Dairy Flavors Market Size, Share, Outlook

The global Dairy Flavors Market Size stood at US $2.72 Billion in 2022 and is poised to register 4.8% growth over the forecast period from 2023 to 2030. Key market driving forces include aggressive promotion, and marketing initiatives, strong growth through online sales channels, increasing research spending on dairy flavors, the launch of vegan foods, and lactose-free foods, emphasis on operational efficiency, increasing lactose intolerance population, demand for functional food, and beverage, and supplements, quick recovery from COVID-19 impact are identified among main market dynamics

 

Dairy Flavors Market Analysis

Milk held the lion’s share of the market in value terms. Over the forecast period, interest in different types of Dairy Flavors is poised to increase as vendors promote wide flavors to attract new customers. Cheese, yogurt, cream, and others are widely being marketed driven by advantages such as versatility, health profiles, and other benefits.

Versatile commercialization strategies of marketing are being observed, predominantly focused on marketing products to niche consumer segments. Most companies are opting for focused, and niche strategy, with plans to generate high value from low-volume market niches through novelty, and convenience.

Search for new taste experiences among Asian customers remains a key driver for internationally less popular varieties. Further, the demand for organically labeled products is expected to grow steadily over the forecast period. Organic Dairy Flavors are quickly gaining momentum in the market, particularly in the yogurt segment. In particular, the demand for organic Dairy Flavors is significantly growing in Europe, Japan, and other large-scale markets.

Shifting consumer preferences, and ease of brand switching, coupled with an emphasis on quality, distribution efficiency, private label domination, and others remain key factors determining the success for companies. Increasing competition among players, demand for quality products, and price competitiveness are encouraging companies to widely market dairy flavors specific to individual customer requirements.

 

 

Market Dynamics

Market Trend- Increasing research spending on Dairy Flavors, predominantly from developed markets

As consumers look for strong flavor profiles, ongoing research efforts to produce enhanced dairy richness, sweetness, and body, offerings in fresh, sweetened, cooked, and cultured flavor profiles, regional-specific profiles, and others are observed.

Amid the fast-paced lifestyle of customers, the food consumption pattern is rapidly emerging, with steady demand growth for convenience foods, and ready-to-eat foods. One of the major trends emerging across millennial, and Generation Z population segments is shifting preference for nutritious, and aesthetically appealing products. Accordingly, to impart rich flavors in dairy products, food, and beverage manufacturers are increasingly procuring diverse dairy flavors.

Confectionary and bakery companies are faced with the challenge of offering innovative, healthy, and attractive ingredients to benefit from emerging market trends. Accordingly, most dairy flavor companies are investing significantly in developing authentic, and recognizable flavors.

As stronger, more intense dairy flavors continue to emerge, the popularity of dairy flavors across applications will remain strong over the forecast period. In addition, the increasing purchasing power of families is encouraging frequent snacking, and with a drive toward vegan snacks, the demand for dairy flavors remains strong. The growing trend of veganism, and vegetarianism among consumers support the industry's growth.

Companies are also offering customized flavors to cater to the end user’s specific requirements, enabling them to differentiate from other vendors.

 

Market Driver- Aggressive promotion and marketing strategies opted for by companies

The global dairy flavor suppliers are focusing on intensive R&D efforts emphasizing on launching new products, flavors, widening applications, use of novel technologies, and others such as promoting the stability of end products and catering to tailor-made consumer requirements.

Companies are investing significantly in promoting their flavors and creating awareness of authentic flavors. Advantages of several new isolation techniques, products in clean label, and vegan versions, and natural, versatile, fresh, and authentic flavors are widely marketed by companies.

The wide availability of vegan foods, government support for R&D, and marketing of dairy flavors in plant-based foods. These initiatives continue to attract the young population. Social media promotion, Netflix, and other OTT platforms signing petitions, creating educational resources, and event organizations are among the main initiatives to support vegan businesses. Factors such as health, sustainability, and social impact while making purchase decisions affect market growth.

 

Market Segmentation

The global Dairy Flavors Market is segmented into Types, Forms, Applications, and Countries.

