The Fat-Rich Dairy Products market is influenced by a range of factors that collectively shape its growth and market dynamics. One primary driver is the enduring consumer preference for rich and indulgent dairy products. Products like butter, cream, and full-fat cheeses hold a special place in culinary traditions globally, as they contribute to the flavor, texture, and overall sensory appeal of various dishes. The intrinsic connection of fat-rich dairy products with taste and satisfaction drives their consistent demand across diverse cultures and culinary practices. The fat-rich dairy products market is anticipated to generate over USD 16 billion in sales by 2027, growing at a rate of roughly 4% annually between 2019 and 2027.
Changing dietary perceptions and nutritional trends play a significant role in shaping the Fat-Rich Dairy Products market. While there has been a surge in interest in healthier and lighter alternatives, there remains a substantial consumer base that values the inherent qualities of full-fat dairy. Research indicating the potential health benefits of certain fats and the satiating nature of fat-rich foods contribute to the continued popularity of these products. Additionally, full-fat dairy is often considered a wholesome source of essential nutrients like vitamins A and D, further influencing consumer preferences.
Technological advancements and innovations in dairy processing contribute to the market's evolution. Modern processing techniques allow manufacturers to produce fat-rich dairy products with improved quality, taste, and shelf stability. These innovations include methods for enhancing the creaminess and texture of products without compromising on the fat content. Furthermore, the development of flavored and specialty fat-rich dairy products caters to changing consumer preferences for diverse and unique offerings, contributing to market expansion.
Globalization and international trade also play a role in shaping the Fat-Rich Dairy Products market. As culinary influences and preferences cross borders, there is a demand for a variety of traditional and specialty dairy products. Moreover, the ease of transportation and distribution allows consumers around the world to access a diverse range of fat-rich dairy options. Companies operating in the market must navigate diverse regulatory landscapes and cultural nuances to cater to the preferences of consumers in different regions.
Health and wellness considerations represent both an opportunity and a challenge for the Fat-Rich Dairy Products market. While some consumers actively seek healthier alternatives, there is a growing acknowledgment of the role of certain fats in a balanced diet. The market responds with products that emphasize the quality of fats, highlighting the nutritional value and sourcing practices. However, challenges arise as health-conscious consumers may opt for lower-fat alternatives, posing a need for marketing strategies that communicate the positive attributes of fat-rich dairy products.
Sustainability is an emerging factor influencing the Fat-Rich Dairy Products market. As consumers become more environmentally conscious, there is a demand for dairy products produced through sustainable and ethical practices. Companies that incorporate eco-friendly sourcing, production, and packaging methods align with these consumer values and contribute to the market's evolution toward more responsible and environmentally conscious offerings.
Fat Rich Dairy Products Market Highlights:
Market Scenario
Fat-Rich Dairy Products Market is expected to garner a revenue of approximately USD 16 billion by 2024 at a CAGR of approximately 4% during the forecast period of 2019–2024. Dairy products rich in various nutrients, along with conjugated linoleic acid, milk fat globule membrane, and short-chain free fatty acids are commonly referred to as fat-rich dairy products. Surging consumption of various fat-rich dairy products such as ghee, butter, cream and others are amongst the major determinants driving the growth of global fat-rich dairy products market. The health benefits associated with the consumption of ghee and butter, especially in the developing nations of Asia-Pacific, can be attributed to the increasing consumption of fat-rich dairy products. Introduction of flavored fat-rich dairy products are yet another factor catalyzing the demand for such products, which, in turn, is fueling the market growth. However, the rising concerns regarding obesity and cholesterol-based diseases are hampering the growth of the global fat-rich dairy products market. Manufacturers of fat-rich dairy products are expected to witness profitable growth opportunities during the upcoming years due to continuous product innovation and launch of innovative product flavors.
Segmentation
The global fat-rich dairy products market has been segmented based on type, packaging type, distribution channel, and region. By type, the global fat-rich dairy products market has been classified as butter, ghee/clarified butter, cream, and others. The global fat-rich dairy products market has also been segregated, on the basis of packaging type, into bottles & jars, pouches, and others. Based on distribution channel, the market is segregated into store-based and non-store-based. The store-based segment has been further segmented into supermarkets & hypermarkets, convenience stores, and others. The global fat-rich dairy products market has been studied with regard to four key regions—North America, Europe, Asia-Pacific, and the rest of the world. The North American fat-rich dairy products market has further been segmented into the US, Canada, and Mexico. The European fat-rich dairy products market has been classified as the UK, Germany, France, Italy, Spain, and the rest of Europe. The fat-rich dairy products market in Asia-Pacific has been divided into China, India, Japan, Australia and New Zealand, and the rest of Asia-Pacific. The fat-rich dairy products market in the rest of the world has been segmented into South America, the Middle East, and Africa.
Key Players
Land O'Lakes, Inc. (US), Nestle S.A. (Switzerland), Royal FrieslandCampina (Netherlands), General Mills (US), DANA Dairy (Switzerland), GCMMF (AMUL) (India), Groupe Lactalis (France), Saputo Inc. (Canada), Fonterra Co-operative Group (New Zealand), Danone (France), and Kraft Foods Inc. (US) are some of the key players in the global fat-rich dairy products market.
Regional Market Summary
North America dominated the global fat-rich dairy products market in 2018 owing to the surging consumption of convenience food products in the region. Europe was the second-largest market in terms of revenue share, in 2018 due to the increasing retail consumption of fat-rich dairy products in Belgium, Germany, and France. However, the Asia-Pacific fat-rich dairy products market is expected to register the highest CAGR during the forecast period owing to the increasing consumption of ghee and butter in the region due to their health benefits. India, Australia, and New Zealand are the major country-level market contributing to the growth of the regional market.
Global Fat-rich Dairy Products Market, by Type
- Butter
- Ghee/Clarified Butter
- Cream
- Others
Global Fat-rich Dairy Products Market, by Packaging Type
- Bottles & Jars
- Pouches
- Others
Global Fat-rich Dairy Products Market, by Distribution Channel
- Store-Based
- Supermarkets & Hypermarkets
- Convenience Stores
- Others
- Non-Store-Based
Global Fat-rich Dairy Products Market, by Region
-
Europe
- Germany
- France
- Italy
- Spain
- UK
- Rest of Europe
-
Asia-Pacific
- Japan
- China
- India
- Australia and New Zealand
- Rest of Asia-Pacific
-
Rest of the World (RoW)
- South America
- Middle East
- Africa
Intended Audience
- Dairy product manufacturers
- Food and beverage manufacturers
- Traders, importers and exporters
- Raw material suppliers
- Retailers and wholesalers
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