The dairy ingredients market size in Europe was valued at USD 1.2 billion in 2023 and is expected to be worth USD 1.09 billion in 2024 and grow at a CAGR of 6.67% from 2024 to 2032 to achieve USD 1.82 billion by 2032. As participation in sports increased, the use of dairy ingredients in the supplement industry improved as consumers became more interested in health and wellness.
Dairy ingredients are derived mainly from milk and whey and are employed to develop different types of products. Dairy ingredients are offering improved flavors and other properties that provide huge health and nutritional advantages. They are also used to give texture and flavor to food and beverages. These are stored in dry and concentrated liquid form. Dairy ingredients provide emulsification, fat retention, viscosity generation, and gel formation. They are considered an important tool for food developers to create desirable properties in food. The dairy ingredients market can be classified by types, such as whey powder ingredients, milk protein isolate and milk protein concentrate, casein and caseinate, lactose, and others. In addition, the market can be subdivided according to bakery and dairy confectionery, processed foods, child nutrition, sports and clinical nutrition and other fields. Product innovation has been fueled by increased demand for dairy products in emerging markets and is expected to promote the use of Dairy Ingredients as a functional component in food sector.
With the increasing consumer knowledge related to healthy lifestyles increasing, the significance of adding more nutrition in food and beverages is expected to have a positive impact on this industry in the next eight years. The increasing consumption of functional protein-fortified foods for vegetarians to supplement their protein needs is expected to have a major impact on the European dairy Ingredients market. Due to the rise in demand for protein supplements, several companies in this industry have launched new products. Dairy ingredients, such as milk powder, are progressively included as a part of really taking the shape of child items, as they offer a low microbiological level, high warm strength, and advanced delayed preparation work in the creation of infant formulae. The level of innovation led by baby food maker Danone in emerging countries is expected to boost demand for powdered milk in the next eight years. The EU is one of the largest dairy markets in terms of consumption. According to the European Whey Processors Association, the region is the number 1 producer of dairy products that produce cheese. The dairy sector, with more than 12,000 milk processing and production facilities across Europe, contributes significantly to the food and beverage sector. Germany and Poland are the biggest shoppers of whey protein in the European Union, and an ever-increasing number of customers incorporate high-protein powders, amino-corrosive items, high-protein beverages, and bars. This is expected to generate market revenue. Furthermore, the region is one of the many dairy exporters in the world.
Increasing consumption of protein-fortified foods to supplement protein needs is expected to have a positive impact on the growth of dairy commodity markets worldwide. The growing demand for dairy ingredients will increase new food launches and divisions, accelerating overall market growth during the forecast period. Health problems arise between people. R&D activation related to innovative solutions using dairy ingredients, Growth in applications such as confectionery and dairy products, and increased urbanization drive market growth. Milk protein concentrate (MPC) has characteristics that are considered a potential alternative to casein and casein components. Furthermore, the demand for Europe Dairy Ingredients is increasing due to its wide application in the food and beverage industry. Furthermore, the increase in sports activity and the high demand for milk protein isolates and their concentrates are the main driving forces in the growth of the European dairy Ingredients market for dairy raw materials during the outlook period. The recent development of advanced technologies such as adsorption chromatography produced components with prebiotic benefits, making them a great opportunity for European dairy Ingredients market growth.
The presence of alternative products like plant protein is foreseen to limit Europe's Dairy Ingredients market growth. Also, the availability of alternative dairy ingredients and lactose intolerance and the appearance of milk allergies interfere with this growth.
Europe is a notable market for dairy ingredients worldwide and accounts for a substantial share of the global market. The demand for dairy ingredients in Europe was found to be 3,439.2 kilotons in 2018. In Germany, France, the UK and Russia, increased spending by sports professionals and workers on nutritional products to strengthen muscle strength is expected to promote the use of milk powder as a functional ingredient. In Germany, the demand for protein as an ingredient has shifted from a variety of foods to the main health and wellness ingredients. This is an important factor driving the market for protein ingredients, as it applies to other end-user industries, especially sports and clinical nutrition, bakery, confectionery and dairy products. The younger generation in Germany showed increased interest in high-quality whey protein ingredients. This eventually increased sales of whey protein isolates and hydrolyzates and has been widely applied to various functional food and beverage products across the country. Cheese is one of the most fragmented categories within packaged foods, and there is a small and large private label line that competes across the country with a variety of local and international cheese varieties. The leading end-user industry in Germany that leads the market with dairy ingredients includes infant nutrition.
FrieslandCampina, Groupe Lactalis, Arla Foods, Saputo, Fonterra Co-operative Group, Dairy Farmers of America, Kerry Group, Ornua, Prolactal, and Valio are a few of the major players in the Europe dairy ingredients market.
This research report on the European dairy ingredients market is segmented and sub-segmented into the following categories.
By Type
By Application
By Form
By Region
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