Cheese is the fastest-growing type of dairy flavor across markets

The cheese flavor is one of the most popular dairy flavor products consumed globally. It is available in several forms and used in a wide variety of dishes, including pizza, lasagne, pasta, cheesecakes, and frostings. Amidst the drive towards the use of plant-based cheese, manufacturers are increasingly using cheese flavors to retain the dairy taste in products.

Further, the growing awareness of animal welfare has drifted the preference of consumers toward non-dairy diets. Veganism is one of the most popular trends in recent times. According to the Vegan Society, the number of vegan consumers globally increased by over 360% in the last 10 years. However, for vegans, leaving behind delicious foods such as pasta, and pizza has always appeared as a major challenge. Accordingly, cheese flavors are widely used across applications.

Strong demand growth from dairy, dairy-free, and plant-based applications is encouraging companies to produce a wide range of flavors. Cheddar, Bleu, Italian, Processed, and other types of flavors are among the most widely marketed in the segment. These products are often combined with other ingredients to create distinct cheese flavors.

Cheese flavors find a wide range of applications, such as popcorn, potato chips, and other snack foods that are flavored with a powdered coating. Further, packaged, and boxed Ready-to-Eat foods widely use cheese flavors. In addition to savory foods, desserts, and sweet treats, packaged cheesecakes or dairy-free cheesecakes also widely use cheese flavors.

 

Liquid is the largest form of Dairy Flavors with a 46.8% market share

Dairy flavors like flavored milk, butter, cheese, and yogurt are marketed widely in liquid form.

Ease of mix with end-products including diverse types of foods, and beverages encourages the demand for the liquid form of dairy flavors

The liquid-form dairy flavors also maintain stability during the preparation process, encouraging wide adoption by end-product producers

Concentrated dairy flavors can be used at approximately 0.1% to 1% in a formulation. Solubility ranges from water-dispersible to oil-soluble are marketed. These concentrates allow manufacturers to replace or reduce dairy content while retaining the highly desirable dairy flavor, and mouthfeel.

With strong demand for beverages, in particular, from millennial consumers, the demand for liquid-type dairy flavors is poised to remain robust over the forecast period. 

 

By Region, Asia Pacific accounts for the highest market size for the period 2023 to 2030

Asia Pacific is the largest market for Dairy Flavors, predominantly driven by dairy product consumption habits in China, India, and the Rest of Asian markets. China dominates the Asia Pacific Dairy Flavors Market. The country offers a huge volume of rewarding opportunities to manufacturers, and producers. The economic growth in developing markets and the growing disposable income of people in the country support the dairy flavors growth. In addition to the presence of a large dairy production industry, a growing population, rising incomes, and increasing urbanization drive the demand for dairy flavors. Chinese young people craving a variety of foods will support the long-term market potential.

The country is witnessing demand for convenience food products, undergoing improvements in the food processing industry, and cold chain networks, which will support the consumption of dairy foods, predominantly, dairy-based creams, and yogurts.

Domestic companies also market products by mixing different types with new ingredients, and additives for superior taste, texture, and flavor for customers. Dairy flavors to improve taste profiles for Cheese, Butter, Sweet Dairy, Cream, and Milk gain wide market acceptance. A trend toward growing demand for authentic, and recognizable flavors, low-sodium solutions, and products with a unique functional value in the flavor are also marketed. In addition, custom flavorings are also being offered in both basic milk and milk component segments.

 

Segmentation

By Type

• Milk
• Cheese
• Yogurt
• Butter
• Cream, and Others

 

By Form

• Liquid
• Powder
• Paste
• Others

 

By Application

• Beverages
• Dairy Products
• Snacks
• Confectionery
• Breakfast Cereals
• Soups & Sauces
• Dietary Supplements
• Others

 

By Region

• North America (United States, Canada, Mexico)
• Europe (Germany, France, United Kingdom, Spain, Italy, Others)
• Asia Pacific (China, India, Japan, South Korea, Australia, Others)
• Latin America (Brazil, Argentina, Others)
• Middle East and Africa (Saudi Arabia, UAE, Kuwait, Other Middle East, South Africa, Nigeria, Other Africa)

 

