Dairy Ingredients Market Size & Share Analysis – Growth Trends & Forecasts (2025 – 2030)

Dairy Ingredients Market Analysis

The Dairy Ingredients Market size is estimated at USD 65.04 billion in 2025, and is expected to reach USD 79.36 billion by 2030, at a CAGR of 4.06% during the forecast period (2025-2030).

• Dairy ingredients have been widely used in the food industry due to their functional and nutritional properties. For example, milk proteins, such as casein and whey protein, are often used as functional ingredients in food products due to their emulsifying, foaming, and gelling properties.
• In addition, dairy ingredients are also rich in essential nutrients such as calcium, vitamin D, and vitamin B12, which are important for bone health, immune function, and energy metabolism. Fortifying foods with dairy ingredients can provide consumers with a convenient and accessible way to obtain these important nutrients. Moreover, dairy ingredients can also enhance the taste, texture, and appearance of food products, making them more appealing to consumers. For example, butter, cream, and cheese are commonly used in baked goods, sauces, and dips to provide richness and flavor.
• Overall, the demand for functional and fortified foods has led to an increase in the use of dairy ingredients in the food industry as manufacturers seek to create products that are both nutritious and appealing to consumers. Ingredients, such as milk powder, are being used in infant formulas and sports drinks. The millennial population in the Asia-Pacific region is growing, so the demand for food and beverages is also rising. The trend of high-protein food and drinks has been rapidly gaining popularity worldwide. Manufacturers have been increasingly using protein claims in their food and drink launches due to the growing demand from health-conscious consumers.
• Over the past few years, the number of high-protein food and drink launches has significantly increased, making it one of the fastest-growing claims in the food and drink market. This trend is driven by a growing awareness of the health benefits of protein, including its ability to promote satiety, build and repair muscles, and support overall health.
• European consumers are actively seeking more milk protein in their meals, beverages, and snacks. The geriatric population in Germany has been increasing, with 22.09% of the population aged 65 and above in 2021, according to the Organization for Economic Co-operation and Development (OECD). This demographic trend has led to rising demand for medical and nutritional products to help maintain bone and muscle health among the elderly. Dairy ingredients are enriched with essential minerals such as calcium and phosphorus, crucial for bone health. Therefore, the demand for dairy ingredients has been increasing, as they are considered an important source of these minerals.
• Additionally, dairy ingredients are a good source of protein, which is important for maintaining muscle mass and strength. The manufacturers of sports nutritional products widely prefer functional dairy ingredients like whey protein due to its wide availability, strong amino acid profile, and easy digestibility. Meanwhile, the consumption of sports nutrition has increased among fitness enthusiasts and active lifestyle consumers as it aids in gaining energy and muscle and supports weight management. Thus, the increasing demand for whey-based sports nutritional supplements is driving the growth of the dairy ingredients market.
• Additionally, consumers and athletes are looking for natural and less processed nutritional solutions with proven benefits. Many dairy ingredient manufacturing companies are launching new nutritional solutions to support sports nutrition manufacturers. For instance, in December 2021, Lactalis Ingredients launched high-protein concepts with two native protein sources, including Ponativ’s Native Micellar Casein and Pronativ’s Native Whey Protein targeting sports nutrition and healthy aging.
• US consumers are prompting food and beverage manufacturers to include functional whey protein in the packed food products as it helps to replace the high-fat ingredients and maintains the same flavor and texture similar to the original formulation. Thus, the growing consumer demand for whey protein in packed food products is further propelling the growth of dairy protein in the market.
• There is a growing awareness among consumers about the benefits of dairy protein for maintaining a healthy lifestyle. Dairy proteins are rich in protein and have a superior content of amino acids. Ingredients such as whey protein, milk protein, and casein are also known for their anti-aging properties. Besides staying healthy, consuming dairy proteins also help reduce stress and improve immunity. They play a vital role in the growth of a child. As a result, the demand for dairy ingredients has increased globally.