Dairy Cream Market

According to Stratistics MRC, the Global Dairy Cream Market is accounted for $15.29 billion in 2023 and is expected to reach $23.98 billion by 2030 growing at a CAGR of 6.64% during the forecast period. Dairy cream is a rich and indulgent dairy product known for its smooth texture and high fat content, typically sourced from cow's milk. It is widely used in culinary applications, adding a luscious creaminess to a variety of dishes, including desserts, sauces, soups, and coffee beverages. Dairy cream comes in different forms, such as heavy cream, light cream, and whipping cream, each varying in fat content and thickness. Its versatility makes it a staple ingredient in many cuisines worldwide, prized for enhancing flavors and providing a luxurious mouth feel.

According to the US Department of Health and Human Services, approximately 65% of the global human population has a reduced ability to digest lactose after infancy

Market Dynamics:

Driver:

Increasing demand in the food & beverage industry

Dairy cream is increasingly being used in the food and beverage industries due to its richness and simplicity of use. The production of many products, including chocolates, pastries, fresh dairy products, biscuits, prepared meals, soups, and broths, need dairy cream. Additionally, it has a variety of practical qualities to fit a range of applications. For instance, because to the homogenization of the cream, it helps create texture and gives soups and sauces a rich, velvety consistency. Thus, market expansion during the forecast period is anticipated to be driven by the expanding application areas of dairy creams in the food & beverage industry.

Restraint:

Rise of incidences of lactose intolerance

The inability to digest the milk sugar lactose results in lactose intolerance, which in some people results in gastrointestinal symptoms such flatulence, bloating, cramps, and diarrhea. This is brought on by a lack of lactase enzymes, which are necessary for converting lactose into simpler sugars like glucose and galactose. With more than 90% of individuals affected, East Asian nations including China, Hong Kong, and Japan have the highest prevalence of lactose intolerance among adults. The prevalence of lactose intolerance is high in both European and African nations. The introduction of lactose-free goods has been prompted by the rise in incidences of lactose intolerance among consumers of food and beverages. Thus, throughout the forecast period, the rise in cases of lactose intolerance is anticipated to slow the expansion of the worldwide dairy cream market.

Opportunity:

Demand for organic products

Global consumer knowledge of the effects of chemicals used in food production and processing on the environment and human health is growing. The use of products that are grown and processed organically is becoming more popular among consumers as a result of growing awareness of the detrimental effects of chemicals on human health. As a result, the market for goods made naturally is expanding quickly. Consumers in these areas are starting to recognize the advantages of organic dairy products, which present a business opportunity for dairy cream producers. By investing in R&D for the introduction of novel products, manufacturers are attempting to take advantage of this pool of prospects.

Threat:

Fluctuating raw material prices

As a key ingredient in the production of dairy cream, any volatility in the prices of raw materials such as milk and butterfat can directly impact the overall cost of production. When prices soar, it leads to an increase in manufacturing expenses, which may compel dairy cream manufacturers to either absorb the additional costs or pass them onto consumers through higher prices. Additionally, such price fluctuations can also disrupt supply chains, causing uncertainty and making it challenging for businesses to plan effectively. Producers might face difficulties in maintaining consistent product quality and availability, potentially leading to dissatisfied customers and loss of market share.

Covid-19 Impact:

The COVID-19 epidemic has adversely impacted the dairy cream industry and will continue to be catastrophic. The spread of the COVID-19 pandemic carries a number of dangers. 2020 saw the global spread of COVID-19, which still has an effect on global economic activity. In 2020, there will be a slowdown in the economy as a result of COVID-19's disruption and instability in the world's capital markets. The epidemic and the ensuing economic unrest had a detrimental effect on the dairy cream market across all customers and most regions. Governments all across the world have enacted COVID-19-related measures, including travel restrictions, business closures, restrictions on public gatherings and group activities, shelter-in-place orders, curfews, and advice on the use of social distancing.

