Anhydrous Milk Fat Market Eyeing Bigger Moves: $6 Billion By 2031

The anhydrous milk fat market size was valued at $3 billion in 2021, and is estimated to reach $6 billion by 2031, growing at a CAGR of 7.2% from 2022 to 2031.

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Butter or 35%–45% cream, depending on the time of year, can be used to make anhydrous milk fat. Almost all the water and non-fat solids are eliminated throughout the production process using centrifuges. Since less water is present as a result, the product is simpler to preserve and store.

Globally, there is an increasing need for high-quality food products. As a result, the market for anhydrous milk fat is expanding as it contributes to improving the flavor and taste of food products. Anhydrous milk fat market expansion is being driven by the surge in expenditure on high-quality food products and rise in disposable income of people. Consumers are becoming more aware of the advantages of consuming anhydrous milk fat for their health. This is causing its demand to rise, which is fueling the expansion of this market. The global rise in anhydrous milk fat market demand is being aided by technological advancements in production methods and container designs, among other things. These anhydrous milk fat market trends are creating anhydrous milk fat opportunity globally. 

The major players analyzed for the global anhydrous milk fat industry are Royal FrieslandCampina N.V., Asha Ram & Sons Pvt. Ltd, Lactalis Group, Interfood Holding BV, Vitusa Corp, Royal VIVBuisman, Polmlek Group, Gloria Argentina SA, United Global Agencies, and Eurial Ingredients & Nutrition.

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According to the anhydrous milk fat market analysis, the anhydrous milk fat market is segmented on the basis of nature, application, distribution channel, and region. By nature, the market is bifurcated into organic and conventional. Among these, the conventional segment occupied the major anhydrous milk fat market share in 2021 and is projected to maintain its dominance during the anhydrous milk fat market forecast period. Economic viability and a quick & simple manufacturing procedure compared to those of organic products are the main drivers propelling the conventional anhydrous milk fat market growth.

On the other hand, the organic segment is growing at the fastest rate in the market. The process of processing organic milk results in the by-product of organic anhydrous milk fat. Since it contains no water, it can be used in many food applications in place of regular anhydrous butter or margarine as it is waterless. The product is growing in popularity all over the world due to its high level of purity, which makes it perfect for use in many foods and beverages that need little water or are dry.

By application, the market is divided into the dairy, bakery, confectionery, and others. The dairy segment is expected to grow at a moderate rate during the forecast period. Along with bread and confectionery, dairy is the market's dominant application segment for anhydrous milk fat. In the dairy sector, anhydrous milk fat is widely used in the production of reconstituted milk and other dairy products such as whole milk, cheese, spreads, and ice cream.

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By distribution channel, it is classified into online and offline. The offline segment is further fragmented into supermarkets/hypermarkets, specialty stores, convenience stores, and others. The online segment is anticipated to grow at the highest CAGR during the forecast period. Owing to the large availability of products and the provision of free home delivery, the online sales channel is one of the most advantageous distribution channels. The segment's expansion is also being fueled by the increased use of the internet in both developed and emerging countries.

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