Dairy Blends Market Size and Share Analysis - Growth Trends and Forecast Report 2024-2032

Dairy Blends Industry Overview

Products that are made by mixing different dairy ingredients to achieve particular compositional and functional qualities are referred to as dairy blends. Usually, a combination of dairy ingredients like whey powder, milk powder, butterfat, or nonfat dry milk is used in these blends. Dairy blends are designed to give a flexible ingredient that can be used in a variety of culinary applications. Dairy blends are frequently used in baked goods, ice creams, confections, sauces, and processed cheeses. They improve the nutritional profile of various food products while enhancing their mouthfeel, texture, and flavor. These mixes can have their fat content, viscosity, or stability changed to suit particular needs. Dairy blends are also useful ingredients in the food business because they are adaptable, have a longer shelf life, are less expensive than individual dairy ingredients, and can improve the sensory qualities of food.

The market for dairy blends is mostly driven by consumers' growing need for more nutrient-dense and healthful food options. Furthermore, the market is expanding as a result of customers' growing demand for dairy blends, which provide a balance between usefulness and nutritional content. It also provides a substitute for conventional dairy products for those who are allergic to milk or have lactose intolerances, which is driving the market's expansion.

The market for dairy blends has also been driven by the rising acceptance of ready-to-eat (RTE) meals and convenience foods. These products' ability to improve the flavor, texture, and shelf life of other processed foods is a significant growth driver. Dairy blends' adaptability in areas like baking, confections, drinks, and snacks has also helped to fuel the expansion of their industry. In addition, dairy blends are a more affordable alternative to pure dairy products, which has drawn manufacturers to them and resulted in their extensive use in the food sector.

The International Trade Administration (ITA) estimates that the Chinese food and beverage industry grew by 7.8% in 2019 compared to 2018 and is predicted to rise by 16% in 2021. The steady demand for dairy blends was bolstered by the food and beverage industry as well as the ongoing need for baby solutions.

Growth Drivers of Dairy Blends Market

Functional and Healthier Dairy Products on the Rise: Consumers are on the lookout for dairy alternatives with higher nutritional content, and thereby, demand is increasing for dairy blends. A dairy blend involves combining dairy ingredients with vegetable oils, proteins, and other additives to create healthier, lower-fat alternatives to dairy products. With increasing awareness regarding cholesterol management and lactose intolerance, dairy blends are an ideal substitute for full-fat dairy products. The increased demand for functional foods and protein-enriched dairy alternatives has further boosted the growth of the global market. In October 2024, Edenesque is expanding its plant-based milk line with three new products: unsweetened, barista blend oat, and pistachio milk.

Cost-Effectiveness and Extended Shelf Life

Dairy blends offer a cost-effective alternative to pure dairy ingredients, making them attractive to manufacturers. Blending dairy with vegetable fats and emulsifiers reduces costs while maintaining taste and texture. Additionally, dairy blends have a longer shelf life than traditional dairy products, making them more convenient for manufacturers and retailers. The key driver for the increasing adoption of dairy blends in various food applications is improving product stability, reducing spoilage, and minimizing refrigeration requirements. In September 2024, Purabi launched a new range of long-shelf-life flavored milk, expanding its brand geographically. This product is made at the newly inaugurated Purabi Dairy facility in Panjabari, developed under the World Bank-funded APART project of the Assam government.

Growing Applications in the Food Industry

Dairy blends are used in high volumes in bakery, confectionery, and ready-to-eat meals and thus fueling the market. They are applied to enhance the texture, flavor, and consistency of food, making them the first choice of food manufacturers. Moreover, dairy blends are being increasingly used in infant nutrition, ice cream, and dairy beverages. The potential to customize the blends with proteins, probiotics, and plant-based ingredients based on specific dietary needs further enhances their adoption. Food manufacturers continually look for novel formulations. March 2024 saw Kerry Dairy introduce the product line called Smug Dairy that contains blends of dairy and oat, comprising substitutes for cheddar cheese, different butter, and a hybrid of milk.

Challenges Confronting Dairy Blends

Dairy ingredient prices continue fluctuating

This industry is sensitive to the volatility in milk and dairy ingredient prices that is associated with climate conditions, supply chain breaks, and variations in global demand. This can make it very challenging for producers to have consistent cost-effective manufacturing and pricing structures. The break in supply chain can also mean inconsistent product quality, affecting the reliability of the dairy blend used by food manufacturers.

Regulatory and Labeling Challenges

Strict food safety regulations and labeling requirements are among the challenges to dairy blend manufacturers. Most of the regions impose strict rules in terms of the dairy alternatives to be sold with clear labeling in order to avoid confusion between the pure dairy product and the blend. International standard compliance increases production costs and reduces market entry points for new entrants. Scepticism over artificial additives, and the feeling that blended products are of low quality, further slows down growth in the market.

