Dairy Ingredients Market Size Forecast To Hit USD 77B By 2030, Says Mordor Intelligence

(MENAFN- GlobeNewsWire - Nasdaq) Dairy ingredients market growth is driven by protein demand, functional foods, and premium nutrition, with sustainability and precision fermentation boosting innovation.

Hyderabad, India, Sept. 12, 2025 (GLOBE NEWSWIRE) -- The dairy ingredients market size is worth USD 65 billion in 2025 and is projected to surpass nearly USD 77 billion by 2030 , growing at a CAGR of 3.41%. Mordor Intelligence's recent research highlights how consumer lifestyles, advancements in fermentation, and efficient processing technologies are shaping the future of the dairy ingredients industry. Applications in sports nutrition, infant formula, and functional foods are creating new opportunities, while sustainability and clean-label preferences continue to influence product development.

Key Trends Driving Dairy Ingredients Market Expansion

Protein-Centric Consumption - Growing consumer preference for protein-enriched diets is pushing dairy proteins such as whey and casein into mainstream food and beverage categories. High-protein snacks, fortified cereals, and ready-to-drink shakes are gaining traction, particularly among Millennials and Gen Z.

Sports Nutrition Momentum - The global sports nutrition market is estimated at USD 33.33 billion in 2025 and is expected to expand to USD 49.63 billion by 2030, registering a CAGR of 8.29% over the forecast period. Sports nutrition is recording rapid growth, with dairy proteins at the core of powders, bars, and beverages. Strategic moves like Arla Foods Ingredients' acquisition of Volac's whey nutrition business highlight confidence in the segment's long-term potential.

Infant Formula Advancements - The infant nutrition market is valued at USD 101.70 billion in 2025 and is projected to grow to USD 144.71 billion by 2030, registering a CAGR of 7.31% during the forecast period. The infant formula is evolving with premium whey protein hydrolysates designed to reduce allergenicity and meet regulatory quality standards. Asia, especially China, is driving growth with rising demand for premium infant nutrition.

Functional Foods and Wellness - Functional food and beverage products are increasingly incorporating dairy bioactives, probiotics, and fermented ingredients to support immune and digestive health. Clean-label reformulation is reinforcing consumer trust in natural dairy-based products.

Addressing Intolerance and Alternatives - Lactose intolerance and dairy allergies are fueling demand for lactose-free dairy and precision fermentation technologies. At the same time, competition from plant-based alternatives is driving hybrid product innovation that balances nutrition with sustainability.

Insights on Dairy Ingredients Market Segments

By Product Type

• Milk powders dominate the market with broad applications across food security programs and nutrition fortification.

• Whey proteins are experiencing robust demand in sports nutrition and functional foods.

• Milk protein concentrates and isolates are gaining attention for their role in clean-label formulations.

By Nature

• Conventional dairy ingredients hold the largest share due to established supply chains.

• Organic dairy ingredients are recording the fastest growth, supported by consumer willingness to pay premiums for health and sustainability benefits.

By Livestock Origin

• Cow-based ingredients remain dominant.

• Goat-derived proteins are expanding due to their digestibility advantages.

By Application

• Bakery and confectionery lead with widespread usage for texture and flavor.

• Sports nutrition is the fastest-growing category, driven by high consumer demand for protein supplements.

Regional Insights and Market Dynamics

Europe: Premium Quality and Strong Export Position

Europe dairy ingredients market dominates, globally, with a projected growth rate (CAGR) of 4.42%, supported by advanced processing facilities, stringent regulatory frameworks, and robust consumer demand for premium dairy products. Skimmed milk powder continues to play a central role, with high acceptance in both domestic and export markets due to its nutritional density and shelf stability. European manufacturers are also investing in sustainability initiatives, reducing carbon footprints across dairy supply chains while enhancing efficiency. Rising demand for clean-label and organic dairy products further reinforces Europe's leadership in shaping quality standards and product innovation.

North America: Innovation and Functional Nutrition on the Rise

The North America dairy ingredients market is valued at USD 15.91 billion in 2025 and is anticipated to reach USD 17.86 billion by 2030, expanding at a CAGR of 2.33%. The market is characterized by high demand for whey proteins, milk powders, and a growing variety of organic dairy products. In the North America dairy ingredients market , rising consumer preference for lactose-free and low-sugar options is driving reformulation initiatives among manufacturers. The region is also witnessing strong growth in functional nutrition, with dairy ingredients increasingly incorporated into ready-to-drink beverages, fortified snacks, and clinical nutrition solutions. Continuous investment in research and technology positions North America as a leader in global dairy innovation, while robust distribution networks support consistent market accessibility.

Middle East & Africa: Infrastructure Investments Supporting Growth

The Middle East and Africa dairy ingredients market is set to expand at a promising CAGR of 4.7%, fueled by rapid urbanization and higher disposable incomes that are shifting consumer demand toward protein-rich diets. Government and private investments in advanced dairy processing infrastructure are accelerating the use of milk powders and whey-based ingredients across the food and beverage industry. With consumers increasingly seeking affordable, nutritious, and longer shelf-life products, milk powder imports are on the rise, while local producers are scaling up with cutting-edge technologies. The growth momentum is further amplified by expanding retail penetration, especially through supermarkets and modern trade networks, creating new opportunities for the dairy industry across the region.

Cheese Ingredients: Expanding Role in Global Dairy

The segment is becoming a dynamic contributor to the global dairy industry, particularly in Europe and the Asia-Pacific. The cheese ingredients market growth is being fueled by rising consumer demand for diverse cheese varieties and innovations in enzyme applications that enhance texture, taste, and nutritional value. Fermentation technologies are expanding their applications further, opening opportunities in functional and specialty cheeses. As consumers increasingly favor premium and value-added dairy products, the segment is expected to remain a key driver of growth within the broader dairy ingredients market.

Dairy Ingredients Market Key Players

• Arla Foods amba

• Fonterra Co-Operative Group Limited

• Saputo Inc.

• Groupe Lactalis

• Royal Friesland Campina N.V.

Check out related reports published by Mordor Intelligence:

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Concentrated Milk Fat Market - The Concentrated Milk Fat Market Report is Segmented by Category (Conventional, Organic), Form (Dry, Liquid), Product Type (Anhydrous Milk Fat, Butteroil, and More), Application (Bakery and Confectionery, Dairy Products, Infant Nutrition and Formula, Nutraceuticals and Functional Foods, and More), and Geography (North America, Europe, Asia-Pacific, South America, and More).

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About Mordor Intelligence:

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• Dairy Ingredients Market GNW

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