The global functional dairy products market was valued at USD 44 billion in 2023 and is expected to grow at a CAGR of 4.5% from 2023 to 2033, reaching approximately USD 67.1 billion by 2033.
The dairy industry has been a pioneer in functional foods, with fermented dairy products historically recognized for their health benefits. Expanding this range to include additional health-promoting options represents a natural evolution for the sector.
Functional dairy products have seen a significant rise in popularity and availability in recent years, driven by growing consumer health concerns. This shift towards nutrient-dense foods, which offer benefits beyond basic nutrition, is expected to fuel the expansion of the global functional dairy products market.
Consumers increasingly seek out foods rich in vitamins, bioactive peptides, specific proteins, conjugated linoleic acid, antioxidants, organic acids, highly absorbable calcium, probiotic bacteria, and oligosaccharides. The presence of these biologically active components in functional dairy products is anticipated to further propel market growth during the evaluation period.
Nutritional Benefits of Functional Dairy Products to Increase Consumption Worldwide
Due to the extra health benefits of functional dairy products such as high nutrition value in milk, cheese, yogurt, and similar other items, the global market is projected to grow at a steady pace. Besides, changing lifestyles of consumers and increasing prevalence of chronic ailments such as high blood pressure and obesity among the ever-increasing population are driving the demand for functional dairy products.
In the current scenario, the global functional dairy products business is becoming stronger due to more technological advancements by manufacturers to provide better quality products and services. Thus, the reach of functional dairy products is substantially improving.
As a result, the functional dairy products industry has become one of the most important contributors to the global economy and it will continue to grow in the coming decade. Functional dairy products are also becoming more popular in terms of demand as a result of increased social media marketing initiatives by key players, which has a direct impact on youth and health-conscious consumers and helps to boost product sales.
Competitive Landscape
Milk’s central processing allows for stringent quality control, making it a consistently reliable source of nutrition for people across all age groups at an affordable cost. Leveraging milk or dairy products to create functional items is an effective approach to rapidly enhance public nutritional status.
Milk’s numerous benefits have led to extensive research focused on developing advanced functional products enriched with probiotics, vitamins, minerals, and other bioactive compounds. Major players in the global functional dairy products market are heavily investing in research and development to innovate new offerings. Additionally, some companies are pursuing mergers and acquisitions to collaboratively develop new products and strengthen their market positions.
For instance,
- In June 2022, Danone North America launched Activia+ Multi-Benefit Probiotic Yogurt Drinks that include billions of active and live probiotics to help support one’s gut health. The product is also considered to be an excellent source of zinc and vitamin D & C for supporting the immune system.
Key Companies Profiled
Archway Food Group; General Mills Inc.; Anand Milk Union Limited; Dairy Farmers of America Inc.; Kraft Foods Inc.; Arla Foods UK Plc.; Nestle SA; Parmalat S.P.A; Megmilk Snow Brand Co. Ltd; Dean Foods Company; Fonterra Co-operative Group; Lactalis International; Danone SA; Other
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Functional Dairy Products Market Outlook by Category
By Product Type:
- Yogurt
- Cheese
- Butter
- Milk
- Others
By End Use:
- Retail / Household
- HoReCa
- F&B Industry
By Distribution Channel:
- B2B
- B2C
- Hypermarkets/Supermarkets
- Convenience Stores
- Specialty Stores
- Traditional Groceries
- Online Retailers
By Region:
- North America
- Latin America
- Europe
- East Asia
- South Asia
- Oceania
- Middle East and Africa
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