Functional Dairy Ingredient Market Expected to Secure Notable Revenue Share during 2018 to 2028

From: factmr
Published: Sun Jun 02 2019

With the growing awareness regarding health benefits of the dairy products, demand for new and improved functional dairy foods is set to rise. On the same lines, the popularity of functional dairy foods will further propel the functional dairy ingredient market during the review period. Following the popularity of functional dairy food, manufacturers are introducing more functional dairy ingredients in their product offerings to gain consumer traction and win over the intense market competition. For instance, Ingredion Inc., the U.S. food company has introduced three new potato starches- the functional dairy ingredients to the product portfolio of its processed cheese providing better functionality and more options to consumers.

The billions of dollars of baby food market has initiated the addition of functional dairy ingredients, in turn, driving the growth of the functional dairy ingredient market. In addition, prebiotic fibers have become a popular plant-based functional dairy ingredient in several dairy products and functional beverages. Further, with the increasing consumer preference for organic ingredients in the food and beverage sector, the functional dairy ingredient market is witnessing progress in organic functional dairy ingredients segment. Moreover, with the clean label trend becoming streamlined for most food producers, demand for organic functional dairy ingredients is here to stay. Given that, ‘clean label’, ‘non-GMO’ foods and rising health and fitness trends are few of the prime influencers of the functional dairy ingredient market during the review period.

Functional Dairy Ingredient Market Outlook

Fortified dairy products are now have shifted from a niche product segment to a mainstream product in the developed as well as in developing regions. This is attributed to increasing the consumption of functional food and beverages including functional dairy across the major urban conglomerations and tier 2 cities. This rise in demand for the functional dairy product is attributed towards the increase in demand for functional dairy ingredient over the near future. Functional dairy ingredient market has witnessed strong growth rates over past few years and is expected to continue the trend over the forecast period. The key manufacturers are involving with a robust approach by not only broadening its product portfolio but also revamping manufacturing units to carter the rapidly changing ingredient demand fueled by tailor-made functional dairy products for the consumers. The functional dairy ingredient market has an essence of large international player capturing a significant amount of the market share in the overall offering and key regional functional dairy ingredient players capturing specific offerings in their geographies. A shift in product offering is expected to witness with players offering blends or multi-functional dairy ingredient over the forecast period. Region wise Europe and the Asia Pacific to capture a significant amount of volume share in functional dairy ingredient market over the forecast period. Increasing consumption of functional food is directly attributed towards the growth of the functional dairy ingredient market, globally.

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Functional Dairy Ingredient Market: Reasons for Covering This Title

Increasing awareness in consumers for product composition and well-established dairy industry, globally to fuel functional dairy ingredient market over the forecast period. Increasing demand for functional food has been spiked up in last decade boosting growth to its analog markets such functional ingredient market making it a promising market to invest for the key manufacturers conducting business in the dairy ingredients sector. Advancement of functional dairy ingredient production has ease down the production process and has increase the yield of the final product using similar raw material input which has result in increase of new players, competitive pricing and formation of long-term partnership with consumer which is further expected to increase the demand for the functional dairy ingredient market over the forecast period.

Factors Impacting the Decision to Purchase Food Products, Consumer Survey in Europe, 2017

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Global Functional Dairy Ingredient Market: Segmentation

On the basis of nature, the global functional dairy ingredient market has been segmented as –

On the basis of type, the global functional dairy ingredient market has been segmented as –

Proteins & Amino Acids
Oils and Fatty acids
Probiotics & Prebiotics
Others Functional Dairy Ingredient
On the basis of end-use, the global functional dairy ingredient market has been segmented as –

Animal Based Dairy Products
Plant Based Dairy Products
On the basis of end-use, the global functional dairy ingredient market has been segmented as –

Whole Milk
Frozen Desert
Ice Cream
Baby Food
Other Functional Dairy Ingredient End-uses

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Global Functional Dairy Ingredient Market: Key Players

 Some of the key players operating in the global functional dairy ingredient market are Angel Yeast Co., Ltd, Koninklijke DSM N.V, Glanbia Plc., Alra Ingredients, NZMP (Fonterra), Cargill Inc., Ganeden, Valio Oy, Ornua Co-op Limited, Lactalis Ingredients, Kerry Inc., FrieslandCampina International B.v, The Dow Chemical Company, Bunge Limited, E.I. du Pont de Nemours & Co, Chr. Hansen Holding A/S, Ingredion, BASF SE, Herbafood Ingredients Gmbh, Univar Inc., Archer Daniels Midland Co., Sensient Technologies Corporation, Alltech Inc., Ab Mauri, Ab Vista, and Lesaffre (Biospringer)

Key Product Launches in Functional Dairy Ingredient Market

The key product launches that have been observed over the functional dairy ingredient market over the recent years have seen launches targeting health conscious and ethical consumer base.

