Growth Strategies Adopted by Major Players in the Dairy Ingredients Market

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Growth Strategies Adopted by Major Players in the Dairy Ingredients Market

Growth Strategies Adopted by Major Players in the Dairy Ingredients Market
The dairy ingredients market size was estimated to account for a value of USD 63.6 billion in 2021 and is projected to grow at a CAGR of 7.2% from 2021, to reach a value of USD 89.9 billion by 2026.

The Dairy Ingredients Market is projected to reach USD 89.9 billion by 2026, at a CAGR of 7.2% from 2021. The growing demand for nutritious food among consumers is driving the market. Due to various properties, such as emulsification and heat stability, dairy ingredients find various applications in different food and beverage applications.

Dairy Ingredients Market

The key players in this market include FrieslandCampina (Netherlands), Arla Foods (Denmark), Fonterra Co-operative Group (New Zealand), Kerry Group (Ireland), and Glanbia (Ireland). New product launches, expansions & investments, joint ventures, agreements, and partnerships were some of the core strengths of the leading players in the dairy ingredients market. These strategies were adopted by the key players to increase their market presence. It also helped them diversify their businesses geographically, strengthen their distribution networks, and enhance their product portfolios. Some of the other players in the dairy ingredients market are Groupe Lactalis (France), Saputo (Canada), Dairy Farmers of America (US), Ornua (Ireland), AMCO Proteins (US), Prolactal (Austria), Valio (Finland), Hoogwegt Group (The Netherlands), Batory Foods (USA), Ingredia SA (France), Agropur (Canada), and Euroserum (France).

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Frieslandcampina (Netherlands) is one of the major players in the global dairy ingredients market. It is one of the leading producers of dairy ingredient-based products for various applications, such as food & beverages and supplements. It launched its own sports nutrition range under the brand name “Vifit,” to offer dairy-based drinks, shakes, and bars. The brand aimed at offering protein-rich products and fulfilling the need of active sportspersons. Also, it acquired various activities of Best Cheese Corporation (US), which will strengthen its position in the American consumer market. In 2021, FrieslandCampina International Holding B.V and the Arabian Food Industries Company signed a joint venture agreement to focus on the export of cheese to Africa and the Middle East.

Arla Foods (Denmark) is one of the major players in the dairy ingredients market. It is one of the oldest dairy co-operatives. It is primarily engaged in the manufacture and distribution of dairy products and ingredients. It is mainly focused on innovating and launching new products. For instance, in 2018, Arla Foods Ingredients introduced Nutrilac, a whey protein-based solution, which would enable dairies to increase the production of labneh cheese. It would also help in delivering the product with the same fresh milky flavor, optimal stability, and creamy texture. Also, Arla Foods Ingredients came up with a special protein ingredient for skyr. Following this decision, manufacturers will be able to deliver products according to the preferences (taste, mouthfeel, and appearance) of the consumers. In 2019 Arla Foods Ingredients developed two maternal supplementation concepts. The Smart Mama bar and Smart Mama drink prototypes that were introduced to support children’s cognitive growth and lactation during pregnancy. These contain the ingredient Lacprodan MFGM-10 – a whey protein concentrate.

Fonterra Co-operative Group (New Zealand) founded in 2001 is one of the largest exporters of dairy products. It is one of the pioneers in dairy innovation and has a diverse product portfolio. Its market areas include Japan, New Zealand, Thailand, China, Australia, Malaysia, America, Vietnam, Philippines, Sri Lanka and Indonesia. Its business revenue mix has three segments namely ingredients, food service and consumer. Asia consist of the largest market share for the company.some of the well known brands from the company include Anchor, Anlene, NZMP and Farm Source. In 2021, Fonterra and Royal DSM, a global science-based company active in health, nutrition, and sustainable living, teamed up to work on reducing on-farm greenhouse emissions in New Zealand. In the very same year Anchor (a brand owned by Fonterra) joined hands with the Ministry of Sports to nourish high-performance athletes who aspire to represent Sri Lanka on a global stage.

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Kerry Group (Ireland) began as a private dairy company in southwest before becoming a dairy co-operative in 1974. Kerry is a world leader in food ingredients and flavors serving the food and beverage industry, it is also a leading supplier added value brands and customers branded foods to the Irish and UK markets. In 2021, Kerry completed the acquisition of Hare Topco, Inc., trading as Niacet Corp. Niacet is a global market leader in technologies for preservation. In 2019, Kerry Group announced a partnership with IBM and launched a predictive artificial intelligence (AI) tool, Kerry Trendspotter. This tool helps in forecasting future consumer trends in the food and beverage industry. It also enables the company to develop market winning products.

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