Fortified foods on the back of essential nutrients have been experiencing widespread adoption over the last few decades thus creating an upswing in demand for fortified dairy products. According to the newest report by Fact.MR, demand for fortified dairy products market is expected to grow exponentially and is projected to create an absolute $ opportunity of around US$ 56 Bn during forecast period 2019 – 2026.
Fortified dairy products are presumed to be a promising sector in the next half decade and are projected to grow at a significant growth rate. Milk and dairy products serve as one of the best and easily available sources of essential nutrients. However, a series of production processes tends to hamper nutrient absorption. Fortification performs an imperative function of replenishing all lost nutrients in milk and its derivatives. The industry has seen extraordinary demand of fortified milk, milk powder, infant formula, and various other dairy products owing to penetration of targeted government programs singularly aimed at eradication of nutritional deficiencies.
Fortified Dairy Products Market: Segmentation
FactMR’s study has done the segmentation of fortified dairy products market on the basis of product type, micronutrients, sales channel and region.
Key Takeaways of Global Fortified Dairy Products Market
- Milk powder and formula product type segment in fortified dairy products accounts for more than one third of market share and is expected to show significant growth in fortified dairy products market during period of forecast, owing to increased demand from milk powder and nutritional formula manufacturers across the globe.
- Vitamins micronutrients in fortified dairy products is majorly contributing to the global fortified dairy products consumption and is projected to grow 1.5X over period of forecast, owing to increased demand in milk, milk powder and milk formula.
- Fortified dairy products market in Asia Pacific excluding Japan holds around one third of the market share. However, increasing consumer inclination towards fortified dairy products is projected to grow at significant growth rate as compared to other regions.
- Modern trade sales channels of fortified dairy products holds more than one third of market share. However, online stores are growing at a faster pace as compared to other sales channels of fortified dairy products.
- Flavored Milk segment is projected to create an absolute $ opportunity of US$ 14.4 Bn during forecast period 2019 – 2026. Moreover, it will exhibit fastest growth among product type of fortified dairy products market.
Product Portfolio Strengthening to Remain Market Imperative
Tier 1 fortified dairy products market players such as Nestle SA, BASF SE and Danone SA etc, have been expanding their product portfolio in the potential markets such as United States, India, China, Germany etc.
To develop new applications of fortified dairy products, companies are investing money in research and development to strengthen their product portfolio with innovative fortified dairy products such as breakfast milk drink, flavored protein milk drinks etc.
For instance, in the year 2018, the company Nestle USA, launched Nesquik-SuperBreakfast protein-rich milk drink. This has helped Nestle USA boost its revenue with new fortified dairy product offerings in market.
Market Leaders Retain their Edge through R&D Initiatives
In recent years, manufacturers and food brands are expanding their research & development capabilities and planning to expand their portfolio to gain more share in global fortified dairy products market. To develop new applications of fortified dairy products, companies are investing money in research and development to strengthen their position in new application areas. For instance, in the year 2018, the company Nestle USA and Arlington, Va., launched Nesquik-SuperBreakfast protein breakfast milk drink. This has helped Nestle to boost its revenue with new offerings in the market.