Fermented Dairy Ingredients Market Size, Share, Growth Report 2030

Fermented Dairy Ingredients Market

Fermented Dairy Ingredients Market By Product Type (Natural Cheese, Flavored Milk, and Yoghurt), By Application (Bakery, Dairy, Snacks, and Others) and By Region - Global and Regional Industry Overview, Market Intelligence, Comprehensive Analysis, Historical Data, and Forecasts 2023 – 2030

Category: Food & Beverage Report Format : PDF Pages: 196 Report Code: ZMR-3609 Published Date: Mar-2023 Status : Published
Market Size in 2022 Market Forecast in 2030 CAGR (in %) Base Year
USD 5.2 Billion USD 9.9 Billion 8.5% 2022

Fermented Dairy Ingredients Market

Industry Prospective:

The global fermented dairy ingredients market size was worth around USD 5.2 Billion in 2022 and is predicted to grow to around USD 9.9 Billion by 2030 with a compound annual growth rate (CAGR) of roughly 8.5% between 2023 and 2030. The report analyzes the global fermented dairy ingredients market’s drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the fermented dairy ingredients market.      

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Fermented Dairy Ingredients Market: Overview

Fermented milk or dairy products, also known as cultured dairy food products, are generally fermented with the help of lactic acid bacteria. This fermentation method increases the shelf life of food products while also improving important aspects such as digestibility, taste, and so on. Cheese is regarded as one of the most important ingredients in a variety of fast foods and bakery items. A wide variety of Lactobacilli strains are thought to be grown or developed in laboratories, allowing for the production of a diverse range of cultured milk products with varying tastes.

Key Insights

  • As per the analysis shared by our research analyst, the global fermented dairy ingredients market is estimated to grow annually at a CAGR of around 8.5% over the forecast period (2023-2030).
  • In terms of revenue, the global fermented dairy ingredients market size was valued at around USD 5.2 billion in 2022 and is projected to reach USD 9.9 billion, by 2030.
  • The growing use of drinkable yogurt, particularly among the young generation, is also significantly driving the expansion of the fermented dairy ingredients market.
  • Based on the product type, the natural cheese segment is expected to dominate the market during the forecast period.
  • Based on the application, the bakery segment accounted for the largest market share in 2022.
  • Based on region, Europe is expected to dominate the market during the forecast period.

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Fermented Dairy Ingredients Market: Growth Drivers

Growing health consciousness among individuals drives the market growth

More and more people, primarily generation Z and millennials, are becoming health-conscious. The willingness of these customers to experience new and different flavors and textures has resulted in a distinct demand for fermented foods and beverages, garnering the beverage the title of 'new social trendsetter'. According to the International Food Information Council's (IFICx) Food and Health Survey 2021, about 72% of Americans attempt to reduce or limit their sugar consumption, and 23% prefer low/no-calorie sweeteners. Another important reason propelling the fermented dairy ingredients market's revenue growth is the rising demand from diabetics to reduce their daily sugar intake.

Fermented Dairy Ingredients Market: Restraints

The lack of a proper storage system hinders the market growth                                      

The Fermented Dairy Components Market is primarily constrained by the storage of dairy products. Milk quickly turns spoiled when stored at room temperature. Manufacturers confront a significant challenge in the need for an appropriate storage method for fermented dairy ingredients to extend their shelf life. Thus, the lack of a proper storage system is expected to hinder the fermented dairy ingredients industry growth over the forecast period.

Fermented Dairy Ingredients Market: Opportunities

Increasing demand for flavored milk provides a lucrative opportunity

One of the key factors propelling the market for fermented dairy ingredients during the anticipated timeframe of 2022–2030 is the rising demand for Flavored Milk, such as Kefir. Kefir is a cultured, fermented liquid with a yogurt-like flavor. Similar to how sourdough bread has a starter, it is prepared using starter grains. This starter is made up of microbes, milk protein, and yeast. It has a creamy, tart taste that is full of probiotic health advantages. In addition, kefir contains a broad range of bioactive substances, such as organic acids and peptides, which add to its health advantages.

Fermented Dairy Ingredients Market: Challenges

Side effects of fermented products pose a major challenge

Individuals can experience a variety of negative impacts from consuming certain restricted amounts of fermented foods and beverages. There could be negative effects for some individuals. Due to their high probiotic content, the most common side effect of fermented foods & beverages is an early and temporary rise in gas and bloating. Thus, acting as a major challenge for the fermented dairy ingredients market growth.

