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    US Dairy Ingredients Market

    ID: MRFR/F-B & N/11687-HCR
    100 Pages
    Garvit Vyas
    September 2025

    US Dairy Ingredients Market Research Report: By Application (Food and Beverages, Nutritional Products, Confectionery, Bakery, Dairy Products), By Type (Milk Powder, Whey Protein, Cheese Powder, Casein, Cream), By Form (Liquid, Powder, Granular, Frozen) and By End Use (Industrial, Retail, Food Service) - Forecast to 2035

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

    US Dairy Ingredients Market Summary

    The US Dairy Ingredients market is projected to grow from 12.5 USD Billion in 2024 to 18.5 USD Billion by 2035.

    Key Market Trends & Highlights

    US Dairy Ingredients Key Trends and Highlights

    • The market is expected to experience a compound annual growth rate of 3.63 percent from 2025 to 2035.
    • By 2035, the market valuation is anticipated to reach 18.5 USD Billion, reflecting robust growth.
    • In 2024, the market is valued at 12.5 USD Billion, indicating a strong foundation for future expansion.
    • Growing adoption of dairy-based products due to increasing health consciousness is a major market driver.

    Market Size & Forecast

    2024 Market Size 12.5 (USD Billion)
    2035 Market Size 18.5 (USD Billion)
    CAGR (2025-2035) 3.63%

    Major Players

    Fonterra, Lactalis Ingredients, Glanbia Nutritionals, Nestlé, California Dairies, Chr. Hansen, Saputo, Dairy Farmers of America, Bel Group, Land O'Lakes, Tetra Pak, Agropur, Pioneer Foods, Arla Foods, Danone

    US Dairy Ingredients Market Trends

    The US Dairy Ingredients Market is experiencing significant growth driven by various factors. A key market driver is the increased health consciousness among consumers, leading to a rise in demand for dairy ingredients seen as nutritious, such as whey protein and yogurt cultures. Additionally, the trend of clean labeling is gaining momentum, prompting manufacturers to seek dairy ingredients that are minimally processed and free from artificial additives. In line with this, the preference for functional and fortified dairy products is also on the rise, as consumers look for items that enhance their overall well-being.

    There are also numerous opportunities to be explored in the US Dairy Ingredients Market.The growing popularity of plant-based diets has led dairy producers to innovate by creating hybrid products that combine dairy and plant ingredients. This not only caters to the rising number of people looking for alternatives but also expands the market reach. Furthermore, the demand for dairy ingredients in the food service sector, particularly among restaurants and health-focused food chains, provides a pathway for growth. In recent times, sustainability has become a critical trend in the US dairy industry.

    Consumers are increasingly prioritizing environmentally friendly practices, which is encouraging dairy producers to adopt more sustainable methods in sourcing and production.The push for lowering carbon footprints and improving animal welfare standards is reshaping how dairy ingredients are produced. As new technologies arise, they are making it easier for dairy manufacturers to implement these sustainable practices, ensuring that the US Dairy Ingredients Market can align with consumer expectations for both health and environmental responsibility.

    US Dairy Ingredients Market Drivers

    Market Segment Insights

    Dairy Ingredients Market Application Insights

    The Application segment of the US Dairy Ingredients Market encompasses a diverse range of uses, illustrating the versatility and pivotal role of dairy ingredients in the food landscape. This segment plays a crucial role in various industries, notably in Food and Beverages, where dairy components are essential for enhancing flavors, textures, and nutritional profiles.

    The demand for health-focused Nutritional Products is on the rise, representing a shift towards functional foods that provide additional health benefits, making dairy ingredients significant for those looking to bolster their diets with proteins and vitamins.Furthermore, the Confectionery sector, although more niche, greatly benefits from dairy ingredients like milk powders and creamers to achieve desirable textures and flavors in sweet products. The Bakery industry heavily relies on dairy fats and powders to improve product quality and shelf life, indicating a substantial trend towards utilizing dairy for enriching baked goods.

    Additionally, Dairy Products, such as cheese and yogurt, continue to dominate the market due to their longstanding consumption patterns and versatility in various culinary applications.The overall growth within the Application segment is influenced by trends such as clean labels, increased consumer awareness about nutrition, and the rising popularity of diets that incorporate dairy in various forms. Emerging health trends and the need for convenient food options also drive innovation within this sector, presenting robust opportunities for further development of dairy-based products tailored to meet evolving consumer preferences in the US.

