November 2023, according to the Foreign Agricultural Service, a US-based department of agriculture focusing on overseas matters, milk consumption for factory use increased to 5.847 million metric tons (MMT) from a projected 5.817 MMT in 2023. Furthermore, a record 445,000 metric tons of cheese production is expected in 2024, marking a 28% rise from 2023. Thus, the growth of the dairy industry is propelling the concentrated milk fat market forward.

The increasing demand for products with extended shelf life is anticipated to be a driving force for the concentrated milk fat market. Concentrated milk fat, characterized by low water activity, exhibits a longer shelf life and can be stored at room temperature for several months. This attribute makes it a preferred ingredient in the production of bakery and confectionery items. In February 2023, the American Frozen Food Institute (AFFI) reported an 8.6% increase in sales of frozen food, known for its long shelf life, reaching $72.2 billion in 2022. The rising consumer preference for long-shelf-life products is expected to foster the growth of the concentrated milk fat market.

The expansion of the food and beverage industry is poised to be a driving factor for the concentrated milk fat market. Encompassing a broad spectrum of activities from production and processing to distribution and sales, the food and beverage industry extensively utilizes concentrated milk, including condensed and evaporated milk. This usage enhances the richness and flavor of various products such as desserts and sauces, while simultaneously extending shelf life due to reduced moisture content. The remarkable growth of the food and beverage industry is evident in the U.S., where restaurant sales surged to $898 billion in 2022, representing a significant increase of $166.5 billion from 2021, as reported by USA Today. As the food and beverage sector continues to expand, it propels the growth of the concentrated milk fat market.

Major companies in the concentrated milk fat market are directing their efforts toward innovative product production, exemplified by the focus on protein concentrate manufacturing for the production of milk protein concentrate. Protein concentrate involves a food ingredient or product that undergoes processing to elevate the proportion of protein content compared to other components like carbohydrates, fats, and minerals. An illustration of this trend is found in ZAO Molvest, a Russia-based food and beverage company, which inaugurated the country's inaugural milk protein concentrate production facility in January 2023. This facility is designed to replace 25% of the country's previous imports of milk protein concentrate, contributing to the annual production of 2,500 metric tons and significantly reducing the need for imports.

In April 2024, Arla Foods Group, a Denmark-based food company, acquired Volac Whey Nutrition Holdings Limited for an undisclosed sum. Through this acquisition, Arla envisions the Felinfach site as a global production hub and a key component of an expanded product range in the performance, health, and food sectors. Volac Whey Nutrition Holdings Limited is a UK-based company that specializes in dairy nutrition and whey protein isolates.

Major companies operating in the concentrated milk fat market include Darigold Inc., Grassland Dairy Products Inc., Lactalis Ingredients, FrieslandCampina Professional NV, California Dairies Inc., Fonterra Co-operative Group, Hoogwegt US Inc., CP Ingredients Ltd., Provilac Dairy Farms Private Limited, DANA Dairy Group Ltd., Keynote Dairy Corp. Ltd., Anand Milk Union Limited, Koninklijke FrieslandCampina N.V., Pine River Dairy Inc., MCT Dairies Inc., Prolac Pvt. Ltd., Galloway Company, Agropur Cooperative, Dairy Farmers of America, Glanbia plc, Arla Foods amba, Royal FrieslandCampina N.V., Euroserum SAS, Milk Specialties Global Co., Westland Co-Operative Dairy Company Ltd., Tatura Milk Industries Ltd., Synlait Milk Limited, Tatua Co-operative Dairy Company Limited, Meggle AG, Batory Foods Inc., Carbery Group Ltd., Milkfat Products Company, Uelzena eG, Milkio Foods Limited.

Concentrated milk fat (CMF) refers to a dairy product derived from the fat component of milk, where the water content has been significantly reduced. This process concentrates the fat content, making CMF a rich source of dairy fat used in various food applications.

The primary product types in concentrated milk are organic and conventional. Organic variants are produced without the use of chemicals, relying on natural methods. Organic milk products often boast more nutrients, healthier omega-3 fatty acids, and disease-fighting antioxidants compared to their non-organic counterparts. Concentrated milk finds applications in bakery and confectionery, dairy products, nutraceuticals, and other industries. These products are distributed through various channels, including online and offline stores.

The concentrated milk fat market research report is one of a series of new reports that provides concentrated milk fat market statistics, including global market size, regional shares, competitors with a concentrated milk fat market share, detailed concentrated milk fat market segments, market trends and opportunities, and any further data you may need to thrive in the concentrated milk fat industry. This concentrated milk fat market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

North America was the largest region in the concentrated milk fat market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the concentrated milk fat market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

The countries covered in the concentrated milk fat market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA.

The concentrated milk market consists of sales of evaporated milk and condensed milk. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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