Dairy products contain essential nutrients including vitamin A, D & B12, protein, calcium, phosphorus, carbohydrates, potassium, niacin, and riboflavin. Regular consumption of dairy products aids in improving overall health and owing to this fact, dairy nutrients are widely been used in a variety of products including energy bars, dietetic formulations, low-fat spreads, infant formulas, and geriatric nutritional products.
Major factors propelling growth of the global dairy nutrition market include increasing popularity of functional foods, and rising consumption of dairy protein for muscle building in youths. Extensive use of milk-based ingredients in hair and skin care cosmetics coupled with increasing number of cases of osteoporosis, cardiovascular diseases, malnutrition, and obesity is also expected to fuel growth of the market over the forecast period (2017–2025).
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However, growing cases of lactose intolerance and lack of awareness regarding health benefits of consumption of dairy products among consumers are the major factors adversely affecting the market growth. Moreover, lack of awareness regarding consumption of colostrum products that help boosting the immune system, recovery after athletic activity, and increases lean muscle mass is another factor restraining growth of the market.
North America held a dominant position, in terms of revenue, in the global dairy nutrition market in 2016, and accounted for a share of 33.82%. This is attributed to increasing prevalence of obesity in the region as dairy proteins helps reducing adipose mass and body weight, these factors are promoting the adoption of dairy nutrition among obese, overweight and diabetic patients. According to the data provided by the Centers for Disease Control and Prevention (CDC), in 2017, over one-third (36.5%) of the adults in the U.S. were found obese and according to the National Center for Biotechnology Information (NCBI), in 2014, 8.3% of the population or 25.8 million individuals had diabetes in United States. These are the factors, majorly propelling the demand for dairy protein in North America.
Asia Pacific is projected to be the fastest growing region in the global dairy nutrition market, registering the highest CAGR of 9.13% over the forecast period. Major factors propelling growth of this market include increasing number of health conscious consumers and rapidly growing food processing industry in the region. Moreover, there is a high demand for dairy nutrition worldwide as these products have high calcium content, which aids in boosting bone density and helps reducing osteoporosis risk. According to the data provided by the National Center for Biotechnology Information (NCBI), in 2014, osteoporosis was major public health issue in Japan and approximately 15% of women in Japan aged 50 and older, were at risk from osteoporosis. According to the data provided by UNICEF, in 2014, around 78 Mn children were found in South Asia suffering from stunted growth. These are the factors anticipated to support the overall growth of dairy nutrition market in the region.
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Among ingredient segments, dairy protein accounted for a dominant share in the market in 2016 and the segment is further classified as whey protein and casein protein. Whey protein is a high-quality protein, which is derived from cow’s milk. Moreover, it has high content of essential amino acids, which is fuelling demand for this protein, globally.
Based on application, the market is segmented into functional food, infant formula & clinical, dairy products, bakery & confectionary, and personal care. Functional food segment was the dominant segment in the market in 2016. However, infant formula and clinical segment is projected as fastest growing segment over the forecast period, registering the highest CAGR.
Major players operating in the global dairy nutrition market include Groupe Danone, Fonterra Co-operative Group Ltd., Proliant Inc., Koninklijke DSM N.V., E.I. DuPont De Nemours and Company, Arla Foods amba, Cargill Inc., Groupe Lactalis S.A., APS BioGroup, and Nestle S.A.
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