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    US Dairy By Products Market

    ID: MRFR/F-B & N/17087-HCR
    128 Pages
    Snehal Singh
    September 2025

    US Dairy By-Products Market Research Report: By Product Type (Whey Protein, Lactose, Casein, Butter Milk, Skimmed Milk Powder), By Application (Food and Beverages, Animal Feed, Nutritional Supplements, Pharmaceuticals), By Source (Cow Milk, Buffalo Milk, Goat Milk) and By Form (Liquid, Powder, Granules) - Forecast to 2035

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    US Dairy By Products Market Research Report — Forecast till 2035 Infographic
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    Table of Contents

    US Dairy By Products Market Summary

    The US Dairy By-Products market is projected to grow from 6.5 USD Billion in 2024 to 9.1 USD Billion by 2035.

    Key Market Trends & Highlights

    US Dairy By-Products Key Trends and Highlights

    • The market is expected to witness a compound annual growth rate (CAGR) of 3.11 percent from 2025 to 2035.
    • By 2035, the market value is anticipated to reach 9.1 USD Billion, reflecting a robust growth trajectory.
    • In 2024, the market is valued at 6.5 USD Billion, indicating a strong foundation for future expansion.
    • Growing adoption of innovative processing techniques due to increasing consumer demand for sustainable products is a major market driver.

    Market Size & Forecast

    2024 Market Size 6.5 (USD Billion)
    2035 Market Size 9.1 (USD Billion)
    CAGR (2025-2035) 3.11%

    Major Players

    Saputo Inc., Milk Specialties Global, Crystal Farms, Agropur Cooperative, Nestle USA, Darigold, California Dairies, Sargento Foods, Dairy Farmers of America, Land O'Lakes, Lactalis Group, Pinnacle Foods, Schreiber Foods, Hilmar Cheese Company

    US Dairy By Products Market Trends

    In recent times, there has been a noticeable shift towards innovative processing technologies that enhance the functionality and quality of dairy by-products.

    This has led to the development of new products, such as dairy-derived ingredients in food formulation and personal care items. This blend of health-focused consumer interests and technological advancements highlights a transformative phase for the US Dairy By-Products Market, indicating continued growth prospects in the near future.

    US Dairy By Products Market Drivers

    Market Segment Insights

    US Dairy By-Products Market Segment Insights

    US Dairy By-Products Market Segment Insights

    Dairy By-Products Market Product Type Insights

    Dairy By-Products Market Product Type Insights

    The US Dairy By-Products Market is a multifaceted sector that encompasses a variety of products derived from the processing of milk. The Product Type segment is crucial in understanding the overall industry dynamics and market trends. Among these, Whey Protein stands out due to its widespread popularity as a supplement among athletes and fitness enthusiasts, primarily due to its high protein content and essential amino acids. The nutritional benefits associated with Whey Protein lead to its extensive use in food formulations, thereby driving its demand significantly.

    Lactose, another vital component of the Dairy By-Products Market, serves both as a sweetener in various food products and as a key ingredient for infants in the form of baby formula. Its demand is primarily influenced by consumer preferences towards healthier options, where Lactose provides functional benefits that enhance the overall market growth. Casein, noted for its slow digestion properties, is often preferred by those interested in muscle recovery and growth. It forms a significant part of many nutritional products, contributing to a steady revenue stream in the Dairy By-Products segment.

    Buttermilk, traditionally a by-product of butter production, has regained popularity in recent years as a flavorful and versatile ingredient in cooking and baking, capitalizing on the growing trend towards natural and organic ingredients in the US culinary landscape. Moreover, Skimmed Milk Powder, a popular dairy ingredient with various applications in confectionery, baked goods, and infant nutrition, is significant due to its convenience and longer shelf-life, addressing consumer trends for healthier and portable food options.

    The dynamics of these Product Types and their applications not only support the industry's growth but also reflect the changing consumer behaviors and preferences in the US. Factors like health consciousness, dietary trends, and an inclination toward protein-rich diets consistently drive the market, showcasing the important role these products play in both daily nutrition and the overall dairy industry landscape. The diversification of applications across various food sectors also presents numerous opportunities for innovation and expansion within the Dairy By-Products Market.

    Dairy By-Products Market Application Insights

    Dairy By-Products Market Application Insights

    The Application segment of the US Dairy By-Products Market plays a pivotal role in driving overall demand and growth, reflecting diverse industry uses of dairy derivatives. This segment encompasses various applications, including Food and Beverages, Animal Feed, Nutritional Supplements, and Pharmaceuticals. The Food and Beverages category demonstrates significant importance as it utilizes dairy by-products for flavor enhancement, texture, and nutritional fortification, serving both the consumer market and the food processing industry.