Key Players

Leading companies profiled in the study include-

• H.E. Stringer Flavors Limited
• CP Ingredients
• Dairy Chem Inc.
• The Edlong Corporation
• Butter Buds Inc.
• Synergy Flavors
• Bluegrass Dairy & Food, Inc.
• Ornua (Wisconsin) Ingredients LLC
• Kerry Group

 

Dairy Flavors Market Outlook 2023

1 Market Overview

1.1 Introduction to Dairy Flavors Market

1.2 Scope of the Study

1.3 Research Objective

1.3.1 Key Market Scope and Segments

1.3.2 Players Covered

1.3.3 Years Considered

 

2 Executive Summary

2.1 2023 Dairy Flavors Industry- Market Statistics

3 Market Dynamics

3.1 Market Drivers

3.2 Market Challenges

3.3 Market Opportunities

3.4 Market Trends

 

4 Market Factor Analysis

4.1 Porter’s Five Forces

4.2 Market Entropy

4.2.1 Global Dairy Flavors Market Companies with Area Served

4.2.2 Products Offerings Global Dairy Flavors Market

5 COVID-19 Impact Analysis and Outlook Scenarios

5.1.1 Covid-19 Impact Analysis

5.1.2 Post-COVID-19 Scenario- Low Growth Case

5.1.3 Post-COVID-19 Scenario- Reference Growth Case

5.1.4 Post-COVID-19 Scenario- Low Growth Case

 

6 Global Dairy Flavors Market Trends

6.1 Global Dairy Flavors Revenue (USD Million) and CAGR (%) by Type (2018-2028)

6.2 Global Dairy Flavors Revenue (USD Million) and CAGR (%) by Applications (2018-2028)

6.3 Global Dairy Flavors Revenue (USD Million) and CAGR (%) by Regions (2018-2028)

 

7 Global Dairy Flavors Market Revenue (USD Million) by Type, and Applications (2018-2022)

7.1 Global Dairy Flavors Revenue (USD Million) by Type (2018-2022)

7.1.1 Global Dairy Flavors Revenue (USD Million), Market Share (%) by Type (2018-2022)

7.2 Global Dairy Flavors Revenue (USD Million) by Applications (2018-2022)

7.2.1 Global Dairy Flavors Revenue (USD Million), Market Share (%) by Applications (2018-2022)

 

8 Global Dairy Flavors Development Regional Status and Outlook

8.1 Global Dairy Flavors Revenue (USD Million) By Regions (2018-2022)

8.2 North America Dairy Flavors Revenue (USD Million) by Type, and Application (2018-2022)

8.2.1 North America Dairy Flavors Revenue (USD Million) by Country (2018-2022)

8.2.2 North America Dairy Flavors Revenue (USD Million) by Type (2018-2022)

8.2.3 North America Dairy Flavors Revenue (USD Million) by Applications (2018-2022)

8.3 Europe Dairy Flavors Revenue (USD Million), by Type, and Applications (USD Million) (2018-2022)

8.3.1 Europe Dairy Flavors Revenue (USD Million), by Country (2018-2022)

8.3.2 Europe Dairy Flavors Revenue (USD Million) by Type (2018-2022)

8.3.3 Europe Dairy Flavors Revenue (USD Million) by Applications (2018-2022)

8.4 Asia Pacific Dairy Flavors Revenue (USD Million), and Revenue (USD Million) by Type, and Applications (2018-2022)

8.4.1 Asia Pacific Dairy Flavors Revenue (USD Million) by Country (2018-2022)

8.4.2 Asia Pacific Dairy Flavors Revenue (USD Million) by Type (2018-2022)

8.4.3 Asia Pacific Dairy Flavors Revenue (USD Million) by Applications (2018-2022)

8.5 South America Dairy Flavors Revenue (USD Million), by Type, and Applications (2018-2022)

8.5.1 South America Dairy Flavors Revenue (USD Million), by Country (2018-2022)

8.5.2 South America Dairy Flavors Revenue (USD Million) by Type (2018-2022)

8.5.3 South America Dairy Flavors Revenue (USD Million) by Applications (2018-2022)

8.6 Middle East and Africa Dairy Flavors Revenue (USD Million), by Type, Technology, Application, Thickness (2018-2022)

8.6.1 Middle East and Africa Dairy Flavors Revenue (USD Million) by Country (2018-2022)

8.6.2 Middle East and Africa Dairy Flavors Revenue (USD Million) by Type (2018-2022)

8.6.3 Middle East and Africa Dairy Flavors Revenue (USD Million) by Applications (2018-2022)

 

