Dairy Cream Market

Dairy Cream Market Outlook (2023 to 2033)

The consumption of dairy products dates back over six thousand years, today these are enjoyed across the world. Over the last few decades, there has been various innovation and experiments in these products and processing. In 2021, the market was valued at 871 billion US dollars which are expected to surpass a valuation of 871 billion US dollars by 2026.

Regional requirements for dairy products vary. In the US, a product that has a minimum milk content of 18% is referred to as dairy cream. While in Europe, a product with little to no milk content is referred to as "cream". Households frequently consume wheaped cream, with Europe leading the way in terms of demand expansion. There are numerous ways to consume it, including heavy cream, double cream, clotted cream, and others. Production is subject to strict regulations, and it is frequently sold as pasteurized and ultra-pasteurized.

Furthermore, flavored creams are more popular during Christmas, especially in western countries. Double cream is combined with alcohol and sugar to produce Brandy, Cinnamon, and Calvados creams. These are widely used for the preparation of delicacies such as Christmas pudding, Apple tart, and others. Thus, the market for flavored cream is expected to witness growth in revenues during special occasions.

What are the key factors impelling growth in the industry?

Dairy products are a good source of calcium which helps in the promotion of bone health and minimizes the risk induced by fractures. Milk products are also classified as a great source of vitamin D which improves bone mass. Moreover, the cream helps to protect against sarcopenia.

With research demonstrating conflicting findings about the advantages and hazards of full-fat dairy, incorporating heavy whipping cream into your diet calls for moderation. In a diet of 2000 calories, you should try to consume no more than 20 grams of saturated fat each day.

The American Heart Association advises against consuming more than 5% to 6% of total calories-the amount of saturated fat-if you have cardiac issues. Without these conditions, 7% to 10% of a person's daily calories shouldn't come from saturated fat.

Manufacturers in the market have been engaged in marketing their new cream products as a complete solution to most of their cooking needs. The key focus seems to be on the nutrition aspect of the product. Most large-scale producers in the market have been offering pasteurized milk and cream, especially from non-fat to their consumers. This is in line with the growing consumer demand for products rich in milk proteins and vitamins. Growth in the number of diet conscious-consumers has resulted in higher consumption of non-fat milk in households as it eliminates most of the saturated fats and cholesterols.

Some of the large-scale producers in the market such as Nestle and Saputo have been offering a variety of creams for their consumers, including sour cream. To cater to a wider consumer base, small and medium-scale producers must consider the special dietary and religious requirements of consumers and include halal and kosher-certified products in their portfolio.

What are associated concerns that are likely to deter market growth?

The news isn't all good, either, regarding full-fat dairy products like heavy whipping cream. High-fat dairy products have been linked to worse breast cancer survival rates and an increased risk of dementia. Moreover, products with high-fat content have also been linked to a higher chance of dying from prostate cancer.

As whole-fat milk consumption increased, the risk increased as well. Although if full-fat dairy products may not be all that much worse than low-fat ones, obtaining the necessary amounts of calcium and protein from almonds and green vegetables will be more nutrient-dense. The aforementioned factors are likely to hinder the growth of the market in the forecast period.

Key players

Some of the key producers operating in the market include -

• Saputo Dairy Foods USA Inc.
• Nestle S.A.
• Dean Foods
• Land O’ Lakes Inc.
• Dairy Farmers of America Inc.
• Schreiber Foods
• Kraft Foods Group
• Agropur Cooperative
• Leprino Foods Co.
• Grup LaLa
• Kroger Co. The
• Parmalat SpA

Regional Outlook

Throughout the projected period, it is anticipated that the North American market will continue to hold the top spot. This is a result of a developed industry in the United States and Canada. With a market volume share of more than 40%, Germany is anticipated to be the most alluring nation in Western Europe for the regional industry. Over the forecast period, it is expected that nations like the Netherlands and Belgium would experience market growth at CAGRs of more than 3%. Over the past few years, the market in Asia and the Pacific has grown.

However, growth is anticipated to be gradual. The market in the Latin America region is expected to witness slow growth till 2020, after which, it is expected to pick up the pace, once the region has fully recovered from the effects of the recession in 2015. The market prepared to cater to special dietary and religious requirements is expected to witness positive growth in the Middle East.

Opportunities for manufacturers

The design, color, and shape of the product’s packaging have a crucial role in attracting customers. Manufacturers need to grab the attention of customers to convey information on products and their ingredients. Nowadays manufacturers are using tetra packs, cans, and bottles to distribute products. Tetra packs are an emerging sustainable packaging choice where products retain their freshness and increase their shelf life of products.

Efficient packaging helps in avoiding contamination and is also used in transportation. The use of plastic in the manufacturing of dairy packaging solutions is declining due to rising awareness of sustainability as it is one of the leading causes of environmental degradation. The tetra packs are made of paperboard and layers of aluminum which helps to improve the nutritional value of products.

Segmentation

• By Product Type :

  • Heavy Cream
  • Double Cream
  • Clotted Cream
  • Crème fraiche
  • Flavored creams
  • Manufacturing Cream
  • Others

• By Distribution Channel :

  • Online Channel
  • Indirect Sales
  • Hypermarkets & Supermarkets
  • Convenience Stores
  • Departmental Stores

• By End-use :

  • Soups
  • Sauces & Dressings
  • Vegetables
  • Cakes and Other Baked Products
  • Others

• By Regions :

  • North America 
  • Latin America 
  • Western Europe 
  • Eastern Europe 
  • Asia Pacific 
  • Japan
  • Middle East and Africa