Milk Ingredients Market

Milk Ingredients Market Outlook from 2024 to 2034

The global milk ingredients market size reached USD 69.9 billion in 2022, worldwide demand for milk ingredients recorded year-on-year growth of 3.4% in 2023 and thus, the sales are expected to reach USD 74.7 billion in 2024. Over the projection period (2024 to 2034), global milk ingredients sales are projected to rise at a 4.9% compound annual growth rate (CAGR) and reach an industry size of USD 118.7 billion by 2034-end.

Dairy ingredients such as milk powder, Casein and caseinates, milk protein concentrate, and isolates are considered high-quality protein sources because these products contain nearly all the essential amino acids that are not synthesized by the human body. These amino acids are necessary for body repair and muscle building after a heavy workout, active sport, or exercise.

Due to the increased health consciousness and fitness freaks, all regular gym goers seek high-protein products that contain above milk ingredients as the protein source. The growing importance and requirement of protein in the daily diet has a significant impact on the milk ingredients market and milk consumption pattern. Nowadays, Consumers are more likely to choose food products that contain more protein which in turn led to a surge in the.

Attributes	Description
Estimated Global Milk Ingredients Market Value (2024E)	USD 74.7 billion
Projected Global Milk Ingredients Market Value (2034F)	USD 118.7 billion
Value-based CAGR (2024 to 2034)	4.9 %

Key industry leaders in the field of the dairy industry, are investing huge amounts of money in the research and development from their budget to develop both the product and manufacturing process. Manufacturing companies adapt the new trends according to consumer preferences and demand. Key sector players focus on the new technologies to manufacture milk ingredients such as milk proteins from various sources of milk. They are also very much concerned about the sustainability and environmental footprint of their production process.

Semi-Annual Industry Update

The below table presents a comparative assessment of the variation in CAGR over six months for the base year (2023) and current year (2024) for the global milk ingredients industry. This analysis reveals crucial shifts in market performance and indicates revenue realization patterns, thus providing stakeholders with a better vision about the industry growth trajectory over the year. The first half of the year, or H1, spans from January to June. The second half, H2, includes the months from July to December

Particular	Value CAGR
H1	4.2% (2023 to 2033)
H2	4.4% (2023 to 2033)
H1	4.5% (2024 to 2034)
H2	4.9% (2024 to 2034)

The above table presents the expected CAGR for the global milk ingredients industry over several semi-annual periods spanning from 2024 to 2034. In the first half (H1) of the decade from 2023 to 2033, the business is predicted to surge at a CAGR of 4.2%, followed by a slightly higher growth rate of 4.4% in the second half (H2) of the same decade.

Moving into the subsequent period, from H1 2024 to H2 2034, the CAGR is projected to increase slightly to 4.5% in the first half and remain relatively moderate at 4.9% in the second half. In the first half (H1) the target sales witnessed a decrease of 20 BPS while in the second half (H2), witnessed an increase of 10 BPS.

Key Industry Highlights

Increasing Healthy Lifestyle and Fitness Freaks helps the spike in the target Ingredients sale

Fitness enthusiasts and regular gym-goers are very strict in what they intake in their bodies. Milk-derived proteins such as milk protein concentrate, Isolates, and casein and caseinates proteins are unique in their protein content with all the essential amino acids.

Some of the protein from the milk sources such as native micellar casein slowly releases amino acids into the body instead of giving an immediate amino acid boost, making them ideal for post-workout supplements and night-time supplements. This unique functionality combined with the minimally-processed, additive-free nature of milk ingredients is propelling demand in the global industry.

Being a ‘slow-release’ protein, milk ingredients such as casein result in a peak in amino acids in the blood only three to four hours after consumption. This sharply contrasts with whey protein, which leads to a peak in blood amino acids within 20-40 minutes of consumption. This makes the perfect source of protein for the active sportsperson.

Increasing Use of Milk Ingredients in Supplements, Sports nutrition infant formula, and other applications Upsurge the Growth of the Target Product sale

Increasing the use of milk ingredients in the development of products such as health supplements, and sports nutrition to provide the daily need of protein for people who are engaged in bodybuilding or sports activity to provide athletes with essential nutrients for performance and recovery. Infant nutritional products such as infant formula are manufactured with the use of various ingredients such as milk powder, milk protein isolates, and concentrates to create high-quality products that support infant growth and development in the early age of infant.

Milk protein concentrate (MPC) is a versatile product which used as a dairy ingredient in several products in confectionary and chocolates, ready-to-drink beverages, and various bakery and dessert products.

Consumer demand for Minimal processed food products without any external added chemicals or additives

Consumers become more conscious of the impact of their food choices on their health and well-being. They are demanding products that are natural, healthy, and free from any chemical or synthetic additives and minimally processed ingredients and food products with natural, organic, and clean label claims.

