Dairy Products Processing Equipment Market Size, Share, Trends, Growth and Forecast 2032

Dairy Products Processing Equipment Industry Prospective:

The global dairy products processing equipment market size was worth around USD 14.86 billion in 2023 and is predicted to grow to around USD 25.87 billion by 2032, with a compound annual growth rate (CAGR) of roughly 6.50% between 2024 and 2032.

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Dairy Products Processing Equipment Market: Overview

Dairy products processing equipment is a wide range of automated sub-processes used for converting raw milk into dairy items. These tools and technologies are used to improve the production rate and quality of the final fairy items consumed by billions of people worldwide. The standard tool used during dairy product processing includes machines for pasteurization since milk is the common product for all dairy solutions.

The pasteurization segment ensures the removal of harmful bacteria, followed by the extension of milk’s shelf life. The next process includes solutions designed to reach the desired products. The demand for dairy products processing equipment is expected to rise during the forecast period as dairy consumption is on the rise driven by several favorable factors.

For instance, the growing expansion of dairy product producers, along with rising food tourism, will contribute to higher demand for dairy products fueling applications of processing equipment. On the other hand, innovation in terms of processing technologies will also contribute to the market’s expansion trajectory. The dairy products processing equipment industry is expected to be impacted by the high cost of the technologies and regulatory challenges.

Key Insights:

• As per the analysis shared by our research analyst, the global dairy products processing equipment market is estimated to grow annually at a CAGR of around 6.50% over the forecast period (2024-2032)
• In terms of revenue, the global dairy products processing equipment market size was valued at around USD 14.86 billion in 2023 and is projected to reach USD 25.87 billion by 2032.
• The dairy products processing equipment market is projected to grow at a significant rate due to the growing expansion of dairy products.
• Based on equipment, the pasteurizers segment is growing at a high rate and will continue to dominate the global market as per industry projections.
• Based on application, the cheese segment is anticipated to command the largest market share.
• Based on region, Asia-Pacific is projected to dominate the global market during the forecast period.

Dairy Products Processing Equipment Market: Growth Drivers

Growing expansion of dairy products to drive market demand rate during the forecast period

The global dairy products processing equipment market is projected to be led by the increasing expansion of dairy items across the globe. Milk products such as yogurt, cheese, ice cream, buttermilk, sour cream, whey, and others are extensively consumed across the globe. Some of the items enjoy higher demand in certain parts of the world.

For instance, buttermilk is widely consumed in several Asian countries, such as India and China. Dairy product manufacturers are seeking new opportunities for product diversification and expansion as the end-consumer demand continues to grow rapidly. In November 2024, Arla Foods, one of the key players in the global food & beverages industry, announced the expansion of its yogurt product line with the introduction of two new products in the UK market. The new products include Arla LactoFree Natural Yogurt and Arla Skyr Whipped, which are available in three flavors.

Lactose-free yogurt range will be suitable for consumers searching for protein sources without lactose. The industry is further impacted by the entry of dairy products into new markets following the trend of global expansion. In November 2024, the Président brand, a French company known for its high-end dairy products, announced the launch of Leerdammer in the US market. It is a specialty import cheese delivering a combination of two exquisite tastes that are creaminess of Gouda and the nuttiness of Swiss cheese.

Technological innovations to generate extensive market revenue in the coming years

The global dairy products processing equipment market is projected to further benefit from the increasing technological innovations in the industry. The rising launch of more advanced and powerful dairy products processing systems in the form of membrane filtration systems, advanced pasteurization techniques, robotics & automation, Artificial Intelligence (AI), and fermentation control systems will benefit the industry players. Furthermore, technological innovations are also being directed toward monitoring cattle health to obtain high-quality milk for further processing as well as create a more robust raw material and final goods-related supply chain.

Dairy Products Processing Equipment Market: Restraints

High cost of the equipment limits the industry’s growth rate

The global dairy products processing equipment industry is projected to be restricted by the high cost of the equipment. For instance, industrial-scale pasteurizers may cost between USD 100,000 and USD 500,000, depending on the features offered.

Similarly, other equipment, such as spray dryers or filling & packing machines, are equally expensive. The cost factor restricts the entry of new players while also discouraging larger companies from making large-scale investments. In addition to this, the machines have longer lifespans, and their replacement period is extensive, thus reducing the number of purchases a company makes for procuring equipment for dairy product processing.

