Dairy Processing Equipment Market

According to Stratistics MRC, the Global Dairy Processing Equipment Market is accounted for $13.29 billion in 2023 and is expected to reach $23.08 billion by 2030 growing at a CAGR of 8.2% during the forecast period. Dairy processing equipment encompasses a wide array of machinery and tools used in the production, handling, and packaging of dairy products. From pasteurizers to homogenizers and separators to fillers, this equipment plays a pivotal role in transforming raw milk into various dairy delights like milk, cheese, yogurt, and butter. With advancements in technology, modern dairy processing equipment integrates automation and sophisticated controls to streamline operations and enhance productivity while adhering to strict regulatory requirements.

According to the Food and Agriculture Organization of the United Nations more than 6 billion people consume milk and milk-related products.

Market Dynamics: 

Driver: 

Rising demand for value-added dairy products

The rising demand for value-added dairy products is a key driver of the dairy processing equipment market due to several reasons. As consumer preferences shift towards healthier and more diverse dairy options, there's an increased need for processing equipment capable of producing items like Greek yogurt, artisanal cheeses, and fortified dairy beverages. Technological advancements in processing equipment allow for greater efficiency, scalability, and quality control, meeting the demand for consistent and high-quality products. Additionally, globalization has expanded the reach of value-added dairy products, necessitating equipment that can adapt to different production standards and regulations worldwide.

Restraint:

Market fragmentation

Market fragmentation refers to its division into various smaller segments based on factors like product type, application, and region. This fragmentation poses a restraint as it complicates market dynamics, making it challenging for manufacturers to efficiently target their products. Different segments may have unique requirements and preferences, necessitating diverse marketing strategies and product adaptations. Additionally, managing supply chains becomes more complex, leading to increased operational costs. This fragmentation also intensifies competition among players vying for market share in each segment, potentially squeezing profit margins.

Opportunity:

Clean label and healthier alternatives

The Clean Label and Healthier Alternatives trend in the dairy processing equipment market reflects consumer demand for transparent ingredient lists and nutritious dairy products. Manufacturers are investing in equipment that facilitates the production of items with fewer additives and preservatives. This includes machinery for processes like ultra-high temperature (UHT) treatment, which preserves milk without the need for additives. Additionally, there's a growing need for equipment that supports plant-based dairy alternatives, such as almond or oat milk production lines. As consumers prioritize health and wellness, dairy processing equipment that enables cleaner labels and healthier options presents a significant opportunity for market growth and innovation.

Threat:

Competitive pressure

In the dairy processing equipment market, competitive pressure intensifies rivalry among existing players to gain market share, attract customers, and drive innovation. This threat is fueled by factors such as the presence of numerous manufacturers offering similar products, low product differentiation, and the constant pursuit of cost efficiencies. Companies face challenges in maintaining profitability amidst price wars and the need for substantial investment in research and development to stay ahead. Additionally, globalization and the entry of new players further intensify competition, heightening the pressure on established companies to continuously adapt and differentiate themselves.

Covid-19 Impact: 

The COVID-19 pandemic has significantly impacted the dairy processing equipment market. With disruptions in the supply chain, temporary shutdowns of manufacturing facilities, and restrictions on movement, the market experienced a slowdown in production and distribution. Additionally, shifts in consumer behaviour towards essential goods and home cooking led to fluctuations in demand for dairy products, influencing equipment procurement decisions. However, increased awareness of hygiene and safety measures propelled investments in advanced processing technologies to ensure product quality and compliance with health regulations. 

The pasteurizers segment is expected to be the largest during the forecast period

The pasteurizers segment in the dairy processing equipment market has experienced significant growth owing to several key factors such as increased awareness among consumers regarding food safety and hygiene has driven the demand for pasteurized dairy products. Pasteurization ensures the elimination of harmful bacteria while preserving the nutritional value of dairy products, thus enhancing their shelf life. The growing trend toward convenience and ready-to-eat dairy products has further fueled the demand for pasteurizers, as they enable large-scale production with consistent quality. Moreover, stringent regulations and standards imposed by regulatory bodies regarding food safety have compelled dairy producers to invest in modern pasteurization equipment to comply with these requirements. 

