Milk & Cream Manufacturing Market

Milk & Cream Manufacturing Market Outlook (2024 to 2034)

The global milk & cream manufacturing market is currently valued at US$ 923.95 billion in 2024 and is forecasted to expand at a CAGR of 5.2% to reach US$ 1,543.94 billion by 2034.

Because of its flavor and alleged health advantages, cream products are well-liked by more customers, foodservice operators, and food and beverage producers. With the presence of several cream product customers, Europe is a traditional market for cream goods. Due to the growing foodservice sector and the rising number of cream customers, South Asia is also becoming a potentially lucrative market.

One of the prominent consumers of cream products and components is the foodservice sector. The main goods in the foodservice business that contain large volumes of cream are coffees, mocktails, ice teas, icecreams, and desserts. Cream improves the flavor and texture of these products. As technology and innovation continue to grow, the foodservice sector is increasing the profit margin of market players.

The food and beverage industry is using adhesives since they are plentiful and simple to utilize. Developing countries in North America and Europe are increasingly using adhesives in their food and drink products. All types of chocolate, pastries, fresh dairy products, biscuits, convenience foods, soups, and broths are made using cream.

It is consumed for multiple purposes. For instance, it contributes to texture development and provides soups and sauces with a rich, velvety viscosity by homogenizing cream.

The effects of chemicals used in food production and processing on the environment and human health are becoming more well-known to consumers. Several customers are gravitating toward organically grown and processed goods due to a growing understanding of the detrimental effects of chemicals on human health. Therefore, the market for goods made naturally is expanding quickly.

Organic food products are becoming popular across Asia-Pacific, the Middle East, and Africa in addition to North America and Europe. Dairy cream manufacturers have an opportunity as consumers in these areas become more conscious of the advantages of organic dairy products.

Manufacturers are spending on R&D activities to introduce novel products in an attempt to access this pool of prospects, which is positively affecting the milk & cream manufacturing market trends.

Report Attribute	Detail
Milk & Cream Manufacturing Market Size (2024E)	US$ 923.95 Billion
Forecasted Market Value (2034F)	US$ 1,543.94 Billion
Global Market Growth Rate (2024 to 2034)	5.2% CAGR
East Asia Market Growth Rate (2024 to 2034)	5.3%
North America Market Value (2034F)	233.08 Billion
Fluid Milk Segment Value (2034F)	US$ 1,339.81 Billion
Discount Stores Segment Value (2034F)	US$ 45.81 Billion
Key Companies Profiled	Arla Foods; Groupe Danone; Nestle SA; Dairy Farmers of America; Amul Industries Private Limited; Kraft Foods

Why is the Sales of Milk & Cream Rising Substantially Globally?

“Health Conscious People Switching to Healthy Eating Habits Leading to More Sales”

The market's growth is influenced by the growing trend of health enthusiasts utilizing functional dairy products, such as milk fortified with vitamins and minerals. To spur market expansion, several consumers are expressing a desire for value-added items. For example, the South Mumbai-based company

Hangyo introduced a new line of gourmet ice creams supplemented with omega-3, 6, and 9 in March 2020. Moreover, Lactalis India announced the launch of Lactel Turbo Yoghurt Drink, their first probiotic yogurt drink, in Chennai in August 2021. Mango and strawberry varieties are offered, and the company targets the "on-go youth" demographic.

Functional dairy products are acknowledged as extra dietary supplements that are essential for preserving long-term health and well-being. For example, in February 2022, Indian researchers created "Lactobacillus Plantarum JBC5," a novel next-generation probiotic bacterium that is tested for effectiveness in fermented dairy products.

Moreover, the strain promises to help older people age healthily and live longer. Therefore, it is anticipated that the market's trend toward functional products will further contribute to the expanding milk & cream manufacturing market size.

“Consumption of Milk Products Rising Over the Years”

The production and consumption of dairy products increased dramatically over the past 15 years, making it one of the most dynamic sectors of the Indian agricultural business. India is now the world's prominent milk producer, accounting for 23% of global milk output, thanks to the development of the dairy industry there and the outstanding contributions made by cooperatives and private dairies. Further, the composition of India's distinctively structured dairy herd is shifting due to recent increases in milk production.

About half of India's milk output comes from water buffalo, with the remaining half coming from cattle, including both native and crossbred varieties, according to statistics from the USDA's India Dairy and Products Annual 2021 report. Consequently, the abundance of milk in the country increases the production of processed or value-added goods including paneer, cheese, butter, curd, yogurt, and ghee. In addition, milk is a healthful product that is in high demand in Indian families, which further propels market expansion.

“Dairy Farming Becoming Common Across the World”

Practically in every region of the world, including India, dairy farming is one of the most important aspects of agricultural activity. In India, the dairy sector contributes to socioeconomic advancement. Therefore, by launching several programs and activities throughout the Indian market, the government is making significant efforts to uphold industry standards.

The National Animal Disease Control Program, Nationwide Artificial Insemination Program (NAIP), Interest Subvention on Working Capital Loans for the Dairy Sector, National Action Plan for Dairy Development (NAPD), and National Programme for Dairy Development (NPDD) are all part of the program.

The objectives of these government programs vary; for instance, the NAPD Indian program seeks to raise the country's milk output from 254.55 MMT in 2021 to 2022 to 300 MMT in 2023 to 2024, which is ultimately leading to milk & cream manufacturing market growth.

What Restraints are Becoming to be A Major Hurdle in Front of Manufacturers?

