The dairy ingredients market was valued at US$ 85,684.15 million in 2021 and is projected to reach US$ 105,295.16 million by 2028. It is expected to grow at a CAGR of 3.0% from 2021 to 2028.

Dairy ingredients are obtained from milk. Milk undergoes different processes to produce dairy ingredients. Generally, dairy ingredients include milk powder, proteins, milk fat concentrates, and lactose and its derivatives. Dairy ingredients enhance the nutritional profile of food and beverages. They are the most affordable and readily available forms of protein.

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They are used for the fortification of food and beverages. Owing to their high nutritional benefits, they are used in baby foods, sports nutrition products, and dietary supplements.

Based on the product type, the dairy ingredients market is segmented into milk powder, protein, milk fat concentrates, lactose & lactose derivatives, and others. The protein segment is expected to register a significant growth rate during the forecast period. The major proteins in milk are casein and whey protein. In bovine milk, casein constitutes about 80% of the total protein (29.5 g/L), whereas whey protein constitutes around 20% (6.3 g/L). Milk proteins are extensively used in protein supplements, baby nutrition products, and sports nutrition products. They are also used in functional food and beverages for protein fortifications. Milk proteins are a readily available and affordable form of animal protein. They are one of the significant sources of essential amino acids that help in enhancing muscle strength. The growing importance of dairy proteins amongst fitness enthusiasts, bodybuilders, and sportspersons is further expected to drive the segment's growth over the forecast period.

Moreover, the availability of an abundance of raw materials, cheap labor and manufacturing facilities, and a potential customer base are some of the key factors offering lucrative growth opportunities to the manufacturers of dairy ingredients to expand their operations across Asia-Pacific market. 

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A few players operating in the dairy ingredients market are FrieslandCampina, Fonterra Co-operative Group Limited, Arla Foods Ingredients Group P/S, Lactalis Ingredients, AGROPUR, Saputo Inc., Kerry Group, AMCO Proteins, PROLACTAL, and Glanbia Ireland among few others.

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