Dairy Whiteners Market

Dairy Whiteners Market Outlook

The global dairy whitener market surpassed US$ 10 Bn in 2021. Increase in consumption of tea and health benefits of dairy whiteners are spurring the demand for dairy whiteners.

Market Size Value in 2021	US$ 10 Bn
Projected Market Forecast Value 2031	US$ 18 Bn
Global Growth Rate (2021 to 2031)	6% CAGR
Market Share of Asia	55%

In addition, easy availability of dairy whiteners and their ability to serve same taste as milk is playing a key role in the demand of dairy whiteners. Thus, the sales of dairy whiteners are expected to surpass US$ 18 Bn by registering a positive CAGR of 6% in the forecast period 2021-2031.

Key Points Covered in Dairy Whitener Industry Analysis

• Market estimates and forecast 2016-2031
• Key drivers and restraints impacting market growth
• Segment-wise, Country-wise, and Region-wise Analysis
• Competition Mapping and Benchmarking
• Market Share Analysis
• Key Product Innovations and Regulatory Climate
• COVID-19 Impact on Dairy Whitener Market and How to Navigate
• Recommendation on Key Winning Strategies

Dairy Whitener Consumption Analysis 2016-2020 in Comparison to Future Outlook 2021-2031

According to Fact.MR- a market research and competitive intelligence provider- the market for dairy whiteners witnessed a modest CAGR of 3%, backed by increased consumption of dairy alternatives. Their highly multifunctional nature has broadened usage scope across a variety of foods & beverages.

During the COVID-19 pandemic, sales of dairy whiteners experienced a considerable incline, given the disruptions encountered in milk sales due to the imposition of stringent lockdowns. For instance, India experienced a 25% decline in milk consumption in March 2020, owing to closure of hotels, restaurants and roadside stalls. Hence, consumers began demand ready-to-drink milk-based beverages, which impelled dairy whitener sales.

Manufacturers of dairy whiteners are focusing on increasing the protein quotient in dairy whiteners. In addition, flavoured dairy whiteners are gaining popularity due to their usability factors as they can be used in different dishes. Thus, in the sales indicator period, the dairy whitener industry is expected to surpass a CAGR of 6% of by reaching US$ 18 Bn across the 2021-2031 forecast period.

How is Consumption of Tea Accelerating the Adoption of Dairy Whiteners?

As per a recently presented report by Food and Agriculture Organization (FAO) Intergovernmental Group (IGG), the global consumption of tea, particularly in China, India, and other emerging economies is anticipated to rise over the next decade. This, in turn, is creating more income opportunities for tea-producing nations.

Fact.MR foresees this global trend to expand the demand for tea whiteners- both dairy and non-dairy in the coming years. Increasing awareness about the anti-inflammatory and weight-loss benefits of tea and the health risks associated with carbonated drinks and sweetened juices will result in a notable consumption of dairy whiteners with tea.

Is Demand for Milk Protein and Medium Fat in Dairy Whiteners Pushing Technique Innovation for Dairy Whitener Industry?

Improved shelf-life, ease of handling, and ready-to-consume formats of dairy whiteners are key factors driving the consumption. Moreover, increasing demand for enhanced milk protein and fat content is projected to present innovation opportunities to manufacturers of dairy whiteners and develop technologies for new products.

In addition, manufacturers have been exploring the ‘ultrafiltration’ technique using buffalo milk to produce protein-rich, medium-fat dairy whiteners for enhanced texture and organoleptic quality. Thus, rising awareness regarding health and adaption of a healthy lifestyle is driving the growth of Dairy Whiteners.

Country-wise Analysis

Is Coffee Consumption Boosting Sales of Dairy Whiteners in North America?

According to MedAlertHelp, around 62% of people drink coffee in North America. In addition, presence of major market players of dairy whiteners is influencing the sales of the same positively. As dairy whiteners offer a longer shelf life, the usage of the same has increased in making coffee across the continent.

The National Coffee Association (NCA) , in its 2020 report, discovered that overall coffee consumption across the U.S spiked by 5% since 2015. Furthermore, 7 out of 10 Americans consume coffee on a weekly basis, while over 3/5th of them consume it daily. Given this high incidence of consumption, several ready-to-drink coffee products are being launched in the market.

This bolstering share of instant coffee brews is augmenting demand for dairy whiteners. According to Fact.MR, North America is expected to possess more than 40% of market share for dairy whiteners industry in the upcoming forecast period 2021-2031.

