When it comes to category-specific growth potential within the dairy space, most market research reports and forecasts seem to focus on finished dairy product categories such as ice cream, cheese and cultured products. But dairy ingredients also present an enormous growth opportunity for North American processors.

According to “Dairy Ingredients Market Analysis by Product, by Application and Segment Focus, 2018-2024,” a report from San Francisco-based Grand View Research Inc., the global dairy ingredients’ market size is expected to reach $86.97 billion by 2024.

The rising demand for dairy products in emerging markets such as China and India as a result of product innovation by certain dairy companies is expected to promote the use of milk powder as a functional ingredient, Grand View Research noted. And the growing importance of frozen bakery goods as a result of new product launches by other companies is also expected to promote the use of milk powder over the forecast period.

Also boding well for dairy ingredients is the rising practice of nutritional enrichment in food and beverages to meet consumers’ desire to maintain a healthy lifestyle, the market research firm said. In fact, ingredients for sports and clinical nutrition are expected to see the fastest volume growth — with a projected compound annual growth rate of 4.3%.

Meanwhile, the growing consumption of protein-fortified functional food products on the part of vegetarians who want to meet their protein requirements is projected to have a strong positive impact on the market, Grand View Research said.

Continued innovation also will be critical to growth within the dairy ingredients space. And a number of dairy processors recently introduced differentiated, potentially game-changing products in the category. Here is just a small sampling:

• DairiConcepts, Springfield, Mo., launched Ascentra, a sodium-reducing flavor enhancer made from a proprietary, whole-milk based fermentation process. It is able to slash sodium content by 25% to 50%, the company said. The dairy ingredient earned DairiConcepts an Innovation Award at the 2018 Food Tech Summit & Expo in Mexico City.
• Arla Food Ingredients, a subsidiary of Viby, Demark-headquartered Arla Foods, introduced Nutrilac CH-7694, a whey protein ingredient solution that reduces the cream cheese manufacturing process to only 30 minutes — while also increasing yield.
• Milk Specialties Global, Eden, Minn., debuted PRObev, a heat-stable whey protein isolate for beverages and gels that remains clear in solution over a wide range of pH levels. It is produced through a proprietary filtration process that isolates native whey proteins in a highly concentrated form to provide maximum functionality.

Read all about it

This issue of Dairy Foods puts the spotlight on dairy ingredient innovation.

In this issue, we showcase California Dairies Inc. (CDI), which won the 2019 Breakthrough Award for Dairy Ingredient Innovation. The award program is a joint effort between Dairy Foods and the Elmhurst, Ill.-based American Dairy Products Institute.

CDI developed a truly unique line of milk protein crisps using natural milk protein isolate powder that is produced through the ultrafiltration of Grade A milk. The crisps fit in with the ongoing trend toward added protein and can be incorporated into a number of food applications.

We also highlight the latest dairy ingredient-related capabilities from the Novi, Mich.-based Michigan Milk Producers Association (MMPA). MMPA’s Constantine, Mich., processing facility recently added ultrafiltered skim milk concentrate to its product repertoire. The customizable ingredient can be used in dairy nutritional drinks, yogurt, cheese standardization and infant formula.