“Poor Quality of Feed Negatively Affecting Milk Production in Animals”

Animals in India are fed inexpensive feeds made from agricultural byproducts and crop leftovers. Animal productivity is hampered by nutritional restrictions caused by these inexpensive additions to the diet. To increase milk production, more farmers frequently decide to feed concentrate to nursing cows. However, this practice not only raises production expenses but also occasionally causes rumen metabolic abnormalities in the animals.

The Indian Grassland and Fodder Research Institute (IGFRI), Jhansi, forecasts that the country's shortfall in dry fodder, green fodder, and concentrates in 2022 was 23.4%, 11.24%, and 28.9%, respectively. Therefore, a lack of fodder is negatively affecting milk production, which in turn is adversely influencing the manufacturing and consumption of milk products.

Country-wise Analysis

Milk products are consumed around the world making it easy for all the manufacturers to expand their business into every part of the world. Some of the major countries contributing to this market are the United States, China, Mexico, and South Korea. The United States market is forecasted to hold a significant milk & cream manufacturing market share in North America.

Which Factors are Increasing the Profit Margins for Manufacturers in the United States?

“Established Food Industry Increasing the Requirement for Milk & Cream Across the Country”

Attribute	United States
Market Value (2024E)	US$ 118.41 Billion
Growth Rate (2024 to 2034)	5.4% CAGR
Projected Value (2034F)	US$ 211.88 Billion

The profit margins for milk and cream manufacturers in the United States are on the rise due to several key factors. Firstly, the established food industry continues to expand, increasing the demand for dairy products across several sectors, including food service, packaged goods, and retail. This growing requirement stimulates production and leads to economies of scale, allowing manufacturers to lower per-unit costs while increasing output.

Secondly, advancements in technology and production processes improved efficiency, enabling manufacturers to reduce waste and optimize resource use. In addition, the trend toward premium and organic dairy products is opening up new markets, allowing manufacturers to command higher prices. As health consciousness grows among consumers, products that emphasize nutrition and quality are increasingly sought after.

What is the Reason Behind the Escalating Demand for Milk Products in China?

“Manufacturers Able to Export Huge Amounts of Milk to Different Parts of the World”

Attribute	China
Market Value (2024E)	US$ 24.33 Billion
Growth Rate (2024 to 2034)	6% CAGR
Projected Value (2034F)	US$ 46.65 Billion

The escalating demand for milk products in China is attributed to several interconnected factors. A significant driver is the country's increasing population and growing middle class, which is leading to changing dietary habits and higher consumption of dairy products. As more consumers seek nutritious and protein-rich food sources, milk and dairy become essential components of their diets.

Furthermore, the government in China is actively promoting the consumption of dairy products to improve public health and nutrition standards. This is encouraging local and international manufacturers to expand their operations in the region.

Category-wise Insights

The market is segmented into several categories, including several forms of milk to satisfy every need of customers. Some of these products include fluid milk and milk powder.

Which Product and Service is Helping Market Players Generate More Revenue?

“Escalating Demand for Fluid Milk Compared to Milk Powder”

Attribute	Fluid Milk
Segment Value (2024E)	US$ 787.42 Billion
Growth Rate (2024 to 2034)	4.9% CAGR
Projected Value (2034F)	US$ 1,339.81 Billion

The wholesale and supermarket sectors are among the major markets that require larger amounts of milk and cream in their operations. These retailers play a significant role in distributing dairy products, catering to the growing consumer demand for fresh and high-quality milk and cream. As more people embrace healthier lifestyles, fluid milk is becoming increasingly popular, leading wholesalers and supermarkets to invest heavily in its availability.

They often prioritize sourcing from local and organic dairy farms to meet consumer preferences for sustainable products.

Which Major Markets Require Larger Amount of Milk and Cream?

“Wholesalers and Supermarkets Investing Highly in Milk and Cream Products”

Attribute	Wholesalers & Supermarkets
Segment Value (2024E)	US$ 418.99 Billion
Growth Rate (2024 to 2034)	5.2% CAGR
Projected Value (2034F)	US$ 740.22 Billion

In the dairy industry, wholesalers and supermarkets are significant markets that require large quantities of milk and cream. With consumer preferences shifting towards healthier food options, the demand for milk and cream products surges, making these entities key stakeholders in the supply chain. Supermarkets, in particular, are central to the retail distribution of fluid milk, yogurt, and several cream products.

They strategically invest in a broad assortment of dairy items to cater to diverse customer needs, ensuring that fresh dairy is always available. Wholesalers support this by managing bulk purchases and distribution to smaller retail outlets and restaurants.

Business Landscape

Key players in the milk & cream manufacturing industry are focusing on bringing new products, such as flavors to keep themselves ahead of the competition.

• Punjab State Cooperative Milk Producers Federation Ltd. (MILKFED) consented to introduce the Verka milk and milk products in Delhi in October 2022. The state's farmers and milk producers profited from this deal. The purpose of this arrangement was to boost the dairy farmers' income and provide them with the best possible support and competitive rates.
• Pride of Cows, Parag Milk Foods' premium milk brand, was introduced in Ahmedabad in August 2022. Pride of Cows provides its customers in Ahmedabad with fresh, high-quality cow milk every day from its Bhagyalakshmi dairy farm. The company's strong market position in Ahmedabad has been established thanks to the product introduction, which has also increased its customer base.

Fact.MR provides detailed information about the price points of key manufacturers of milk & cream positioned across the world, sales growth, production capacity, and speculative technological expansion, in this new market report.

Segmentation of Milk & Cream Manufacturing Market Research

• By Product & Service :

  • Fluid Milk
  • Milk Powder
  • Cream

• By Major Market :

  • Wholesalers & Supermarkets
  • Food Service Operators
  • Convenience Stores
  • Discount Stores

• By Region :

  • North America
  • Western Europe
  • Eastern Europe
  • Latin America
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa