Rising Popularity of Dairy Flavors Due to Evolving Food and Beverages Industry

Industry Insights

Market Outlook

The healthy halo image of dairy products coupled with the organoleptic properties makes dairy products the most demanded flavors and ingredients in the food and beverage industry. Dairy flavors are processed and manufactured from dairy products such as milk, butter, cheese, cream and others. These flavors are specifically designed to increase the flavor and intensity of dairy-based products. In the formulation of non-dairy ingredients and products, the dairy flavors are used in combination with other natural characterizing flavors to deliver a better taste to the final product. Dairy flavors provide an array of multiple flavor profiles such as buttery, cheesy, creamy, and other various sweet and savory taste. Among consumers there is an increase in demand for such flavors with specialty dairy products such as flavored yogurt, feta cheese, etc. and is rising the demand for varied dairy flavors. These flavors offer the ability to manufacturers to improve or provide a complete profile of taste with authentic flavors to consumers with reduced manufacturing cost. Therefore a large number of manufacturers in the food and beverage industry are opting for dairy flavors at a reasonable cost, which is expected to drive the growth of dairy flavors market over the forecast period.  In addition, the key players are also offering a customized solution to their clients depending on the application. The manufacturers are combing the dairy flavors with other natural flavors, according to the specific parameter of each individual product.

The demand for dairy products is growing rapidly across the globe as consumers are appreciating the flavors, taste and the value of the products with quality nutrition. Altering diets and mounting population are lowering the demand for whole milk and demand for functional dairy products is surging, creating a strong market position for the dairy industry.  In spite growing trend for healthy living, consumers still prioritize taste over nutrition and lean towards creamy taste, however, wants to keep away from the associated fat. This has brought about an expanded interest for dairy flavors as the concentrated dairy flavor can be utilized around 0.1% to 1% in terms volume in the definition, diminishing the dairy content yet at the same time keeping up the comparable taste. This attributes to drive the growth of dairy flavors over the forecast period. The key player in dairy flavors is launching an innovative product range to maintain its position in the market and attract consumers. In 2017, Synergy Flavors launches a range of dairy-based flavors aiming to replace sugar in bakery products to cater the increasing demand for low sugar products.

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Dairy flavors Market: Key Players

The key market players operating in dairy flavors market Synergy Flavors, Inc., International Flavors & Fragrances Inc., Kerry Group, Butter Buds Inc.,  CP Ingredients, Edlong Dairy Technologies, FONA International Inc., Stringer Flavours Limited, Dairy Chem Inc., Ornua Ingredients, Glanbia plc., Advanced Biotech. Inc., Bluegrass Dairy & Food, Inc., Blends Limited, and Jeneil Biotech Inc.

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Dairy flavors Market Opportunities

There is a rising trend for clean label products among the consumers, attributed to growing health and wellness consciousness. This is creating pressure over the manufacturers of the dairy industry to offer natural and organic products or ingredients to satisfy the changing diet trend. The consumer these days thrive for low fat, calories and sugar products which has created an immense opportunity for the dairy flavors market. To meet the surging demand the manufacturers are investing in R&D and developing new products and trying to deliver valuable products to consumers in accordance with changing trend globally.

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