Dairy Blends Global Market Report 2024

The global dairy blends market has grown strongly in recent years. It will grow from $3.67 billion in 2023 to $3.96 billion in 2024 at a compound annual growth rate (CAGR) of 7.8%. The growth observed in the historical period can be attributed to changing consumer preferences, a focus on cost efficiency, advancements in shelf stability, the globalization of the food industry, and efforts in functional and nutritional enhancements.

The global dairy blends market is expected to see strong growth in the next few years. It will grow to $5.46 billion in 2028 at a compound annual growth rate (CAGR) of 8.4%. Anticipated growth in the forecast period can be attributed to supply chain enhancements, the increasing demand in emerging markets, and diverse applications in the food industry. Major trends expected in the forecast period include regional and ethnic variations, innovations in packaging, a focus on transparency and traceability, culinary innovations and applications, the rise of allergen-free options, strategic marketing initiatives, and continuous product innovation.

The dairy blend market is poised for growth due to the increasing production of milk used in various dairy products. Consumers' health-conscious choices have driven interest in dairy products, which are rich in protein. Milk, being a primary source of protein, is a key ingredient in the preparation of diverse dairy blends. The surge in milk production directly correlates with heightened demand in the dairy blend market. A notable example is the U.S. dairy industry, where a US-based agency reported a significant increase in milk production, reaching 226.3 billion pounds in 2021, marking a 2.9 billion pounds rise from 2020. This surge in milk production is a driving force behind the growth of the dairy blend market.

The dairy blend market is experiencing growth propelled by the rising consumption of ready-to-eat food products. Ready-to-eat foods, characterized by their convenience, have witnessed increased demand. Dairy blends play a crucial role in enhancing the taste, texture, and nutritional profiles of these products, aligning with consumers' preferences for convenient on-the-go options. For instance, retail sales of packaged foods in Japan are projected to reach $235.9 billion by 2026, indicating a 9.1% increase from 2022. This surge in ready-to-eat food consumption acts as a catalyst for the growth of the dairy blend market.

A prominent trend in the dairy blend market is product innovation, with major companies focusing on developing new offerings to meet evolving customer demands. An exemplar of this trend is Danone, a France-based company in the dairy blends sector, launching a unique dairy and plant blend baby formula in June 2022. This innovative formula combines dairy blends with plant nutrition, providing complete and balanced nutrition for infants. It represents a pioneering blend with 60% proteins sourced from plants and 40% from dairy proteins, showcasing a commitment to product innovation in the dairy blend market.

Major companies in the dairy blend market are intensifying their efforts to introduce cost-effective milk blends to gain a competitive advantage. These blends aim to strike a balance between affordability and nutritional value, meeting the needs of a diverse consumer base. Nestlé S.A., a Switzerland-based food company, exemplifies this trend with the launch of an instant powder blend in Central and West Africa in October 2023. This blend combines milk with plant-based ingredients, offering an affordable yet nutritious product enriched with essential nutrients like protein, fiber, iron, and calcium, while also emphasizing sustainability benefits. The introduction of cost-effective milk blends contributes to market competitiveness and addresses the nutritional needs of consumers.

In October 2021, DSM, a Netherlands-based company renowned for its expertise in health, nutrition, and materials, completed the acquisition of First Choice Ingredients for a sum of $453 million. This strategic move enhances the capabilities of both companies, with a shared goal of fostering innovation and delivering delicious and nutritious products to their clientele. First Choice Ingredients, based in the United States, is a specialized manufacturer that focuses on producing concentrated dairy flavors through natural fermentation processes. The acquisition is poised to contribute to the development of cutting-edge offerings in the food and nutrition sector.

Major companies operating in the dairy blends market report are Cape Food Ingredients West Africa Ltd., All American Foods Inc., Cargill Incorporated, Fonterra Co-operative Group Limited, Kerry Group PLC, Royal FrieslandCampina NV, Döhler Inc., Agropur Ingredients LLC, Advanced Food Products LLC, Glanbia PLC, Galloway Company Inc., Interfood Holding B.V., Intermix Australia Pty Ltd., Ace International LLP, Dairy Farmers of America Inc., Danone SA, Nestlé SA, Dean Foods Company, Land O'Lakes Inc., Archer Daniels Midland Company (ADM), Batory Foods, Bunge Limited, Foremost Farms USA Cooperative, Idaho Milk Products Inc., Lactalis Ingredients SA, Leprino Foods Company, MCT Dairies Inc., Milk Specialties Global Co., Pacific Dairy Ingredients Inc., Westland Co-operative Dairy Company Limited

Asia-Pacific was the largest region in the dairy blends market share in 2023. The regions covered in the dairy blends market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the dairy blends market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary types of dairy blends include dairy mixtures, dairy or non-dairy ingredients, dairy as a functional ingredient, and dairy as a carrier. Dairy mixtures involve combining milk fat, edible vegetable oil or oils, salt, and water to create a solid or semi-solid emulsion. These blends are available in various forms such as spreadable, liquid, and powder, offering different flavors like regular and flavored. They are distributed through both business-to-business (B2B) and business-to-consumer (B2C) channels. Dairy blends find applications in diverse industries, including ice cream and frozen desserts, sweet and savory snacks, bakery and confectionery, infant nutrition and baby food, beverages, meat, seafood, and dietary supplements.

This report provides dairy blends market statistics, including dairy blends industry global market size, regional shares, competitors with a dairy blends market share, detailed dairy blends market segments, market trends and opportunities, and any further data you may need to thrive in the dairy blends industry. This dairy blends 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.

The dairy blend market consists of sales of yogurt, bakery creams, dairy drinks, and infant nutrition. 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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