    Meanwhile, Animal Feed represents a substantial component, as dairy by-products contribute essential nutrients that improve livestock health and productivity.Nutritional Supplements are gaining traction, driven by consumer trends towards health and wellness, where dairy-derived components are integral in providing protein and functional benefits. Additionally, Pharmaceuticals leverage dairy by-products in manufacturing processes, highlighting their versatile applications. Together, these areas drive innovation within the US Dairy By-Products Market, responding to evolving consumer preferences and providing critical opportunities for growth. Market trends show increasing incorporation of dairy by-products in sustainable production practices, underscoring their significance in a rapidly changing market landscape.

    Dairy By-Products Market Source Insights

    Dairy By-Products Market Source Insights

    The US Dairy By-Products Market, segmented by Source, comprises Cow Milk, Buffalo Milk, and Goat Milk, each contributing uniquely to the overall dynamics of the industry. Cow Milk is the dominant source, accounting for the majority of dairy by-products, owing to its widespread availability and versatility in various dairy products. Buffalo Milk, while less prevalent, serves niche market needs and is valued for its creaminess and richness, often leading to specialty products in the gourmet sector.

    Goat Milk, known for its digestibility and nutritional benefits, has gained traction among health-conscious consumers, further diversifying the Dairy By-Products Market.The demand for organic and sustainably sourced milk is another growing trend influencing these segments. With an increasing focus on quality and nutritional value, the US Dairy By-Products Market is expected to see shifts in consumer preferences, driving innovation across all sources. Efficient production practices and advancements in processing technology are also crucial components that support growth in this sector, reflecting the ongoing changes in consumer lifestyles and dietary patterns.

    Dairy By-Products Market Form Insights

    Dairy By-Products Market Form Insights

    The US Dairy By-Products Market focuses significantly on the Form segment, which includes Liquid, Powder, and Granules. This market segment plays a vital role in the overall industry, reflecting a preference in consumer demand for different forms of dairy by-products based on usability and versatility. Liquid dairy by-products are essential due to their widespread applications in beverages and as ingredients in many food products.

    The Powder form, which is often used for longer shelf life and easier transportation, is increasingly popular in the food processing sector, catering to both industrial and consumer needs.Granules, on the other hand, offer unique advantages for specific applications, such as in baking and as nutritional supplements, thus making their presence significant in niche markets. Each form contributes uniquely to the diversity of the market and is shaped by evolving dietary trends and consumer preferences in the US, including a growing inclination towards protein-enriched products.

    This segmentation showcases market growth opportunities driven by innovation and adaptability in product offerings, allowing manufacturers to meet varied consumer needs and leverage emerging trends effectively.The dynamic nature of the US Dairy By-Products Market also presents challenges, such as ensuring consistent quality and addressing sustainability concerns, which further influence the market landscape.

    Get more detailed insights about US Dairy By Products Market Research Report — Forecast till 2035

    Regional Insights

    Key Players and Competitive Insights

    The US Dairy By-Products Market presents a dynamic and evolving landscape characterized by increasing consumer demand for dairy-based ingredients and products. Key players in this market are continuously adapting to trends in health, sustainability, and innovative applications in the food and beverage sector. As the demand for natural and organic dairy ingredients surges, companies must leverage their strengths in production, distribution, and product innovation to remain competitive.

    The presence of a diverse range of players, from large multinational corporations to regional producers, contributes to an intense competitive environment, making it essential for businesses to understand their position relative to their peers while also identifying opportunities for differentiation within the market. Saputo Inc. holds a prominent position in the US Dairy By-Products Market, showcasing significant strengths in its extensive product portfolio, unmatched distribution capabilities, and commitment to quality. With robust operational facilities across the United States, the company is well-equipped to meet the increasing demand for cheese, dairy blends, and other by-products derived from milk processing.

    Saputo Inc.'s strategic focus on innovation has enabled it to maintain a competitive edge, as it continually invests in research and development to create new, value-added products that cater to evolving consumer preferences. Their strong financial health and established relationships with retailers further bolster their presence in the dairy by-products sector, allowing them to capitalize on emerging market trends and consumer demand.Milk Specialties Global specializes in the production of high-quality dairy-based ingredients, such as whey protein concentrates and isolates, essential for various applications in the food, beverage, and nutritional industries within the US market.

