Dairy Whiteners Market

Dairy Whiteners Market Outlook (2023 to 2033)

According to Fact.MR, the global dairy whiteners market stands at US$ 11.30 billion in 2023 and is projected to grow at a CAGR of 6.1% and reach US$ 20.43 billion by the end of 2033.

In beverages such as coffee, tea, chocolate, etc., dairy whiteners are frequently used as a substitute for liquid milk, milk powder, or cream. Dairy whiteners also provide several advantages over ordinary milk, including mobility and convenience, which helps the market grow.

The market is primarily driven by the rising use of dairy components, which are effective at whitening and have a specific amount of added sugar so that they can be used in preparing tea or coffee. Dairy whiteners enhance the taste of the liquid they are added to by adding flavor and mouthfeel, in addition to whitening.

Potential for growth in the worldwide dairy whiteners market is exponential since younger generations are becoming more and more lactose intolerant. The international dairy sector is expected to have countless growth prospects owing to new consumer trends. The market is anticipated to be significantly influenced by the introduction of new flavors and bases.

Rising number of consumers with health conditions such as lactose intolerance is one of the main causes. They are now more inclined to choose dairy goods such as dairy whiteners as a result. Additionally, new base, kind, and flavor variations are being added by dairy whitener producers. Because of this, consumers have access to a variety of products, which affects their preferences.

Collaborations and capacity expansion are some of the strategies being followed by companies in this space to gain market share.

• Gandhinagar, in India, welcomed the opening of a new AmulFed Dairy with a milk powder factory, butter production plant, poly film manufacturing plant, and automated warehouse facility in 2021.
• Dairy Farmers of America, a farmer-owned cooperative, agreed to pay US$ 425 million to acquire a sizeable stake in Dean Foods, a milk producer, in 2020.

Report Attributes	Details
Dairy Whiteners Market Size (2022)	US$ 10.65 Billion
Estimated Market Value (2023)	US$ 11.30 Billion
Forecasted Market Value (2033)	US$ 20.43 Billion
Global Market Growth Rate (2023 to 2033)	6.1% CAGR
South Korea Market Value (2033)	US$ 756.23 Million
South Korea Market Growth Rate (2023 to 2033)	5% CAGR
United Kingdom Market Value (2033)	US$ 1.51 Billion
United Kingdom Market Growth Rate (2023 to 2033)	5.4% CAGR
Key Companies Profiled	Nestle S.A Danone S.A Arla Foods amba Britannia Industries Limited Hatsun Agro Products Ltd. Schreiber Foods Inc. Fonterra Co-operative Group Limited Moringa Milk Industry Co. Ltd. Inner Mongolia Yili Industrial Group Co. Ltd

Which Aspects are Stimulating Demand for Dairy Whiteners?

"Increasing Consumption of Coffee & Tea and Higher Shelf Life and Enhanced Flavors of Dairy Whiteners"

Increasing consumption of coffee and tea around the world is driving the growth of the dairy whiteners industry globally. Compared to milk, dairy whiteners are more portable, convenient, and have a longer shelf life. Another element driving market expansion is the rising need for newborn formulae, which are mostly made with dairy whiteners.

The global dairy whiteners industry is expanding as a result of consumers' shifting shopping habits away from traditional retailers and toward hypermarkets and supermarkets. Major investments in research and development activities by market players are leading to the development of enhanced flavors of dairy whiteners such as chocolate and strawberry.

"Leveraging Growth Potential of Infant Formula Industry and Increasing Birth Rate"

Manufacturers are adopting ultrafiltration methods to create medium-fat, protein-rich dairy bleaching substances of rich, outstanding quality using buffalo milk. The global dairy whiteners market is expected to experience rapid growth due to the rising infant formula sector. The demand for dairy whitener agents over the estimated period is directly impacted by rising sales of newborn formula products. The global dairy whiteners market is anticipated to be driven by factors such as the increasing birth rate, which is boosting the newborn population.

Dairy bleach has a variety of benefits over ordinary milk, including mobility, convenience, and long shelf life. As more workers look for a practical and healthful substitute, the demand for dairy bleach is growing globally. The factors that influence consumer demand for these products are the increase in shelf life, ease of handling, and ready-to-use form of dairy whiteners. Additionally, as consumer demand for milk with higher protein and fat content rises, dairy whitening producers are anticipated to have more chances for innovation and the development of new technologies.

What are the Constraints Faced by Dairy Whitener Manufacturers?

"Competition from Fresh Milk as Healthy Option and Price Sensitivity Concerns"

Despite the convenience and longer shelf life offered by dairy whiteners, fresh milk remains a strong competitor. Many consumers perceive fresh milk as a healthier and more natural option compared to processed dairy whiteners. The availability of fresh milk in various regions, along with growing consumer preferences for locally sourced and organic products is expected to restrain the market growth.

