Functional Dairy Ingredient Market Insights Highpoint Technological Advancement

Posted by Arslan on May 24th, 2019

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.

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.

Key Product Launches in Functional Dairy Ingredient Market

The key product launches that have been observed over the functional dairy ingredient market over the recent years have seen launches targeting health conscious and ethical consumer base.

In 2017, Herbafood Ingredients Gmbh introduced an innovative functional fiber ingredient involving all-natural citrus fibers. The ingredient can replace any mainstream emulsifier and lack of E-number makes it an ideal choice for the manufactures in the natural food segment to include it as a key emulsifying agent. This can easily be incorporated as a functional dairy ingredient to remove synthetic emulsifier and make the final product more functional.

In 2016, Arla food ingredients launched its line of functional dairy ingredient product targeting toddler nutrition market. The company designed the functional dairy ingredient specifically for the growth dynamics for the toddler making it easy for the major infant food manufacturers to procure functional dairy ingredient through a one-stop vendor process.

Opportunities for Functional Dairy Ingredient Market Participants

The opportunity for the participants in the global functional dairy ingredient market is optimistic with growing demand in Europe and the Asia Pacific where there is an increase production activity for infant food and other functional dairy products. With increasing per capita spending over food and beverage products, Asia Pacific is anticipated to witness the highest growth rate over the forecast period in functional dairy ingredient market as manufacturers in the region to ramp up production activity to feed the demand in the region. Europe to witness a robust growth rate owing to increase in export activity of functional dairy ingredient over the forecast period resulting rapid procurement of functional dairy ingredient in the region by the key players. Latin America functional dairy ingredient market is expected to witness substantial growth rates owing to the increase in number new functional food and beverage players in the region. North America functional dairy ingredient market is indicated to stay at its current pace with strong dynamics in terms of local consumption of dairy-based functional products to continue the growth of the market over the forecast period. New functional food players are expected to emerge in the Middle East and Africa region which is attributed to form a significant market for functional dairy ingredient over the forecast period. 

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