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The fat rich dairy products market size is forecast to increase by USD 16.5 billion at a CAGR of 2.8% between 2023 and 2028. The fat-rich dairy products market is experiencing significant growth due to the increasing awareness of nutrient-rich foods and their health benefits. Consumption of dairy products, such as ghee, butter, and cream, has been linked to the reduction of obesity and cholesterol-based diseases. One such nutrient is conjugated linoleic acid (CLA), which is found in high quantities in these products. The rising demand for healthy food options, particularly online, is driving market growth. However, the spread of diseases in dairy animals poses a challenge to market expansion. Producers must prioritize animal health and implement stringent quality control measures to ensure the production of safe and nutritious dairy products. Incorporating these practices into their operations will enable market participants to capitalize on the growing demand for healthy dairy options.
The market for fat-rich dairy products has gained significant traction in the health and wellness sector due to their nutritional benefits. These products, including ghee, butter, cream, and others, have been gaining popularity as they provide essential nutrients and health-benefiting compounds. Obesity and cholesterol-based diseases have become major health concerns in the US, leading consumers to seek out functional and specialty dairy products. Full-fat dairy products, such as ghee and butter, have been found to offer several health advantages.
For instance, ghee is rich in Conjugated Linoleic Acid (CLA), a type of fatty acid that has been linked to weight loss and improved metabolic health. Butter, on the other hand, contains essential vitamins and minerals like Vitamin A, D, E, and K2. These vitamins play a crucial role in maintaining bone health, immune function, and overall well-being. Cream, another fat-rich dairy product, is a rich source of calcium, phosphorus, and Vitamin D, making it an essential part of a balanced diet. The demand for premium dairy products, including artisanal and fresh dairy, has been on the rise due to their perceived health benefits. These products often come in eco-friendly packaging, which appeals to consumers who prioritize sustainability. Reduced-fat and alternative fat products have also entered the market, catering to consumers who prefer lower-fat options.
However, full-fat dairy products continue to dominate the market due to their nutritional benefits. The market for fat-rich dairy products is expected to grow as consumers become more health-conscious and seek out products that offer functional benefits. Digital marketing efforts and targeted advertising campaigns have played a significant role in increasing awareness and demand for these products. In conclusion, the market for fat-rich dairy products, including ghee, butter, cream, and others, offers numerous health benefits and is expected to grow in the US market. These products cater to consumers seeking functional benefits and are often perceived as premium and eco-friendly. The nutritional benefits of these products, including the presence of essential vitamins, minerals, and health-benefiting compounds, make them an essential part of a balanced diet.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The butter segment is estimated to witness significant growth during the forecast period. Butter, derived from the milk's fat and protein components, is a dairy product used extensively in culinary applications. Animals such as cows, goats, sheep, buffalo, and yaks provide the milk for this versatile ingredient. Butter is rich in nutrients, including antioxidants that shield against free radicals, and saturated fats with anti-cancer properties. However, one tablespoon of unsalted butter contains 7.2 grams of saturated fat and 31 milligrams of cholesterol, making it less suitable for individuals with high cholesterol levels to prevent cholesterol-based diseases. Conversely, for those following a ketogenic diet to combat obesity, butter is often recommended due to its high saturated fat content. Another dairy product, ghee, is a form of clarified butter, popular in Indian and Middle Eastern cuisines. It is produced by simmering butter to separate the milk solids, leaving behind pure clarified butter. Ghee is known for its high smoke point and rich, nutty flavor. It contains conjugated linoleic acid (CLA), a type of fat with potential health benefits, including weight loss and improved insulin sensitivity.
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The butter segment was valued at USD 42.10 billion in 2018. Cream, another dairy product, is high in fat and is used in various dishes, from baking to coffee. While it contains essential nutrients, it is also high in saturated fat and calories, making it important to consume it in moderation. In conclusion, these dairy products, including butter, ghee, and cream, offer various health benefits, but their high saturated fat content necessitates careful consumption. People with high cholesterol levels should limit their intake, while those following a ketogenic diet may find these products beneficial for weight loss. Ghee, specifically, contains CLA, a fat with potential health benefits. As always, it's essential to consult with a healthcare professional for personalized dietary advice.
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APAC is estimated to contribute 48% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The specialty and premium dairy product market in the Asia Pacific region is experiencing significant growth due to several factors. These include the rising incidence of bone diseases, increasing awareness of the advantages of healthy eating, and the rapid expansion of urban populations. Additionally, the organized retail sector is growing rapidly, leading to an increased demand for high-quality dairy products. The growing demand for fat-rich dairy products, driven by the urban population's increasing disposable income and changing lifestyle preferences, further fuels market growth. companies are also focusing on ecofriendly packaging and offering reduced-fat and alternative fat products to cater to diverse consumer needs.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The rising adoption of healthy food habits is notably driving the market growth. The prevalence of bone diseases, including osteoporosis, arthritis, hypocalcemia, Paget's disease, and osteogenesis imperfecta, is on the rise worldwide. These conditions are often caused by insufficient calcium intake. For instance, osteoporosis results in weak and brittle bones, increasing the risk of fractures. According to the National Institutes of Health (NIH), osteoporosis accounts for approximately 9 million fractures annually. Given that females comprise nearly half of the global population, as reported by The World Bank Group in 2020, the demand for dairy food products to prevent bone diseases is expected to grow.