Dairy Mixtures Blends Market

The dairy mixtures blends market is expanding because of the increasing demand for cost-effective and versatile dairy ingredients. These blends combine milk, butter, cream, and non-dairy components to create functional and flavorful solutions for food manufacturers. Dairy mixtures are widely used in bakery, confectionery, and processed food applications to enhance texture and taste. Their extended shelf life and ability to maintain consistency in food production make them a preferred choice. Additionally, increasing consumer demand for nutritious and protein-rich dairy alternatives drives market expansion. However, fluctuating raw material prices and regulatory constraints impact market growth.

Bakery Dairy Blends Market

The bakery dairy blends market is expanding as manufacturers seek high-quality, cost-efficient alternatives to traditional dairy ingredients. These dairy and non-dairy blends enhance the texture, flavor, and moisture retention in bakery products, such as bread, cakes, and pastries. Bakery dairy blends, when combining dairy and non-dairy components, give functional benefits of increased shelf life and stability. Increasing consumer demand for clean-label and healthier bakery products is the main driver in the market. Furthermore, lactose-free and plant-based product innovations are the reason for growth in the industry. However, supply chain disruptions and dairy ingredients price volatility remain a hurdle for market participants.

Dairy Blends Powder Market

This dairy blends powder market is rapidly growing due to its versatility, with wide application in food processing, confectionery, and infant nutrition. The dairy blend powders are made from the formulation of milk powder, whey protein, and other dairy or non-dairy ingredients with an aim at improving flavor, texture, and nutritional value. These powders provide cost advantages over pure dairy products while retaining the critical functionalities of dairy. Increasing demand for high-protein, shelf-stable ingredients is driving further market growth. Moreover, growing awareness of functional dairy ingredients in health and wellness products is increasing demand. However, regulatory hurdles and fluctuating raw material costs are major challenges.

North America Dairy Blends Industry

Food products that are readily consumable and convenient are highly preferred by customers in North America. Dairy blends satisfy consumer need for simple-to-use ingredients in baking, cooking, and beverage preparation. They are offered in a variety of forms, including powders, spreads, and liquid concentrates. In North America, there is also a growing desire for healthier alternatives to traditional dairy products due to rising health and wellness consciousness. When compared to pure dairy products, dairy blends provide lower-fat and lower-calorie options, which appeals to consumers who are health-conscious and looking for wholesome substitutes.

Furthermore, North American food processing technologies have matured to the point where novel dairy blend compositions with enhanced sensory qualities and longer shelf lives can be created. The dominance of North American dairy blend makers in the market is partly attributed to their constant innovation in formulation techniques and ingredient sources.

Above all, the dairy business in North America is well-established, with dairy farms, processing plants, and distribution systems. The manufacturing, processing, and distribution of dairy blends are supported by a strong infrastructure, which ensures effective supply chain management (SCM) and market penetration.

United States Dairy Blends Market

The U.S. dairy blend market is steadily growing as a result of its increased application in food service and retail. Restaurants, bakeries, and packaged food manufacturers have taken up the dairy blends for product quality and to cut down costs. Further, there is a rising demand from health-conscious consumers for organic and plant-based dairy blends. Growing demand for protein-rich dairy alternatives in the U.S. market is anticipated to drive demand for customized dairy blends in food applications. March 2024, Kraft Natural Cheese introduced Kraft Signature Shreds, a new thick-cut, natural shredded cheese designed to elevate homemade meals with a rich flavor and excellent melt, perfect for cheesy dishes.

Germany Dairy Blends Market

Germany's dairy blend market continues to grow, as consumers are looking for functional and fortified dairy products. Added vitamins, minerals, and probiotics in dairy blends are on high demand, especially in the form of dairy beverages and yogurts. The country's strong dairy industry also fuels innovation in hybrid dairy blends that combine traditional dairy with plant-based ingredients. Germany stands out in developing and commercializing high-quality dairy blends for the European and global markets, with a well-established food processing sector. Feb 2023: Evonik is launching PhytriCare IM, a new plant-based product that keeps sows, laying hens, and dairy cows healthy. It is filled with selected plant extracts rich in flavonoids, which help trigger anti-inflammatory effects. The product is now approved across the EU and approvals in other countries are under way.

