Dairy Nutritional and Nutraceutical Ingredients Market – Technological Breakthroughs, Value Chain and Stakeholder Analysis by 2024

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New York, NY — 11/09/2017 — Dairy proteins are isolated from skim milk using milk protein concentrates and membrane filtration. Dairy protein milk fractions are enriched in bound calcium and comprise both casein and whey protein in the same ratio as milk. Dairy proteins are used as ingredients for manufacturing products such as yogurt and cheese, dietetic formulations, ice cream, energy bars and cereal, desserts, infant formulae toppings, low-fat spreads, baked goods, geriatric nutritional products, and sports beverages & foods.

Dairy proteins are segmented as whey protein and casein protein. Further, whey protein is a combination of globular proteins which is derived from whey, the liquid material that is formed as a by-product of cheese production. Dairy protein is used in a wide array of applications in the food industry, cosmetics industry, bakery and confectionaries, and many other non-food applications.

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Global sales of dairy nutritional and nutraceutical ingredients was valued at US$ 12.2 Bn in 2015 and is projected to be valued at US$ 24.5 Bn by 2024. Sales revenue is expected to register a CAGR of 8.1% during the forecast period (2016–2024).

Market dynamics

Factors such as potential health benefits of dairy nutritional and nutraceutical ingredients, high demand for milk-based ingredients in skin and hair care cosmetics, and easy availability of caseins and caseinate is driving the global dairy nutritional and nutraceutical market. Moreover, demand for dairy nutrition and nutraceutical ingredients from the food processing sector is developing steadily and can be attributed to the several health benefits related with dairy nutritional and nutraceutical ingredients consumption. Health benefits such as lower risk of cardiovascular disease, lower cholesterol levels, improved digestive health, and healthy bone growth are increasing the popularity of dairy nutritional and nutraceutical ingredients. Developing consumer inclination towards a healthy lifestyle is further boosting the growth of the global dairy nutritional and nutraceutical ingredients market.

There is a lack of advertisement and awareness about the benefits of colostrum products across the world that form a segment of dairy nutritional and nutraceutical ingredients. Besides, the colostrum products market is highly competitive owing to the presence of a relatively high number of global and local colostrum manufacturers. Also, persons who are lactose intolerant are unable to consume bovine colostrum products leading to loss of revenue for colostrum manufacturers. One of the biggest restraining factors for the global dairy nutritional and nutraceutical ingredients market is the fluctuating supply. The steady rise in prices has prompted some customers to switch to alternative proteins that are less expensive. This adversely affects the growth of the global dairy nutritional and nutraceutical ingredients market.

Segment analysis

The dairy protein segment is expected to be valued at US$ 19.89 Bn by 2024 and is projected to register a CAGR of 8.1% over the forecast period. In terms of ingredients, dairy protein is segmented into whey protein and casein protein. Whey protein is the most demanding ingredient type in the diary protein segment across the globe. The market is driven by the demand for dairy protein ingredients in the food and beverages industry, cosmetic industry, bakery, and personal care. The diary protein segment is estimated to account for a significantly high value share of 81.4% by 2016 end. The colostrum segment is estimated to account for a revenue share of 10.9% in the global dairy nutritional and nutraceutical ingredients market by 2016 end and is expected to register a CAGR of 8.3% over the forecast period. The prebiotics segment revenue is projected to register Y-o-Y growth rates ranging from 6.2% to 8.3% over 2016–2024. This segment is expected to register a CAGR of 7.6% over the forecast period.

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The infant formula & clinical nutrition segment is estimated to account for a significantly high value share of 22.8% by 2016 end. The functional food segment is estimated to account for a revenue share of 43.9% in the global dairy nutritional and nutraceutical ingredients market by 2016 end and is expected to register a CAGR of 7.8% over the forecast period.

Regional analysis

On the basis of region, North America region is projected to remain dominant throughout the forecast period. Increasing consumption of dairy protein ingredients by functional food, infant formula & clinical nutrition, dairy products, bakery & confectionaries, and personal care and presence of top leading players of dairy protein manufacturers in North America are expected to play an important role in revenue growth of the dairy protein ingredients segment in the North America market. The dairy protein ingredients segment is estimated to witness robust growth in Europe and APAC driven by increasing usage of dairy protein ingredients in the dietary supplement market in the region, as why protein is an essential ingredient for dietary supplements.

Key market players

Some of the key players identified in the global dairy nutritional and nutraceutical ingredients market include Fonterra Co-operative Group Ltd., Koninklijke DSM N.V., Proliant Inc., Arla Foods amba, E.I. DuPont De Nemours and Co., Cargill Inc., APS Biogroup, Groupe Lactalis S.A., Nestlé SA, and Danone SA.

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Brad Bennett

Brad Bennett

Brad grew up in a small town in northern Iowa. He studied chemistry in college, graduated, and married his wife one month later. They were then blessed with two baby boys within the first four years of marriage. Having babies gave their family a desire to return to the old paths – to nourish their family with traditional, homegrown foods; rid their home of toxic chemicals and petroleum products; and give their boys a chance to know a simple, sustainable way of life. They are currently building a homestead from scratch on two little acres in central Texas. There’s a lot to be done to become somewhat self-sufficient, but they are debt-free and get to spend their days living this simple, good life together with their five young children.
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