    The significance of this segment in the overall US Dairy Ingredients Market revenue cannot be understated, as it serves as a foundation for continued market growth and responsiveness to shifting dietary patterns within the population.

    Source: Primary Research, Secondary Research, Market Research Future Database and Analyst Review

    Dairy Ingredients Market Type Insights

    The US Dairy Ingredients Market, under the segment of Type, includes essential components such as Milk Powder, Whey Protein, Cheese Powder, Casein, and Cream. Milk Powder holds a significant share due to its versatility and long shelf life, often utilized in various food products, both in households and commercial applications. Whey Protein is highly sought after for its superior amino acid profile, making it a popular choice in the health and fitness industry, particularly for its role in protein supplements and functional foods.

    Cheese Powder serves as a convenient flavor enhancer and finds numerous applications ranging from snacks to ready-to-eat meals, driving its demand.Casein, which is slowly digested, is preferred by consumers looking for sustained energy, particularly among athletes and health-conscious individuals. Cream is valued for its rich texture and flavor, making it integral in premium dairy products and culinary applications.

    The dynamics of the US Dairy Ingredients Market are bolstered by growing health trends, inclination towards protein-enriched diets, and the overall demand for convenience food, presenting various growth opportunities in this sector while also facing challenges in supply chain management and pricing volatility.

    Dairy Ingredients Market Form Insights

    The US Dairy Ingredients Market segment focusing on Form showcases diverse product types including Liquid, Powder, Granular, and Frozen. This segment plays a crucial role in the culinary landscape, catering to both consumer preferences and industrial requirements. Liquid dairy ingredients often find applications in beverages and dairy-based products, while Powdered forms are critical in snack foods and baked goods, widely utilized for convenience and shelf stability.

    The Granular form significantly aids in the creation of specialty cheeses and sauces, providing texture and enhancing flavor profiles.Frozen dairy ingredients are particularly important for the production of desserts and frozen treats, aligning with growing consumer demand for indulgent products. Recent trends indicate a shift toward clean label products, pushing manufacturers to innovate in this segment and ensuring all forms meet evolving consumer expectations. As the US Dairy Ingredients Market data indicates continued growth, the segmentation by Form reflects the industry's adaptability and responsiveness to market dynamics and taste trends.

    Dairy Ingredients Market End Use Insights

    The US Dairy Ingredients Market showcases a diverse range of applications across the End Use segment, which comprises Industrial, Retail, and Food Service categories. The Industrial sector plays a crucial role in the market by utilizing dairy ingredients for various processing applications, including the production of baked goods, snacks, and dairy products, due to their functional properties and nutritional benefits.

    Retail consumption is significant, as it encompasses the purchase of dairy ingredients and products by consumers for home use, tapping into growing health trends and demand for high-protein and functional foods.The Food Service segment also holds considerable importance, supplying restaurants, cafes, and catering services with dairy ingredients that enhance food quality and taste, making it a key player in shaping consumer culinary experiences.

    With evolving market trends towards clean-label and organic products, along with increasing health consciousness among consumers in the US, each category within the End Use segment is positioned for growth, contributing to the overall dynamics of the US Dairy Ingredients Market. As the market evolves, companies are adapting to these changes, leveraging opportunities within these segments to cater to diverse consumer demands.

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

    Regional Insights

    Key Players and Competitive Insights

    The US Dairy Ingredients Market is characterized by a dynamic landscape teeming with innovation and competition among various players. The market encompasses a wide array of products derived from milk, including whey protein, casein, milk powders, and lactose, which are essential in numerous sectors, such as food and beverage, nutritional supplements, and pharmaceuticals. The competitive insights in this sector reveal an increasing focus on quality, sustainability, and health benefits, as consumers become more discerning about the nutritional value of their food sources.

    Key players in the market are leveraging advanced technologies and expanding their product portfolios to meet evolving consumer demands while navigating regulatory requirements and fluctuating raw material prices.Fonterra presents a robust profile in the US Dairy Ingredients Market, marked by its well-established brand reputation and extensive distribution network. The company specializes in high-quality dairy ingredients, including whey protein and milk powders, catering to both food manufacturers and nutritional product developers. One of Fonterra's significant strengths lies in its commitment to sustainability and innovation, which resonates well with increasingly health-conscious consumers.