    The company has consolidated its presence through a series of strategic acquisitions, enhancing its capabilities and expanding its product offerings. Milk Specialties Global is recognized for its commitment to sustainability and innovation, positioning itself as a leader in delivering tailored solutions designed to meet the specific needs of its customers. By fostering strong partnerships with suppliers and customers, the company effectively navigates market challenges while maintaining a strong competitive presence.

    Their focus on high-quality manufacturing and dedication to customer service further solidify their standing in the US Dairy By-Products Market, empowering them to adapt swiftly to changes in demand and seize growth opportunities.

    Key Companies in the US Dairy By Products Market market include

    Industry Developments

    Recent developments in the US Dairy By-Products Market have shown significant growth and shifts among key players. In March 2023, Saputo Inc. announced plans to enhance its production capabilities to meet rising consumer demand for cheese alternatives, reflecting a trend towards plant-based products. Additionally, Milk Specialties Global has expanded its portfolio with new whey protein products aimed at the sports nutrition segment, capitalizing on the growing health-conscious consumer base.

    In May 2023, Lactalis Group invested in new technology to streamline its cheese-making process, indicating a focus on innovation and efficiency.On the merger and acquisition front, Agropur Cooperative finalized its acquisition of a key dairy facility, aimed at strengthening its production capacity in the Midwest region, which was publicly confirmed in April 2023. Notably, California Dairies announced a joint venture with Sargento Foods to enhance the distribution of dairy by-products through innovative packaging solutions in June 2023.

    Overall, the US Dairy By-Products Market is experiencing a dynamic evolution, driven by consumer preferences for health and sustainability, as well as strategic corporate expansions, reflecting a robust market landscape.

    Market Segmentation

    Dairy By-Products Market Form Outlook

    • Liquid
    • Powder
    • Granules

    Dairy By-Products Market Source Outlook

    • Cow Milk
    • Buffalo Milk
    • Goat Milk
    • Dairy By-Products Market Form Outlook

    Dairy By-Products Market Application Outlook

    • Food and Beverages
    • Animal Feed
    • Nutritional Supplements
    • Pharmaceuticals
    • Dairy By-Products Market Source Outlook

    Dairy By-Products Market Product Type Outlook

    • Whey Protein
    • Lactose
    • Casein
    • Butter Milk
    • Skimmed Milk Powder
    • Dairy By-Products Market Application Outlook

    Report Scope

    Report Attribute/Metric Source: Details
    MARKET SIZE 2018 6.0(USD Billion)
    MARKET SIZE 2024 6.5(USD Billion)
    MARKET SIZE 2035 9.1(USD Billion)
    COMPOUND ANNUAL GROWTH RATE (CAGR) 3.106% (2025 - 2035)
    REPORT COVERAGE Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
    BASE YEAR 2024
    MARKET FORECAST PERIOD 2025 - 2035
    HISTORICAL DATA 2019 - 2024
    MARKET FORECAST UNITS USD Billion
    KEY COMPANIES PROFILED Saputo Inc., Milk Specialties Global, Crystal Farms, Agropur Cooperative, Nestle USA, Darigold, California Dairies, Sargento Foods, Dairy Farmers of America, Land O'Lakes, Lactalis Group, Pinnacle Foods, Schreiber Foods, Hilmar Cheese Company
    SEGMENTS COVERED Product Type, Application, Source, Form
    KEY MARKET OPPORTUNITIES Sustainable packaging solutions, Nutraceuticals development potential, Protein-rich animal feed, Value-added dairy ingredient innovation, Waste-to-energy conversion technologies
    KEY MARKET DYNAMICS increasing health consciousness, sustainable sourcing trends, rising demand for plant-based alternatives, regulatory compliance and standards, technological advancements in processing
    COUNTRIES COVERED US

    Market Highlights

    Author
    Snehal Singh
    Assistant Manager - Research

    High acumen in analyzing complex macro & micro markets with more than 6 years of work experience in the field of market research. By implementing her analytical skills in forecasting and estimation into market research reports, she has expertise in Packaging, Construction, and Equipment domains. She handles a team size of 20-25 resources and ensures smooth running of the projects, associated marketing activities, and client servicing.

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    FAQs

    What is the expected market size of the US Dairy By-Products Market in 2024?

    The US Dairy By-Products Market is expected to be valued at 6.5 billion USD in 2024.

    What is the projected market size of the US Dairy By-Products Market by 2035?

    By 2035, the market is anticipated to reach a valuation of 9.1 billion USD.

    What is the expected CAGR for the US Dairy By-Products Market from 2025 to 2035?

    The market is expected to grow at a CAGR of 3.106% during the forecast period of 2025 to 2035.

    Who are the key players dominating the US Dairy By-Products Market?

