Global Dairy Nutritional and Nutraceutical Ingredients Market Report (2025–2036)
Market Overview
The global dairy nutritional and nutraceutical ingredients market was valued at USD xxxx million in 2025 and is projected to reach USD xxxx million by 2036, growing at a CAGR of xx%. These ingredients, derived from milk and dairy sources, play a vital role in functional foods, infant nutrition, clinical applications, and personal care. Rising consumer demand for protein-rich diets, preventive healthcare, and clean-label products is fueling market expansion. Technological advancements in dairy processing and bioactive ingredient extraction are further enhancing product innovation.
Impact of COVID-19
The pandemic disrupted supply chains and reduced production in 2020, slowing adoption temporarily. However, COVID-19 accelerated consumer preference for immunity-boosting and nutritionally fortified products, boosting demand for whey proteins, probiotics, and dairy-derived vitamins. Post-pandemic recovery has been marked by increased investments in nutraceutical R&D, online retail channels, and fortified dairy products.
Market Segmentation
By Type
- Whey Protein and Casein Protein – widely used in sports nutrition, infant formula, and clinical nutrition.
- Prebiotics – enhancing gut health and immunity.
- Vitamins & Minerals – fortification of dairy and functional foods.
- Colostrum – rich in bioactive compounds for infant and clinical nutrition.
- Nucleotides – specialized applications in infant formula and therapeutic nutrition.
- Others – bioactive peptides, lactoferrin, and omega-3 enriched dairy ingredients.
By Application
- Functional Food – fortified dairy beverages, yogurts, and protein bars.
- Infant Formula & Clinical Nutrition – specialized formulations for infants and patients.
- Dairy Products – milk powders, cheese, and fortified milk.
- Bakery & Confectioneries – protein-enriched baked goods and chocolates.
- Personal Care – skincare and haircare products using bioactive dairy ingredients.
- Others – nutraceutical supplements and dietary capsules.
Regional Analysis
- North America: Largest market; driven by strong demand for protein supplements, functional foods, and advanced dairy processing.
- Europe: Significant growth; Germany, U.K., and France lead adoption with strong regulatory frameworks and consumer preference for clean-label products.
- Asia-Pacific: Fastest-growing region; India, China, and Japan expanding infant nutrition and fortified dairy markets.
- South America: Brazil and Argentina showing growth in dairy exports and nutraceutical adoption.
- Middle East & Africa: Emerging demand; increasing investments in fortified foods and clinical nutrition.
Key Players
- Fonterra Co-operative Group
- DSM Nutritional Products
- Proliant Dairy Ingredients
- Arla Foods
- DuPont Nutrition & Biosciences
- Cargill Inc.
- APS Biogroup
- Groupe Lactalis
- Nestlé Health Science
- Danone
Additional Players:
- Kerry Group (Ireland)
- Glanbia Plc (Ireland)
- Saputo Inc. (Canada)
- FrieslandCampina (Netherlands)
- Amul (India)
- Meiji Holdings (Japan)
- Abbott Laboratories (U.S.)
- Valio Ltd. (Finland)
- Ingredia SA (France)
Porter’s Five Forces
- Threat of New Entrants – Moderate; requires advanced processing technology and regulatory compliance.
- Bargaining Power of Suppliers – Moderate; raw milk and bioactive compounds influence costs.
- Bargaining Power of Buyers – High; food and pharma companies demand consistent quality and competitive pricing.
- Threat of Substitutes – Moderate; plant-based proteins and synthetic supplements.
- Industry Rivalry – High; global dairy and nutraceutical companies compete on innovation and sustainability.
SWOT Analysis
Strengths:
- Rich nutritional profile and bioactive compounds
- Wide applications across food, pharma, and personal care
- Strong presence of global dairy cooperatives and ingredient suppliers
Weaknesses:
- High production costs for advanced bioactive ingredients
- Dependence on milk supply and seasonal variations
- Limited adoption in low-income regions
Opportunities:
- Growth in functional foods and preventive healthcare
- Expansion in Asia-Pacific and Middle East markets
- Rising demand for clean-label and sustainable products
Threats:
- Regulatory hurdles for nutraceutical claims
- Competition from plant-based alternatives
- Supply chain vulnerabilities due to climate change
Trend Analysis
- Protein Fortification: Increasing demand for whey and casein proteins in sports nutrition.
- Gut Health Focus: Rising adoption of probiotics and prebiotics.
