GLOBAL – The global milk and cream manufacturing industry is on a strong upward trajectory, with projections indicating a market valuation of US$923.95 billion in 2024, and a compound annual growth rate (CAGR) of 5.2% through 2034, according to a new report from Fact.MR, a market research and competitive intelligence provider.
This robust growth is attributed to the increasing versatility of milk and cream products, which are gaining demand not only in traditional dairy sectors but also in biotechnology, cosmetics, and pharmaceuticals.
As reported by Fact.MR, the global demand for dairy products is being further driven by evolving consumer preferences, particularly in emerging markets.
Dairy consumption is increasingly linked to consumer wellness trends, which has led to a surge in demand for protein-enriched products, functional beverages, and sports nutrition items.
Producers are responding by innovating with dairy ingredients that go beyond conventional uses, incorporating vitamins, probiotics, and proteins to meet the nutritional needs of a diverse consumer base.
The food sector continues to be the dominant force in dairy consumption, with manufacturers increasingly leveraging advanced processing techniques to tailor products for specific industrial needs.
This, alongside technological advancements in dairy production, has allowed producers to customize ingredients to cater to specialized dietary requirements, including lactose-free and plant-based alternatives.
The latter has seen particular success with the growing popularity of plant-based milk powders, which is expected to grow at a CAGR of 7.7% between 2024 and 2034, reflecting the rising shift towards alternative proteins.
While traditional dairy remains a staple, the plant-based milk market, including alternatives like almond, soy, and oat milk, is capturing significant consumer interest.
The market for milk protein concentrates (MPC), which has applications in both conventional dairy products and plant-based innovations, is also experiencing growth, projected to reach US$7.64 billion by 2034.
Leading dairy players are responding to these shifts with strategic investments in sustainability and marketing.
Brands are emphasizing ethical sourcing practices and environmentally friendly packaging, while also aligning their products with health-focused trends.
This includes the introduction of organic and customized dairy options, catering to an increasing demand for clean, natural ingredients.
The use of digital platforms for targeted marketing campaigns has further fueled market expansion, with social media and influencer collaborations enhancing brand visibility and appealing to health-conscious consumers.
Notably, markets in high-growth regions such as East Asia are seeing significant gains, with projections indicating a CAGR of 5.3% through 2034.
Japan and South Korea are expected to continue their steady growth, with dairy consumption expanding due to a combination of cultural shifts and enhanced accessibility to dairy products.
In addition to dairy, the global dairy substitutes market, particularly breast milk alternatives, is seeing substantial growth, anticipated to reach US$45.1 billion by 2032.
The continued expansion of the milk and cream manufacturing market underscores the sector’s adaptability and the critical role it plays in global nutrition and wellness.
As businesses invest in innovation and sustainability, the dairy industry is well-positioned to thrive amidst evolving consumer preferences for both traditional and alternative protein sources.
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