Fermented Dairy Ingredients Market: Segmentation

The global fermented dairy ingredients industry is segmented based on product type, application, and region.

Based on the product type, the global market is bifurcated into natural cheese, flavored milk, and yogurt. The natural cheese segment is expected to dominate the market during the forecast period. The segment growth is owing to its large concentration of riboflavin, zinc, phosphorous, and vitamins A and B-12. The use of cheese in numerous food sectors, including bakery goods, fast food, and as an ingredient in many Italian dishes, is also anticipated to drive growth in the market for fermented dairy ingredients from 2022 to 2030.

Additionally, because sour milk has such high nutritional value, more people are consuming it. In addition, sour cream, also known as crème fraiche, is made by fermenting normal cream with lactic acid. It has a creamy consistency and a distinct sour flavor. On the other hand, the yogurt segment is expected to hold a significant market share during the forecast period. Protein, calcium, vitamins, live cultures, or probiotics, which can improve the gut microbiota, can all be found in high concentrations in yogurt. These may safeguard teeth and bones and guard against digestive issues. On a diet to lose weight, low-fat yogurt can be a helpful supply of protein. Thus, the aforementioned benefits drive market growth.

Based on the application, the global fermented dairy ingredients industry is segmented into bakery, dairy, snacks, and others. The bakery segment accounted for the largest market share in 2022 and is expected to continue the same pattern during the forecast period. This is due to the widespread use of fermented dairy ingredients in baked foods like bread and pastries. Due to their acidity, these components are used to preserve food and are beneficial for gastrointestinal issues. As a result, they are frequently used by bakeries to extend the life of their products. Besides, the dairy segment is growing at the fastest rate over the forecast period. Probiotic bacteria and fermented dairy products decrease cholesterol absorption, which is aided by the consumption of fermented dairy foods.

Dairy products may benefit body mass and body fat, in part because of whey proteins, medium-chain fatty acids, calcium, and other nutrients. Most members of the health-conscious population, particularly members of generation Z and millennials, favor these. Consumer acceptance and subsequent consumption of functional dairy foods are influenced by several additional variables, including consumers' familiarity with innovative products and the functional ingredients used in their formulation, consumers' awareness of the factuality of health effects, and ultimately consumers' sensory evaluation of the developed functional dairy foods. Thus, driving segmental growth.

Recent Developments:

  • In November 2019, Koninklijke CSK Food Enrichment C.V., a provider of specialized dairy solutions, revealed that it has reached an agreement with Royal DSM, a worldwide science-based company in nutrition, health, and sustainable living. Customers are increasingly looking for solution providers with a wide portfolio of offerings and deep expertise to support them in providing distinctive, delectable, and sustainable end products to consumers. Dairy is DSM's single largest segment in food and beverages. These needs will be even better met by the combination of DSM's dairy company and CSK, which will also put it in a good position to take on the rapidly expanding and lucrative dairy cultures markets. By acquiring CSK, DSM will be able to expand its product line, application know-how, and expertise in the food and beverage industry. This will be especially true in the complementary areas of taste, texture, and bio-preservation solutions for semi-hard cheeses like the Gouda and Edam of Dutch ancestry.
  • In April 2020, Yo-Mix Prime cultures have been introduced by DuPont Nutrition & Biosciences (Dupont N&B), which is described as "a new industry standard for yogurt makers." Formulators can anticipate enhanced control over texture, pH level, and stability of yogurt quality throughout distribution channels by utilizing a variety of cultures from the range. Manufacturers can benefit from reduced sugar addiction and formulation expenses in addition to increased processing flexibility. By addressing various issues, the "all-in-one approach," according to DuPont N&B, can speed up yogurt NPD.

Fermented Dairy Ingredients Market Report Scope:

Report Attributes Report Details
Report Name Fermented Dairy Ingredients Market Research Report
Market Size in 2022 USD 5.2 Billion
Market Forecast in 2030 USD 9.9 Billion
Compound Annual Growth Rate CAGR of 8.5%
Number of Pages 196
Forecast Units Value (USD Billion), and Volume (Units)
Key Companies Covered E. I. du Pont de Nemours and Company, Koninklijke DSM, Cargill Incorporated, Chr. Hansen Holding, Novozymes, Kerry, Bioprox, Ingredion Incorporated, Archer Daniels Midland Company, Lake International Technologies, Arla Foods Ingredients Group, CSK Food Enrichment, DairyChem, Epi Ingredients, CP Ingredients, Socius Ingredients, Dairy Connection, The Tatua Cooperative Dairy Company, and Corbion among others.
Segments Covered By Product Type, By Application, And By Region
Regions Covered North America, Europe, Asia Pacific (APAC), Latin America, Middle East and Africa (MEA)
Countries Covered North America: U.S and Canada
Europe: Germany, Italy, Russia, U.K, Spain, France, Rest of Europe
APAC: China, Australia, Japan, India, South Korea, South East Asia, Rest of Asia Pacific
Latin America: Brazil, Argentina, Chile
The Middle East And Africa: South Africa, GCC, Rest of MEA
Base Year 2022
Historical Year 2017 to 2021
Forecast Year 2023 - 2030
Customization Scope Avail customized purchase options to meet your exact research needs. Request For Customization

