Dairy Derivatives Market 2024 – Market Size & Segments Analysis, Industry Trends, Manufacturers Analysis, Opportunities and Forecast 2030

The global market value of the dairy derivatives market was valued at USD 42.2 billion in 2022, and a CAGR of 4.2% is expected during the forecast period. Dairy derivatives are products derived from milk, like cheese, yogurt, and butter. These are widely used in cooking and manufacturing bakery products. Increasing demand for bakery products all over the world is driving growth in the market significantly.

Increasing health awareness and rising disposable income, along with increasing urbanization, growing population, innovation, product developments, and health benefits, along with changing dietary preferences, are driving significant growth in the market.

Growth Drivers

Increasing disposable income and rising consumer willingness to have ready-to-eat food are driving growth in the market. The growing population all over the world is driving growth in the market. Dairy products are widely used at home and almost in all parties and marriages. With people becoming more health-conscious, the demand for bakery products has increased. Urbanization has led to busier lifestyles. Increasing demand for ready-to-eat dairy products is driving growth in the market.

The increasing number of food outlets and eateries is driving growth in the market. Expanding global populations in emerging economies like China and India are experiencing significant growth in the market. Increased awareness of the health benefits of these products is driving significant growth in the market. Shifts in dietary preferences towards vegetarian diets lead to higher consumption of dairy derivatives. The availability of dairy derivatives through various retail channels, such as super markets and hypermarkets, convenience stores, and online platforms, boosts accessibility and drives market growth significantly.

Retail stores are the leading segment in the market and are expected to grow significantly during the forecast period. The increasing number of newly opened confectioneries and bakeries is driving growth in the market. The Middle East, Africa, and Latin America are also witnessing moderate growth during the forecast period due to increasing demand for cheese and butter. Bakery products are in high demand for all types of functions and marriages.

Segmentation

Product Type

·         Milk (Fluid and Powdered)

·         Yogurt

·         Cheese

·         Ice-Cream

·         Butter

·         Other Dairy Products

Distribution Channel

·         Super Markets/ Hyper Markets

·         Convenience Stores

·         Retail Stores

·         Online Stores

Consumer Preference

·         Organic

·         Consumer Free

·         Lactose Free Products

Regional Outlook

·         Asia Pacific

·         North America

·         Latin America

·         Europe

·         Middle East and Africa

Dairy Derivatives Market Product Type Segmentation

On the basis of the products, the dairy derivatives market is segmented into milk, yogurt, cheese, ice cream, butter, and other dairy products. Milk is the leading segment, and it is expected to dominate the market during the forecast period. European consumers are also showing interest in lactose-free and plant-based products. Increasing diversity, quality, and responsiveness are driving growth in the market. Rising disposable income and increasing awareness about the benefits of using dairy products are driving growth in the global market.

Increasing demand for cheese and butter is the key factor behind the significant growth in the market. Ice cream and butter are the most demanding products on the market. Cheese and butter are the significant dairy derivatives that are used in most parties and birthdays. Increasing disposable income and rising expenditure on dairy derivatives are driving significant growth in the market.

Dairy Derivatives Market Distribution Channel Segmentation

On the basis of the distribution market, the dairy derivatives product is segmented into supermarkets, hypermarkets, convenience stores, retail stores, and online stores. Retail stores are the leading segment and are expected to dominate the market during the forecast period. These outlets offer a wide range of dairy products and derivatives, providing consumers with convenience and accessibility. Online stores are also a leading segment due to the increasing growth in e-commerce. The wide adaptability of these products is driving growth in the market significantly. Increasing demand for butter is driving growth in the market significantly. The convenience and one-stop shopping experience provided by supermarkets, hypermarkets, and retail stores make them a preferred choice in the market.

Regional Outlook

On the basis of the regions, the dairy derivatives market is segmented into 5 parts: Asia Pacific, North America, Latin America, Europe, and the Middle East and Africa. North America is the leading segment and is expected to dominate the market during the forecast period due to a well-established dairy industry with advanced technology and infrastructure for processing and manufacturing dairy products efficiently. Increasing demand for dairy products is due to a large consumer base with a strong preference for dairy products like cheese, butter, and yogurt.

Innovative product development and marketing strategies contribute to the growth of the dairy derivative market. Favorable government policies and regulations support the dairy industry’s growth, ensuring quality standards and food safety. Due to the rapidly increasing population, rising disposable income, and increasing demand for dairy products in marriage ceremonies, all of this of this is driving growth in the market. The shift towards more westernized diets is driving growth in the region significantly.

Rising awareness of the health benefits associated with dairy derivatives, such as protein-rich supplements, is driving demand in the region. Advancements in technology and improvements in infrastructure are driving growth in the market. Dairy industries in countries like India, China, and New Zealand are experiencing significant growth in the market. The European market for dairy derivatives is robust and diverse. Cheese is one of the most prominent dairy derivatives in Europe. Butter and butter-based derivatives are significant cuisines in the food processing industries in the United Kingdom, Russia, Germany, France, and Italy.

European butter is renowned for its quality, and it is used in various applications, from baking to cooking. This includes products made of soy, almonds, oats, and other plant sources. European consumers are also showing interest in lactose-free and plant-based dairy alternatives, driving innovation in these segments of the market. Diversity, quality, and responsiveness to consumers are the key factors driving growth in the European market. Increasing disposable income and population growth are the key factors behind the significant growth in the market.

Key Players

·         Nestle

·         Danone

·         Amul

·         Dean Foods

·         Sapito

·         Yili Group

·         Tyson Foods

·         Arla Foods

·         Mengniu Dairy

·         Other Players