Dairy Ingredients Market Size, Share, Opportunities, And Trends By Type (Milk powder, Milk protein, Lactose & Derivatives, Others), By Livestock (Cows, Buffaloes, Others), By Application (Bakery & Confectionery, Dairy Products, Sports Nutrition Products, Infant Milk Formula, Others), By Form (Dry, Liquid), By Distribution Channel (Online, Offline), And By Geography - Forecasts From 2025 To 2030

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.

What are the drivers of the dairy ingredients market?

• Dairy products are considered an important source of nutrients

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.

• Expanding the dairy industry

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.

What are the key geographical trends shaping the dairy ingredients market?

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. 

Dairy ingredients market challenges:

• The rising prevalence of the vegan diet is expected to hinder the market expansion 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 cow holds a significant market share during the forecast period.

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.

Key developments in the dairy ingredients market:

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,

• In November 2024,  Kerry Group plc partnered with Kerry Cooperative Creameries Limited to sell Kerry Dairy Holdings Limited to the Co-Op for a total expected consideration of €500 million. Kerry fully owns Kerry Dairy Ireland. The latter consists of a leading range of well-loved brands across cheese, cheese snacks, dairy snacks, and dairy spreads, found in chilled cabinets across retailers in the UK and Ireland.  
• In July 2024, Nestlé R&D teams developed a way to reduce the fat present in milk powder by up to 60%. This is without compromising on quality, taste, and creamy texture. This fat reduction leads to lower calorie levels compared to full-fat milk. It would be an innovation in the controlled aggregation of milk proteins.
• In November 2023, Foremost Farms USA and Ginkgo Bioworks partnered to use advances in biotechnology to enable domestic, sustainable biomanufacturing of materials from dairy co-products to benefit the environment, family farms, and the dairy industry.

Dairy Ingredients Market scope:

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	Type Livestock Application Form Distribution Channel Geography
Geographical Segmentation	North America, South America, Europe, Middle East and Africa, Asia Pacific
List of Major Companies in the Dairy Ingredients Market	FrieslandCampina Arla Foods amba Glanbia Kerry Group Groupe Lactalis
Customization Scope	Free report customization with purchase

 

Dairy ingredients market is analyzed into the following segments:

• By Type
  • Milk powder
  • Milk protein
  • Lactose & Derivatives
  • Others
• By Livestock
  • Cows
  • Buffaloes
  • Others
• By Application
  •  Bakery & Confectionery
  • Dairy Products
  • Sports Nutrition Products
  • Infant Milk Formula
  • Others
• By Form
  • Dry
  • Liquid
• By Distribution Channel
  • Online
  • Offline
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Rest of South America
  • Europe
    • United Kingdom
    • Germany
    • France
    • Italy
    • Spain
    • Rest of Europe
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Rest of the Middle East and Africa
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • Taiwan
    • Thailand
    • Indonesia
    • Rest of Asia-Pacific

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1. INTRODUCTION

1.1. Market Overview

1.2. Market Definition

1.3. Scope of the Study

1.4. Market Segmentation

1.5. Currency

1.6. Assumptions

1.7. Base and Forecast Years Timeline

1.8. Key benefits for the stakeholders

2. RESEARCH METHODOLOGY  

2.1. Research Design

2.2. Research Process

2.3. Data Validation

3. EXECUTIVE SUMMARY

3.1. Key Findings

3.2. Analyst View

4. MARKET DYNAMICS

4.1. Market Drivers

4.2. Market Restraints

4.3. Porter’s Five Forces Analysis

4.3.1. Bargaining Power of Supplier

4.3.2. Bargaining Power of Buyers

4.3.3. Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4.  Industry Value Chain Analysis

5. DAIRY INGREDIENTS MARKET BY TYPE

5.1. Introduction

5.2. Milk powder

5.3. Milk protein

5.4. Lactose & Derivatives

5.5. Others

6. DAIRY INGREDIENTS MARKET BY LIVESTOCK

6.1. Introduction

6.2. Cows

6.3. Buffaloes

6.4. Others

7. DAIRY INGREDIENTS MARKET BY APPLICATION 

7.1. Introduction

7.2. Bakery & Confectionery

7.3. Dairy Products

7.4. Sports Nutrition Products

7.5. Infant Milk Formula

7.6. Others

8. DAIRY INGREDIENTS MARKET BY FORM

8.1. Introduction

8.2. Dry

8.3. Liquid

9. DAIRY INGREDIENTS MARKET BY DISTRIBUTION CHANNEL

9.1. Introduction

9.2. Online

9.3. Offline

10. DAIRY INGREDIENTS MARKET BY GEOGRAPHY

10.1. Global Overview

10.2. North America

10.2.1. United States

10.2.2. Canada

10.2.3. Mexico

10.3. South America

10.3.1. Brazil

10.3.2. Argentina

10.3.3. Rest of South America

10.4. Europe

10.4.1. United Kingdom

10.4.2. Germany

10.4.3. France

10.4.4. Italy

10.4.5. Spain

10.4.6. Rest of Europe

10.5. Middle East and Africa

10.5.1. Saudi Arabia

10.5.2. United Arab Emirates

10.5.3. Rest of the Middle East and Africa

10.6. Asia-Pacific

10.6.1. China

10.6.2. India

10.6.3. Japan

10.6.4. South Korea

10.6.5. Taiwan

10.6.6. Thailand

10.6.7. Indonesia

10.6.8. Rest of Asia-Pacific

11. COMPETITIVE ENVIRONMENT AND ANALYSIS

11.1. Major Players and Strategy Analysis

11.2. Emerging Players and Market Lucrativeness

11.3. Mergers, Acquisitions, Agreements, and Collaborations

11.4. Competitive Dashboard

12. COMPANY PROFILES

12.1. FrieslandCampina

12.2. Arla Foods amba

12.3. Glanbia

12.4. Kerry Group

12.5. Groupe Lactalis

12.6. Amul

12.7. Saputo

12.8. Dairy Farmers of America

12.9. Euroserum

FrieslandCampina

Arla Foods amba

Glanbia

Kerry Group

Groupe Lactalis

Amul

Saputo

Dairy Farmers of America

Euroserum