Dairy ingredients market forecast: APAC’s dominance and evolving consumer trends

January 9, 2024

According to Technavio’s latest report “Global Dairy Ingredients Market 2023-2027,” the dairy ingredients market is experiencing a significant transformation on the world stage.

This market is broadly segmented into milk powders, milk protein concentrates and isolates, whey ingredients, and others. Among these, the milk powders segment is leading the market, primarily due to its versatile use in a wide range of food products such as ice cream, yogurt, chocolate, and baked goods. The report attributes the segment’s growth to changing consumer lifestyles, the influence of social media, and increased internet penetration, which are collectively boosting the demand for milk powder in the food industry.

Regional insights and market dynamics

The Asia-Pacific (APAC) region is forecasted to be a major growth driver in the dairy ingredients market, accounting for 41% of the overall market expansion from 2022 to 2027. This growth is fueled by the rising consumption of bakery and confectionery products in the region. The market is estimated to grow at a Compound Annual Growth Rate (CAGR) of 7.3%, with an anticipated increase of USD 29.36 billion (roughly €26.78 billion) during the forecast period. However, the market faces challenges, such as the growing vegan population, which may impact the demand for dairy-based products.

Emerging trends and consumer preferences

A key trend observed in the dairy ingredients market is the increasing demand for organic food products. This shift indicates a growing consumer preference for products perceived as more natural and healthy. The report suggests that understanding these evolving consumer preferences is crucial for stakeholders in the dairy ingredients sector. It provides a comprehensive view of the market, helping businesses and investors to strategise effectively and identify potential areas for growth and innovation.

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