How is a Flourishing Dairy Products Industry Stimulating Adoption across Asia?

According to Fact.MR, Asia is expected to possess more than 55% of market share for dairy whiteners in the assessment period. Growth is principally attributed to an increase in dairy products production, majorly as a result of increasing milk and milk products production across such key countries as China and India.

A report published by the U.S Department of Agriculture forecasts that Chinas milk production is likely to increase by 4.5% to 34.5 million metric tons by 2021-end, largely due to enhanced productivity.  The Ministry of Agriculture and Rural Affairs (MARA) in China estimated that the average milking cow yield at large-scale farms would reach 8 tons in 2020.

Hence, several regional level manufacturers have found scope for expansion across the East Asian giant. Likewise, in India, the National Dairy Development Board estimates that in FY 2018-19, domestic milk production increased to 187.7 million tons, further reinforcing its position as the world’s largest milk producer. Based on these developments, the market for dairy whiteners is increasing throughout the country.

Category-wise Insights

Why is Preference for Unflavoured Dairy Whiteners Increasing?

Unflavoured dairy whitener does not change the taste of tea and coffee. In addition, unflavoured dairy whitener is widely being used in different dishes. Thus, the taste of the original beverage or dish is not compromised. Moreover, concerns regarding presence of synthetic flavours is prompting a shift towards natural products.

Furthermore, growing preference towards unflavoured dairy whitener is growing owing to its protein intake. Thus, unflavoured dairy whitener is expected to hold more than 50% of market share for dairy whiteners in the assessment period 2021-2031.

Demand for Sachet Packaged Dairy Whiteners to Widen in the Future?

Fact.MR expects the market for dairy whitener sachets to acquire a substantial revenue share, projected to yield 42.5% value by 2031. Ease of packaging for manufacturers and affordability are amongst the primary growth drivers for dairy whitener sachet products.

Furthermore, sachets offer the advantage of easy printing, permitting manufacturers to customize the finished product to reflect brand identity. Several players are incorporating sustainable material, including recycled paper, to be at par with toughening environmental standards in packaging.

Competitive Landscape

Prominent manufacturers of dairy whiteners are aiming at broad basing their outreach across promising geographies, deploying such expansion strategies as introducing new products, forging strategic collaborations with existing players, and acquiring small-scale manufacturers. Some significant market developments are given below:

• In June 2018, Arla Foods announced a plan to invest over € 500 million, focusing its investments in four key areas: dairy products, healthy and natural foods, whey and sustainable food production. As of that year, over 66% of its spending focused on increasing its presence across Europe
• In October 2021, Fonterra Co-operative announced that its outreach in the U.K for dairy products will augment further, as the country has agreed to removing tariffs on all dairy products over the next 5 years, with a view to offset barriers encountered during the COVID-19 pandemic

Report Scope

Attribute	Details
Forecast Period	2021-2031
Historical Data Available for	2016-2020
Market Analysis	US$ Mn for Value & ‘000 Units for Volume
Key Regions Covered	North America Latin America Europe East Asia South Asia Oceania  Middle East & Africa
Key Countries Covered	U.S Canada Brazil Mexico Argentina Germany U.K Spain France Italy Nordics India China Japan Malaysia Thailand Singapore Australia GCC South Africa Nigeria
Key Segments Covered	Product Type Packaging Sales Channel Region
Key Companies Profiled	Fonterra Co-operative Group Limited Nestle S.A Danone S.A Inner Mongolia Yili Industrial Group Co. Ltd Morinaga Milk Industry Co. Ltd. Britannia Industries Limited Gujarat Co-operative Milk Marketing Federation Ltd. Hatsun Agro Product Ltd. Arla Foods amba Schreiber Foods Inc.
Pricing	Available upon Request

Key Segments Covered

• Product Type

  • Flavoured Dairy Whitener
  • Unflavoured Dairy Whitener

• Packaging

  • Dairy Whitener in Carton Packs
  • Dairy Whitener in Sachets
  • Dairy Whitener in Plastic Jars
  • Dairy Whitener in Jigger Pots
  • Dairy Whitener in Stick Packaging

• Sales Channel

  • Dairy Whitener Sales via Modern Grocery
  • Dairy Whitener Sales via Traditional Retail Grocery
  • Dairy Whitener Sales via Non-Grocery Retail
  • Dairy Whitener Sales via Other Channels