The whipping cream segment is expected to be the largest during the forecast period

The whipping cream segment held the largest share in the market owing to the increasing demand. Whipping cream is a prominent variant in the Dairy cream market, valued for its unique ability to transform into a light and airy texture when whipped. Derived from cow's milk, whipping cream contains a higher fat content than regular cream, typically around 30-36%, which enables it to hold its shape when beaten. This property makes it an ideal ingredient for topping desserts, cakes, and beverages, adding a delightful richness to various culinary creations. Whipping cream is widely popular in baking and confectionery industries, as well as in households for creating delectable treats.

The solid form segment is expected to have the highest CAGR during the forecast period

During the projection period, the solid form segment is expected to have the greatest CAGR. The solid form of dairy cream refers to products that have been processed or formulated to have a thicker and more solid consistency compared to regular liquid cream. Solid forms of dairy cream include products like butter and clotted cream. Butter, a classic dairy solid, is made by churning cream until the fat globules come together to form a semi-solid, spreadable texture. Clotted cream, another popular dairy solid, is created by heating unpasteurized cream until a thick layer forms on the surface. These solid dairy cream products are favoured for their rich and creamy taste, often used as spreads, toppings, or baking ingredients.

Region with largest share:

The Europe region market is estimated to witness the highest share of the global Dairy Cream market during the forecast period, Renowned for its rich culinary traditions and diverse dairy-based products, Europe's demand for dairy cream remains consistently strong. The region's preference for high-quality and premium dairy products further drives the consumption of dairy cream in various culinary applications, including desserts, sauces, and bakery items. Moreover, Europe's well-established dairy industry and sophisticated processing facilities ensure a steady supply of dairy cream to meet domestic and international demands. Several European countries, such as France, Germany, and Italy, have emerged as key players in dairy cream production, fostering innovation and product diversification.

Region with highest CAGR:

North America holds a significant position in the market, being a region with a strong affinity for dairy-based products and a flourishing culinary culture. The United States and Canada, in particular, are key players in the industry, driven by their large consumer base and high demand for various cream-based products. Dairy cream is widely used in North American cuisine, from desserts and coffee toppings to savoury dishes and sauces, which sustains its steady popularity in the region.

Key players in the market

Some of the key players in Dairy Cream market include Agropur Cooperative, Arla Foods, Dairy Farmers of America Inc., Dean Foods, Fauji Foods Limited, Fonterra Co-operative Group, Graham's Family Dairy, Grup LaLa, Gujarat Co-operative Milk Marketing Federation Ltd, Kraft Foods Group, Kroger Co., The Land O’ Lakes Inc., Leprino Foods Co., Nestle S.A., Parmalat SpA, Prairie Farms Dairy, Saputo Inc., Schreiber Foods, The Kraft Heinz Company and Woodlands Dairy.

Key Developments:

In January 2023, Woodlands Dairy launched a new Ultra Heat Treatment (UHT) whipping cream. The claims that its product is suitable for various applications such as desserts, cakes, milkshakes, pies, waffles, warm drinks, and others. The launch of the product is to satisfy the growing demand for whipping cream both locally and internationally.

In Sep 2022, Prairie Farms Dairy introduced 18 cream cheese and ice cream products. The products are derived from 100% real milk and cream that are sourced from local farm families. The company introduced a total of 6 cream cheese flavors in 3.5 Oz right-size cups and 12 ice-cream flavors in pint cartoons in the market.

In January 2022, Fauji Foods Limited expanded its product offering with the launch of Nurpur dairy cream in the House of Nurpur Family brand. The company claims that its product is rich, wholesome, and a pure cream delight which is an ideal choice for the paratha and dessert applications.

Types Covered:
• Fresh Cream
• Thickened Cream / Heavy Cream
• Whipping Cream
• Sour Cream
• Flavored creams
• Double Cream
• Clotted Cream
• Crème fraiche
• Manufacturing Cream
• Other Types

Forms Covered:
• Liquid
• Solid

Distribution Channels Covered:
• Online Channel
• Indirect Sales
• Hypermarkets & Supermarkets
• Convenience Stores
• Departmental Stores
• Other Distribution Channels

End Users Covered:
• Soups
• Sauces & Dressings
• Vegetables
• Cakes and Other Baked Products
• Savory
• Beverages
• Other End Users

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan
o China
o India
o Australia
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances