Dairy Nutritional and Nutraceutical Ingredients Market Size, Share, Growth, and Industry Analysis, By Type (Whey Protein and Casein Protein, Prebiotics, Vitamin & Minerals, Colostrum and Nucleotides), By Application (Functional Food, Infant Formula & Clinical Nutritio, nDairy Products, Bakery & Confectionaries and Personal Care), Regional Insights and Forecast From 2025 To 2035

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DAIRY NUTRITIONAL AND NUTRACEUTICAL INGREDIENTS MARKET OVERVIEW

The global dairy nutritional and nutraceutical ingredients market stood at USD 16.31 billion in 2025 and is set to expand to USD 17.2 billion in 2026, eventually reaching USD 28.42 billion by 2035, driven by a CAGR of 5.4%.

The COVID-19 pandemic has had a significant impact on the dairy nutritional and nutraceutical ingredients market, leading to disruptions in the supply chain and changes in consumer preferences. However, there are opportunities for growth in the market, driven by the increasing awareness of the health benefits of dairy products and the growing demand for functional foods and beverages.

Dairy nutritional and nutraceutical ingredients are daily protein foods which are important for foods. The product has several health advantages such as, improving digestion and lowering the risk of cardiovascular disease.

KEY FINDINGS

COVID-19 IMPACT

Imposed Restrictions in the Economy which led to a decline in demand for Dairy Nutritional and Nutraceutical Ingredients Market

The COVID-19 pandemic has had a significant impact on the dairy nutritional and nutraceutical ingredients market. The pandemic has led to disruptions in the supply chain, as well as a decrease in demand for dairy nutritional and nutraceutical ingredients. One of the biggest impacts of the pandemic has been on the supply chain for dairy nutritional and nutraceutical ingredients. Many of the ingredients and components used in these products are sourced from countries that have been severely affected by the pandemic, such as China and India. As a result, there have been shortages of these ingredients and components, which has led to delays in the production and distribution of dairy nutritional and nutraceutical ingredients. The pandemic has also led to a decrease in demand for dairy nutritional and nutraceutical ingredients. This is because many people have been hesitant to seek medical care during the pandemic, due to concerns about COVID-19. As a result, many people who suffer from conditions that are treated with dairy nutritional and nutraceutical ingredients have not been able to get the treatment they need.

LATEST TRENDS

Higher Standards of Performance by Increase in Infrastructure Spending to Grow Market Potentially

Increasing demand for functional foods: Functional foods are foods that contain added ingredients that provide health benefits beyond basic nutrition. The demand for functional foods is increasing due to the growing awareness of the importance of good nutrition and the desire to prevent chronic diseases. Dairy nutritional and nutraceutical ingredients are often used in functional foods, as they provide a number of health benefits, such as calcium, protein, and probiotics. Development of new dairy-based probiotics: Probiotics are live microorganisms that are similar to the "good" bacteria that naturally live in the human gut. Probiotics have been shown to have a number of health benefits, such as improving gut health, strengthening the immune system, and reducing the risk of chronic diseases. Dairy nutritional and nutraceutical ingredients are a good source of probiotics, and there is a growing trend towards developing new dairy-based probiotics with specific health benefits. Use of dairy nutritional and nutraceutical ingredients in sports nutrition: Sports nutrition is a growing market, as more people are looking for ways to improve their athletic performance. Dairy nutritional and nutraceutical ingredients are often used in sports nutrition products, as they provide a number of benefits, such as protein, calcium, and electrolytes. Personalization of dairy nutritional and nutraceutical products: There is a growing trend towards personalizing dairy nutritional and nutraceutical products to meet the individual needs of consumers. This is being driven by the increasing availability of genetic testing and other technologies that can be used to assess individual nutritional needs. Dairy nutritional and nutraceutical ingredients can be personalized in a number of ways, such as by tailoring the type and amount of ingredients to the individual's needs.

• According to the U.S. Department of Agriculture (USDA), the United States produced 10.8 million metric tons of whey protein concentrate in 2023, reflecting a growing trend in the incorporation of dairy-based nutraceutical ingredients into functional foods and beverages.

• According to the International Dairy Federation (IDF), global shipments of lactose and milk protein isolates exceeded 3.2 million metric tons in 2023, with 42% of this volume being utilized in fortified nutritional products such as infant formulas and dietary supplements.

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DAIRY NUTRITIONAL AND NUTRACEUTICAL INGREDIENTS MARKET SEGMENTATION

By Type

Based on type the dairy nutritional and nutraceutical ingredients market is classified as whey protein and casein protein, prebiotics, vitamin & minerals, colostrum and nucleotides.

By Application

Based on application the dairy nutritional and nutraceutical ingredients market is classified as functional food, infant formula & clinical nutritio, ndairy products, bakery & confectionaries and personal care.