9 Company Profiles

 

10 Global Dairy Flavors Market Revenue (USD Million), by Type, and Applications (2023-2028)

10.1 Global Dairy Flavors Revenue (USD Million) and Market Share (%) by Type (2023-2028)

10.1.1 Global Dairy Flavors Revenue (USD Million), and Market Share (%) by Type (2023-2028)

10.2 Global Dairy Flavors Revenue (USD Million) and Market Share (%) by Applications (2023-2028)

10.2.1 Global Dairy Flavors Revenue (USD Million), and Market Share (%) by Applications (2023-2028)

11 Global Dairy Flavors Development Regional Status and Outlook Forecast

11.1 Global Dairy Flavors Revenue (USD Million) By Regions (2023-2028)

11.2 North America Dairy Flavors Revenue (USD Million) by Type, and Applications (2023-2028)

11.2.1 North America Dairy Flavors Revenue (USD) Million by Country (2023-2028)

11.2.2 North America Dairy Flavors Revenue (USD Million), by Type (2023-2028)

11.2.3 North America Dairy Flavors Revenue (USD Million), Market Share (%) by Applications (2023-2028)

11.3 Europe Dairy Flavors Revenue (USD Million), by Type, and Applications (2023-2028)

11.3.1 Europe Dairy Flavors Revenue (USD Million), by Country (2023-2028)

11.3.2 Europe Dairy Flavors Revenue (USD Million), by Type (2023-2028)

11.3.3 Europe Dairy Flavors Revenue (USD Million), by Applications (2023-2028)

11.4 Asia Pacific Dairy Flavors Revenue (USD Million) by Type, and Applications (2023-2028)

11.4.1 Asia Pacific Dairy Flavors Revenue (USD Million), by Country (2023-2028)

11.4.2 Asia Pacific Dairy Flavors Revenue (USD Million), by Type (2023-2028)

11.4.3 Asia Pacific Dairy Flavors Revenue (USD Million), by Applications (2023-2028)

11.5 South America Dairy Flavors Revenue (USD Million), by Type, and Applications (2023-2028)

11.5.1 South America Dairy Flavors Revenue (USD Million), by Country (2023-2028)

11.5.2 South America Dairy Flavors Revenue (USD Million), by Type (2023-2028)

11.5.3 South America Dairy Flavors Revenue (USD Million), by Applications (2023-2028)

11.6 Middle East and Africa Dairy Flavors Revenue (USD Million), by Type, and Applications (2023-2028)

11.6.1 Middle East and Africa Dairy Flavors Revenue (USD Million), by Region (2023-2028)

11.6.2 Middle East and Africa Dairy Flavors Revenue (USD Million), by Type (2023-2028)

11.6.3 Middle East and Africa Dairy Flavors Revenue (USD Million), by Applications (2023-2028)

 

12 Methodology and Data Sources

12.1 Methodology/Research Approach

12.1.1 Research Programs/Design

12.1.2 Market Size Estimation

12.1.3 Market Breakdown and Data Triangulation

12.2 Data Sources

12.2.1 Secondary Sources

12.2.2 Primary Sources

12.3 Disclaimer

 

List Of Tables

Table 1 Market Segmentation Analysis

Table 2 Global Dairy Flavors Market Companies with Areas Served

Table 3 Products Offerings Global Dairy Flavors Market

Table 4 Low Growth Scenario Forecasts

Table 5 Reference Case Growth Scenario

Table 6 High Growth Case Scenario

Table 7 Global Dairy Flavors Revenue (USD Million) And CAGR (%) By Type (2018-2028)

Table 8 Global Dairy Flavors Revenue (USD Million) And CAGR (%) By Applications (2018-2028)

Table 9 Global Dairy Flavors Revenue (USD Million) And CAGR (%) By Regions (2018-2028)

Table 10 Global Dairy Flavors Revenue (USD Million) By Type (2018-2022)

Table 11 Global Dairy Flavors Revenue Market Share (%) By Type (2018-2022)

