How big is the Dairy Ingredients Market | Size, Applications & Key Drivers 2025

Q: What is the current and projected market size of the dairy ingredients market?

Dairy ingredients market was valued at approximately USD 69.3 billion in 2025 and is projected to reach USD 102.4 billion by 2031.

Q: What is the expected CAGR of the dairy ingredients market from 2025 to 2031?

The market is expected to grow at a CAGR of 5.7% during the forecast period.

Q: What are the key trends driving the dairy ingredients market?

Dairy ingredients market is driven by trends like demand for high-protein foods, lactose-free and clean-label products, and sustainable sourcing.

Q: What are the major drivers of the dairy ingredients market growth?

Key drivers of dairy ingredients market include increasing health consciousness, growth in functional foods, technological advancements, and demand for nutritional supplements.

Q: How does 6W market outlook report help businesses in making decisions?

6W monitors the market across 60+ countries Globally, publishing an annual market outlook report that analyses trends, key drivers, Size, Volume, Revenue, opportunities, and market segments. This report offers comprehensive insights, helping businesses understand market dynamics and make informed decisions.

Q: Do you also provide customisation in the market study?

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Code: MTA5696

Publication Date: Jul 2025

What is the Dairy ingredients Market Size?

According to 6Wresearch internal database and industry insights, the Global Dairy ingredients market was valued at USD 69.3billion in 2024 and is anticipated to exceed USD 102.4 billion by 2031, registering a steady at a CAGR of 5.7% during the forecast period.

Dairy ingredients market is witnessing significant growth driven by increasing demand for functional and nutritional food products across the globe. The market is supported by the expanding food and beverage industry, particularly in emerging economies, where there is rising awareness of health and wellness. Moreover, the shift in consumer preference toward protein-rich diets, clean-label products, and natural ingredients is pushing food manufacturers to adopt dairy-derived ingredients in a variety of applications.

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Major Growth Factors of the Dairy ingredients Market

Rising consumption of protein-rich and functional foods
Expanding application in infant formula and sports nutrition
Growing food processing industry in emerging economies
Increasing demand for clean-label and organic products
Advancements in dairy processing technologies
Rising awareness about the nutritional benefits of dairy ingredients
Increasing urbanization and disposable income
Growth in the bakery and confectionery sectors

Dairy ingredients Market Trends

Dairy ingredients market is experiencing a transition towards the use of specialty dairy ingredients that cater to specific dietary and functional needs. There is a strong emphasis on sustainability and traceability, with manufacturers innovating to reduce environmental impact. Demand for lactose-free, reduced-fat, and high-protein formulations is rising, driven by evolving consumer health preferences and dietary restrictions.

Emerging Developments in the Dairy ingredients Market

Dairy ingredients market is observing increasing investments in R&D for product innovation and improved shelf-life. There is a surge in the development of hybrid dairy alternatives combining plant-based and dairy ingredients. Companies are also exploring enzymatic and fermentation technologies to create more functional and digestible dairy products. Strategic collaborations between food companies and dairy producers are further enhancing market capabilities.