Dairy Blends Market Report 2025

The dairy blends market size has grown strongly in recent years. It will grow from $3.96 billion in 2024 to $4.27 billion in 2025 at a compound annual growth rate (CAGR) of 7.8%. The growth in the historic period can be attributed to changing consumer preferences, cost efficiency, improved shelf stability, globalization of food industry, functional and nutritional enhancements.

The dairy blends market size is expected to see strong growth in the next few years. It will grow to $5.94 billion in 2029 at a compound annual growth rate (CAGR) of 8.7%. The growth in the forecast period can be attributed to supply chain enhancements, emerging market demand, diverse food applications. Major trends in the forecast period include regional and ethnic variations, packaging innovation, transparency and traceability, culinary innovation and applications, allergen-free options, marketing strategies, product innovation.

The anticipated rise in milk production for various dairy products is expected to drive the growth of the dairy blend market moving forward. Milk production encompasses the milk generated for different milk or dairy products. With consumers increasingly health-conscious, there is a growing interest in dairy products. Milk, being a rich source of protein, is frequently utilized in the creation of various dairy blends. Consequently, an increase in milk production correlates with heightened demand in the dairy blend market. For example, in June 2023, the United States Department of Agriculture, a U.S.-based executive department, reported that milk production in the United States for May 2023 reached 19.9 billion pounds, representing a 0.6 percent increase compared to May 2022. Thus, the rise in milk production for various dairy products is driving 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.

Product innovation is a significant trend in the dairy blend market. Leading companies in the dairy blends sector are concentrating on creating new products to satisfy customer demand. For example, in June 2022, Danone, a France-based company involved in dairy blends, introduced a distinctive dairy and plant blend baby formula designed to offer a superior feeding option for parents. This innovative formula integrates dairy blends with plant nutrition, delivering complete nutrition for infants, which includes plant proteins, fats, and fibers. Notably, it is the first blended baby formula featuring 60% plant-based proteins and 40% dairy proteins.

Companies in the dairy blend market are increasingly focusing on launching cost-effective milk blends to achieve a competitive advantage. Cost-effective milk blends are mixtures of milk with various ingredients or substitutes aimed at striking a balance between affordability and nutritional value. For instance, in October 2023, Nestlé S.A., a Switzerland-based food company, unveiled an innovative instant powder blend in Central and West Africa that combines milk with plant-based ingredients to create an affordable and nutritious product. This blend is formulated to provide essential nutrients such as protein, fiber, iron, and calcium, while also offering sustainability advantages. The product aims to enhance the everyday diet of children and their families, providing a new flavor experience alongside its nutritional benefits.

In December 2023, Kerry Group PLC, an Ireland-based food company, acquired the lactase enzyme business from Chr. Hansen Holding A/S for an undisclosed amount. This acquisition enables Kerry Group to incorporate enzyme technology that facilitates the production of lactose-free and sugar-reduced dairy products. Chr. Hansen Holding A/S is a Denmark-based company that specializes in providing dairy blends.

Major companies operating in the dairy blends market 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 2024. 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.

Dairy blend is a product formed by blending milk fat, typically in the form of cream, with edible vegetable oil or oils, salt, and water, resulting in a solid or semi-solid emulsion. This mixture serves as an excellent substitute for milk powders.

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.

The dairy blends market research report is one of a series of new reports that 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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