- Clean Label Movement: Consumer preference for natural and transparent ingredients.
- Digital Retail Expansion: Online platforms driving nutraceutical sales.
- Sustainability: Eco-friendly dairy processing and packaging.
Drivers & Challenges
Drivers:
- Rising demand for functional foods and nutraceuticals
- Increasing prevalence of lifestyle-related disorders
- Technological advancements in dairy processing
- Expansion of healthcare infrastructure in emerging markets
Challenges:
- High costs of advanced bioactive ingredients
- Regulatory complexity across regions
- Competition from plant-based alternatives
- Limited awareness in developing countries
Value Chain Analysis
- Raw Materials: Milk, colostrum, and dairy by-products.
- Manufacturing: Extraction, fortification, and quality control.
- Distribution: Food manufacturers, pharma companies, retail, and e-commerce.
- End Users: Consumers, patients, athletes, and wellness enthusiasts.
- After-Sales Services: Technical support, formulation assistance, and sustainability certifications.
Quick Recommendations for Stakeholders
- Manufacturers: Invest in bioactive ingredient innovation and sustainable processing.
- Healthcare Providers: Promote nutraceuticals for preventive healthcare and clinical nutrition.
- Policy Makers: Strengthen regulatory frameworks and support fortified food programs.
- Investors: Focus on Asia-Pacific and Europe for high-growth opportunities.
- Research Institutions: Collaborate with dairy companies to accelerate innovation in nutraceuticals.
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1. Market Overview of Dairy Nutritional and Nutraceutical Ingredients
1.1 Dairy Nutritional and Nutraceutical Ingredients Market Overview
1.1.1 Dairy Nutritional and Nutraceutical Ingredients Product Scope
1.1.2 Market Status and Outlook
1.2 Dairy Nutritional and Nutraceutical Ingredients Market Size by Regions: 2015 VS 2021 VS 2026
1.3 Dairy Nutritional and Nutraceutical Ingredients Historic Market Size by Regions
1.4 Dairy Nutritional and Nutraceutical Ingredients Forecasted Market Size by Regions
1.5 Covid-19 Impact on Key Regions, Keyword Market Size YoY Growth
1.5.1 North America
1.5.2 East Asia
1.5.3 Europe
1.5.4 South Asia
1.5.5 Southeast Asia
1.5.6 Middle East
1.5.7 Africa
1.5.8 Oceania
1.5.9 South America
1.5.10 Rest of the World
1.6 Coronavirus Disease 2019 (Covid-19) Impact Will Have a Severe Impact on Global Growth
1.6.1 Covid-19 Impact: Global GDP Growth, 2019, 2020 and 2021 Projections
1.6.2 Covid-19 Impact: Commodity Prices Indices
1.6.3 Covid-19 Impact: Global Major Government Policy
2. Covid-19 Impact Dairy Nutritional and Nutraceutical Ingredients Sales Market by Type
2.1 Global Dairy Nutritional and Nutraceutical Ingredients Historic Market Size by Type
2.2 Global Dairy Nutritional and Nutraceutical Ingredients Forecasted Market Size by Type
2.3 Whey Protein And Casein Protein
2.4 Prebiotics
2.5 Vitamin & Minerals
2.6 Colostrum
2.7 Nucleotides
3. Covid-19 Impact Dairy Nutritional and Nutraceutical Ingredients Sales Market by Application
3.1 Global Dairy Nutritional and Nutraceutical Ingredients Historic Market Size by Application
3.2 Global Dairy Nutritional and Nutraceutical Ingredients Forecasted Market Size by Application
3.3 Functional Food
3.4 Infant Formula & Clinical Nutrition
3.5 Dairy Products
3.6 Bakery & Confectionaries
3.7 Personal Care
4. Covid-19 Impact Market Competition by Manufacturers
4.1 Global Dairy Nutritional and Nutraceutical Ingredients Production Capacity Market Share by Manufacturers
4.2 Global Dairy Nutritional and Nutraceutical Ingredients Revenue Market Share by Manufacturers
4.3 Global Dairy Nutritional and Nutraceutical Ingredients Average Price by Manufacturers
5. Company Profiles and Key Figures in Dairy Nutritional and Nutraceutical Ingredients Business
5.1 Fonterra
5.1.1 Fonterra Company Profile
5.1.2 Fonterra Dairy Nutritional and Nutraceutical Ingredients Product Specification
