Dairy ingredient suppliers look to forge partnerships with sustainable brands
The global dairy ingredients market has expanded significantly since the beginning of 2020, owing to increasing milk products consumption amid heightened concerns over immunity enhancement to counter the novel coronavirus pandemic. Characterised as an essential service, milk production has witnessed a record increase, prompting manufacturers to augment their presence in key geographies.
A recently published report by Future Market Insights offers an exhaustive yet unbiased analysis of the dairy ingredients market, and takes into account the key dynamics responsible for the projected growth trajectory through 2030.
Key takeaways from the report:
- Emerging economies in the Asia-Pacific, specifically India & China to generate immense green spaces
- Milk proteins segment to expand at a noteworthy rate, owing to increased adoption of whey and casein proteins to manufacture dairy products
- E-commerce sales channels acquiring popularity amid the Covid-19 outbreak
- Livestock-sourced dairy products to remain dominant, owing to high bovine milk consumption
“Market players are emphasising on forging strategic alliances with government owned milk co-operatives and milk distribution grids so as to expand their product outreach and deepen penetration,” remarks one of the report analysts.
The Covid-19 pandemic has escalated sales of dairy ingredient products worldwide. As more consumers drift towards consumption of dairy products owing to perceived nutritional benefits, sales have proliferated credibly in recent months.
Although, the initial months of the pandemic reported a significant downswing due to the imposition of stringent lockdowns. Beverage giant Yakult, for instance, reported a significant drop in sales in the first two months of the pandemic crisis, to the tune of 10% in February.
Fortunately, countries have realised the importance of keeping the industry afloat and are taking steps to mitigate the adverse impact of the pandemic. For example, the Indian government has slashed the goods & services tax (GST) on ghee and milk fat from 12% to 5%.
On similar lines, the Trump Administration announced a $ 15.5 billion bailout package for the U.S dairy industry. It went a step further by purchasing milk and converting it into commodities which could then be used as global humanitarian aid.
The global dairy ingredients market is characterised by the presence of numerous manufacturers, rendering the market competitive in nature. Prominent players in the landscape include AMCO Proteins, Fonterra Co-operative Group, Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF), Meiji Holdings Co. Ltd, Nestle S.A, Kerry Group and Ingredia SA among others.
In September 2020, Fonterra Co-operative Group’s Australian division signed an agreement to acquire Dairy Country with the objective of strengthening the former’s AU$ 2.6 billion retail cheese business portfolio. The acquisition was undertaken for AU$ 19.23 million.
In 2017, Nestle Group announced the launch of its MILO cocoa-malt beverage in the Indian sub-continent, which was realized in 2019. This launch has helped Indian consumers have enhanced doses of essential micronutrients such as Vitamins B2, B3, B6, B12, C and D respectively.
To access these insights from the “Dairy Ingredients Market” report by Future Market Insights, visit: www.futuremarketinsights.com/reports/dairy-ingredients-market.