    Major players in the market include Saputo Inc., Milk Specialties Global, Crystal Farms, and Nestle USA.

    What is the market value of Whey Protein in the US Dairy By-Products Market for 2024?

    Whey Protein is valued at approximately 1.95 billion USD in the US Dairy By-Products Market for 2024.

    What is the expected market value for Lactose by 2035?

    The Lactose segment is projected to reach 1.58 billion USD by 2035.

    How much is the Casein segment valued at in 2024?

    The Casein segment is valued at around 1.05 billion USD in the year 2024.

    What growth opportunities exist for the US Dairy By-Products Market?

    Growth opportunities are driven by increasing health consciousness and demand for dairy-based nutritional supplements.

    What is the anticipated market value of Skimmed Milk Powder in 2035?

    The anticipated market value for Skimmed Milk Powder is expected to be around 2.08 billion USD in 2035.

    What challenges currently face the US Dairy By-Products Market?

    Challenges include fluctuating raw material prices and stringent regulatory standards affecting production.

    1. EXECUTIVE SUMMARY
    2. Market Overview
    3. Key Findings
    4. Market Segmentation
    5. Competitive Landscape
    6. Challenges and Opportunities
    7. Future Outlook
    8. MARKET INTRODUCTION
    9. Definition
    10. Scope of the study
    11. Research Objective
    12. Assumption
    13. Limitations
    14. RESEARCH METHODOLOGY
    15. Overview
    16. Data Mining
    17. Secondary Research
    18. Primary Research
    19. Primary Interviews and Information Gathering Process
    20. Breakdown of Primary Respondents
    21. Forecasting Model
    22. Market Size Estimation
    23. Bottom-Up Approach
    24. Top-Down Approach
    25. Data Triangulation
    26. Validation
    27. MARKET DYNAMICS
    28. Overview
    29. Drivers
    30. Restraints
    31. Opportunities
    32. MARKET FACTOR ANALYSIS
    33. Value chain Analysis
    34. Porter's Five Forces Analysis
    35. Bargaining Power of Suppliers
    36. Bargaining Power of Buyers
    37. Threat of New Entrants
    38. Threat of Substitutes
    39. Intensity of Rivalry
    40. COVID-19 Impact Analysis
    41. Market Impact Analysis
    42. Regional Impact
    43. Opportunity and Threat Analysis
    44. US Dairy By-Products Market, BY Product Type (USD Billion)
    45. Whey Protein
    46. Lactose
    47. Casein
    48. Butter Milk
    49. Skimmed Milk Powder
    50. US Dairy By-Products Market, BY Application (USD Billion)
    51. Food and Beverages
    52. Animal Feed
    53. Nutritional Supplements
    54. Pharmaceuticals
    55. US Dairy By-Products Market, BY Source (USD Billion)
    56. Cow Milk
    57. Buffalo Milk
    58. Goat Milk
    59. US Dairy By-Products Market, BY Form (USD Billion)
    60. Liquid
    61. Powder
    62. Granules
    63. Competitive Landscape
    64. Overview
    65. Competitive Analysis
    66. Market share Analysis
    67. Major Growth Strategy in the Dairy By-Products Market
    68. Competitive Benchmarking
    69. Leading Players in Terms of Number of Developments in the Dairy By-Products Market
    70. Key developments and growth strategies
    71. New Product Launch/Service Deployment
    72. Merger & Acquisitions
    73. Joint Ventures
    74. Major Players Financial Matrix
    75. Sales and Operating Income
    76. Major Players R&D Expenditure. 2023
    77. Company Profiles
    78. Saputo Inc.
    79. Financial Overview
    80. Products Offered
    81. Key Developments
    82. SWOT Analysis
    83. Key Strategies
    84. Milk Specialties Global
    85. Financial Overview
    86. Products Offered
    87. Key Developments
    88. SWOT Analysis
    89. Key Strategies
    90. Crystal Farms
    91. Financial Overview
    92. Products Offered
    93. Key Developments
    94. SWOT Analysis
    95. Key Strategies
    96. Agropur Cooperative
    97. Financial Overview
    98. Products Offered
    99. Key Developments
