The Global Concentrated Milk Fat Market was valued at USD 3.97 Bn in 2020 and is expected to reach USD 9.24 Bn by 2027, with a growing CAGR of 12.8% during the forecast period.
Concentrated milk fat, also known as anhydrous milkfat or butteroil is a high-quality fat ingredient that has a clean bland taste that is free from any flavors such as sour, rancid, bitter, or oxidized. It is derived exclusively from milk or milk products including mixtures of butter, cream, and whey cream. Concentrated milk fat usually possesses a light-yellow color and is free of moisture, chemical additives, foreign fats, preservatives, or other impurities.
The concentrated milk fat market is majorly gaining traction owing to the growing popularity of concentrated milk fat amongst consumers due to the increasing demand for concentrated milk ingredients that have a longer shelf life and need minimal preservation. Concentrated milk fats are obtained by using a physical process that helps in removing approximately all water content along with non-fat solids from milk. Therefore, due to the reduced moisture content in the concentrated milk fats, the product could be stored at room temperature for many months, leading to longer shelf life, easier transportation, and bulk storage, thereby reducing the overall product cost. These benefits have resulted in increasing industrial application of the product that is leading to an exponential increase in the demand for concentrated milk fat products.
Moreover, another major factor driving the growth in the market is the technological advancement for increasing the production capacity of concentrated milk fat. Several manufacturers have started incorporating advanced technologies that have made it easier to make concentrated milk fat in large quantities yet in no time. For instance, Uelzena, a dairy company headquartered in Uelzen, Germany, offers unique and high-quality concentrated milk fat products using unique fractionalization technologies for separating hard stearins from liquid or soft oleins. Additionally, the company uses advanced technologies for customizing milk fat products according to client specifications, including degrees of hardness, defined melting points, and certain melting behavior. Moreover, the company offers the client to reduce cholesterol, add flavorings or brittle, nuts to the milk fats. Therefore, the use of such innovative technologies along with customization choices offered by the concentrated milk fat market players is expected to be instrumental in expanding their existing consumer base and market share, thus contributing to the market growth.
The unique insights provided by this report also include the following:
Based on product type, the organic product type is expected to be the fastest-growing segment in the concentrated milk fat owing to various benefits associated with the concentrated milk fat products
Based on product type, the concentrated milk fat market is segmented into conventional and organic. Among these, the organic product type has shown the fastest growth in 2020 and is projected to exhibit similar growth during the forecast period. This growth is majorly owing to various benefits associated with the concentrated milk fat products such as the higher presence of vitamin concentration that acts as an antioxidant, healthy level of essential fatty acids, and reduced risk of eczema among others. In addition, increasing health concerns along with rising inclination towards improving immune system among individuals, and growing awareness among them regarding health & fitness is prominently driving the growth in the concentrated milk fat market.
Based on application, the bakery and confectionery segment is projected to dominate the concentrated milk fat industry due to the broad spectrum of concentrated milk fat usage in bakery and confectionery
Based on application, the concentrated milk fat industry is fragmented into dairy products, bakery & confectionery, nutraceuticals, infant formula, and others. Among these, the human consumption application segment has dominated the concentrated milk fat market in 2020 and is expected to show similar trends during the forecast period. This dominant share is due to the broad spectrum of concentrated milk fat usage in bakery and confectionery items to enhance the consistency, flavor, and texture of bakery products. Concentrated milk fat has application in a range of bakery items such as bread, pastries, small baked goods, butter cookies, shortcakes, pound cakes, butter crème, yeast-raised pastries, cream fillings, and whipped masses among others. Therefore, the growing demand for bakery & confectionery products across the globe is anticipated to propel growth in the market.
Based on region, the North America region is anticipated to lead the concentrated milk fat industry across the globe
Based on region, the concentrated milk fat market is divided into Asia-Pacific, North America, Latin America, the Middle East and Africa, and Europe. Among these, in 2020, the North America region accounted for the largest share in the concentrated milk fat industry across the globe and is anticipated to show a significant growth trend during the forecast period. This growth is majorly attributed to the rising demand for several dairy dessert products in the region including bakery desserts, ice creams, and others. In addition, the high increasing demand for reconstituted milk products in the foodservice industry is also boosting the concentrated milk fat market growth in North America.
The report also provides an in-depth analysis of the market dynamics such as drivers, restraints opportunities, and challenges
Note: Challenges along with in-depth concentrated milk fat market dynamics analysis are mentioned in the report.
The COVID-19 outbreak has severely affected several industry verticals and has taken a toll on the concentrated milk fat industry. The pandemic has led to mass closures of schools, restaurants, and other wholesale foodservice markets which is creating revenue and logistical nightmares for the key players in the concentrated milk fat market. Due to the enforcement of social distancing and stay-at-home orders implemented by several economies across the globe, the foodservice sector has largely been affected which is in turn negatively impacting the growth in the concentrated milk fat market. The outbreak has also resulted in halting the supply chain and manufacturing operations which are immensely impacting the market demand.
The report also provides an in-depth analysis of key trends in the concentrated milk fat market
The report also provides an in-depth analysis of recent news developments and investments in the concentrated milk fat market
The key players operating in the concentrated milk fat industry are:
Priyanka has been writing chemicals & material market research reports for the last 12 years. A post-graduate, her specialization is in the chemicals sector. Preparing end-to-end reports covering minute details for market insights, competitive intelligence and trend analysis in the CMFE sector.