The global fat-filled milk powder market is expected to be valued at USD 5 billion in 2023 and reach a valuation of USD 8.8 billion by 2033. The demand for fat-filled milk powder is estimated to grow at a steady 6% CAGR.
Developing countries such as India, China, and Brazil are experiencing significant economic growth and urbanization, leading to an increase in disposable income and a change in dietary habits. Consumers in these regions are increasingly adopting western diets, including the consumption of dairy products such as milk powder. Fat-filled milk powder, which is cheaper than traditional whole milk powder, is gaining popularity in these markets. The ease of use and storage of milk powder, as well as its longer shelf life compared to fresh milk, make it an attractive option for consumers in these regions.
Busy lifestyles and the need for quick and easy meal solutions are driving the demand for convenience foods, including fat-filled milk powder. This is leading to the development of new product formats, such as single-serve sachets and ready-to-drink beverages. Manufacturers are also exploring new distribution channels, such as e-commerce platforms and vending machines, to make fat-filled milk powder products more accessible to consumers.
The rise of veganism and lactose intolerance has led to increasing demand for plant-based milk alternatives. However, the fat-filled milk powder market is still growing, as many consumers prefer the taste and nutritional benefits of dairy milk products. The demand for fat-filled milk powder is expected to be driven by consumers who are seeking a convenient and affordable source of dairy milk but are also interested in plant-based alternatives.
Consumers are becoming more health-conscious and are looking for food products that offer nutritional benefits beyond basic sustenance. Fat-filled milk powder is a rich source of protein, calcium, and vitamins and is being used in functional food products such as energy bars, sports drinks, and meal replacement shakes. As the demand for functional and fortified food products continues to grow, the market for fat-filled milk powder is expected to expand.
| Attributes | Details |
|---|---|
| Fat-filled Milk Powder Market CAGR (2023 to 2033) | 6% |
| Fat-filled Milk Powder Market Size (2023) | USD 5 billion |
| Fat-filled Milk Powder Market Size (2033) | USD 8.8 billion |
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Fat-filled Milk Powder market is expected to expand at a high rate of 6%.
Short term (2023 to 2025): Fat-filled milk powder is typically less expensive than whole milk powder, which makes it a more attractive option for manufacturers looking to reduce production costs. As a result, the cost-effectiveness of fat-filled milk powder is driving demand for the product, especially in regions with large dairy industries, such as Europe and North America.
Fat-filled milk powder is easy to handle and store, which makes it a convenient option for manufacturers. It can be transported and stored without the need for refrigeration, reducing logistics costs. Additionally, it can be reconstituted easily by simply adding water, making it a convenient ingredient for food and beverage manufacturers.
Medium term (2025 to 2028): The adoption of Western-style diets in developing countries is driving the demand for milk powder and other dairy products. This trend is contributing to the growth of the fat-filled milk powder market, as consumers are increasingly seeking convenient, affordable, and nutritious products.
Long term (2028 to 2033): The growing demand for dairy products in emerging economies, especially in Asia-Pacific and Latin America, is driving the growth of the fat-filled milk powder market. Rapid urbanization, a growing middle class, and changing dietary habits are some of the factors driving this trend.
As consumers become increasingly health-conscious, the demand for affordable dairy-based ingredients that are enriched with vitamins and minerals has been on the rise. In response to this trend, fat-filled milk powder has emerged as a suitable alternative to creamy powder, and its demand is expected to continue to increase.
One of the key factors driving the demand for fat-filled milk powder is its versatility. It can be used in a wide range of dairy and bakery products, and its protein, mineral, and vitamin content make it an attractive ingredient for manufacturers looking to develop healthy and nutritious products.
Moreover, there is an evolving trend in the market where instant fat-filled milk powder is being used in popular dairy products, such as yogurt, as a substitute for full cream milk powder. This trend is expected to appeal to the expanding health-conscious consumer base worldwide, who are increasingly seeking out products that are low in fat and high in nutritional value. This has given rise to the popularity of vegetable fat-filled milk powder.
Principal Consultant
As the demand for high-quality dairy products continues to rise, manufacturers are turning to instant fat-filled milk powder as a cost-effective alternative to whole milk powder. This ingredient not only helps maintain the quality of the end product but also ensures affordability, making it an attractive option for manufacturers across different end-use industries.
The bakery and confectionery industry, in particular, is expected to see an increase in demand for products containing protein and vitamins. Fat-filled milk powder is a popular ingredient in this industry as it provides the desired nutritional content while also helping to maintain the quality and texture of the end product.
