Concentrated Milk Fat Market

Global Concentrated Milk Fat Market Size (2024 to 2029)

The concentrated milk fat market size is expected to grow at a CAGR of 5.81% during the forecast period. The market value is expected to reach USD 4.72 billion by 2029 from USD 3.56 billion in 2024. 

Concentrated milk fat has a longer shelf life as there will be very little moisture content after the extraction of milk fat. The milk fat is produced without any preservatives or additives for longer shelf life. The rising demand for the shelf stable milk ingredients that are naturally made is ascribed to boosting the growth rate of the market. The rapid adoption of technological advancements in the food and beverage industry is likely to promote huge growth opportunities for the market. Government support through investments to provide high-quality food products in developing countries is greatly enhancing the growth rate of the concentrated milk fat market. 

Global Concentrated Milk Fat Market Drivers: 

Growing demand from the food and beverages industry for concentrated milk fat to prepare a variety of food recipes is a major driving factor for the market growth. Concentrated milk fat is obtained in a special process using centrifugal force separation and evaporation, where it has a crucial role in preparing a variety of desserts, ice creams, and chocolates, among others. Rapid urbanization is adding fuel to the growth rate of the concentrated milk fat market as customers' preferences are changing rapidly and encouraging a new variety of food and beverages, especially in urban areas. 

The demand for dairy products has gradually increased for many years, along with the growing population. It is expected that the daily consumption rate of fresh dairy products is likely to increase by 1.0% p.a over the coming decade, which is prompting the growth rate of the market. In addition, the demand for the use of concentrated milk fat is increasing at a random rate in the bakery industry. Milk fats add a rich taste and give a softer crumb texture to the bakery goods. The shifting trends towards gluten-free and traditional and artisanal bread are ascribed to bolster the growth rate of the concentrated milk fat market. According to the American Bakers Association, a total of $423 billion of bakery goods are sold only in the US. This means the demand for bakery food products in the US is really high and hugely impacting the growth rate of the market on a positive side. 

The growing prevalence of organic dairy products with the shifting trend to lead healthy lifestyles is greatly influencing the growth rate of the market. Organic milk fat has high nutritional value and is very healthy as it contains healthy omega-3 fatty acids with disease-fighting antioxidants. Therefore, the growth rate for this market is increasing with the growing awareness of organic dairy products all over the world. 

Global Concentrated Milk Fat Market Restraints: 

However, fluctuations in the milk production rate due to various reasons are hampering the growth rate of the market. Lack of proper awareness of the diet precautions for cattle leads to decreased milk production rate. Rising incidences of infectious diseases in cattle across the world are also causing a decline in the growth rate of the concentrated milk fat market. 

The trend towards the consumption of fat-free products is due to increasing awareness of the adverse effects of the high-fat consumption rate that leads to cardiovascular diseases and obesity-related issues. Therefore, the growing prominence of fat-free dairy products is acting as a major barrier to the market growth rate. People nowadays are more inclined to adopt plant-based alternatives to maintain a healthy lifestyle, such as almond milk, soy milk, and other non-dairy products, which is hindering the demand for concentrated milk fat. 

Impact of COVID-19 on the Concentrated Milk Fat Market: 

The growth rate of the concentrated milk fat market declined in the initial period of the COVID-19 pandemic. Lockdown restrictions and protective measures were imposed across the nations to curb the spread of the virus. The pandemic reshaped the economic status in an unprecedented way that is leading to a crisis in some countries. During quarantine restrictions, the demand for bakery products surged due to people’s interest in making a variety of bakery items simply at home with the help of Google search. However, once the restrictions were completely eased with the increased number of vaccinated people at the end of 2021. From then, the market growth rate started to bounce at a higher rate. Also, the demand for the adoption of dietary food items with fewer preservatives or additives to maintain a healthy lifestyle posed lucrative growth opportunities for the market. 

REPORT COVERAGE:

This research report on the global concentrated milk fat market has been segmented and sub-segmented based on type, distribution channel, application, and region.

Global Concentrated Milk Fat Market – By Type:

• Organic
• Conventional

 Organic concentrated milk fat market growth is leading at a higher rate, whereas the conventional segment is ascribed to have the dominant market share. Nowadays, people are concentrating more on organic products to reduce the effects of various health diseases. Organic products are proven to lower the risk of various diseases like cardiovascular, diabetes, thyroid, and others. On the other side, the demand for conventional products is growing at a higher rate. Conventional food products have the additional benefit of improving gut health with anticancer, antioxidant, and antifungal qualities. 

Global Concentrated Milk Fat Market – By Distribution Channel:

• Online
• Offline

The offline segment is leading with the largest market share. The easy availability of products in offline stores like supermarkets and grocery stores emphasizes the growth rate of the offline market share. The online segment is projected to hit the highest CAGR by the end of 2029. The penetration of e-commerce platforms raised the demand for online shopping. The demand for online shopping had risen since the COVID-19 pandemic when people used to order products without even stepping out of their homes. 

Global Concentrated Milk Fat Market – By Application:

• Bakery Products
• Confectionery
• Dairy Products
• Infant Formula
• Others 

The bakery product segment is holding the dominant share of the market. Concentrated milk fat has a major role in making bakery items with no or fewer preservatives. The milk fat adds taste and texture to the items, which is escalating the growth rate of this segment. The dairy products segment is gaining traction over the growth rate of the market. The rising consumption of milk across the world is greatly influencing the market growth. 

Global Concentrated Milk Fat Market – By Region: 

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa

North America concentrated on the milk fat market with the increasing demand for ice creams and other desserts. The US is positioned first in holding the dominant share of the concentrated milk fat market. Americans demand the production of quality dairy products like ice creams, chocolates, and others, which is majorly gearing up the growth rate for the market. Increasing focus on the development of innovative products in favor of the public in the food and beverages industry is escalating the market value. High investments by both private and public organizations are adding fuel to the growth rate of the market. 

Followed by North America, Asia Pacific is leading with the dominant share of the market, with the growing prominence of increasing the production rate of food and beverages with high-quality products. The increasing per capita in emerging countries like India and China is greatly enhancing the concentrated milk fat market share. Partnerships between major companies like Mitsubhisi and Tasmanian Dairy products are set to increase the production rate, where the demand for concentrated milk fat will increase exponentially. This attribute is likely to leverage the growth rate of the market. 

Europe's concentrated milk fat market is geared up to hit the highest CAGR by the end of 2029. Europe is one of the major regions that produce high quantities of concentrated milk fat, which results in growing exports of various food products. UK, Germany, Italy, Spain, and France are occupying major roles in producing dairy products and other famous food products using concentrated milk fat that is lavishing the market value. 

KEY MARKET PLAYERS: 

Major Key Market Players in the Concentrated Milk Fat Market are Darigold, Inc., Lactalis Ingredients, Campina Original, California Dairies, Inc., Grassland Dairy, Fonterra, FIT, Hoogwegt USA, G&R Foods Inc., Pine River Dairy, MCT Dairies, JLS Foods.