The processed milk segment is expected to have the highest CAGR during the forecast period

The growth in the processed milk segment can be attributed to a rising demand for value-added dairy products like flavored milk, yogurt, and cheese, which necessitates advanced processing techniques and equipment. Additionally, technological advancements in dairy processing equipment have enhanced efficiency and quality, making it more attractive for dairy producers to invest in processing capabilities. Changing consumer preferences towards convenience and health-conscious options also drive the demand for processed milk products, further fueling market growth. Furthermore, increasing urbanization and disposable incomes in emerging markets are expanding the consumer base for processed dairy products, boosting the need for processing equipment to meet demand.

Region with largest share:

The North American region has experienced significant growth in the dairy processing equipment market due to rising consumer demand for dairy products, driven by factors such as increasing health consciousness and disposable income, which has fuelled the need for efficient processing equipment. Moreover, stringent regulations regarding food safety and quality standards in North America have necessitated the adoption of state-of-the-art processing equipment to ensure compliance. Furthermore, the growing trend towards automation and smart manufacturing practices has led to increased adoption of advanced dairy processing equipment in the region. 

Region with highest CAGR:

The Asia-Pacific region has witnessed significant growth due to rising consumer demand for dairy products, driven by increasing population, urbanization, and changing dietary habits that has spurred the need for efficient processing equipment to meet production demands. Additionally, advancements in technology have enabled dairy processors in the region to enhance productivity and product quality, further fueling market growth. Moreover, government initiatives promoting dairy farming and processing industries have stimulated investments in modern equipment. Furthermore, the region's expanding middle class and growing disposable incomes have led to higher consumption of dairy products, necessitating upgrades and expansions in processing facilities.

Key players in the market

Some of the key players in Dairy Processing Equipment market include A&B Processing Systems, Agrometal Limited , Alfa Laval Corporate AB, Arbel Group, Coperion GmbH, Feldmeier Equipment, Inc., GEA Group, IDMC Ltd, INOXPA India Pvt. Ltd., Krones AG, Patkol Public Company Limited, Scherjon Equipment Holland B.V, SPX Corporation, Tetra Laval International and Ved Engineering Pvt. Ltd.   

Key Developments:

In February 2024, GEA is investing EUR 18 million (USD 20 million) in a technology center for alternative proteins in the state of Wisconsin, USA. The new food tech hub will pilot microbial, cell-based and plant-based foods. GEA’s technologies and a team of biotechnology experts form the basis for scaling new food for industrial production, which is increasingly in demand in the USA.

In February 2024, SPX Technologies announced that it has acquired privately held Ingénia Technologies (“Ingénia”) for approximately CA$405 million (approximately US$300 million) in cash, including acquired real estate. Ingénia is now part of SPX Technologies’ Cooling platform, within its HVAC segment, and further expands the Company’s position in Engineered Air Movement (“EAM”) solutions. Ingénia is anticipated to have annualized revenue of approximately US$100 million for the full-year 2024, and its margins and anticipated revenue growth rate are higher than the HVAC segment average.

Products Covered:
• Vaccum Gauges 
• Dairy Packaging Machine 
• Automatic Milk Collection Unit 
• Milk Tanks 
• Curd Filling Machine 
• Homogenizers 
• Mixing & Blending Equipment 
• Evaporators & Dryers 
• Pasteurizers 
• Separator 
• Membrane Filtration Equipment 
• Other Products  

Types Covered:
• Semi-Automatic
• Automatic

Distribution Channels Covered:
• Food Specialty Stores 
• Convenient Stores 
• Hypermarkets 
• Other Distribution Channels  

Applications Covered:
• Processed Milk 
• Milk Powder 
• Protein Concentrates 
• Yogurt 
• Cream 
• Cheese 
• Other Applications 

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