Key dairy ingredients manufacturing Companies such as Lactilis Ingredients which is a leader in dairy Ingredients manufacture milk ingredient brand name as Pronativ - Native Micellar Casein which is in its pure and natural form. The company uses a cold filtration process to extract the target product directly from milk in minimally processed without any use of chemical additives.

2019 to 2023 Global Milk Ingredients Sales Analysis Compared to Demand Forecasts for 2024 to 2034

Global milk ingredient sales increased at a CAGR of 3.4% from 2019 to 2023. For the assessment period of 2024 to 2034, the projections showcase that the sale value will expand at a CAGR of 4.9%.

The slow and steady increase in the sales of Milk ingredients and their products in recent years can be attributed to the rising growing awareness of the need for natural dairy protein for the completion of the daily recommended need of protein for the body after physical exercise. With the rising consciousness about health and wellness among consumers and the increasing use of milk ingredients in the number of end-use applications expanding the milk ingredients industry in recent years.

With the advancement in the production methods of various milk ingredients from various sources depending on their specific end-use application, it has become much easier for manufacturing companies to cater to the wider audience across the globe as per demand. Key industry leader also focuses on tailor-made milk ingredients as per consumer demand. They are using advanced technology such as membrane filtration, microfiltration, cold filtration, etc. to give the quality and safe end product.

Market Concentration

The global milk ingredients industry has many big players or MNCs such as Fonterra Cooperative Group, Glanbia plc, Dairy Farms in America, Arla Food Ingredients Group, Friesland Campina, Groupe Lactalis, Kerry Group PLC, Hoogwegt International BV, Amul dairy, Volac International Ltd, etc. and many more that comprise a significant share of the global sale. These companies have numerous manufacturing facilities.

These distinguish themselves based on supply chains or distribution networks that allow them to supply their products worldwide. They maintain quality checks across the processing line and throughout the supply chain and reduce costs due to advanced manufacturing technology with high efficiency. These big players often engage in partnership and collaboration to develop tailored-made Milk Ingredient solutions that meet specific consumer needs and industry trends.

Local players on the other hand, often concentrate on certain limitations based on their product type and the end-use applications with the distribution and supply chains network and have formed strategic partnerships with other companies to expand their reach. They may not have advanced technology and wide global reach. They operate with a local presence and serve a niche industry sector. Such players focus on product quality with traditional processing technology and customer satisfaction rather than commercialization.

However, the sale is proceeding towards fragmentation as more and more players are entering into the sector from various parts of the globe. The sector is also heavily influenced by government regulations. Overall, the industry comprises a dynamic and complex nature, with MNCs playing the role of a trendsetter.

Country-wise Insights

The following table shows the estimated growth rates of the top three countries for target products. China and India are set to exhibit the milk ingredients market, recording CAGRs of 5.1% and 6.2%, respectively, through 2034.

Countries	CAGR 2024 to 2034
United States	4.6%
Germany	3.4%
China	6.2%
India	7.3%
Australia	9.3%

The United States Leading the Global Milk Ingredients Industry

The sales for milk ingredients in the United States are projected to exhibit a CAGR of 4.6% during the assessment period of 2024 to 2034. By 2034, revenue from the sales of milk ingredients in the country is expected to reach USD 28.6 billion.

The United States is one of the biggest areas for milk ingredients across the globe. In the early days United States used to import milk ingredients from other countries but now the key industry leaders have established their production houses in the USA. The country has the largest population that consumes dairy products daily such as cheese, yogurt, etc. The United States has become the largest producer and consumer of milk ingredients.

The global leader in the Production of Milk has a significant share of the target product sales in India

Consumption of milk ingredients in India is projected to increase at a value CAGR of 7.3% over the next ten years. By 2034, the sales size is forecasted to reach USD 19.6 billion, with India expected to account for a target product sales share of around 18% globally.

India is the largest producer of milk with a 22% industry share across the globe. Earlier most of the milk was for direct consumption or used in dairy-based products. Nowadays, industry leaders such as Nestle, Hatson agro, Amul, etc across the globe have set up production houses in India to manufacture milk ingredients that can be used in several end-use products.

Increasing demand for health-promoting products and Involving the Dairy Industry in Australia led to the Growth of the Milk Ingredients sector

Demand for target product sales in Australia is calculated to rise at a value CAGR of 9.3% during the forecast period (2024 to 2034). By 2034, Australia is projected to reach a sales valuation of USD 6.5 billion.

Australia remains one of the most lucrative regions in the Asia Pacific region for the milk ingredients sector with a share of 5.8% in 2024. The increasing dairy industry in Australia and the growing population demand for protein are anticipating the growth of milk ingredients across the globe. The impact of milk ingredients such as casein protein on weight management and clinical requirements for health and well-being is raising the demand in the Australian milk ingredients industry.

