Dairy nutritional and nutraceutical ingredients are dairy protein foods that are essential for better health. Dairy protein composed of whey protein and casein protein. They are used in a wide range of food applications and non-food applications such as cosmetics industry. Dairy nutritional and nutraceutical ingredients have potential health benefits such as reduce the risk of cardiovascular disease, enhance digestion, and boost the overall immune system.
Global dairy nutritional and nutraceutical ingredients market is estimated to account for around US$ 16,569.5 million in terms of value in the year 2019 and it predicted to grow at a CAGR of 8.1% during the forecast period (2020-2027)
The growing demand for colostrum in sports beverage products is expected to propel the market growth of dairy nutritional and nutraceutical ingredients. Increasing use of bovine colostrum in sports drinks as it improves the overall immune response of the athletes and reduces stress is further projected to propel the market growth of dairy nutritional and nutraceutical ingredients. Moreover, the consumption of colostrum by athletes also reduce the contract respiratory infections.
Rising application of dairy nutrition in healthy snacks such as bars is expected to provide immense opportunity to the market of dairy nutritional and nutraceutical ingredients. For instance, in August 2018 Herbalife Nutrition has announced the launch of the Herbalife24 Achieve Protein Bar, the new protein composed of 20 grams of high-quality whey and milk protein, made with whole food-derived ingredients. This new product was developed to meet the demands of all athletes including elites, weekend warriors, and every day looking to live a healthier and happier life.
Increasing prevalence of lactose intolerance among consumer which is caused due to a shortage of lactase enzyme in the body and leads to symptoms such as cramps and diarrhea is restricting the market growth. In this condition, the individual has inefficiency to digest lactose which is present in bovine colostrum. This is hampering the demand for dairy protein, thereby hindering the market growth of dairy nutritional and nutraceutical ingredients.
On the basis of region, North America region dominated the global dairy nutritional and nutraceutical ingredients market in 2019 with a 33.2% of market share in terms of value, followed by Europe and Asia Pacific respectively.
On the basis of ingredients, dairy protein segment dominated the global dairy nutritional and nutraceutical ingredients market in 2019 with a 81.4% of market share in terms of value, followed by colostrum and vitamin & minerals segments respectively.
Growing demand for preserve and spread along with the increasing urban population which is moving towards a healthy lifestyle is expected to be a key trend in the market. For instance, in March 2019, Hatsun Agro Product Ltd, India's launched Hatsun Yoghurt Shake and Hatsun Cheese Spread. The Yoghurt Shake is available in Mango, Strawberry, and Blueberry flavors. Hatsun Cheese spread is a delectable offering launched at an affordable price point to encourage and ensure the usage of cheese among all sections of the consumers.
Global Dairy Nutritional and Nutraceutical Ingredients Market - Impact of Coronavirus (Covid-19) Pandemic
The coronavirus pandemic has affected the supply chain of food industry across the globe. The worldwide closure has impacted all areas of food industry. China is the largest market for food & beverage imports and exports for many countries. According to World Integrate Trade Solutions (WITS), in 2018, China imported food products worth approximately $27 billion, and in the same year, it exported food products of approximately $34 billion. Trade restriction imposed across the globe is affecting global logistics & transportation, which has adversely affected the food & beverage industry. The prolonged restriction on trade & logistics will impact on revenues of the food industry. This is expected to affect demand for dairy ingredients from food & beverage industry between 2020 and 2021.
Few Recent Developments
In November 2019, Royal DSM, a global science-based company in Nutrition, Health, and Sustainable Living, announced that it has reached an agreement with the shareholders of specialty dairy solutions provider Koninklijke CSK Food Enrichment C.V. for the acquisition of a 100% interest in the company for a cash consideration of about €150 million.