    The company maintains strong relationships with dairy farmers, ensuring a steady supply of premium milk, and also invests in research and development to enhance product offerings. Fonterra's geographical presence in the United States is poised for growth, as it continuously seeks to expand its market share and respond to the changing landscape of consumer preferences.Lactalis Ingredients is another significant player in the US Dairy Ingredients Market, with a diverse portfolio of products that includes milk powders, cheese, and whey proteins tailored for various industry applications.

    The company boasts a strong market presence, underpinned by its international expertise and ability to deliver high-quality dairy ingredients that meet specific customer needs. Lactalis Ingredients emphasizes innovation through consistent investment in research and development, which has enabled the launch of new products designed to cater to health trends, such as lactose-free options and protein-rich ingredients. Lactalis Ingredients has pursued strategic mergers and acquisitions to bolster its market position and has effectively integrated localized manufacturing capabilities to enhance supply chain efficiency.

    This approach not only strengthens the company's foothold but also ensures that Lactalis Ingredients remains a key competitor in the evolving landscape of the US Dairy Ingredients Market.

    Key Companies in the US Dairy Ingredients Market market include

    Industry Developments

    Recent developments in the US Dairy Ingredients Market have showcased significant activity among key players. In October 2023, Dairy Farmers of America announced its intention to invest in advanced manufacturing technologies to enhance production efficiency and sustainability. Meanwhile, Glanbia Nutritionals has focused on expanding its portfolio of nutritional ingredients, tapping into the growing demand for health-conscious products. In terms of mergers and acquisitions, in August 2023, Saputo acquired a minority stake in a US-based cheese producer, aiming to boost its presence in the specialty cheese segment.

    On another front, Fonterra and Land O'Lakes collaborated on an initiative to enhance supply chain transparency, reflecting the market's growing emphasis on sustainability. Furthermore, demand within the US market is surging, with projections indicating substantial growth in the valuation of essential dairy ingredients, particularly in the protein and lactose segments, driven by rising health trends among consumers. Notably, in November 2021, Nestlé completed its acquisition of a specialty ingredient company to strengthen its position in the plant-based dairy alternatives sector, which remains a rapidly evolving area within the US Dairy Ingredients Market.

    Market Segmentation

    Outlook

    • Industrial
    • Retail
    • Food Service

    Dairy Ingredients Market Form Outlook

    • Industrial
    • Retail
    • Food Service

    Dairy Ingredients Market Type Outlook

    • Liquid
    • Powder
    • Granular
    • Frozen

    Dairy Ingredients Market End Use Outlook

    • Industrial
    • Retail
    • Food Service

    Dairy Ingredients Market Application Outlook

    • Milk Powder
    • Whey Protein
    • Cheese Powder
    • Casein
    • Cream

    Report Scope

    Report Scope:
    Report Attribute/Metric Source: Details
    MARKET SIZE 2018 11.63(USD Billion)
    MARKET SIZE 2024 12.5(USD Billion)
    MARKET SIZE 2035 18.5(USD Billion)
    COMPOUND ANNUAL GROWTH RATE (CAGR) 3.628% (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 Fonterra, Lactalis Ingredients, Glanbia Nutritionals, Nestlé, California Dairies, Chr. Hansen, Saputo, Dairy Farmers of America, Bel Group, Land O'Lakes, Tetra Pak, Agropur, Pioneer Foods, Arla Foods, Danone
    SEGMENTS COVERED Application, Type, Form, End Use
    KEY MARKET OPPORTUNITIES Plant-based dairy alternatives growth, Increased consumer health awareness, Expansion of functional dairy ingredients, Rising demand for clean label products, Innovation in dairy-based snacks
    KEY MARKET DYNAMICS Consumer health trends, Growing demand for clean-label, Innovation in product formulations, Sustainable sourcing practices, Price volatility in raw materials
    COUNTRIES COVERED US

    Market Highlights

    Author
    Garvit Vyas
    Analyst

    Explore the profile of Garvit Vyas, one of our esteemed authors at Market Research Future, and access their expert research contributions in the field of market research and industry analysis

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    FAQs

    What is the expected market size of the US Dairy Ingredients Market in 2024?

