Functional Dairy Ingredients Market

Functional Dairy Ingredients Market Analysis By Nature (Organic, Conventional), By Type (Proteins & Amino Acids, Oils & Fatty Acids, Carotenoids), By Source (Animal-based, Plant-based), By End Use (Whole Milk, Confectionery, Yogurt), By Region - Global Insights 2022 - 2032

Analysis of Functional Dairy Ingredients market covering 30 + countries including analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more

Functional Dairy Ingredients Market Outlook (2022-2032)

The global functional dairy ingredients market accounts for a revenue of US$ 201.47 billion in 2022 and is anticipated to surge to a market valuation of US$ 417.16 billion by the end of 2032. Worldwide consumption of functional dairy ingredients is predicted to surge at a CAGR of 7.5% through 2032.

Rising awareness about the benefits associated with the consumption of dairy products is anticipated to majorly drive demand for functional dairy ingredients over the coming years.

Report Attributes


Functional Dairy Ingredients Market Size (2022E)

US$ 201.47 Billion

Forecasted Market Value (2032F)

US$ 417.16 Billion

Global Market Growth Rate (2022-2032)

7.5% CAGR

North America Market Share (2022)


Europe Market Share (2022)


Key Companies Profiled

  • Angel Yeast Co. Ltd
  • Koninklijke DSM N.V
  • Glanbia Plc.
  • Alra Ingredients
  • NZMP (Fonterra)
  • Cargill Inc.
  • Ganeden
  • Valio Oy
  • Ornua Co-op Limited
  • Lactalis Ingredients
  • Kerry Inc.
  • FrieslandCampina International B.v
  • The Dow Chemical Company
  • Bunge Limited
  • E.I. du Pont de Nemours & Co
  • Chr. Hansen Holding A/S, Ingredion
  • Herbafood Ingredients Gmbh
  • Univar Inc.
  • Archer Daniels Midland Co.
  • Sensient Technologies Corporation
  • Alltech Inc.
  • Ab Mauri
  • Ab Vista
  • Lesaffre (Biospringer)

Know thy Competitors

Competitive landscape highlights only certain players
Complete list available upon request

Consumption Analysis of Functional Dairy Ingredients (2017-2021) in Comparison to Market Growth Forecasts (2022-2032)

Focus on health has increased over the past years and people are increasingly aware of the health benefits associated with the consumption of dairy products. These factors are projected to positively impact functional dairy ingredient demand over the years to come.

Rising popularity of a protein-rich diet, adoption of healthy eating habits, increasing use of lactose derivatives in pharmaceutical formulations as prebiotics, and rising consumption of protein supplements are other factors that drive functional dairy ingredients market potential across the forecast period.

However, increasing demand for plant-based products is anticipated to have a negative impact on the consumption of dairy products, which could restrain functional dairy ingredients market growth over the coming years.

From 2022 to 2032, global consumption of functional dairy ingredients is projected to surge at 7.5% CAGR.

Functional dairy ingredients market forecast by Fact.MR

What’s Shaping the Functional Dairy Ingredients Market?

“Increasing Demand for Functional Foods across the World”

People across the world have grown more aware and conscious of their health than ever before and this has driven the demand for functional foods across the world.

With the rising consumption of functional and fortified consumables, demand for functional dairy ingredients is also anticipated to increase across the forecast period.

“Rising Consumer Demand for Plant-based Products”

Demand for plant-based products has seen a substantial increase over the past few years as the popularity of veganism has risen among the population across the world. This has hampered the demand for dairy products, and, in turn, restrained functional dairy ingredients market growth to some extent.

Increasing awareness and incidence of lactose intolerance among the general population is also expected to slow down functional dairy ingredient consumption.

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What Opportunities Can Aspiring Market Players Capitalize On?

“New Entrants Can Focus on Research to Develop Novel Ingredients”

R&D is crucial to developing novel functional ingredients, and with such supportive initiatives, start-ups can improvise their research to gain a better grasp of the current market trends and capitalize on those opportunities.

New market entrants should aim for collaborations and mergers with established functional dairy ingredient companies to advance their research scope and make a mark in the global functional dairy ingredients industry.

  • In July 2022, Kerry, a leading food company based in Ireland, announced the launch of the Kerry Discovery Hub online learning center. This new portal will help new market players and start-ups educate themselves on different topics that are crucial for them to make a mark in the food and beverages industry across the world. The portal will also help new companies grow their business potential and scope.

What are the Regional Prospects Predicted in This Research Report?

“Europe & Asia Pacific Lead Global Functional Dairy Ingredient Demand”

Asia Pacific is anticipated to be the most lucrative region for functional dairy ingredient suppliers across the forecast period. High demand for functional dairy ingredients in this region can be attributed to the presence of a robust dairy production industry and the presence of multiple dairy producers.

India and China are anticipated to lead functional dairy ingredients market growth in the region through 2032. The market for functional dairy ingredients in China stands at US$ 16.29 billion and accounts for a market share of 8.4% in the global landscape in 2022.

At present, the Europe functional dairy ingredients market accounts for a significant market share of 23.4% and is valued at US$ 47.14 billion. Rapid procurement of functional dairy ingredients in this region is anticipated to drive market growth over the coming years. The presence of key dairy manufacturing companies in this region is also expected to propel functional dairy ingredient sales.

Fact.MR, a market research and competitive intelligence provider, in this latest functional dairy ingredients market study report, gives a detailed regional analysis of the industry with trends, opportunities, and restraints affecting market growth.

Competitive Landscape

Functional dairy ingredient manufacturers are expected to focus on mergers, collaborations, and partnerships to advance their market presence and fast-track the launch of new products.

  • In June 2022, Fonterra, a leading dairy organization, announced the launch of a functional whey protein concentrate that unlocks new textures in cultured dairy. The new ingredient is expected to support innovation in the U.S. dairy market.

Key Segments Covered in Functional Dairy Ingredients Industry Research

  • Functional Dairy Ingredients Market by Nature :

    • Organic Functional Dairy Ingredients
    • Conventional Functional Dairy Ingredients
  • Functional Dairy Ingredients Market by Type :

    • Proteins & Amino Acids
    • Vitamins
    • Minerals
    • Oils & Fatty acids
    • Probiotics & Prebiotics
    • Carotenoids
    • Fibers
    • Hydrocolloids
    • Others
  • Functional Dairy Ingredients Market by Source :

    • Animal-based
    • Plant-based
  • Functional Dairy Ingredients Market by End Use :

    • Whole Milk
    • Confectionery
    • Yogurt
    • Cheese
    • Frozen Deserts
    • Ice Cream
    • Baby Food
    • Beverages
    • Butter
    • Other End Uses
  • Functional Dairy Ingredients Market by Region :

    • North America
    • Latin America
    • Europe
    • APAC
    • MEA

- FAQs -

How big is the functional dairy ingredients market?

The global functional dairy ingredients market is valued at US$ 201.47 billion.

What is the expected functional dairy ingredients market value?

By 2032, the market is projected to reach US$ 417.16 billion.

How are sales of functional dairy ingredients evolving?

Sales of functional dairy ingredients are slated to increase at 7.5% CAGR through 2032.

What is the North America functional dairy ingredients market value?

The market in North America accounts for a valuation of US$ 42.91 billion.

Functional Dairy Ingredients Market

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