Table 12 Global Dairy Flavors Revenue (USD Million) By Applications (2018-2022)

Table 13 Global Dairy Flavors Revenue Market Share (%) By Applications (2018-2022)

Table 14 Global Dairy Flavors Market Revenue (USD Million) By Regions (2018-2022)

Table 15 Global Dairy Flavors Market Share (%) By Regions (2018-2022)

Table 16 North America Dairy Flavors Revenue (USD Million) By Country (2018-2022)

Table 17 North America Dairy Flavors Revenue (USD Million) By Type (2018-2022)

Table 18 North America Dairy Flavors Revenue (USD Million) By Applications (2018-2022)

Table 19 Europe Dairy Flavors Revenue (USD Million) By Country (2018-2022)

Table 20 Europe Dairy Flavors Revenue (USD Million) By Type (2018-2022)

Table 21 Europe Dairy Flavors Revenue (USD Million) By Applications (2018-2022)

Table 22 Asia Pacific Dairy Flavors Revenue (USD Million) By Country (2018-2022)

Table 23 Asia Pacific Dairy Flavors Revenue (USD Million) By Type (2018-2022)

Table 24 Asia Pacific Dairy Flavors Revenue (USD Million) By Applications (2018-2022)

Table 25 South America Dairy Flavors Revenue (USD Million) By Country (2018-2022)

Table 26 South America Dairy Flavors Revenue (USD Million) By Type (2018-2022)

Table 27 South America Dairy Flavors Revenue (USD Million) By Applications (2018-2022)

Table 28 Middle East and Africa Dairy Flavors Revenue (USD Million) By Region (2018-2022)

Table 29 Middle East and Africa Dairy Flavors Revenue (USD Million) By Type (2018-2022)

Table 30 Middle East and Africa Dairy Flavors Revenue (USD Million) By Applications (2018-2022)

 

Table 31 Financial Analysis

Table 32 Global Dairy Flavors Revenue (USD Million) By Type (2023-2028)

Table 33 Global Dairy Flavors Revenue Market Share (%) By Type (2023-2028)

Table 34 Global Dairy Flavors Revenue (USD Million) By Applications (2023-2028)

Table 35 Global Dairy Flavors Revenue Market Share (%) By Applications (2023-2028)

Table 36 Global Dairy Flavors Market Revenue (USD Million), And Revenue (USD Million) By Regions (2023-2028)

Table 37 North America Dairy Flavors Revenue (USD)By Country (2023-2028)

Table 38 North America Dairy Flavors Revenue (USD Million) By Type (2023-2028)

Table 39 North America Dairy Flavors Revenue (USD Million) By Applications (2023-2028)

Table 40 Europe Dairy Flavors Revenue (USD Million) By Country (2023-2028)

Table 41 Europe Dairy Flavors Revenue (USD Million) By Type (2023-2028)

Table 42 Europe Dairy Flavors Revenue (USD Million) By Applications (2023-2028)

Table 43 Asia Pacific Dairy Flavors Revenue (USD Million) By Country (2023-2028)

Table 44 Asia Pacific Dairy Flavors Revenue (USD Million) By Type (2023-2028)

Table 45 Asia Pacific Dairy Flavors Revenue (USD Million) By Applications (2023-2028)

Table 46 South America Dairy Flavors Revenue (USD Million) By Country (2023-2028)

Table 47 South America Dairy Flavors Revenue (USD Million) By Type (2023-2028)

Table 48 South America Dairy Flavors Revenue (USD Million) By Applications (2023-2028)

Table 49 Middle East and Africa Dairy Flavors Revenue (USD Million) By Region (2023-2028)

Table 50 Middle East and Africa Dairy Flavors Revenue (USD Million) By Region (2023-2028)

Table 51 Middle East and Africa Dairy Flavors Revenue (USD Million) By Type (2023-2028)

Table 52 Middle East and Africa Dairy Flavors Revenue (USD Million) By Applications (2023-2028)

Table 53 Research Programs/Design for This Report

Table 54 Key Data Information from Secondary Sources

Table 55 Key Data Information from Primary Sources

 

 

List Of Figures

Figure 1 Market Scope

Figure 2 Porter’s Five Forces

Figure 3 Global Dairy Flavors Revenue (USD Million) By Type (2018-2022)

