Functional Milk Market - Global Outlook & Forecast 2023-2028: Demand for Lactose-free Functional Milk Presents Opportunities

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Mar 09, 2023, 14:15 ET

DUBLIN, March 9, 2023 /PRNewswire/ -- The "Functional Milk Market - Global Outlook & Forecast 2023-2028" report has been added to ResearchAndMarkets.com's offering.

The functional milk market is expected to grow at a CAGR of approximately 6.42% from 2022 to 2028.

The growth is due to a rise in disposable income and improved living standards leading to the inclusion of fortified food products in the diet. The functional milk market is also driven by a growth in the geriatric population, increased incidence of malnutrition among hospitalized patients, and prevalence of communicable and non-communicable chronic diseases.

Milk is one of the most consumed dairy products globally due to its high nutritional value. Functional milk can help reverse various deficiencies and related diseases, such as osteoporosis, night blindness, exophthalmia, and anemia. Moreover, functional milk contains added or fortified nutrients.

Milk fortified with vitamins A and D is highly popular in the U.S. A global increase in the demand for clinical nutrition and health consciousness and a rise in the prevalence of macro and micronutrient deficiencies and obesity drive the U.S. functional milk market growth.

Functional milk fills nutrient gaps in the diet, helps reverse night blindness and other nutrition deficiency diseases, and promotes nervous system maintenance in children and adults. Milk fortification is a simple, preventive, low-cost approach to reducing micronutrient inadequacies.

Some new developments in the global functional milk market include:

The need to replenish lost nutrients leads to the fortification of dairy products.
Health-conscious consumers consider functional milk as a healthier alternative to normal milk, as it includes vitamins A and D, calcium, protein, and other nutrients.
Countries globally increase the sales of functional milk products due to awareness of their benefits.

China and India experienced an increase in functional milk, resulting in increased growth of the functional milk market. Additionally, many other market segments are anticipated to perform fairly and attain promising growth prospects during the forecast period. However, the shift in consumer preferences toward functional milk alternatives, trade barriers, and associated socio-economic challenges are expected to affect the functional milk market growth.

MARKET TRENDS & DRIVERS
Availability of Fortified Milk Powders for Adults

Milk powder is a dried dairy product prepared by the evaporation of milk. The milk powder has a much longer shelf life than liquid milk and does not need refrigeration due to its low moisture content. Functional milk powder or dried milk contains fortified vitamins and minerals not naturally found in milk in significant amounts. Growth in consumer awareness of functional milk powder's health and nutritional benefits is expected to create lucrative opportunities for leading functional milk powder manufacturers during the forecast period. Fortified milk powder contains additional macro and micro-nutrients and can help consumers prevent and fight various lifestyle disorders.

Demand for Lactose-free Functional Milk

The global functional milk market has several lactose-free milk products. In adults' lactose-intolerance shows up most often in people of East Asian heritage, affecting 70% to 100% of the population, according to the National Institutes of Health (NIH). The increase in the prevalence of lactose intolerance and growth in the demand for low-added sugar or sugar-free products are expected to fuel the sales of lactose-free milk globally.

SEGMENTATION INSIGHTS
INSIGHTS BY FORM

The powder form milk accounted for a 69.73% revenue share of the global functional milk market in 2022. It is the most preferred functional milk form as powdered functional milk is easy to consume; has a long shelf life; offers superior stability during processing; and is easy to handle, transport, and store. These aspects are the key factors considered in the supply chain and distribution. The powder form of milk finds the highest level of adoption in physical stores, such as convenience stores, hypermarkets, and other e-commerce websites, due to the flexibility offered in packaging techniques. Moreover, the powder form has a high intake among children and older adults as it reduces complications related to swallowing.

Segmentation by Form

Powder
Liquid

INSIGHTS BY AGE GROUP

The 14-19 segment accounted for the highest revenue share of the global functional milk market in 2022. The demand for functional milk among the 14-19 age group is high in developed countries. In addition, the growth in nutrient deficiencies among this age group in LMICs due to the lack of policies and programs to improve adolescents' health and nutritional status is expected to create lucrative opportunities for functional milk market growth. The market by the 14-19 age group is expected to grow at a CAGR close to 7% during the projected period. Increased awareness of the benefits of functional milk and government initiatives in LMICs can bring huge market growth opportunities.

Segmentation by Age Group

14-19
20-64
1-13
65 & Above

INSIGHTS BY APPLICATION

The global functional milk market by application is segmented into immunity & disease management, weight management, clinical nutrition, and others. The immunity & disease management segment accounted for the highest revenue share of 39.34% in 2022, which is attributable to the increased focus of vendors on the development of functional milk that aids in disease management. The product offerings of more than 80% of companies include low-cholesterol functional milk due to its high demand to help manage cardiovascular diseases, which is the leading cause of death globally. In addition, vendors also develop functional milk that aids in improving and strengthening bone health in cases of low bone mass and osteoporosis. An increased population with lactose intolerance and immunodeficiency disorders contributes to the industry's growth.

