Fermented Dairy Ingredients Market size in 2019 is estimated to be $4.4 billion and is projected to be growing with a CAGR of 8.5% during the forecast period 2020-2025. Increasing demand for drinkable yogurts among consumers is a major factor driving the Fermented Dairy Ingredients Market during the forecast period 2020-2025. To be named a dairy product, food must be produced from cow’s milk, goat milk or, similar animals. The growing demand for frozen dairy products increases the investment in dairy products such as yogurt as well as fermented cheese. Moreover, fermented dairy products have been an important component of a nutritional diet. Previously, the fermentation process involved unpredictable and slow souring of milk caused by the organisms inherently present in milk. However, the modern microbiological process has resulted in the production of different fermented milk products of higher nutritional value under controlled conditions.
- In 2019, Cheese accounts for the major share owing to its high amount of vitamins A and B-12 along with zinc, phosphorous, and riboflavin.
- Europe dominated the Fermented Dairy Ingredients Market owing to the presence of major dairy products industry, in 2019.
- Increasing usage of processed cheese in bakery & confectionary, fast food, and as an ingredient in various Italian foods is set to drive the market growth.
By Product Type- Segment Analysis
By Product Type, the fermented dairy ingredients market is segmented into Cheese, Flavored Milk, and Yogurt. Among these, the Cheese held the major share in 2019 owing to its high amount of vitamins A and B-12 along with zinc, phosphorous and riboflavin. Also, the use of cheese in various food industries such as bakery products, fast food, and also as an ingredient in many Italian foods are set to boost the Fermented Dairy Ingredients Market during the forecast period 2020-2025. Furthermore, the consumption of sour milk among consumers is increasing owing to its high nutritious benefits. Besides, it is produced by lactic acid fermentation of regular cream; sour cream, also known as crème Fraiche, has a creamy texture and a unique sour taste.
By Application – Segment Analysis
Based on the Application, the Fermented Dairy Ingredients Market is segmented into Bakery, Dairy, Snacks, and Others. Among these, the Bakery segment is projected to be the fastest-growing with a CAGR of 8.1% during the forecast period 2020-2025. This is owing to the wide application of fermented dairy ingredients in making baked goods such as pastries, bread, and others. These ingredients being acidic are good for digestive problems and thus used for food preservation. Thus they are widely used by bakery manufacturers to increase the shelf life of products.
Geography- Segment Analysis
In 2019, Europe accounted for 38.5% of the Fermented Dairy Ingredients Market share. The presence of major dairy products industry along with the increasing demand for dairy ingredients among consumers are driving the market in this region. Moreover, milk and dairy products are important sources of protein, iodine, calcium, and vitamins, and a daily intake is of high importance among Europeans. Approximately 45 million metric tons of fresh dairy products are consumed annually in the European Union.
However, Asia-Pacific is estimated to be the fastest-growing region during the forecast period 2020-2025. This is owing to the rising popularity of flavored milk among consumers across China and Australia.
Drivers –Fermented Dairy Market
- Increasing use of cheese and processed cheese in the food industry
Increasing usage of cheese and processed cheese in the food industry are poised to drive the market growth of the Fermented Dairy Ingredients Market. Also, the use of processed cheese in bakery & confectionary, fast food, and as an ingredient in various Italian foods are driving its market growth. Furthermore, the unique flavor of processed cheese has attracted a large number of consumers owing to its low-fat intake.
- Increasing demand for Flavored Milk
Increasing demand for Flavored Milk such as Kefir is a major factor driving the fermented dairy ingredients market during the forecast period 2020-2025. Kefir is a cultured, fermented beverage that tastes like a yogurt drink. It’s made using starter grains, just as sourdough bread has a starter. This starter is a combination of yeast, milk protein, and bacteria. It has a tart, creamy flavor loaded with probiotic health benefits. Besides, Kefir also contains a wide variety of bioactive compounds including organic acids and peptides that contribute to its health benefits.
Challenges – Fermented Dairy Ingredients Market
- Proper Storage System
Storage of Dairy Products is the major factor restraining the Fermented Dairy Ingredients Market. Under unrefrigerated storage, milk becomes sour in a matter of time. The requirement of a proper storage system for storing the fermented dairy ingredients to enhance their longevity is a major challenge faced by manufacturers. Furthermore, the price fluctuations of fermented dairy products and unsafe handling processes are further impacting the market growth.
Fermented Dairy Ingredients Industry Outlook
Product launches, Merger & Acquisitions, joint ventures and R&D activities are key strategies adopted by players in the Fermented Dairy Ingredients Market. Fermented Dairy Ingredients top 10 companies are Archer Daniels Midland Company, Arla Foods Ingredients Group P/S, Bioprox, Cargill Incorporated, Chr Hansen Holding A/S, Corbion, CP Ingredients Limited, CSK Food Enrichment, Dairy Connection Inc, and DairyChem Inc