In 2017, Herbafood Ingredients Gmbh introduced an innovative functional fiber ingredient involving all-natural citrus fibers. The ingredient can replace any mainstream emulsifier and lack of E-number makes it an ideal choice for the manufactures in the natural food segment to include it as a key emulsifying agent. This can easily be incorporated as a functional dairy ingredient to remove synthetic emulsifier and make the final product more functional.
In 2016, Arla food ingredients launched its line of functional dairy ingredient product targeting toddler nutrition market. The company designed the functional dairy ingredient specifically for the growth dynamics for the toddler making it easy for the major infant food manufacturers to procure functional dairy ingredient through a one-stop vendor process.
Opportunities for Functional Dairy Ingredient Market Participants

The opportunity for the participants in the global functional dairy ingredient market is optimistic with growing demand in Europe and the Asia Pacific where there is an increase production activity for infant food and other functional dairy products. With increasing per capita spending over food and beverage products, Asia Pacific is anticipated to witness the highest growth rate over the forecast period in functional dairy ingredient market as manufacturers in the region to ramp up production activity to feed the demand in the region. Europe to witness a robust growth rate owing to increase in export activity of functional dairy ingredient over the forecast period resulting rapid procurement of functional dairy ingredient in the region by the key players. Latin America functional dairy ingredient market is expected to witness substantial growth rates owing to the increase in number new functional food and beverage players in the region. North America functional dairy ingredient market is indicated to stay at its current pace with strong dynamics in terms of local consumption of dairy-based functional products to continue the growth of the market over the forecast period. New functional food players are expected to emerge in the Middle East and Africa region which is attributed to form a significant market for functional dairy ingredient over the forecast period. 

Brief Approach to Research

A modeling-based approach and triangulation methodology will be followed to estimate data covered in this report. A detailed market understanding and assessment of the key product types, sources, applications, and end uses of the product segments covered in the study is followed by carrying out a demand-side approach to estimate the sales of target product segments, which is then cross-referenced with a supply-side assessment of value generated over a pre-defined period. The statistics and data are collected at a regional level, consolidated and synthesized at a global level to estimate the overall market sizes.

Key Data Points Covered in the Report

Some of the key data points covered in our report include:

•    An overview of the market, including background and evolution

•    Macroeconomic factors affecting the market and its potential

•    Market dynamics, such as drivers, challenges, and trends

•    Detailed value chain analysis of the market

•    The cost structure of the products and segments covered in the study

•    In-depth pricing analysis, by key product segments, regions and by major market participants

•    Analysis of supply and demand, such as top producing and consuming geographies, imports/exports, and overall trade scenario

•    Analysis of the market structure, including a tier-wise categorization of key market participants

•    Competitive landscape of the market, including detailed profiles of the top players in functional dairy ingredient market

This analytical research study imparts an all-inclusive assessment on the market, while propounding historical intelligence, actionable insights, and industry-validated & statistically-upheld market forecast. Verified and suitable set of assumptions and methodology has been leveraged for developing this comprehensive study. Information and analysis on key market segments incorporated in the report has been delivered in weighted chapters. A thorough analysis has been offered by the report on

Market Dynamics
Market Size
Market Segments
Demand & Supply Trends
Current Issues and Challenges
Companies and Competitor Landscape
Value Chain
Regional Segments Analyzed Include

North America (U.S., Canada)
Latin America (Mexico. Brazil)
Western Europe (Germany, Italy, France, U.K, Spain)
Eastern Europe (Poland, Russia)
Asia Pacific (China, India, ASEAN, Australia & New Zealand)
Middle East and Africa (GCC, S. Africa, N. Africa)
Compilation of authentic and first-hand intelligence, insights offered in the report are based on quantitative and qualitative assessment by leading industry experts, and inputs from opinion leaders & industry participants around the value chain. Growth determinants, macroeconomic indicators, and parent market trends have been scrutinized and delivered, coupled with the market attractiveness for each market segment encompassed. Qualitative impact of growth influencers on the market segments across regions has also been mapped by the report.

Highlights from the Report

Elaborated scenario of the parent market
Transformations in the market dynamics
Detailed segmentation of the target market
Historical, current and forecast market size based on value and volume
Latest industry developments and trends
Competition landscape
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Potential and niche segments, along with their regional analysis
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