As consumers become more health-conscious, there is a rising tendency to spend on innovative and healthful dairy, bakery, and ice cream products. This trend is fueling the demand for fat-filled milk powder and vegetable fat-filled milk powder as manufacturers focus on developing high-protein nutritional products that appeal to a wide consumer base.
The preference for fat filled milk powder has increased in the food and beverage industry. However, there are some restraining factors that are expected to hamper the growth of the market in the coming years. Stringent government regulations related to food ingredients in various regions have restricted the use of harmful ingredients in bakery and dairy products, which further obfuscates the regulatory framework and, thereby, the usage of fat filled milk powder.
Developing countries are highly dependent on the imports of dairy ingredients. Thus, taxation and trade duties on fat filled milk powder adversely impact the growth of the market. Furthermore, the price variation of fat filled milk powder in different countries has been impeding trade during the last few years. The diversion of increasing volumes of milk into fat filled milk powder manufacturing has compelled global dairy brands to search for new avenues for milk powder, taking into consideration public intervention and private storage.
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The United States is a highly competitive market, and manufacturers of fat-filled milk powder face intense competition from alternative products such as skimmed milk powder and whole milk powder. Additionally, plant-based milk alternatives, such as soy milk and almond milk, are becoming increasingly popular, especially among consumers who are lactose intolerant or follow a vegan diet. This may limit the growth of the fat-filled milk powder market in the country.
The United States market had a 20.6% market share in 2022. Some of the top fat-filled milk powder manufacturers in the country are:
The Japanese market is known for its technological advancements, and this has led to the development of new and innovative products that use fat-filled milk powder as an ingredient. The use of advanced technology in product development is driving the growth of the fat-filled milk powder market in Japan. The market in Japan had a share of 4.7% in 2022.
Top Companies in the Japanese Market
Indian consumers are increasingly looking for convenience in their food products, which has led to a rise in demand for processed and packaged foods. Fat-filled milk powder is used in a variety of processed foods, including baked goods, confectionery, and snacks, and the growing demand for these products is driving the growth of the fat-filled milk powder market.
Top Companies in the Indian Market
By distribution channel, the supermarkets and hypermarkets segment is expected to be prominent in the global fat filled milk powder market. In terms of value, supermarkets and hypermarkets are anticipated to account for USD 3,701.5 million by the end of the forecast period. With growing consumer preference towards online shopping, sales from retail stores have been witnessing a slight fall in the last few years.
Growth of eCommerce has been particularly witnessing sales of food and beverage products that have additional cost-effectiveness over others. This trend is further estimated to create a positive growth outlook for the online sales of fat filled milk powder in the coming years.
Companies in the fat-filled milk powder market use a range of strategies to stay ahead of the competition. Here are some examples of strategies that fat-filled milk powder manufacturers have used:
The market is valued at USD 5 billion in 2023.
Megmilk Snow Brand Co., Ltd and Meiji Co., Ltd are key market players.
Online sales are expected to dominate the market.
The market is expected to register a 6% CAGR through 2033.
By 2033, the market is likely to reach USD 8.8 billion.
1. Executive Summary | Fat filled Milk Powder Market 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Protein Content 5.1. More than 23% 5.2. Less than 20% 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Application 6.1. Dairy Products 6.2. Yogurt & Curd 6.3. Bakery Products 6.4. Confectionery 6.5. Others 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Distribution Channel 7.1. Supermarkets/Hypermarkets 7.2. Convenience Stores 7.3. Specialty Stores 7.4. Online Retail 8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 8.1. North America 8.2. Latin America 8.3. Europe 8.4. Asia Pacific 8.5. MEA 9. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 10. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. Asia Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. MEA Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. Key Countries Market Analysis 15. Market Structure Analysis 16. Competition Analysis 16.1. Arla Foods 16.2. Alpen Food Group 16.3. Dana Dairy 16.4. Vreugdenhil 16.5. Armor Proteines 16.6. MP Biomedicals LLC 16.7. BONILAIT PROTEINES 16.8. Polindus 16.9. Holland Dairy Foods 16.10. Hoogwegt International 16.11. Belgomilk 16.12. Revala Ltd 16.13. Dale Farm Ltd 16.14. Lakeland Diaries 16.15. Penta Manufacturing Company 17. Assumptions & Acronyms Used 18. Research Methodology
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Fat Filled Milk Powder Market
