Dairy Whiteners Market to be driven by Increasing Consumption of Tea and Coffee

The world’s total milk production was estimated to be about 770 million tons in 2013. Dairy whiteners, alternatively known as milk powder, are extensively used as a substitute for milk, largely in tea and coffee. They are also used in other food products such as hot chocolate, puddings, soups, and sauces. Whole milk powder (WMP) and skim milk powder (SMP) available in the market account for nearly 50% share of dairy products and dairy whiteners worldwide. Dairy whiteners are products with fat content greater than that of SMP and lesser than WMP.

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The global dairy whiteners market is likely to be driven by increasing consumption of tea and coffee around the world. As compared to milk, dairy whiteners offer certain benefits such as convenience, portability, and longer shelf-life, which fuel the global dairy whiteners market.

Low preference of some consumers to dairy whiteners over conventional milk and milk products, due to rising awareness about health, may hinder the growth of the dairy whiteners market. However, the growing industry for infant formula is likely to offer an impelling opportunity for growth of the global dairy whiteners market during the forecast period. Dairy whiteners are widely used in the manufacture of infant formula. Therefore, rise in the demand for infant formula is likely to eventually augment the demand for dairy whiteners during the forecast period. Factors such as increase in birth rates and decrease in mortality rates, which result in growth in the infant population around the world, are projected to propel the global dairy whiteners market.

The global dairy whiteners market can be segmented on the basis of distribution channels and geographies. Types of distribution channels include convenience stores, supermarkets and hypermarkets, and food and drinks specialists. Growth of the organized sector coupled with change in consumer preference from traditional mom–and-pop stores to supermarkets and hypermarkets has resulted in dominance of this segment on the global dairy whiteners market.

Based on geography, the global dairy whiteners market has been segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. Among these, Asia Pacific constitutes the leading market share, followed by North America. Several factors such as rising population, speedy urbanization, and presence of substantial amount of tea drinkers, especially in countries such as China and India, lead to growth of the dairy whiteners market in Asia Pacific. North America holds the second-largest share in the global dairy whiteners market. This is primarily attributable to large population of coffee drinkers in the region. Although the U.S. is the second-largest producer of milk in the world, the demand for milk and dairy whiteners in the country is higher than their supply.

Additionally, dairy whiteners are convenient to use, as they are easier to store as compared to milk. This factor is expected to considerably augment the global dairy whiteners market.

The dairy whiteners market has both regional and global players. In order to remain competitive in the market, companies are investing substantial amounts of their revenue into research and development activities. This is due to the dynamic as well as competitive nature of the market. One of such innovations is the introduction of flavors in dairy whiteners. Flavors such as chocolate and strawberry have gained prominence since their launch, which took place a few years ago.

Some of the major players operating in the global dairy whiteners market include Nestlé, Fonterra, Danone, FrieslandCampina, Amul, and Lactalis. Other notable companies are Arla Foods, Dean Foods, Muller, Dairy Farmers of America, Schreiber Foods, Mother Dairy, Sodiaal, Land O’ Lakes, Mengniu, Morinaga Milk Industry, Saputo, Yili Group, and Kraft Heinz.