Price plays a significant role in consumer purchasing decisions. Dairy whiteners, especially branded or specialty products, are more expensive compared to fresh milk. Price-sensitive consumers, particularly in price-conscious markets, opt for more affordable alternatives, which ultimately affects the demand for dairy whiteners.

"Availability of Alternatives and Strict Regulations on Labeling & Quality Control"

The dairy industry is subject to various regulations and standards, which can vary across different regions. Compliance with these regulations is costly and time-consuming for dairy whitener manufacturers. Strict labeling requirements, nutritional standards, and quality control measures are anticipated to act as market entry barriers for some businesses.

There is a wide range of alternatives available in the market such as plant-based milk substitutes (e.g., soy milk, almond milk, oat milk). These alternatives cater to specific dietary preferences, including lactose-free, vegan, or plant-based diets. The availability and increasing popularity of these alternatives are expected to negatively impact the demand for dairy whiteners.

Country-wise Insights

What’s Propelling the Sales of Dairy Whiteners in the United States?

“Increasing Tea and Coffee Consumption and Rising Demand for Long Shelf-life Products"

Sales of dairy whiteners in the United States are expected to expand at a CAGR of 6.6% and reach US$ 5.76 billion by the end of 2033.

Rising consumption of tea and coffee in the country and the rising demand for dairy whitener products with a long shelf life are predicted to drive the market over the forecast period. As there are so many people who consume coffee/tea both hot and cold in the United States, the country significantly contributes to the revenue share of the dairy whiteners industry.

What is Fueling the Consumption of Dairy Whiteners in China?

"Rising Milk Consumption, Urbanization, and Government Initiatives"

The market in China is anticipated to expand at a CAGR of 6.4% and reach US$ 3.35 billion by 2033.

The dairy whiteners market in China has lucrative growth opportunities because the country consumes a lot of milk and other dairy-based items. The country's market has seen tremendous expansion due to population growth and fast urbanization. Additionally, the country's market has grown as a result of beneficial government measures.

Increasing population, rapid urbanization, and the presence of a vast population consuming tea and coffee in the country are contributing to market growth opportunities.

Category-wise Insights

Which is the Most Preferred Type of Dairy Whitener?

“Rising Health Consciousness Among People Boosting Demand for Unflavored Dairy Whiteners”

Consumption of unflavored dairy whiteners is anticipated to increase at a steady CAGR of 5.3% over the projected period.

Since flavored dairy whiteners change the flavor of the coffee or tea after mixing, unflavored dairy whiteners are preferred for consumption. The original flavor of the beverage or meal is preserved, which enables them to be used in several other dishes as well.

A more natural diet is becoming more appealing to consumers due to their rising health consciousness. The lack of other natural options in the market for dairy whiteners has led to an increase in customer demand for dairy whitener consumption.

Why is Demand for Sachet Packaging Expected to Increase?

"Sachets - Customized and Cost-effective Solution with Focus on Sustainability"

Demand for sachets of dairy whiteners is expected to expand at a CAGR of 5.6% from 2023 to 2033. Due to their reasonable price, ease of packaging, and availability of customization, sachets are widely used by dairy whitener manufacturers.

Important dairy whitener producers use recyclable papers and other environmentally friendly packaging materials for sachets that comply with strict packaging regulations.

Competitive Landscape

The global market for dairy whiteners is characterized by consolidation, primarily due to the presence of a limited number of key players. These companies play a significant role in shaping the market dynamics and driving its growth. To strengthen their market position and enhance their brand presence among consumers, these leading companies adopt various strategic approaches.

Expansion is a key strategic approach adopted by leading dairy whitener manufacturers. This involves investing in new production facilities, increasing manufacturing capacity, and expanding distribution networks to reach a wider consumer base. Companies are strengthening their supply chain to enhance their market reach.

• In October 2021, Fonterra Co-operative expanded its dairy product range in the United Kingdom as a result of the country's agreement to reduce tariffs on all dairy products over the course of the following five years to balance out difficulties suffered during the COVID-19 outbreak.

Key Segments of Dairy Whiteners Industry Research

• By Product Type :

  • Flavored
  • Unflavored

• By Packaging :

  • Carton Packs
  • Sachets
  • Plastic Jars
  • Jigger Pots
  • Stick Packaging

• By Sales Channel :

  • Modern Grocery
  • Traditional Retail Grocery
  • Non-Grocery Retail

• By Region :

  • North America
  • Latin America
  • Europe
  • Asia Pacific
  • Middle East & Africa