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The dairy processing equipment market is estimated to grow by USD 3.26 billion at a CAGR of 5.77% between 2022 and 2027. The market's growth is underpinned by several key factors. Firstly, the increasing demand for fortified dairy products has fueled market expansion, as consumers seek healthier options. Secondly, the preference for cost-saving and energy-efficient equipment among dairy processing companies has driven the adoption of advanced technologies, contributing to market growth. Lastly, the compliance of dairy processing companies with standards and regulations has led to the implementation of stricter quality control measures, positively impacting market development. These factors collectively indicate a promising outlook for the market.
It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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This report extensively covers market segmentation by application (processed milk, milk powder, cream, cheese, and others), type (pasteurizers, homogenizers, separators, evaporators and dryers, and others), and geography (APAC, Europe, North America, South America, and Middle East and Africa).
The market share growth by the processed milk segment will be significant during the forecast period. Processed milk is obtained through the heat treatment of raw milk. It is obtained using UHT processing and pasteurization that help kill the spores present in raw milk.
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The processed milk segment was valued at USD 2.04 billion in 2017. Processed milk has a long shelf life if it is packed and stored properly. Equipment such as pasteurizers, homogenizers, and heat exchangers are used to obtain processed milk. Moreover, key companies in the market are trying to develop advanced technologies to process milk to increase its benefits, which thereby will increase its demand. One of the new technologies is HTST heating technology, where the milk is heated to over 161F for more than 15 seconds. This will kill the pathogenic bacteria present in milk. Hence, end-users in the market, such as dairy processing companies, are focusing on investing in advanced dairy processing equipment, which, in turn, will drive the growth of the segment in the global market during the forecast period.
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APAC is estimated to contribute 40% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
APAC is one of the major markets for dairy processing equipment, as milk production and processing are significantly high in this region. One of the significant factors contributing to the market growth is the high prevalence of osteoporosis and other bone diseases in females in this region. Therefore, this is increasing the demand for dairy foods, which in turn, is expected to fuel the growth of the market in APAC. Furthermore, dairy foods such as yogurt, ghee, butter, cream, and cheese are widely consumed by the urban population in APAC countries. Thus, the high percentage of this population will contribute to the demand for a wide variety of dairy foods, which will consequently drive the growth of the regional market during the forecast period.
Additionally, other factors including the changing preferences and lifestyles of consumers and growing awareness about the health and nutritional benefits of dairy products are driving the demand. An increase in demand for milk products among older people and children in this region is also expected to drive the demand for dairy products in the region. Moreover, as the demand for dairy products increases, more dairy processing companies will try to establish their production plants and increase their product portfolios in the region to fulfill the demand and increase sales in the coming years, which, in turn, is expected to propel the growth of the market in APAC during the forecast period.
The market is driven by the increasing consumption and production of dairy products worldwide. Advancements in technology have led to the development of various equipment such as homogenizers, membrane filters, separators, mixing & blender machines, evaporators & dryers, and pasteurizers, enhancing the efficiency of dairy processing. These equipment help in maintaining the shelf life of dairy goods and ensuring the quality of milk-based products. Automation processes and the use of cold chain facilities have further improved operational efficiency and reduced costs. The market is also witnessing growth due to the demand for new dairy products, leading to portfolio expansion and the development of functional dairy-based ingredients like protein concentrates and whey-based supplements for infant and geriatric nutrition formulae. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The growing market for fortified dairy products is notably driving the market growth. Fortified dairy products are products that have added essential nutrients such as fatty acids, amino acids, phytonutrients, enzymes, vitamins, and minerals. The fortification method has been witnessing tremendous growth over the years due to an increase in health concerns and a growing preference for food products rich in nutrients and vitamins among consumers. This growth is supported by advancements in automation processes and technology, particularly in the fortification of processed milk products. Technologies such as homogenizers, membrane filters, and separators are used to fortify these products, leading to new product development and portfolio expansion. Functional dairy-based ingredients, protein concentrates, and whey-based supplements are some of the products benefiting from this trend. Dairy products such as yogurt, cheese, and cream are mainly used for fortification.