Fermented Dairy Ingredients Market: Regional Analysis

Europe is expected to dominate the market during the forecast period

The availability of proper food processing facilities, an advanced dairy market, and the ever-increasing demand for nutritional and tasty food are driving the European market for fermented food and ingredients. Yoghurt, a fermented dairy product developed after extensive R&D, is in high demand and has experienced tremendous revenue growth in the market. Fermented cocoa is yet another fermented product used by many European chocolate manufacturers. Moreover, the presence of major players operating in the European fermented dairy ingredients industry drives the market expansion which are DuPont, Lallemand Inc., Cargill Incorporated, Associated British Foods PLC, Ajinomoto Co. Inc., and others.

These companies continuously launch innovative products, which in turn drive market growth in the region. For instance, to help regulate microbial growth, Dupont introduced MicroGARD Fermentates in 2021. These products are made from healthy ingredients like milk, flour, and sugar. Thus, this will support the market growth in the region.

Besides, the Asia Pacific is expected to grow at the highest CAGR over the forecast period. This is a result of flavored milk becoming more and more popular with customers in China and Australia.

Fermented Dairy Ingredients Market: Competitive Analysis

The global fermented dairy ingredients market is dominated by players like:

  • E. I. du Pont de Nemours and Company
  • Koninklijke DSM
  • Cargill Incorporated
  • Chr. Hansen Holding
  • Novozymes
  • Kerry
  • Bioprox
  • Ingredion Incorporated
  • Archer Daniels Midland Company
  • Lake International Technologies
  • Arla Foods Ingredients Group
  • CSK Food Enrichment
  • DairyChem
  • Epi Ingredients
  • CP Ingredients
  • Socius Ingredients
  • Dairy Connection
  • The Tatua Cooperative Dairy Company
  • Corbion among others.

The global fermented dairy ingredients market is segmented as follows:

By Product Type

By Application

  • Bakery
  • Dairy
  • Snacks
  • Others

By Region

  • North America

    • The U.S.
    • Canada
  • Europe
    • France 
    • The UK
    • Spain
    • Germany
    • Italy
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Southeast Asia
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Middle East & Africa
    • GCC
    • South Africa
    • Rest of Middle East & Africa

Table Of Content

Methodology

FrequentlyAsked Questions

Fermented milk or dairy products, also called cultured dairy food products, are generally fermented with the help of lactic acid bacteria. This kind of fermentation method extends the shelf life of food products along with improving the products’ important aspects, such as digestibility, taste, etc.

Increasing demand and popularity for frozen dairy products from the dairy ingredients market are anticipated to result in high investments made in varied dairy items, such as yogurt, fermented, and fresh cheese. This is also likely to contribute to the growing focus of the key players in the fermented dairy ingredients market to develop their production capacity. In addition, competition, particularly in sweeteners, is likely to experience a steady rise in the upcoming years.

According to the report, the global market size was worth around USD 5.2 billion in 2022 and is predicted to grow to around USD 9.9 billion by 2030.

The global fermented dairy ingredients market is expected to grow at a CAGR of 8.5% during the forecast period.

The global fermented dairy ingredients market growth is expected to be driven by Europe. It is currently the world’s highest revenue-generating market owing to the availability of proper food processing facilities, and an advanced dairy market.

The global fermented dairy ingredients market is dominated by players like E. I. du Pont de Nemours and Company, Koninklijke DSM, Cargill Incorporated, Chr. Hansen Holding, Novozymes, Kerry, Bioprox, Ingredion Incorporated, Archer Daniels Midland Company, Lake International Technologies, Arla Foods Ingredients Group, CSK Food Enrichment, DairyChem, Epi Ingredients, CP Ingredients, Socius Ingredients, Dairy Connection, The Tatua Cooperative Dairy Company, and Corbion among others.

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