    In 2024, the US Dairy Ingredients Market is expected to be valued at 12.5 billion USD.

    What is the anticipated market value of the US Dairy Ingredients Market by 2035?

    By 2035, the US Dairy Ingredients Market is projected to reach a value of 18.5 billion USD.

    What is the expected compound annual growth rate (CAGR) for the US Dairy Ingredients Market from 2025 to 2035?

    The expected CAGR for the US Dairy Ingredients Market from 2025 to 2035 is 3.628%.

    Which application segment is valued the highest in the US Dairy Ingredients Market in 2024?

    In 2024, the Food and Beverages application segment is valued at 5.0 billion USD.

    How much is the Nutritional Products application expected to be worth by 2035?

    By 2035, the Nutritional Products application is expected to be valued at 4.5 billion USD.

    Who are the key players in the US Dairy Ingredients Market?

    Major players in the US Dairy Ingredients Market include Fonterra, Lactalis Ingredients, Glanbia Nutritionals, and Nestlé among others.

    What will be the market size for the Dairy Products application in 2024?

    The Dairy Products application segment is expected to be valued at 2.0 billion USD in 2024.

    What is the projected market value for the Bakery application by 2035?

    The Bakery application segment is projected to reach a value of 1.5 billion USD by 2035.

    What are the emerging trends in the US Dairy Ingredients Market?

    Emerging trends in the market include increased demand for dairy-based nutritional products and innovative applications in food and beverages.

    What impact does the US Dairy Ingredients Market face from global scenarios?

    The US Dairy Ingredients Market is influenced by ongoing global supply chain dynamics and changing consumer preferences.