Dairy Products Processing Equipment Market: Opportunities

Rising investments in the development of new dairy processing centers will generate market growth opportunities

The global dairy products processing equipment market is expected to generate growth opportunities due to the increased investments in the development of new dairy processing centers.

In November 2024, the popular Indian dairy company Amul announced that the brand would launch its products in the European market. The company’s expansion strategy will be permitted through a partnership with a milk cooperative in Spain. The facility in the European country will be used for production while branding and marketing will be carried out by Amul.

In June 2022, Hochwald, a leading dairy and food company operating in the European sector, announced the official commencement of operations at its Mechernich plant, built with an investment of EUR 200 million.

According to official claims, the plant is one of the most modern facilities across Europe. In November 2023, Olam Food Ingredients (OFI), a leading producer of natural food & beverages, announced the official launch of its first state-of-the-art dairy processing plant located in New Zealand. The unit will be used for producing key dairy ingredients such as bakery and milk powder. It is also expected to contribute to OFI’s strengthening foothold in the food industry.

Dairy Products Processing Equipment Market: Challenges

Regulatory complexities affect the market’s overall revenue

The global dairy products processing equipment industry is projected to be challenged by the presence of an extensive regulatory environment that can be time-consuming and resource-intensive. Furthermore, the industry is likely to be affected by growing economic volatility in the industry and a lack of access to a skilled workforce. Meeting the requirements of smaller players can be difficult for dairy products processing equipment manufacturers.

Dairy Products Processing Equipment Market: Report Scope

Dairy Products Processing Equipment Market: Segmentation

The global dairy products processing equipment market is segmented based on equipment, application, and region.

Based on equipment, the global market segments are mixing & blending equipment, homogenizers, separators, membrane filtration equipment, evaporators & dryers, and others. In 2023, the highest demand was listed in the pasteurizers segment. It dominated nearly 26% of the final market share. The segmental growth is a result of the pasteurization process being one of the most common processes carried out in dairy product manufacturing. Additionally, growing food safety standards worldwide will encourage the adoption of pasteurization-enabling equipment.

Based on application, the dairy products processing equipment industry divisions are milk powder, protein ingredients, yogurt, processed milk, cheese, and others. In 2023, the highest revenue was generated by the cheese segment. It was responsible for generating more than 27.5% of the total revenue. Cheese is a commonly consumed dairy product enjoying extreme popularity in several food cultures. Europe, for instance, is one of the largest producers and suppliers of different types of high-quality cheese. Growing food tourism will impact demand for cheese in the coming years.

Dairy Products Processing Equipment Market: Regional Analysis

Asia-Pacific to continue dominating the industry during the forecast period

The global dairy products processing equipment market is expected to be led by Asia-Pacific during the forecast period. It dominated nearly 42% of the global market share in 2023. Rapid urbanization, increasing demand for dairy products, rising disposable income, and changes in consumer lifestyle were some major driving factors for the increased use of automated dairy product manufacturing devices.

In addition to this, several countries in Asia-Pacific, including India, China, and others, have registered significant importance for dairy products in every diet. Furthermore, the regions are home to some of the largest milk and dairy processing plants, which leads to higher regional revenue.

According to official estimates, China’s dairy demand is currently over USD 620 billion. Europe is a high contributor to the global revenue. Countries such as France, Spain, and Germany are some of the leading consumers of dairy items. In addition, the regional players are investing heavily in diversifying product portfolios, which could contribute to the region’s exceptional growth rate in the future. The regional market is registering a growing demand for vegan dairy items, which can open new avenues for further growth.

Dairy Products Processing Equipment Market: Competitive Analysis

The global dairy products processing equipment market is led by players like:

• Paul Mueller Company
• GEA Group
• Van den Heuvel Dairy & Food Equipment
• JBT Corporation
• Neologic Engineers Private Limited
• Feldmeier Equipment Inc.
• SPX Flow
• Coperion GmbH
• Scherjon Dairy Equipment Holland B.V.
• Alfa Laval
• IDMC Limited
• Krones AG
• The Middleby Corporation
• Tetra Pak
• Bucher Industries AG.

The global dairy products processing equipment market is segmented as follows:

By Equipment

• Mixing & Blending Equipment
• Homogenizers
• Separators
• Membrane Filtration Equipment
• Evaporators & Dryers
• Others

By Application

• Milk Powder
• Protein Ingredients
• Yogurt
• Processed Milk
• Cheese
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa