How large is the modified milk ingredients market, and what is its growth trajectory?
The modified milk ingredients market size has grown strongly in recent years. It will grow from $116.49 billion in 2024 to $126.03 billion in 2025 at a compound annual growth rate (CAGR) of 8.2%. The growth in the historic period can be attributed to increased demand for organic dairy products, rising milk solids production, increased health consciousness and fitness freaks, increasing demand for health-promoting products, increased exports of modified milk ingredients.
The modified milk ingredients market size is expected to see strong growth in the next few years. It will grow to $170.48 billion in 2029 at a compound annual growth rate (CAGR) of 7.8%. The growth in the forecast period can be attributed to rising popularity of flavoured beverages, rising demand for functional foods and drinks and protein supplements, increasing use of milk ingredients, increasing use of milk ingredients, increasing demand for health-promoting products. Major trends in the forecast period include innovations, technological advancements, new technologies to manufacture milk ingredients, flavor innovations, technologies.
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What are the key forces behind the modified milk ingredients market’s growth in recent years?
The rising demand for dairy products is expected to propel the growth of the modified milk ingredients market going forward. The demand for dairy products is attributed to their rich nutritional content, including essential proteins, vitamins, and minerals, as well as the growing consumer focus on health and wellness. Modified milk ingredients help the dairy industry by enhancing dairy products’ functionality, texture, and nutritional value, allowing manufacturers to meet diverse consumer needs and innovate with new formulations. For instance, in November 2023, the United States Department of Agriculture (USDA) projected that Australia’s milk production would rise by 0.6% in 2024, reaching 8.50 million metric tons (MMT), following stabilization in 2023 at an estimated 8.45 MMT after years of decline. Therefore, the rising demand for dairy products is driving the growth of the modified milk ingredients market.
What are the major segments of the modified milk ingredients market?
The modified milk ingredientsmarket covered in this report is segmented –
1) By Type: Calcium Reduced Skim Milk, Casein, Caseinates, Other Types
2) By Form: Liquid, Concentrated, Dry, Frozen, Reconstituted
3) By Application: Food & Beverages, Cosmetics And Personal Care, Nutraceuticals, Pharmaceuticals, Other Applications
4) By Distribution Channel: Business-To-Business (B2B), Business-To-Consumer (B2C)
Subsegments:
1) By Calcium Reduced Skim Milk: Low-Calcium Skim Milk Powder, Calcium-Reduced Liquid Skim Milk
2) By Casein: Rennet Casein, Acid Casein, Micellar Casein
3) By Caseinates: Sodium Caseinate, Calcium Caseinate, Potassium Caseinate
4) By Other Types: Milk Protein Concentrates (MPC), Milk Protein Isolates (MPI), Whey Protein Concentrates (WPC), Whey Protein Isolates (WPI)
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Which companies dominate the modified milk ingredients market?
Major companies operating in the modified milk ingredients market are Nestle SA, Danone S.A., Groupe Lactalis S.A., Fonterra Co-operative Group Limited, Saputo Inc., China Mengniu Dairy Co. Ltd., Kerry Group, Savencia Fromage And Dairy, Agropur Cooperative, Glanbia plc, Emmi Group, Bel Group, Royal A-ware, Vinamilk, Leprino Foods, Arla Foods Group, Schreiber Foods, Valio Ltd., First Milk Ltd., Amul, Royal FrieslandCampina N.V.
What major trends will shape the modified milk ingredients market during the forecast period?
Major companies operating in the modified milk ingredients market are developing innovative products with reduced lactose to cater to the growing demand for lactose-free and low-lactose food options. Reduced-lactose milk products allow individuals with lactose intolerance to enjoy the nutritional advantages of dairy without digestive issues. For instance, in November 2023, Nestlé, a Switzerland-based company, launched N3 milk with additional dietary benefits in China. The technology used in its production reduces lactose by up to 80% while converting it into beneficial prebiotic fibers. N3 milk retains essential nutrients found in regular milk, including proteins, vitamins, and minerals. Additionally, it has over 15% fewer calories than traditional milk products.
What are the key regional dynamics of the modified milk ingredients market, and which region leads in market share?
Asia-Pacific was the largest region in the modified milk ingredients market in 2024, and is expected to be the fastest-growing region in the forecast period. The regions covered in the modified milk ingredients market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
What Does The Modified Milk Ingredients Market Report 2025 Offer?
The modified milk ingredients market research report from The Business Research Company offers global market size, growth rate, regional shares, competitor analysis, detailed segments, trends, and opportunities.
Modified milk ingredients refer to dairy components that have been altered through processing techniques to enhance their functional properties, nutritional profile, or to cater to specific dietary needs, such as lactose reduction. These ingredients are used in various food products to improve texture, flavor, and nutritional value while maintaining the essential benefits of traditional dairy.
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