Moreover, nutritious full-fat dairy products contain health-benefiting compounds such as short-chain fatty acids (SCFAs), which contribute to better bone health. In the digital age, ecommerce infrastructure and food delivery services have made it more convenient for consumers to access these essential dairy products. Thus, such factors are driving the growth of the market during the forecast period.
The rising demand in online retail is the key trend in the market. The demand for fat-rich dairy products is experiencing significant growth in the US market due to several factors. These include the expanding customer base, increasing use of the internet and smartphones, and the convenience offered by online retail. companies specializing in fat-rich dairy products are capitalizing on this trend by supplying a wide range of fresh products through e-commerce platforms.
Additionally, the affordability of these online channels, compared to traditional companies, is also a significant draw for consumers. Fat-rich dairy products find extensive applications in various sectors, including food and beverages, infant formulations, dietary supplements, and animal feed. Online retail is revolutionizing the way these products are marketed and sold, making them more accessible and affordable for a broad consumer base. Thus, such trends will shape the growth of the market during the forecast period.
The spread of various diseases in dairy animals is the major challenge that affects the growth of the market. Dairy products, including milk, baking ingredients, and confectionery items such as chocolate and cakes, are essential components of both personal and commercial food preparation. However, the health implications of consuming certain dairy products, particularly those high in saturated fats, have been a subject of ongoing debate. The dairy industry has faced challenges due to the prevalence of transboundary animal diseases, which can significantly impact production. These diseases, including Rift Valley Fever, Anthrax, Foot and Mouth Disease (FMD), Brucellosis, East Coast Fever (ECF), Contagious Bovine Pleuropneumonia (CBPP), and Trypanosomiasis, can reduce milk yield, lower fertility rates, and decrease milk quality. The spread of these diseases is facilitated by the international trade and travel of dairy animals, exposing them to new regions and environments.
As a result, maintaining animal health and implementing strict disease control measures are crucial for the sustainable growth of the dairy industry. Incorporating healthy fats into your diet is essential, but it's important to be mindful of the sources of these fats and their potential impact on weight gain. When preparing baked goods or confectionery items, consider using alternative ingredients or reducing the amount of saturated fat used in the recipe. By making informed choices and supporting responsible dairy production practices, we can enjoy the benefits of dairy products while minimizing the risks associated with their consumption. Hence, the above factors will impede the growth of the market during the forecast period.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
DANA Dairy Group Ltd. - The company offers dairy products including vegetable fat filled and full fat for consumer or industrial use and provides all types of condensed milk, sweetened condensed milk and evaporated milk, under the brand name of Dana Dairy.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
Fat-rich dairy products have gained significant popularity in the global market due to their nutritional benefits. These products, including ghee, butter, and cream, are rich sources of essential nutrients, such as conjugated linoleic acid, which is known for its health benefits in reducing obesity and cholesterol-based diseases. The convenience of these products makes them a preferred choice for consumers in the fast-paced world. Retail consumption of fat-rich dairy products is on the rise, with supermarkets and hypermarkets, convenience stores, and non-store-based channels being the major distribution channels. The health and wellness trend has led to an increase in demand for functional and specialty dairy products, premium dairy products, and fresh dairy. Digital marketing and ecommerce infrastructure have played a crucial role in the growth of the market for fat-rich dairy products. Consumers are increasingly opting for eco-friendly packaging and are willing to pay a premium for products that offer health benefits.
In conclusion, the market for fat-rich dairy products is not limited to food applications but also includes dietary supplements, infant formulations, and animal feed. The health benefits of full-fat dairy products have led to a shift from reduced-fat and alternative fat products. These products are used extensively in food and beverages, including confectionery products like chocolate, cakes, muffins, and sweet dishes. SCFA's, a type of fatty acid found in dairy products, have been identified as having health benefits and are used for flavoring, baking, and cooking. The market for fat-rich dairy products is expected to grow further due to their dietary and nutritional benefits.
Market Scope |
|
Report Coverage |
Details |
Page number |
143 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 2.8% |
Market growth 2024-2028 |
USD 16.5 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
2.7 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 48% |
Key countries |
US, India, China, Germany, and France |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Agropur Dairy Cooperative, Arla Foods amba, Dairy Farmers of America Inc., DANA Dairy Group Ltd., Danone SA, Fonterra Cooperative Group Ltd., General Mills Inc., Gujarat Cooperative Milk Marketing Federation Ltd., Horizon Organic Dairy LLC, LACTALIS Group, Land O Lakes Inc., Meiji Holdings Co. Ltd., MVM Pack Holding AG, Nestle SA, Royal FrieslandCampina NV, Saputo Inc., Savencia SA, Schreiber Foods Inc., Sodiaal, and The Kraft Heinz Co. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the market forecast period. |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
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