Milk Fat Fractions Global Market Report 2024

The milk fat fractions market has grown strongly in recent years. It will grow from $15.08 billion in 2023 to $16.18 billion in 2024 at a compound annual growth rate (CAGR) of 7.3%. The expansion observed in the historical period can be ascribed to the growth of the dairy industry, consumer preferences favoring healthy fats, demand from the processed food industry, applications in confectionery and bakery, innovations in dairy products, as well as the influences of international trade and globalization.

The milk fat fractions market is expected to see strong growth in the next few years. It will grow to $20.52 billion in 2028 at a compound annual growth rate (CAGR) of 6.1%. The anticipated growth in the forecast period can be attributed to an increasing demand for specialty ingredients, the rise of plant-based alternatives, a surge in functional dairy products, the expansion of e-commerce, and the global growth of dairy markets. Noteworthy trends expected in the forecast period encompass a focus on clean label and natural ingredients, the pursuit of customization and tailored solutions, ongoing innovation in dairy products, technological advancements in fractionation, and an emphasis on collaborations and partnerships.

The anticipated surge in demand for dairy products is set to drive the growth of the milk-fat fractions market in the future. Dairy products encompass various items derived from milk, including butter, cheese, ice cream, yogurt, and condensed and dried milk. Milk fat fractions play a crucial role in enhancing the texture, flavor, color, three-dimensional structure, and functional attributes of dairy products such as butter, cream, cheese, and dairy powders. Therefore, the increasing consumer demand for dairy products is expected to correspondingly boost the demand for milk fat fractions. For example, in 2022, European Union milk production witnessed a 0.2% increase to 150.45 million metric tons compared to 2021, as reported by the Foreign Agriculture Services, a US-based foreign affairs agency under the United States Department of Agriculture (USDA). Additionally, cheese production is projected to rise to 10.4 million metric tons, marking an increase of 50,000 metric tons in 2021. Thus, the rising demand for dairy products is a driving force behind the growth of the milk-fat fractions market.

The increasing demand for bakery products is expected to contribute to the expansion of the milk-fat fractions market. Bakery products, derived from flour or grains and baked in ovens, constitute a significant segment where milk fat fractions are utilized to enhance tenderness, crumbliness, and overall mouthfeel. For instance, in January 2021, the United States Department of Agriculture reported that total retail sales of bakery goods in China were estimated at $34 billion in 2020, with a projected increase to $53 billion by 2025, indicating a 53% growth from 2021. Consequently, the growing consumer preference for bakery products is a key factor driving the growth of the milk-fat fractions market.

Technological advancements represent a noteworthy trend gaining traction in the milk fat fractions market. Major companies in this market are embracing innovative technologies to maintain their competitive positions. In November 2021, Arla Foods Amba, a Denmark-based dairy products manufacturer, introduced a groundbreaking technology for milk fractionation using synthetic membranes. This patented technology allows optimal separation of milk into defined fractions, facilitating the efficient utilization of milk components such as milk fat, casein, protein, and serums. The controlled processing of this technology leads to a reduction in processing steps and gentle milk processing, catering to the specific requirements of sports nutrition, infant formula, and medical nutrition.

In June 2022, Ehrmann, a Germany-based dairy products manufacturer, acquired FrieslandCampina's dairy business for an undisclosed amount. This strategic acquisition enables Ehrmann to leverage FrieslandCampina's existing infrastructure and brands to expand its presence in the Russian dairy market. Furthermore, the acquisition of the production facility allows Ehrmann to locally produce dairy products, leading to cost reduction and improved supply chain efficiency. FrieslandCampina, a Netherlands-based provider of dairy cooperative and milk fat fractions, adds significant value to Ehrmann's portfolio through this acquisition.

In April 2023, the German dairy products manufacturer Unternehmensgruppe Theo Müller completed the acquisition of FrieslandCampina for a sum of $326.313 million. This strategic move expands, diversifies, and enhances Unternehmensgruppe Theo Müller's dairy products portfolio, fortifying the company's market presence in Germany. FrieslandCampina, a Netherlands-based dairy cooperative and provider of milk fat fractions, now becomes an integral part of Unternehmensgruppe Theo Müller's growing and enriched dairy products business.

Major companies operating in the milk fat fractions market report are Fonterra Co-operative Group Limited, Glanbia plc, Uelzena Milchwerke eGmbH, FIT Company, Oleo-Fats Incorporated, Koninklijke VIV Buisman B.V., Flechard S.A.S., Wilmar International Limited, MCT Dairies Inc., The Tatua Co-operative Dairy Company Ltd., Comarco Group, Anand Milk Union Limited, Saputo Dairy, Shanghai Guangyu Food Co. Ltd., United Dairy Group Ltd., Royal FrieslandCampina N.V., Royal VIVBuisman, Groupe Lactalis, Arla Foods, Agropur Cooperative, Land O'Lakes Inc., Dairy Farmers of America, DMK Deutsches Milchkontor GmbH, Meggle Group, Hoogwegt Group, Molkerei MEGGLE Wasserburg GmbH & Co. KG, Armor Proteines, Lactoprot Deutschland GmbH, Carbery Group, Orafti S.A.

North America was the largest region in the milk fat fractions market in 2023. Asia-Pacific is expected to be the fastest-growing region in the global milk fat fractions market during the forecast period. The regions covered in the milk fat fractions market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the milk fat fractions market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary categories of milk fat fractions encompass low melting fractions, medium melting fractions, and high melting fractions. Low melting fractions (LMF) specifically pertain to components of milk fat with a melting point lower than that of the main milk fat triglycerides. These LMFs find application in various food products, including bakery and confectionery items, ice cream, and dairy spreads. Key technologies utilized in their extraction and processing include dry fractionation, solvent fractionation, supercritical fluid extraction, and short-path distillation. These technologies manifest in different forms such as texturized, concentrated, and isolated, and are employed in diverse sectors such as nutritional and nutraceuticals, cold spreadable butter, sports nutrition, infant formulas, confectionery, bakery, among others.

The milk fat fractions market research report provides milk fat fractions market statistics, including milk fat fractions industry global market size, regional shares, competitors with a milk fat fractions market share, detailed milk fat fractions market segments, market trends and opportunities, and any further data you may need to thrive in the milk fat fractions industry. This milk fat fractions 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 milk fat fractions market consists of revenues earned by entities by providing various technologies such as melt crystallization, short-path distillation and supercritical CO2 extraction. The market value includes the value of related goods sold by the service provider or included within the service offering. The milk fat fraction market also includes sales of milk fat globule membrane (MFGM) fraction, short-chain fatty acid (SCFA) fraction, and medium-chain fatty acid (MCFA) fraction. 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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