Category-Wise Insights

Milk Powder product type dominates the industry share across the globe

Segment	Milk Powder (By Product Type)
Value Share (2024)	35.6%

The milk ingredients in the form of milk powder from the product type segment are anticipated to register a CAGR of 6.1% during the assessment period of 2024 to 2034, to reach a sales valuation of USD 30.8 billion in 2034.

Milk ingredients in the form of milk powder have dominated the sales due to their widespread application in various food products such as cakes, cookies, smoothies, etc. Milk powder is also used in the preparation of tea and coffee in regions where traditional natural liquid milk is not accessible or available for any reason. This milk powder has a long shelf life due to less moisture content and it’s very easy to store and transfer across the globe during its trade.

Manufacturing of Food Supplements dominates the application type segment for milk ingredients

Segment	Food Supplements (By Application)
Value Share (2024)	48.5%

The use of milk ingredients in the production of food supplements in the application segment is anticipated to register a CAGR of 4.8% during the assessment period of 2024 to 2034, to reach a sales valuation of USD 32.5 billion in 2034.

Increasing consumer awareness about health and wellness and several fitness freak populations have demanded quality food supplements with milk ingredients such as casein and caseinates as protein sources for the support of health during active exercise.

The B2B segment of the Distribution channel has gained the largest sales share for the milk ingredient.

Segment	B2B (By Distribution channel)
Value Share (2024)	58.6%

Distribution of milk ingredients via the B2B channel has dominated the sales share and is anticipated to register a CAGR of 5.8% during the forecast period of 2024 to 2034, to reach a sales valuation of USD 65.1 billion.

This distribution channel dominates the sales due to its large application in the manufacturing of other products such as protein powder, used in the dairy industry, sports nutrition, and infant nutrition. The use of milk ingredients is carried out in bulk quantity by the end-use industry for the production of food products.

Competition Outlook

The key players in the Milk ingredients industry are continuously innovating to introduce new products with more diverse formulations via innovative processes from the number of raw materials. Key manufacturing companies are involved in strategies such as merger acquisitions, partnerships, and collaborations among others in the sectors to expand production capacity and cater to a wider audience. They are also educating the consumers and advertising their products through social media and websites to engage the consumers into using their products.

Brands must strategize ways to retain their sales share by prioritizing sustainability, ethical sourcing, and reducing their carbon footprint.

For Instant

• Lactalis Ingredients developed and launched micellar casein in native form elevating protein and muscle repair after heavy exercise, The product balances taste, nutrition, and functionality, providing to the changing consumer demands who look for products to lead a healthy and active lifestyle.

Leading Milk Ingredients Brands

• Lactalis Ingredients
• Ingredia
• Noumi Nutritional Limited
• Le Lit New Nutrition
• Ascent
• Milk Specialties Global
• Leprino Nutrition
• Arla Food Ingredients
• Friesland campina ingredients
• Danone Food SA
• Fonterra cooperative group
• Dairy farms in America
• Sodiaal co-operative group
• Kerry Group PLC
• Volac International Ltd
• Hoogwegt International BV

Key Segments of Market Report

By Product Type:

As per product type, the industry has been categorized into milk powder, casein and caseinates, milk protein concentrates, and isolates.

By Application:

This segment is further categorized into dairy products, sports nutrition, beverages, infant formula, ice cream, and food supplements.

By distribution channel:

This segment is further categorized into B2B, B2C (Hypermarket, supermarket, convenience store, specialty store, and discount store), and online retail channels.

By Region:

Industry analysis has been carried out in key countries of North America, Latin America, Europe, East Asia, South Asia, Oceania, and the Middle East & Africa.

Frequently Asked Questions

What is the current value of the Milk Ingredient market?

The global Milk Ingredient sales are estimated at a value of USD 74.7 billion in 2024.

At what rate did the market for Milk Ingredients grow between 2019 and 2023?

Sales of Milk Ingredients increased at 3.4% CAGR between 2019 and 2023.

Who are the leading manufacturers of Milk Ingredient?

lactates Ingredients, Ingredia, Noumi Nutritional Limited, Le Lit New Nutrition, Ascent, Milk Specialties Global, Leprino Nutrition, Arla Food Ingredients, Friesland Campina ingredients, Danone Food SA, Fonterra cooperative group, Dairy farms in America are some of the leading players in this sector.

Which region will garner a significant value share by 2024?

The North American sales are projected to hold a revenue share of 32.6% over the forecast period.

At what CAGR is the global Milk Ingredient market forecast to grow from 2024 to 2034?

The sales are projected to grow at a forecast CAGR of 4.9% from 2024 to 2034.