Concentrated Milk Fat Market Size, Share & Trends Analysis Report By Product (Organic, Conventional), By Application (Bakery & Confectionery, Nutraceuticals), By Region, And Segment Forecasts, 2025 - 2030

Concentrated Milk Fat Market Size & Trends

The global concentrated milk fat market size was valued at USD 5.37 billion in 2024 and is expected to grow at a CAGR of 6.4% from 2025 to 2030. The rising demand for shelf-stable milk ingredients that require minimal preservation and have a longer shelf life is a major driver. With their low moisture content, concentrated milk fats can be stored at room temperature for extended periods, reducing overall costs related to storage and transportation, which is expected to drive market growth in the coming years.

Additionally, the growing utilization of concentrated milk fats in various applications, such as bakery, confectionery, dairy products, and infant formula, enhances their appeal. The trend towards organic and natural products also contributes to market growth, as consumers increasingly seek safer and healthier alternatives.  In addition, advancements in dairy processing technology and the expanding global food industry further support the market's expansion.

The market is growing rapidly, driven by the rising application of the product to enhance the flavor, consistency, and texture of bakery products. These benefits help improve the quality and cut the overall cost of the final product. These fats have very little moisture content and can be stored at room temperature for several months, resulting in longer shelf life and bulk storage and transportation, thus reducing the overall cost. The organic content in the product is helpful due to the rising health concerns among consumers. The product contains high levels of omega-3 fatty acids, vitamins, and antioxidants helpful for the prevention of heart and skin diseases.

Product Insights

Conventional concentrated milk fat dominated the market with the largest revenue share of 89.4% in 2024. Consumers and manufacturers widely recognize and trust these products, ensuring their strong market position. These products are more affordable than their organic counterparts, making them accessible to a broader range of consumers. Additionally, the well-established production and supply chain infrastructure for conventional milk fat products enhances their availability and distribution efficiency. Conventional concentrated milk fat's consistent quality and reliability further solidify its market dominance.

Organic concentrated milk fat is expected to grow at the fastest CAGR of 7.9% over the forecast period. This rapid growth is fueled by the increasing consumer preference for natural and organic products, driven by health and environmental concerns. Consumers are becoming more aware of the benefits of organic dairy products, which are perceived to be healthier and free from synthetic chemicals and additives. Additionally, the rise in disposable incomes and the willingness to spend on premium, high-quality food products contribute to the growth of the organic segment. The expanding availability of organic dairy products in supermarkets, hypermarkets, and online platforms further supports this trend.

Application Insights

Bakery & confectionery dominated the market with the largest revenue share in 2024. Concentrated milk fat is a vital ingredient in bakery and confectionery products, enhancing flavor, texture, and shelf life. The growing consumer demand for indulgent and premium baked goods, such as pastries, cakes, and chocolates, drives the market. Additionally, the rising trend of home baking, fueled by social media and cooking shows, has increased the usage of concentrated milk fat. Catering to diverse consumer preferences, the continuous innovation in bakery and confectionery products further supports the market's growth.

The nutraceuticals segment is expected to grow at the fastest CAGR of 8.4% over the forecast period. Nutraceuticals, including functional foods, dietary supplements, and fortified beverages, benefit greatly from incorporating concentrated milk fat due to its nutritional properties and ability to improve texture and flavor. The growing awareness of the importance of a balanced diet and the rising interest in preventive health care further boost this segment. Additionally, advancements in food technology and product innovation in the nutraceuticals industry contribute to the strong growth of this market segment.

Regional Insights

The North American concentrated milk fat market was identified as a lucrative region in 2024. The region's strong consumer preference for premium and natural dairy products, particularly in the U.S. and Canada, fuels the demand for concentrated milk fat. North America's well-established dairy processing infrastructure and advanced food technology also enhance the production and distribution of concentrated milk fat. The growing health and wellness trend also supports the market, as consumers seek healthier and more nutritious food options.

U.S. Concentrated Milk Fat Market Trends

The U.S. concentrated milk fat market is expected to grow significantly over the forecast period. Consumers in the U.S. have a strong preference for premium and organic dairy products, which are perceived as healthier and more nutritious. The expanding trend of convenience foods, such as ready-to-eat meals and snacks, which utilize concentrated milk fat for their shelf-stability and rich flavor, further boosts market demand.

Asia Pacific Concentrated Milk Fat Market Trends

Asia Pacific concentrated milk fat market dominated the global market with the largest revenue share of 35.4% in 2024. The region's robust food and beverage industry and increasing consumer demand for high-quality dairy products drive significant market growth. Rising disposable incomes and the expanding middle class in countries such as China and India have led to greater consumption of premium and convenience foods, which utilize concentrated milk fat for its favorable properties. Additionally, the region's rapid urbanization and evolving dietary habits further support the demand for concentrated milk fat. The presence of major dairy producers and advancements in food processing technologies also play a crucial role in strengthening the market position of the Asia Pacific region.

Europe Concentrated Milk Fat Market Trends

Europe concentrated milk fat market is expected to grow at the fastest CAGR of 9.3% over the forecast period. The increasing demand for premium and natural dairy products among health-conscious consumers is a significant driver. European consumers are known for their preference for high-quality and organic food products, which boosts the demand for concentrated milk fat. The growing popularity of bakery and confectionery items, where concentrated milk fat is a crucial ingredient, also supports market growth.

Key Concentrated Milk Fat Company Insights

Some key companies in the concentrated milk fat market include Darigold, Lactalis Ingredients, Fonterra Co-operative Group Limited, Grassland Dairy products, California Dairies, Inc., and others.

• Darigold is a well-known dairy cooperative offering various dairy products, including concentrated milk fat. Its product lineup includes ultra-filtered milk packed with 75% more protein and 40% less sugar than regular reduced-fat milk. Darigold also provides a range of low-fat and fat-free milk options sourced from local Northwest farmers who adhere to responsible dairy management practices.

• Lactalis Ingredients is a global player in the dairy industry, offering a wide range of dairy ingredients, including concentrated milk fat. Its product portfolio includes 82% butter, texturized butter, and anhydrous milk fat, with a fat content of 99.8%.

Concentrated Milk Fat Market Report Scope

Global Concentrated Milk Fat Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global concentrated milk fat market report based on product, application, and region:

• Product Outlook (Revenue, USD Million, 2018 - 2030)

  • Organic

  • Conventional

• Application Outlook (Revenue, USD Million, 2018 - 2030)

  • Bakery & Confectionery

  • Dairy Products

  • Nutraceuticals

  • Others

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico 

  • Europe

    • Germany

    • UK

    • France

    • Italy

    • Spain

  • Asia Pacific

    • China

    • Japan

    • India

    • Australia

    • South Korea

  • Latin America

    • Brazil

  • Middle East and Africa (MEA)

    • South Africa