Figure 4 Global Dairy Flavors Revenue Market Share (%) By Type (2022)

Figure 5 Global Dairy Flavors Revenue (USD Million) By Applications (2018-2022)

Figure 6 Global Dairy Flavors Revenue Market Share (%) By Applications (2022)

Figure 7 Global Dairy Flavors Market Revenue (USD Million) By Regions (2018-2022)

Figure 8 Global Dairy Flavors Market Share (%) By Regions (2022)

Figure 9 North America Dairy Flavors Revenue (USD Million) By Country (2018-2022)

Figure 10 North America Dairy Flavors Revenue (USD Million) By Type (2018-2022)

Figure 11 North America Dairy Flavors Revenue (USD Million) By Applications (2018-2022)

Figure 12 Europe Dairy Flavors Revenue (USD Million) By Country (2018-2022)

Figure 13 Europe Dairy Flavors Revenue (USD Million) By Type (2018-2022)

Figure 14 Europe Dairy Flavors Revenue (USD Million) By Applications (2018-2022)

Figure 15 Asia Pacific Dairy Flavors Revenue (USD Million) By Country (2018-2022)

Figure 16 Asia Pacific Dairy Flavors Revenue (USD Million) By Type (2018-2022)

Figure 17 Asia Pacific Dairy Flavors Revenue (USD Million) By Applications (2018-2022)

Figure 18 South America Dairy Flavors Revenue (USD Million) By Country (2018-2022)

Figure 19 South America Dairy Flavors Revenue (USD Million) By Type (2018-2022)

Figure 20 South America Dairy Flavors Revenue (USD Million) By Applications (2018-2022)

Figure 21 Middle East and Africa Dairy Flavors Revenue (USD Million) By Region (2018-2022)

Figure 22 Middle East and Africa Dairy Flavors Revenue (USD Million) By Type (2018-2022)

Figure 23 Middle East and Africa Dairy Flavors Revenue (USD Million) By Applications (2018-2022)

Figure 24 Global Dairy Flavors Revenue (USD Million) By Type (2023-2028)

Figure 25 Global Dairy Flavors Revenue Market Share (%) By Type (2028)

Figure 26 Global Dairy Flavors Revenue (USD Million) By Applications (2023-2028)

Figure 27 Global Dairy Flavors Revenue Market Share (%) By Applications (2028)

Figure 28 Global Dairy Flavors Market Revenue (USD Million) By Regions (2023-2028)

Figure 29 North America Dairy Flavors Revenue (USD Million) By Country (2023-2028)

Figure 30 North America Dairy Flavors Revenue (USD Million) By Type (2023-2028)

Figure 31 North America Dairy Flavors Revenue (USD Million) By Applications (2023-2028)

Figure 32 Europe Dairy Flavors Revenue (USD Million) By Country (2023-2028)

Figure 33 Europe Dairy Flavors Revenue (USD Million) By Type (2023-2028)

Figure 34 Europe Dairy Flavors Revenue (USD Million) By Applications (2023-2028)

Figure 35 Asia Pacific Dairy Flavors Revenue (USD Million) By Country (2023-2028)

Figure 36 Asia Pacific Dairy Flavors Revenue (USD Million) By Type (2023-2028)

Figure 37 Asia Pacific Dairy Flavors Revenue (USD Million) By Applications (2023-2028)

Figure 38 South America Dairy Flavors Revenue (USD Million) By Country (2023-2028)

Figure 39 South America Dairy Flavors Revenue (USD Million) By Type (2023-2028)

Figure 40 South America Dairy Flavors Revenue (USD Million) By Applications (2023-2028)

Figure 41 Middle East and Africa Dairy Flavors Revenue (USD Million) By Region (2023-2028)

Figure 42 Middle East and Africa Dairy Flavors Revenue (USD Million) By Region (2023-2028)

Figure 43 Middle East and Africa Dairy Flavors Revenue (USD Million) By Type (2023-2028)

Figure 44 Middle East and Africa Dairy Flavors Revenue (USD Million) By Applications (2023-2028)

Figure 45 Bottom-Up and Top-Down Approaches For This Report

Figure 46 Data Triangulation