Europe Dairy Ingredients Market Size (2024 - 2029)

The European dairy ingredients market is experiencing growth driven by increasing health and wellness concerns among consumers, which has led to a higher demand for dairy ingredients in the supplements industry. Key players are actively introducing new products to meet consumer needs, with whey ingredients holding the largest market share due to their versatility in various products. Despite this growth, the market faces challenges from alternatives like plant proteins and issues such as lactose intolerance and milk allergies, which may hinder its expansion.

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Market Size of Europe Dairy Ingredients Industry

Europe Dairy Ingredients Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2019 - 2022
CAGR 4.42 %
Market Concentration Medium

Major Players

Europe Dairy Ingredients Market Major Players

*Disclaimer: Major Players sorted in no particular order

Europe Dairy Ingredients Market Analysis

The European dairy ingredients market is projected to witness a CAGR of 4.42% during the forecast period, 2020-2025.

The rising health and wellness concerns among consumers, facilitated by the rising participation in sports, led to the enhanced usage of dairy ingredients in the supplements industry. Moreover, the key players are focusing on introducing new products in the market, for meeting the consumers' requirements. For instance, in 2018, Arla Food Ingredients launched a whey protein ingredient solution, Nutrilac CH-769, to alter the manufacturing process of cream cheese.

By type, whey ingredients accounted for the largest share and are considered as highly versatile products. They are used in varied products, including cheese and sushi. Globally, companies are focusing on strengthening their production resources for whey protein, by investing in cheese production. For instance, in December 2017, Arla Foods ('Arla') and a German dairy company, DMK Group ('DMK'), signed a third-party manufacturing contract to produce mozzarella.

However, the presence of alternatives, such as plant proteins, as well as the increasing instances of lactose intolerance and milk allergies are expected to restrain the market's growth.

Europe Dairy Ingredients Industry Segmentation

By type, the European dairy ingredients market is segmented into milk powders, milk protein concentrates and milk protein isolates, whey ingredients, lactose and derivatives, casein and caseinates, and others, and by application, the market is segmented into bakery and confectionery, dairy products, infant milk formula, sports and clinical nutrition, others. Moreover, the study provides an analysis of the dairy ingredients market in the emerging and established markets across European countries, including Germany, the United Kingdom, France, Russia, Italy, Spain, and the Rest of Europe.

By Type
Milk Powders
Milk Protein Concentrate and Milk Protein Isolate
Whey Ingredients
Lactose and Derivatives
Casein and Caseinates
Other Types
By Application
Bakery and Confectionery
Dairy Products
Infant Milk Formula
Sports and Clinical Nutrition
Other Applications
By Country
Germany
United Kingdom
France
Russia
Italy
Spain
Rest of Europe
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Europe Dairy Ingredients Market Size Summary

The European dairy ingredients market is experiencing a steady growth trajectory, driven by increasing health and wellness awareness among consumers, particularly those engaged in sports. This trend has led to a heightened demand for dairy ingredients in the supplements industry. Key industry players are actively introducing innovative products to cater to evolving consumer preferences, such as Arla Food Ingredients' launch of Nutrilac CH-769 for cream cheese production. Whey ingredients dominate the market due to their versatility, finding applications in a wide range of products from cheese to sushi. The region's robust dairy sector, supported by over 12,000 milk processing sites, significantly contributes to the food and beverage industry, with Germany and Poland leading in whey protein consumption. However, the market faces challenges from the availability of plant-based protein alternatives and the rising prevalence of lactose intolerance and milk allergies.

The European Union stands as a major player in the global dairy market, being the largest cheese producer and, consequently, the top whey producer. The region's prominence in dairy exports further bolsters its market position. In Germany, the shift towards protein as a mainstream health ingredient has spurred demand across various sectors, including sports nutrition, bakery, and dairy, with younger consumers showing a keen interest in high-quality whey protein. The market is characterized by fragmentation, with numerous regional and domestic players competing. Companies are leveraging strategies such as mergers, acquisitions, and new product development to enhance their market presence. Prominent players in the European dairy ingredients market include Arla Foods Ingredients Group P/S, Eurosérum, FrieslandCampina Ingredients, Kanegrade Ltd, and Lactalis Ingredients, among others.

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Europe Dairy Ingredients Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Drivers

    2. 1.2 Market Restraints

    3. 1.3 Porter's Five Forces Analysis

      1. 1.3.1 Threat of New Entrants

      2. 1.3.2 Bargaining Power of Buyers/Consumers

      3. 1.3.3 Bargaining Power of Suppliers

      4. 1.3.4 Threat of Substitute Products

      5. 1.3.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Type

      1. 2.1.1 Milk Powders

      2. 2.1.2 Milk Protein Concentrate and Milk Protein Isolate

      3. 2.1.3 Whey Ingredients

      4. 2.1.4 Lactose and Derivatives

      5. 2.1.5 Casein and Caseinates

      6. 2.1.6 Other Types

    2. 2.2 By Application

      1. 2.2.1 Bakery and Confectionery

      2. 2.2.2 Dairy Products

      3. 2.2.3 Infant Milk Formula

      4. 2.2.4 Sports and Clinical Nutrition

      5. 2.2.5 Other Applications

    3. 2.3 By Country

      1. 2.3.1 Germany

      2. 2.3.2 United Kingdom

      3. 2.3.3 France

      4. 2.3.4 Russia

      5. 2.3.5 Italy

      6. 2.3.6 Spain

      7. 2.3.7 Rest of Europe

Europe Dairy Ingredients Market Size FAQs

The Europe Dairy Ingredients Market is projected to register a CAGR of 4.42% during the forecast period (2024-2029)

Arla Foods Ingredients Group P/S, Eurosérum, FrieslandCampina Ingredients, Kanegrade Ltd., Lactalis Ingredients and Hoogwegt are the major companies operating in the Europe Dairy Ingredients Market.

Europe Dairy Ingredient Market Report Snapshots

Europe Dairy Ingredients Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)