The global dairy ingredients market is estimated to grow at a CAGR of 4.91% to reach a market size of US$88.502 billion in 2030 from US$69.641 billion in 2025.
The products that are produced or contain the milk of mammals, such as cows, buffaloes, and goats, among others, are called dairy ingredients. Expanding the dairy industry and the growing demand for dairy products are expected to drive market growth during the forecast period. However, the availability of substitutes and a rising inclination towards a vegan diet are anticipated to restrain market expansion in the coming years.
Dairy products and milk are considered nutrient-dense foods, supplying energy, protein, and micronutrients such as calcium, selenium, vitamin B12, B5, and magnesium, which are essential in reducing malnutrition and hunger. Many countries have even recommended dietary guidelines for dairy products as a component of a balanced diet. On the global stage, milk contributes, on average, 134 kcal of energy and 8.3g of protein per capita per day to the global energy supply. In addition, it is the fifth-largest provider of energy and the third-largest provider of protein and fat to human beings.
Milk and milk products are considered one of the most produced and valuable agricultural commodities worldwide. According to the Food and Agriculture Organization, milk contributes nearly one-fourth of the global value-added of livestock and one-tenth of that of agriculture. Milk and dairy products account for fourteen percent of the global agriculture trade, and global milk production is projected to increase to 177 million tonnes by the end of 2025.
By geography, the dairy ingredients market is segmented into North America, South America, Europe, the Middle East and Africa, and Asia Pacific. The major economies like China, Japan, India, and South Korea dominate the Asia-Pacific region. Some of the fastest-growing emerging economies are from this region, such as ASEAN countries.
The dairy ingredients market in the Asia Pacific is estimated to hold a significant share. It is anticipated to grow rapidly due to the increased investment by big market players in countries like China and India. China, the world’s most populated country, imports about 30% of its dairy products, which is expected to increase in the coming future. According to the National Dairy Development Plan, China should be 70% self-sufficient by 2028. In addition, increasing disposable income in developing countries like India, China, and Indonesia is also boosting the demand for ready-to-eat or convenience foods made of dairy ingredients, propelling market growth in the coming years.
The rising preference for the vegan diet is a substantial factor in the meteoric adoption of non-dairy milk alternatives, reducing the demand for dairy products. Presently, consumers are proactively moving away from bovine milk towards plant-based milk, mainly due to milk protein allergy, lactose intolerance, cultural influences, etc. In addition, companies are investing heavily in plant-based milk alternatives, further restraining the market expansion.
By livestock, the dairy ingredient market is segmented based on cows, buffaloes, and others. The cow's segment is expected to hold a significant market share due to its large population and fewer complications in performing the whole milking process than others. India is the global leader in milk production and holds the largest cow population in the world, showing a direct correlation between milk production and cow population.
The major dairy ingredients market leaders are FrieslandCampina, Arla Foods amba, Glanbia, Kerry Group, Groupe Lactalis, Amul, Saputo, Dairy Farmers of America, and Euroserum. The key market players implement growth strategies such as product launches, mergers, acquisitions, etc., to gain a competitive advantage. For Instance,
| Report Metric | Details |
|---|---|
| Study Period | 2021 to 2031 |
| Historical Data | 2021 to 2024 |
| Base Year | 2025 |
| Forecast Period | 2026 – 2031 |
| Report Metric | Details |
| Dairy Ingredients Market Size in 2025 | US$69.641 billion |
| Dairy Ingredients Market Size in 2030 | US$88.502 billion |
| Growth Rate | CAGR of 4.91% |
| Study Period | 2020 to 2030 |
| Historical Data | 2020 to 2023 |
| Base Year | 2024 |
| Forecast Period | 2025 – 2030 |
| Forecast Unit (Value) | USD Billion |
| Segmentation |
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| Geographical Segmentation | North America, South America, Europe, Middle East and Africa, Asia Pacific |
| List of Major Companies in the Dairy Ingredients Market |
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| Customization Scope | Free report customization with purchase |