China Dairy Blends Market

Dairy blend market in China is anticipated to grow due to increased consumption and demand for premium dairy alternatives. Urbanization, higher incomes, and dietary habits change have brought a higher propensity of consumers towards dairy-based products, including dairy blends. Infants nutrition is another prominent driver of the country. Formulations in baby food are also very significant through dairy blends. Moreover, global dairy brands have also spread across China that enhance the need for quality dairy blends in food production. In June 2023, Yili Group and the Hangzhou Asian Games Organizing Committee held a press conference by the Qiantang River to announce Yili as the exclusive supplier of official dairy products for the upcoming Hangzhou Asian Games.

Brazil Dairy Blends Market

The Brazil dairy blend market is growing with the increasing demand for dairy-based beverages and snacks. Consumers seek affordable and nutritious dairy alternatives, leading to greater adoption of dairy blends in flavored milk, yogurts, and processed cheese. The Brazilian food industry also incorporates dairy blends to develop cost-effective formulations while maintaining product quality. With growing health awareness, dairy blends enriched with proteins and vitamins are becoming popular among consumers seeking functional dairy options. June 2024 – Specialitá and Selecta, brands of Duas Rodas, are launching new products that invite creative edible ice cream creations, aiming to enhance sensory experiences for consumers next season.

Saudi Arabia Dairy Blends Market

Saudi Arabia's dairy blend market is expanding as consumers seek healthier and lactose-free alternatives to traditional dairy products. The country’s harsh climate limits dairy production, increasing reliance on dairy imports and blended dairy products. Dairy blends are more affordable and predictable than pure dairy ingredients. Thus, they account for a larger share of bakery, confectionery, and dairy beverage sectors. As Saudi Arabia is developing its food industry, demand for high-quality and functional dairy blends will increase in the future. May 2022, SADAFCO has launched SAUDIA Oat Milk, the first locally produced oat-based milk in the Kingdom. Such increasing health-conscious consumer populations, along with the proliferation of plant-based beverages, among 18-to-30-year-old Saudi Arabian consumers, means healthy milk substitutes.

Dairy Blends Company News

In March 2024, Leading player in the UK dairy market Kerry Dairy has introduced Smug Dairy, a cutting-edge hybrid brand that combines traditional dairy with oats. This innovative action is a first-of-its-kind attempt in the UK market. The new line, which is expected to launch in the spring, will be available at Sainsbury's, Tesco, Morrison's, and The Co-op, among other large supermarket chains. With its six different products, the line promises consumers a distinctive culinary experience. These products include two types of butter, three creative cheddar cheese alternatives, and a unique hybrid milk.

In July 2022, in response to the increased demand from parents for feeding options that are compatible with vegetarian, flexitarian, and plant-based diets without sacrificing their baby's nutritional needs, Danone has released the newest product to its lineup: the Dairy & Plants Blend infant formula. This innovative recipe is the first created specifically with a vegetarian diet in mind. As the leading infant blended formula, it marks a noteworthy achievement because soy provides more than half of the necessary protein amount.

In January 2022, four new cultures will be available globally as part of IFF (International Flavors & Fragrances) Inc.'s YO-MIX PRIME line, which is designed specifically for yoghurt makers. Together with the current YO-MIX PRIME 800 and 900, these newest improvements help dairy producers get over major production obstacles. These cultures enable producers to broaden their range of goods and provide consumers with an extensive selection of dairy products of the highest caliber.

Dairy Blends Market Segments

Types- Industry is divided into 5 viewpoints:

1. Dairy Mixtures
2. Dairy/Nondairy ingredient
3. Dairy as Functional
4. Dairy as Carrier
5. Others

Application- Industry is divided into 4 viewpoints:

1. Bakery
2. Ice-cream
3. Infant Formula
4. Others

Products- Industry is divided into 3 viewpoints:

1. Powder
2. Spreadable
3. Liquid

Countries: Industry is divided into 25 Countries

North America

1. United States
2. Canada

Europe

1. France
2. Germany
3. Italy
4. Spain
5. United Kingdom
6. Belgium
7. Netherlands
8. Turkey

Asia Pacific

1. China
2. Japan
3. India
4. Australia
5. South Korea
6. Thailand
7. Malaysia
8. Indonesia
9. New Zealand

Latin America

1. Brazil
2. Mexico
3. Argentina

Middle East & Africa

1. South Africa
2. Saudi Arabia
3. UAE

All companies have been covered with 5 Viewpoints

• Overviews
• Key Person
• Recent Developments & Strategies
• Product Portfolio & Product Launch in Last 1 Year
• Revenue

Company Analysis

1. Cargill Foods
2. Kerry Foods
3. Archer Daniels Midland
4. Tate & Lyle
5. Aak AB
6. Dana Foods Inc.
7. Royal FrieslandCampina N.V.
8. Galloway Company