DRIVING FACTORS

Increasing demand for functional foods to Fuel Market Growth

Functional foods are foods that contain added ingredients that provide health benefits beyond basic nutrition. The demand for functional foods is increasing due to the growing awareness of the importance of good nutrition and the desire to prevent chronic diseases. Dairy nutritional and nutraceutical ingredients are often used in functional foods, as they provide a number of health benefits, such as calcium, protein, and probiotics.

Rising health concerns among Population to Drive Market Growth

There is a growing awareness of the importance of good health and the need to prevent chronic diseases. This is driving the demand for dairy nutritional and nutraceutical ingredients, which are known to have a number of health benefits.

• According to the Food and Agriculture Organization (FAO), 78% of dairy farms worldwide adopted improved processing methods in 2023, increasing the availability of high-quality milk proteins used in nutraceutical formulations.

• According to the European Food Safety Authority (EFSA), over 1,100 functional dairy-based products were approved in Europe in 2023, which contributed to higher demand for bioactive peptides and immunoglobulins in the nutraceutical sector.

RESTRAINING FACTORS

Lack of Consumer Awareness to Harm Market Growth 

The dairy nutritional and nutraceutical ingredients market is facing some restraining factors, such as high cost, lack of consumer awareness, government regulations, competition, and supply chain disruptions. These factors could slow the growth of the market in the coming years. High cost is one of the restraining factors of the dairy nutritional and nutraceutical ingredients market. Dairy nutritional and nutraceutical ingredients are often seen as being more expensive than traditional food products. This can be a barrier to entry for some consumers. Lack of consumer awareness is another restraining factor of the dairy nutritional and nutraceutical ingredients market. There is still a lack of awareness among consumers about the benefits of dairy nutritional and nutraceutical ingredients. This can be a challenge for companies marketing these products. Government regulations are also restraining the growth of the dairy nutritional and nutraceutical ingredients market. Governments around the world are increasingly regulating the food industry and are requiring food manufacturers to use ingredients that are safe and healthy. This can create challenges for companies developing new dairy nutritional and nutraceutical ingredients.

• According to the U.S. Food and Drug Administration (FDA), 52% of nutritional supplements tested in 2023 contained inconsistent protein concentrations, creating regulatory challenges and limiting market expansion for dairy-derived nutraceutical ingredients.

• According to the National Dairy Development Board (NDDB), India, approximately 18% of dairy processing units reported supply chain disruptions in 2023 due to seasonal milk production fluctuations, restricting consistent ingredient availability.

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DAIRY NUTRITIONAL AND NUTRACEUTICAL INGREDIENTS MARKET REGIONAL INSIGHTS

Asia-Pacific Region to Dominate the Market with Extensive Utilization and Multiplying Manufacturers

Asia-Pacific dominates the Dairy Nutritional and Nutraceutical Ingredients market, with China being the largest market. North America and Europe are also significant markets, driven by an increasing demand for functional foods and a growing aging population. Other regions such as Latin America, Middle East & Africa are expected to grow at a significant pace due to increasing awareness of the health benefits of dairy products.

KEY INDUSTRY PLAYERS

Financial Players to Contribute Towards Expansion of Market

Some of the key industry players in the Dairy Nutritional and Nutraceutical Ingredients market include ADM, Arla Foods Ingredients, BASF SE, Carbery Group, Cargill, Chr. Hansen Holding A/S, DSM, Fonterra Co-operative Group, Glanbia plc, Kerry Group, Royal FrieslandCampina, and Saputo Inc. These companies are investing in research and development, expanding their product offerings, and focusing on strategic partnerships to stay competitive in the market.

• Founta (New Zealand): A large dairy operative, fonts, is an important player in the global market for neutralutic materials. The company delivers more than 20% of the world's dairy exports and is an important player in the financial point of finance, providing rich products with omega -3 fatty acids and probiotics to accommodate consumer health requirements.

• DSM (Netherlands): DSM, a global leader in nutrition and health, has expanded its dairy component portfolio to a large extent, focusing on nutrition and functional ingredients such as vitamins, enzymes and probiotics. The company works in more than 50 countries and serves industries from food and drink to individual care, which makes it an important player in the Market for Meierutrality.

List of Top Dairy Nutritional And Nutraceutical Ingredients Companies

• Fonterra (New Zealand)
• DSM (Netherlands)
• Proliant (U.S)
• Arla Foods (Denmark)
• DuPont (U.S)
• Cargill (U.S)
• APS Biogroup (U.S)
• Groupe Lactalis (France)
• Nestle (Switzerland)
• Danone (France)

REPORT COVERAGE

The SWOT analysis and information on future developments are covered in the study. The research report includes a study of a number of factors that promote market growth. This section also covers the range of numerous market categories and applications that could potentially affect the market in the future. The specifics are based on current trends and historical turning points. The state of the market's components and its potential growth areas over the following years. The paper discusses market segmentation information, including subjective and quantitative research, as well as the impact of financial and strategy opinions. Additionally, the research disseminates data on national and regional assessments that take into account the dominant forces of supply and demand that are influencing market growth. The competitive environment, including market shares of significant competitors, is detailed in the report along with fresh research methodology and player strategies for the anticipated time.