Dairy products are rich in nutrients and are usually fortified with vitamin A and vitamin D. This helps increase the bone health and bone metabolism of consumers. Furthermore, various dairy manufacturing companies have started providing fortified milk due to the increased demand from consumers for dairy products with added nutritional and dietary benefits. Hence, with an increase in the consumption of fortified milk, the demand for the equipment used for processing fortified milk will also increase. Therefore, such factors will boost the global market during the forecast period.
The rise in the popularity of ultrafiltration is an emerging trend in the market. Ultrafiltration is the process used for the removal of oils, colloids, emulsions, suspended solids, and other materials from water and other solutions. It is used in the dairy industry to purify milk and produce new dairy products that are high in proteins and have comparatively less amount of carbohydrates than milk.
During the process, milk passes across a membrane; lactose, water, and some soluble minerals will pass through the membrane and will be spread throughout the membrane. Casein and whey proteins will not pass through the membrane because of their large molecular sizes and will be retained. This retained stream will be used as ultrafiltered milk. Furthermore, ultrafiltered milk can be dried to create MPC powder. Some of the key manufacturers of dairy processing equipment provide ultrafiltration equipment. The increasing availability and popularity of such ultrafiltration equipment in dairy processing plants are expected to boost the growth of the global market during the forecast period.
The high production costs for dairy products are major challenges impeding market growth. The dairy industry uses large amounts of perishable milk to process it into various dairy products. The processing of milk consumes a large amount of fuel and electricity per year. It also uses energy in various forms, such as compressed air, hot water, steam, and chilled water, which will lead to high production costs.
Electricity is used during dairy processing for various purposes, such as running pumps, motors, process motors, fans, and other systems. Fuel is consumed in dairy processing for heat and steam generation in the boiler systems, which in turn, increases the cost burden on the dairy processing plants. One of the other reasons for the increase in production costs is the expensive dairy processing equipment, which costs around USD 40,000 to USD 2 million. Additionally, there are various other costs involved in moving milk products such as receiving cost, labor cost, storage cost, cleaning cost, transportation cost, and processing costs for separation, evaporating, cleaning, and others. Hence, these factors are expected to restrain the growth of the global market to a certain extent during the forecast period.
The report includes the market's adoption lifecycle, covering the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
SSP Pvt. Ltd. - The key offerings of the company include dairy processing equipment.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
The market is witnessing significant growth driven by technological advancements and changing consumer lifestyles. Advancements in automation processes and digital-based livestock management have enhanced efficiency in dairy production. The demand for quality dairy food products has led to the development of eco-friendly packaging and sustainable packaging solutions. Robotic milking systems have improved the extraction of cream from milk and enhanced operational efficiency on milk farms. The market also sees growth in filtration systems and membrane technology for processes like microfiltration and nanofiltration, ensuring high food quality. With the rise in demand for dairy products like cheese and ice cream, the dairy processing equipment market is expected to expand further.
Moreover, the market is witnessing significant growth due to advancements in technology and AI forecasts driving the adoption of automatic types of equipment and automation processes. Factors such as changing lifestyles and rise in disposable income have led to an increased demand for dairy products and infant nutrition, boosting the market. Dairy producers and processors are focusing on quality milk-based products and efficiency of equipment to meet consumer demands. Equipment such as cheese processing equipment, membrane filtration equipment, and mixing and blending equipment are crucial for ensuring product quality and operational efficiency in the dairy industry. Technology advancements drive automation processes, reducing operational expenses in dairy product manufacturing. Monitoring carb and fat content is crucial, influencing drying and dehydration systems.
Market Scope |
|
Report Coverage |
Details |
Page number |
181 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.77% |
Market growth 2023-2027 |
USD 3.26 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
4.67 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 40% |
Key countries |
US, China, India, Germany, and France |
Competitive landscape |
Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ABL Technology Ltd., Admix Inc., Agrometal Ltd., Alfa Laval Corporate AB, Feldmeier Equipment Inc., GEA Group AG, Goma Engineering Pvt. Ltd., Hillenbrand Inc., IDMC Ltd., IMA Industria Macchine Automatiche Spa, John Bean Technologies Corp., KRONES AG, Nordic Dairy Technology ApS, Paul Mueller Co. Inc., ProXES GmbH, Sanchelima International Inc., Scherjon Equipment Holland BV, SPX FLOW Inc., SSP Pvt. Ltd., and Tetra Laval S.A. |
Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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