    100. SWOT Analysis
    101. Key Strategies
    102. Nestle USA
    103. Financial Overview
    104. Products Offered
    105. Key Developments
    106. SWOT Analysis
    107. Key Strategies
    108. Darigold
    109. Financial Overview
    110. Products Offered
    111. Key Developments
    112. SWOT Analysis
    113. Key Strategies
    114. California Dairies
    115. Financial Overview
    116. Products Offered
    117. Key Developments
    118. SWOT Analysis
    119. Key Strategies
    120. Sargento Foods
    121. Financial Overview
    122. Products Offered
    123. Key Developments
    124. SWOT Analysis
    125. Key Strategies
    126. Dairy Farmers of America
    127. Financial Overview
    128. Products Offered
    129. Key Developments
    130. SWOT Analysis
    131. Key Strategies
    132. Land O'Lakes
    133. Financial Overview
    134. Products Offered
    135. Key Developments
    136. SWOT Analysis
    137. Key Strategies
    138. Lactalis Group
    139. Financial Overview
    140. Products Offered
    141. Key Developments
    142. SWOT Analysis
    143. Key Strategies
    144. Pinnacle Foods
    145. Financial Overview
    146. Products Offered
    147. Key Developments
    148. SWOT Analysis
    149. Key Strategies
    150. Schreiber Foods
    151. Financial Overview
    152. Products Offered
    153. Key Developments
    154. SWOT Analysis
    155. Key Strategies
    156. Hilmar Cheese Company
    157. Financial Overview
    158. Products Offered
    159. Key Developments
    160. SWOT Analysis
    161. Key Strategies
    162. References
    163. Related Reports
    164. US Dairy By-Products Market SIZE ESTIMATES & FORECAST, BY PRODUCT TYPE, 2019-2035 (USD Billions)
    165. US Dairy By-Products Market SIZE ESTIMATES & FORECAST, BY APPLICATION, 2019-2035 (USD Billions)
    166. US Dairy By-Products Market SIZE ESTIMATES & FORECAST, BY SOURCE, 2019-2035 (USD Billions)
    167. US Dairy By-Products Market SIZE ESTIMATES & FORECAST, BY FORM, 2019-2035 (USD Billions)
    168. PRODUCT LAUNCH/PRODUCT DEVELOPMENT/APPROVAL
    169. ACQUISITION/PARTNERSHIP
    170. MARKET SYNOPSIS
    171. US DAIRY BY-PRODUCTS MARKET ANALYSIS BY PRODUCT TYPE
    172. US DAIRY BY-PRODUCTS MARKET ANALYSIS BY APPLICATION
    173. US DAIRY BY-PRODUCTS MARKET ANALYSIS BY SOURCE
    174. US DAIRY BY-PRODUCTS MARKET ANALYSIS BY FORM
    175. KEY BUYING CRITERIA OF DAIRY BY-PRODUCTS MARKET
    176. RESEARCH PROCESS OF MRFR
    177. DRO ANALYSIS OF DAIRY BY-PRODUCTS MARKET
    178. DRIVERS IMPACT ANALYSIS: DAIRY BY-PRODUCTS MARKET
    179. RESTRAINTS IMPACT ANALYSIS: DAIRY BY-PRODUCTS MARKET
    180. SUPPLY / VALUE CHAIN: DAIRY BY-PRODUCTS MARKET
    181. DAIRY BY-PRODUCTS MARKET, BY PRODUCT TYPE, 2025 (% SHARE)
    182. DAIRY BY-PRODUCTS MARKET, BY PRODUCT TYPE, 2019 TO 2035 (USD Billions)
    183. DAIRY BY-PRODUCTS MARKET, BY APPLICATION, 2025 (% SHARE)
    184. DAIRY BY-PRODUCTS MARKET, BY APPLICATION, 2019 TO 2035 (USD Billions)
    185. DAIRY BY-PRODUCTS MARKET, BY SOURCE, 2025 (% SHARE)
    186. DAIRY BY-PRODUCTS MARKET, BY SOURCE, 2019 TO 2035 (USD Billions)
    187. DAIRY BY-PRODUCTS MARKET, BY FORM, 2025 (% SHARE)
    188. DAIRY BY-PRODUCTS MARKET, BY FORM, 2019 TO 2035 (USD Billions)
    189. BENCHMARKING OF MAJOR COMPETITORS

    US Dairy By-Products Market Segmentation

    • Dairy By-Products Market By Product Type (USD Billion, 2019-2035)

      • Whey Protein
      • Lactose
      • Casein
      • Butter Milk
      • Skimmed Milk Powder
    • Dairy By-Products Market By Application (USD Billion, 2019-2035)

      • Food and Beverages
      • Animal Feed
      • Nutritional Supplements
      • Pharmaceuticals
    • Dairy By-Products Market By Source (USD Billion, 2019-2035)

      • Cow Milk
      • Buffalo Milk
      • Goat Milk
    • Dairy By-Products Market By Form (USD Billion, 2019-2035)

      • Liquid
      • Powder
      • Granules
    Report Infographic
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