Segmentation by Application

Immunity & Disease Management
Weight Management
Clinical Nutrition
Others

INSIGHTS BY DISTRIBUTION CHANNEL

The online segment is expected to grow the fastest among all other segments in the global functional milk under the distribution channel. The global functional milk market by online segment is expected to grow at a CAGR of more than 7% during the forecast period. Grocery and specialty stores globally plan to switch to e-commerce in developed countries. Online platforms bring numerous benefits for both customers and producers. They help reduce costs to rent retail premises and the dependence on brokers and distributors. Buying online is cheaper, and online platforms offer a wide and diverse range of products. However, online trading has a few disadvantages, such as the increased risk of identity theft and vendor fraud.

Segmentation by Distribution Channel

Hypermarkets
Convenience Stores
Online
Grocery Stores
Specialty Stores
Institutional Sales

GEOGRAPHICAL ANALYSIS

APAC dominated the global functional milk market, contributing 31% to the market revenue in 2022. The large proportion of the geriatric population, the high prevalence of chronic diseases and metabolic disorders, and premature births primarily drive the regional functional milk market. The region is also expected to grow at the fastest CAGR during the forecast period. China, Japan, South Korea, Australia, and India are some leading countries in the APAC functional milk industry.
The North American functional milk market was valued at USD 7.03 billion in 2022. The region is witnessing steady growth due to the rising geriatric population and the growing prevalence of various diseases. Moreover, the increasing incidence of malnutrition among chronic disease patients and children is another major factor driving the industry's growth. The U.S. is the largest functional milk market in the region and primarily drives the regional market's growth.
In 2022, Europe contributed 25% to the functional milk market revenue. Functional and fortified foods and beverages are growing in popularity across Europe. Further, Latin America and the Middle East & Africa have low market penetration rates and provide enormous growth opportunities to vendors due to high malnutrition rates. In 2019, the Turkish Clinical Enteral and Parental Nutrition Society (KEPAN) conducted an education program that saw the participation of 499 clinicians. Increased awareness of malnutrition is expected to create huge growth opportunities in the Middle East & Africa.

Segmentation by Geography

APAC
China
Japan
South Korea
Australia
India
Thailand
Indonesia
Philippines
Malaysia
Vietnam
North America
US
Canada
Europe
Germany
France
UK
Spain
Italy
Russia
Latin America
Brazil
Mexico
Argentina
Middle East & Africa
Turkey
Saudi Africa
Saudi Arabia

Key Company Profiles

Nestle
Danone
Lactalis International
Abbott

Other Prominent Vendors

Aroma Milk Products
Arla Foods amba
Best Way Ingredients
Best Health Foods
Bright Life Care
CAPSA
Crediton Dairy
Dairy Farmers of America
Ehrmann
F&N Dairies
FrieslandCampina
Fonterra
Glanbia
GCMMF
Heritage Foods
INGREDIA
Land O' Lakes
Lycotec
MEGMILK SNOW BRAND
Milligans Food Group
Mother Dairy Fruit & Vegetable
Parag Milk Foods
SADAFCO
SLEEPWELL
Stolle Milk Biologics
Synlait
Tirlan
Tesco
Vindija d.d.
Valfoo
Vinamilk

KEY QUESTIONS ANSWERED:

How big is the functional milk market?
What is the growth rate of the global functional milk market?
Who are the key players in the global functional milk market?
What are the significant trends in the functional milk market?
Which region dominates the global functional milk market share?

Key Topics Covered:

1 Research Methodology

2 Research Objectives

3 Research Process

4 Scope & Coverage

5 Report Assumptions & Caveats

6 Market at a Glance

7 Introduction

8 Premium Insights

9 Market Opportunities & Trends
9.1 Increased Demand for Personalized Nutrition
9.2 Availability of Fortified Milk Powders for Adults
9.3 Fortified Milk for Beauty & Skin Health

10 Market Growth Enablers
10.1 Demand for Lactose-Free Functional Milk
10.2 Micronutrient Inadequacies
10.3 Demand for Protein-Rich Milk

11 Market Restraints
11.1 Preference for Functional Milk Alternatives
11.2 Increasing Stringent Trade Barriers
11.3 Socioeconomic & Raw Material Formulation Challenges

12 Market Landscape

13 Form

14 Age Group

15 Application

16 Distribution Channel

17 Geography

18 Apac

19 North America

20 Europe

21 Latin America

22 Middle East & Africa

23 Competitive Landscape

24 Key Company Profiles

25 Other Prominent Vendors

26 Report Summary

27 Quantitative Summary

28 Appendix

A selection of companies mentioned in this report includes

Nestle
Danone
Lactalis International
Abbott
Aroma Milk Products
Arla Foods amba
Best Way Ingredients
Best Health Foods
Bright Life Care
CAPSA
Crediton Dairy
Dairy Farmers of America
Ehrmann
F&N Dairies
FrieslandCampina
Fonterra
Glanbia
GCMMF
Heritage Foods
INGREDIA
Land O' Lakes
Lycotec
MEGMILK SNOW BRAND
Milligans Food Group
Mother Dairy Fruit & Vegetable
Parag Milk Foods
SADAFCO
SLEEPWELL
Stolle Milk Biologics
Synlait
Tirlan
Tesco
Vindija d.d.
Valfoo
Vinamilk

For more information about this report visit https://www.researchandmarkets.com/r/p4vk4l

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