5.1.3 Fonterra Dairy Nutritional and Nutraceutical Ingredients Production Capacity, Revenue, Price and Gross Margin
5.2 DSM
5.2.1 DSM Company Profile
5.2.2 DSM Dairy Nutritional and Nutraceutical Ingredients Product Specification
5.2.3 DSM Dairy Nutritional and Nutraceutical Ingredients Production Capacity, Revenue, Price and Gross Margin
5.3 Proliant
5.3.1 Proliant Company Profile
5.3.2 Proliant Dairy Nutritional and Nutraceutical Ingredients Product Specification
5.3.3 Proliant Dairy Nutritional and Nutraceutical Ingredients Production Capacity, Revenue, Price and Gross Margin
5.4 Arla Foods
5.4.1 Arla Foods Company Profile
5.4.2 Arla Foods Dairy Nutritional and Nutraceutical Ingredients Product Specification
5.4.3 Arla Foods Dairy Nutritional and Nutraceutical Ingredients Production Capacity, Revenue, Price and Gross Margin
5.5 DuPont
5.5.1 DuPont Company Profile
5.5.2 DuPont Dairy Nutritional and Nutraceutical Ingredients Product Specification
5.5.3 DuPont Dairy Nutritional and Nutraceutical Ingredients Production Capacity, Revenue, Price and Gross Margin
5.6 Cargill
5.6.1 Cargill Company Profile
5.6.2 Cargill Dairy Nutritional and Nutraceutical Ingredients Product Specification
5.6.3 Cargill Dairy Nutritional and Nutraceutical Ingredients Production Capacity, Revenue, Price and Gross Margin
5.7 APS Biogroup
5.7.1 APS Biogroup Company Profile
5.7.2 APS Biogroup Dairy Nutritional and Nutraceutical Ingredients Product Specification
5.7.3 APS Biogroup Dairy Nutritional and Nutraceutical Ingredients Production Capacity, Revenue, Price and Gross Margin
5.8 Groupe Lactalis
5.8.1 Groupe Lactalis Company Profile
5.8.2 Groupe Lactalis Dairy Nutritional and Nutraceutical Ingredients Product Specification
5.8.3 Groupe Lactalis Dairy Nutritional and Nutraceutical Ingredients Production Capacity, Revenue, Price and Gross Margin
5.9 Nestle
5.9.1 Nestle Company Profile
5.9.2 Nestle Dairy Nutritional and Nutraceutical Ingredients Product Specification
5.9.3 Nestle Dairy Nutritional and Nutraceutical Ingredients Production Capacity, Revenue, Price and Gross Margin
5.10 Danone
5.10.1 Danone Company Profile
5.10.2 Danone Dairy Nutritional and Nutraceutical Ingredients Product Specification
5.10.3 Danone Dairy Nutritional and Nutraceutical Ingredients Production Capacity, Revenue, Price and Gross Margin
6. North America
6.1 North America Dairy Nutritional and Nutraceutical Ingredients Market Size
6.2 North America Dairy Nutritional and Nutraceutical Ingredients Key Players in North America
6.3 North America Dairy Nutritional and Nutraceutical Ingredients Market Size by Type
6.4 North America Dairy Nutritional and Nutraceutical Ingredients Market Size by Application
7. East Asia
7.1 East Asia Dairy Nutritional and Nutraceutical Ingredients Market Size
7.2 East Asia Dairy Nutritional and Nutraceutical Ingredients Key Players in North America
7.3 East Asia Dairy Nutritional and Nutraceutical Ingredients Market Size by Type
7.4 East Asia Dairy Nutritional and Nutraceutical Ingredients Market Size by Application
8. Europe
8.1 Europe Dairy Nutritional and Nutraceutical Ingredients Market Size
8.2 Europe Dairy Nutritional and Nutraceutical Ingredients Key Players in North America
8.3 Europe Dairy Nutritional and Nutraceutical Ingredients Market Size by Type
8.4 Europe Dairy Nutritional and Nutraceutical Ingredients Market Size by Application
9. South Asia
9.1 South Asia Dairy Nutritional and Nutraceutical Ingredients Market Size
9.2 South Asia Dairy Nutritional and Nutraceutical Ingredients Key Players in North America
9.3 South Asia Dairy Nutritional and Nutraceutical Ingredients Market Size by Type
9.4 South Asia Dairy Nutritional and Nutraceutical Ingredients Market Size by Application
10. Southeast Asia
10.1 Southeast Asia Dairy Nutritional and Nutraceutical Ingredients Market Size
10.2 Southeast Asia Dairy Nutritional and Nutraceutical Ingredients Key Players in North America
