Fermented Dairy Ingredients Market Is Projected To Reach USD 9.9 Billion By 2030

The global fermented dairy ingredients market size was worth around USD 5.2 Billion in 2022 and is predicted to grow to around USD 9.9 Billion by 2030, with a compound annual growth rate (CAGR) of roughly 8.5% between 2023 and 2030.

The fermented dairy ingredients market focuses on producing, processing, and commercializing dairy components enhanced through fermentation. This process improves product quality, extends shelf life, and enhances functional properties. Fermented dairy ingredients are derived from milk or by-products using specific microbial cultures, such as bacteria, yeasts, or molds, resulting in beneficial cultures, proteins, and bioactive compounds. Market expansion is driven by increasing consumer demand for health-focused food products, particularly those supporting gut health and immunity.

Browse the full “Fermented Dairy Ingredients Market By Product Type (Natural Cheese, Flavored Milk, and Yoghurt), By Application (Bakery, Dairy, Snacks, and Others) and By Region - Global and Regional Industry Overview, Market Intelligence, Comprehensive Analysis, Historical Data, and Forecasts 2023 - 2030” Report at https://www.zionmarketresearch.com/report/fermented-dairy-ingredients-market

Despite challenges such as fluctuating raw material costs, substantial market revenue and advancements in fermentation technology continue to support fermented dairy ingredients industry growth.

Market Growth Factors

• Increasing consumer awareness of health: Consumers prioritize foods with probiotic and nutritional benefits, driving demand for fermented dairy ingredients.
• Rise in natural and clean label ingredients: The shift toward minimally processed, high-quality food products fuels the naturally fermented dairy components market.
• Expanding functional food and dietary supplements: The growing popularity of functional foods and supplements rich in probiotics and bioactive compounds further boosts market expansion.

Restraints

• Stringent regulatory requirements: Compliance with food safety and labeling regulations poses challenges for manufacturers in the dairy fermentation industry.
• Allergen concerns: Lactose intolerance and dairy allergies limit consumer adoption, necessitating the development of alternative formulations.

Fermented Dairy Ingredients Market Report Scope:

Market Segmentation

The fermented dairy ingredients market is segmented by product type, source, application, distribution channel, and region.

On the basis of type, the market is segregated into cultures, proteins, milk, and others. Of these, the culture segment leads the market as cultures are essential for the fermentation process in dairy products, improving texture, flavor, and shelf life while supporting gut health.

On the basis of source, the fermented dairy ingredients market is classified into milk, whey, and others. Milk-based fermentation dominates the market since it is the most commonly used source, providing a rich nutritional profile and versatility in dairy applications.

Based on the application, the fermented dairy ingredients industry is segregated into yogurt, cheese, bakery products, food and beverage, dietary supplements, and animal feed. Yogurt is expected to lead the market globally due to its probiotic benefits, rising demand for healthy snacks, and growing lactose-free product innovations.

Based on the distribution channel, the fermented dairy ingredients industry is divided into online retail, supermarkets/hypermarkets, specialty stores, and others. Of these, supermarkets/hypermarkets lead the market since they offer various fermented dairy products, ensuring accessibility and consumer preference for in-person product selection.

Europe dominates the global fermented dairy ingredients market, driven by its long-standing traditions, well-established processing infrastructure, and strong consumer demand for high-quality dairy products. The region has a high per capita consumption of fermented dairy items, such as yogurt, kefir, and cheese, which supports consistent market growth. Increasing awareness of the health benefits of probiotics and functional dairy ingredients has further boosted demand, especially in countries like Germany, France, and the Netherlands. The presence of leading dairy manufacturers and research institutions fosters continuous product innovation, enhancing the market’s competitiveness. Strict EU food safety regulations ensure high product quality and transparency, reinforcing consumer trust.

Key Market Players

Some of the prominent companies operating in the fermented dairy ingredients market include:

• E. I. du Pont de Nemours and Company
• Koninklijke DSM
• Cargill Incorporated
• Hansen Holding
• Novozymes
• Kerry
• Bioprox
• Ingredion Incorporated
• Archer Daniels Midland Company
• Lake International Technologies
• Arla Foods Ingredients Group
• CSK Food Enrichment
• DairyChem
• Epi Ingredients
• CP Ingredients
• Socius Ingredients
• Dairy Connection
• The Tatua Cooperative Dairy Company
• Corbion.

Recent Developments

• In January 2024, Chr. Hansen launched a new culture to improve the texture of yogurt.
• In February 2024, DuPont Nutrition and Biosciences introduced a fermented protein ingredient for vegan applications.

The global fermented dairy ingredients market is segmented as follows:

By Product Type

• Natural Cheese
• Flavored Milk
• Yoghurt

By Application

• Bakery
• Dairy
• Snacks
• Others

By Region

• North America
  • The U.S.
• Europe
  • UK
  • France
  • Germany
• Asia Pacific
  • China
  • Japan
  • India
• Latin America
  • Brazil
• The Middle East and Africa

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