    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 Ingredients Market, BY Application (USD Billion)
    45. Food and Beverages
    46. Nutritional Products
    47. Confectionery
    48. Bakery
    49. Dairy Products
    50. US Dairy Ingredients Market, BY Type (USD Billion)
    51. Milk Powder
    52. Whey Protein
    53. Cheese Powder
    54. Casein
    55. Cream
    56. US Dairy Ingredients Market, BY Form (USD Billion)
    57. Liquid
    58. Powder
    59. Granular
    60. Frozen
    61. US Dairy Ingredients Market, BY End Use (USD Billion)
    62. Industrial
    63. Retail
    64. Food Service
    65. Competitive Landscape
    66. Overview
    67. Competitive Analysis
    68. Market share Analysis
    69. Major Growth Strategy in the Dairy Ingredients Market
    70. Competitive Benchmarking
    71. Leading Players in Terms of Number of Developments in the Dairy Ingredients Market
    72. Key developments and growth strategies
    73. New Product Launch/Service Deployment
    74. Merger & Acquisitions
    75. Joint Ventures
    76. Major Players Financial Matrix
    77. Sales and Operating Income
    78. Major Players R&D Expenditure. 2023
    79. Company Profiles
    80. Fonterra
    81. Financial Overview
    82. Products Offered
    83. Key Developments
    84. SWOT Analysis
    85. Key Strategies
    86. Lactalis Ingredients
    87. Financial Overview
    88. Products Offered
    89. Key Developments
    90. SWOT Analysis
    91. Key Strategies
    92. Glanbia Nutritionals
    93. Financial Overview
    94. Products Offered
    95. Key Developments
    96. SWOT Analysis
    97. Key Strategies
    98. Nestlé
    99. Financial Overview
    100. Products Offered
    101. Key Developments
    102. SWOT Analysis
    103. Key Strategies
    104. California Dairies
    105. Financial Overview
    106. Products Offered
    107. Key Developments
    108. SWOT Analysis
    109. Key Strategies
    110. Chr. Hansen
    111. Financial Overview
    112. Products Offered
    113. Key Developments
    114. SWOT Analysis
    115. Key Strategies
    116. Saputo
    117. Financial Overview
    118. Products Offered
    119. Key Developments
    120. SWOT Analysis
    121. Key Strategies
    122. Dairy Farmers of America
    123. Financial Overview
    124. Products Offered
    125. Key Developments
    126. SWOT Analysis
    127. Key Strategies
    128. Bel Group
    129. Financial Overview
    130. Products Offered
    131. Key Developments
    132. SWOT Analysis
    133. Key Strategies
    134. Land O'Lakes
    135. Financial Overview
    136. Products Offered
    137. Key Developments
    138. SWOT Analysis
    139. Key Strategies
    140. Tetra Pak
    141. Financial Overview
    142. Products Offered
    143. Key Developments
    144. SWOT Analysis
    145. Key Strategies
    146. Agropur
    147. Financial Overview
    148. Products Offered
    149. Key Developments
    150. SWOT Analysis
    151. Key Strategies
    152. Pioneer Foods
    153. Financial Overview
    154. Products Offered
    155. Key Developments
    156. SWOT Analysis
    157. Key Strategies
    158. Arla Foods
    159. Financial Overview
    160. Products Offered
    161. Key Developments
    162. SWOT Analysis
    163. Key Strategies
    164. Danone
    165. Financial Overview
    166. Products Offered
    167. Key Developments
    168. SWOT Analysis
    169. Key Strategies
    170. References
    171. Related Reports
    172. US Dairy Ingredients Market SIZE ESTIMATES & FORECAST, BY APPLICATION, 2019-2035 (USD Billions)
    173. US Dairy Ingredients Market SIZE ESTIMATES & FORECAST, BY TYPE, 2019-2035 (USD Billions)
    174. US Dairy Ingredients Market SIZE ESTIMATES & FORECAST, BY FORM, 2019-2035 (USD Billions)
    175. US Dairy Ingredients Market SIZE ESTIMATES & FORECAST, BY END USE, 2019-2035 (USD Billions)
    176. PRODUCT LAUNCH/PRODUCT DEVELOPMENT/APPROVAL
    177. ACQUISITION/PARTNERSHIP
    178. MARKET SYNOPSIS
    179. US DAIRY INGREDIENTS MARKET ANALYSIS BY APPLICATION
    180. US DAIRY INGREDIENTS MARKET ANALYSIS BY TYPE
    181. US DAIRY INGREDIENTS MARKET ANALYSIS BY FORM
    182. US DAIRY INGREDIENTS MARKET ANALYSIS BY END USE
    183. KEY BUYING CRITERIA OF DAIRY INGREDIENTS MARKET
    184. RESEARCH PROCESS OF MRFR
    185. DRO ANALYSIS OF DAIRY INGREDIENTS MARKET
    186. DRIVERS IMPACT ANALYSIS: DAIRY INGREDIENTS MARKET
    187. RESTRAINTS IMPACT ANALYSIS: DAIRY INGREDIENTS MARKET
    188. SUPPLY / VALUE CHAIN: DAIRY INGREDIENTS MARKET
    189. DAIRY INGREDIENTS MARKET, BY APPLICATION, 2025 (% SHARE)
    190. DAIRY INGREDIENTS MARKET, BY APPLICATION, 2019 TO 2035 (USD Billions)
    191. DAIRY INGREDIENTS MARKET, BY TYPE, 2025 (% SHARE)
    192. DAIRY INGREDIENTS MARKET, BY TYPE, 2019 TO 2035 (USD Billions)
    193. DAIRY INGREDIENTS MARKET, BY FORM, 2025 (% SHARE)
    194. DAIRY INGREDIENTS MARKET, BY FORM, 2019 TO 2035 (USD Billions)
    195. DAIRY INGREDIENTS MARKET, BY END USE, 2025 (% SHARE)
    196. DAIRY INGREDIENTS MARKET, BY END USE, 2019 TO 2035 (USD Billions)
    197. BENCHMARKING OF MAJOR COMPETITORS

    US Dairy Ingredients Market Segmentation

    • Dairy Ingredients Market By Application (USD Billion, 2019-2035)

      • Food and Beverages
      • Nutritional Products
      • Confectionery
      • Bakery
      • Dairy Products
    • Dairy Ingredients Market By Type (USD Billion, 2019-2035)

      • Milk Powder
      • Whey Protein
      • Cheese Powder
      • Casein
      • Cream
    • Dairy Ingredients Market By Form (USD Billion, 2019-2035)

      • Liquid
      • Powder
      • Granular
      • Frozen
    • Dairy Ingredients Market By End Use (USD Billion, 2019-2035)

      • Industrial
      • Retail
      • Food Service

     

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