The Global Concentrated Milk Fat Market was estimated at USD 3.97 Bn in 2020 and is expected to grow with a CAGR of 12.8% during the forecast period.
The concentrated milk fat market is majorly growing owing to the rapidly expanding dairy industry across the globe. Many dairy industry stakeholders are increasing their investments in expanding production capabilities that are expected to result in increasing the production of several dairy products, including concentrated milk fat. For instance, in September 2021, Olam Food Ingredients (OFI), a global leader in naturally good food and beverage ingredients and solutions headquartered in California, U.S. announced its plan to develop a new dairy processing facility in the North Island town of Tokoroa, New Zealand. The new facility is expected to expand a range of high-value ingredient products that are manufactured at the facility, targeting key customer applications in the bakery, dessert, confectionery, and beverage categories. Concentrated milk fat products have wide application in a range of dairy products such as cream, cheese, yogurt, ice cream, and many more. Therefore, an expansion in the dairy industry is projected to positively drive the concentrated milk market.
Moreover, concentrated milk fat helps in preventing several life-threatening diseases such as cancer, atherogenic, diabetics, and long-term affecting health issues like obesity. This is due to the presence of conjugated linoleic acid, which is intentionally increased by manufacturers by the alteration in cow’s diet. According to a report published by National Center for Biotechnology Information milk fat consists of a range of anticarcinogenic components that includes conjugated linoleic acid, butyric acid, ether lipids, and sphingomyelin. Conjugated linoleic acid helps in inhibiting the proliferation of human colorectal, malignant melanoma, lung, and breast cancer cell lines. Thereby, growing awareness regarding these properties of concentrated milk fat products, the market is expected to experience high growth trends in the coming years.
Based on region, the Asia-Pacific region is growing with the fastest CAGR in the concentrated milk fat market and is projected to exhibit high growth during the forecast period. The concentrated milk fat market is growing in this region due to India, which is the largest milk producer in the world. Additionally, increasing per capita intake of dairy items, growing middle-class population, rising demand for shelf-stable milk, highest import value, rising disposable income are also prominent factors driving the growth in the concentrated milk fat industry. Further, favorable government support for expanding the dairy industry by several countries in the region is augmenting concentrated milk fat market growth in the region. For instance, in June 2020, the Government of India in partnership with the Department of Animal Husbandry and Dairying announced an investment of $2.1 Bn for infrastructure development fund with an interest subsidy scheme for promoting investment by MSMEs and private players in dairy, animal feed and meat processing plants. Such favorable support by the government is expected to drive the demand in the concentrated milk fat market in these regions.
The key market players in the concentrated milk fat industry are: