With the growing awareness regarding health benefits of the dairy products, demand for new and improved functional dairy foods is set to rise. On the same lines, the popularity of functional dairy foods will further propel the functional dairy ingredient market during the review period. Following the popularity of functional dairy food, manufacturers are introducing more functional dairy ingredients in their product offerings to gain consumer traction and win over the intense market competition. For instance, Ingredion Inc., the U.S. food company has introduced three new potato starches- the functional dairy ingredients to the product portfolio of its processed cheese providing better functionality and more options to consumers.

The billions of dollars of baby food market has initiated the addition of functional dairy ingredients, in turn, driving the growth of the functional dairy ingredient market. In addition, prebiotic fibers have become a popular plant-based functional dairy ingredient in several dairy products and functional beverages. Further, with the increasing consumer preference for organic ingredients in the food and beverage sector, the functional dairy ingredient market is witnessing progress in organic functional dairy ingredients segment. Moreover, with the clean label trend becoming streamlined for most food producers, demand for organic functional dairy ingredients is here to stay. Given that, ‘clean label’, ‘non-GMO’ foods and rising health and fitness trends are few of the prime influencers of the functional dairy ingredient market during the review period.

Functional Dairy Ingredient Market Outlook

Fortified dairy products are now have shifted from a niche product segment to a mainstream product in the developed as well as in developing regions. This is attributed to increasing the consumption of functional food and beverages including functional dairy across the major urban conglomerations and tier 2 cities. This rise in demand for the functional dairy product is attributed towards the increase in demand for functional dairy ingredient over the near future. Functional dairy ingredient market has witnessed strong growth rates over past few years and is expected to continue the trend over the forecast period. The key manufacturers are involving with a robust approach by not only broadening its product portfolio but also revamping manufacturing units to carter the rapidly changing ingredient demand fueled by tailor-made functional dairy products for the consumers. The functional dairy ingredient market has an essence of large international player capturing a significant amount of the market share in the overall offering and key regional functional dairy ingredient players capturing specific offerings in their geographies. A shift in product offering is expected to witness with players offering blends or multi-functional dairy ingredient over the forecast period. Region wise Europe and the Asia Pacific to capture a significant amount of volume share in functional dairy ingredient market over the forecast period. Increasing consumption of functional food is directly attributed towards the growth of the functional dairy ingredient market, globally.

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Functional Dairy Ingredient Market: Reasons for Covering This Title

Increasing awareness in consumers for product composition and well-established dairy industry, globally to fuel functional dairy ingredient market over the forecast period. Increasing demand for functional food has been spiked up in last decade boosting growth to its analog markets such functional ingredient market making it a promising market to invest for the key manufacturers conducting business in the dairy ingredients sector. Advancement of functional dairy ingredient production has ease down the production process and has increase the yield of the final product using similar raw material input which has result in increase of new players, competitive pricing and formation of long-term partnership with consumer which is further expected to increase the demand for the functional dairy ingredient market over the forecast period.

Global Functional Dairy Ingredient Market: Segmentation

On the basis of nature, the global functional dairy ingredient market has been segmented as –

• Organic
• Conventional

On the basis of type, the global functional dairy ingredient market has been segmented as –

• Proteins & Amino Acids
• Vitamins
• Minerals
• Oils and Fatty acids
• Probiotics & Prebiotics
• Carotenoids
• Fibers
• Hydrocolloids
• Others Functional Dairy Ingredient

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On the basis of end-use, the global functional dairy ingredient market has been segmented as –

• Animal Based Dairy Products
• Plant Based Dairy Products

On the basis of end-use, the global functional dairy ingredient market has been segmented as –

• Whole Milk
• Confectionery
• Yogurt
• Cheese
• Frozen Desert
• Ice Cream
• Baby Food
• Beverages
• Butters
• Other Functional Dairy Ingredient End-uses

Global Functional Dairy Ingredient Market: Key Players

 Some of the key players operating in the global functional dairy ingredient market are Angel Yeast Co., Ltd, Koninklijke DSM N.V, Glanbia Plc., Alra Ingredients, NZMP (Fonterra), Cargill Inc., Ganeden, Valio Oy, Ornua Co-op Limited, Lactalis Ingredients, Kerry Inc., FrieslandCampina International B.v, The Dow Chemical Company, Bunge Limited, E.I. du Pont de Nemours & Co, Chr. Hansen Holding A/S, Ingredion, BASF SE, Herbafood Ingredients Gmbh, Univar Inc., Archer Daniels Midland Co., Sensient Technologies Corporation, Alltech Inc., Ab Mauri, Ab Vista, and Lesaffre (Biospringer)

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