10.3 Southeast Asia Dairy Nutritional and Nutraceutical Ingredients Market Size by Type
10.4 Southeast Asia Dairy Nutritional and Nutraceutical Ingredients Market Size by Application
11. Middle East
11.1 Middle East Dairy Nutritional and Nutraceutical Ingredients Market Size
11.2 Middle East Dairy Nutritional and Nutraceutical Ingredients Key Players in North America
11.3 Middle East Dairy Nutritional and Nutraceutical Ingredients Market Size by Type
11.4 Middle East Dairy Nutritional and Nutraceutical Ingredients Market Size by Application
12. Africa
12.1 Africa Dairy Nutritional and Nutraceutical Ingredients Market Size
12.2 Africa Dairy Nutritional and Nutraceutical Ingredients Key Players in North America
12.3 Africa Dairy Nutritional and Nutraceutical Ingredients Market Size by Type
12.4 Africa Dairy Nutritional and Nutraceutical Ingredients Market Size by Application
13. Oceania
13.1 Oceania Dairy Nutritional and Nutraceutical Ingredients Market Size
13.2 Oceania Dairy Nutritional and Nutraceutical Ingredients Key Players in North America
13.3 Oceania Dairy Nutritional and Nutraceutical Ingredients Market Size by Type
13.4 Oceania Dairy Nutritional and Nutraceutical Ingredients Market Size by Application
14. South America
14.1 South America Dairy Nutritional and Nutraceutical Ingredients Market Size
14.2 South America Dairy Nutritional and Nutraceutical Ingredients Key Players in North America
14.3 South America Dairy Nutritional and Nutraceutical Ingredients Market Size by Type
14.4 South America Dairy Nutritional and Nutraceutical Ingredients Market Size by Application
15. Rest of the World
15.1 Rest of the World Dairy Nutritional and Nutraceutical Ingredients Market Size
15.2 Rest of the World Dairy Nutritional and Nutraceutical Ingredients Key Players in North America
15.3 Rest of the World Dairy Nutritional and Nutraceutical Ingredients Market Size by Type
15.4 Rest of the World Dairy Nutritional and Nutraceutical Ingredients Market Size by Application
16 Dairy Nutritional and Nutraceutical Ingredients Market Dynamics
16.1 Covid-19 Impact Market Top Trends
16.2 Covid-19 Impact Market Drivers
16.3 Covid-19 Impact Market Challenges
16.4 Porter
Market Segmentation
By Type
- Whey Protein and Casein Protein – widely used in sports nutrition, infant formula, and clinical nutrition.
- Prebiotics – enhancing gut health and immunity.
- Vitamins & Minerals – fortification of dairy and functional foods.
- Colostrum – rich in bioactive compounds for infant and clinical nutrition.
- Nucleotides – specialized applications in infant formula and therapeutic nutrition.
- Others – bioactive peptides, lactoferrin, and omega-3 enriched dairy ingredients.
By Application
- Functional Food – fortified dairy beverages, yogurts, and protein bars.
- Infant Formula & Clinical Nutrition – specialized formulations for infants and patients.
- Dairy Products – milk powders, cheese, and fortified milk.
- Bakery & Confectioneries – protein-enriched baked goods and chocolates.
- Personal Care – skincare and haircare products using bioactive dairy ingredients.
- Others – nutraceutical supplements and dietary capsules.
Regional Analysis
- North America: Largest market; driven by strong demand for protein supplements, functional foods, and advanced dairy processing.
- Europe: Significant growth; Germany, U.K., and France lead adoption with strong regulatory frameworks and consumer preference for clean-label products.
- Asia-Pacific: Fastest-growing region; India, China, and Japan expanding infant nutrition and fortified dairy markets.
- South America: Brazil and Argentina showing growth in dairy exports and nutraceutical adoption.
- Middle East & Africa: Emerging demand; increasing investments in fortified foods and clinical nutrition.
Key Players
- Fonterra Co-operative Group
- DSM Nutritional Products
- Proliant Dairy Ingredients
- Arla Foods
- DuPont Nutrition & Biosciences
- Cargill Inc.
- APS Biogroup
- Groupe Lactalis
- Nestlé Health Science
- Danone
