Latin America Dairy Whitener Market Research Report – Segmented By Application (Infant Formula, Confectionaries, Bakeries, Nutritional Foods), Distribution Channels (Convenience Stores, Supermarkets And Hypermarkets, Food And Drinks Specialists), And Country (Brazil, Mexico, Argentina, Chile And Rest Of Latin America) - Industry Analysis On Size, Share, Trends, COVID-19 Impact & Growth Forecast (2024 To 2029)

Updated On: January, 2024
ID: 3066
Pages: 135

Latin America Dairy Whitener Market Size (2024 to 2029)

The size of the Latin American dairy whitener market is expected to be worth USD 0.87 billion in 2024 and grow at a CAGR of 6.91% from 2024 to 2029 to achieve USD 1.22 billion by 2029. 

Dairy whiteners, alternatively known as milk powder, are extensively used as a substitute for milk, largely in tea and coffee. They are also used in other food products such as hot chocolate, puddings, soups, and sauces. Besides whitening, dairy whiteners also add mouthfeel, body, and flavor to the beverages they are added to and, thereby, improve the overall taste. They come in fluid, powder, or condensed forms and can widely differ in their fat and sugar content.

Whole milk powder (WMP) and skim milk powder (SMP) available in the market account for nearly 50% share of dairy products and dairy whiteners worldwide. Dairy whiteners are products with fat content greater than that of SMP and lesser than WMP.

The milk powder comes in various categories containing high protein value, degenerate milk-fat and lessened lactose content that perform the function of an emulsifier. The effectiveness of this market includes that of flavor, with 61% of coffee drinkers finding flavor to be the most important factor in choosing their whitener. This is being seen as an alternative to specialty coffee. Various other properties include solubility and foaming properties, thus improving the water-binding properties in bakery foods, sports, and nutrition foods.

Population growth, rising disposable incomes, urbanization rates, ease of use and storage, hectic lifestyles, and changing dietary habits are some of the factors that are driving the growth of this market. As compared to milk, dairy whiteners offer certain benefits, such as convenience, portability, and longer shelf-life, which fuel the Latin American dairy whiteners market. In addition, the growing industry for infant formula is likely to offer a great opportunity for growth of the Latin America dairy whiteners market during the forecast period. Dairy whiteners are widely used in the manufacture of infant formula. Factors such as an increase in birth rates and a decrease in mortality rates, which result in growth in the infant population in Latin America, are projected to propel the Latin America dairy whiteners market. Further, demand from an increasing number of working women for convenience foods, consumer awareness about functional foods, and growing demand for milk products with increasing population & urbanization in developing countries are some of the major drivers for the dairy whiteners industry. The tariff rates on exports, the effect of high imports on domestic production, and the growing population in developing countries will positively impact the demand for dairy whiteners.

Low preference of some patrons for dairy whiteners over conventional milk and milk products due to rising awareness about health may hamper the growth of the dairy whiteners market. The health-conscious consumer with awareness of ultra-high temperature techniques reducing the protein content of milk may pose a hurdle for the milk powder market and, in turn, for the milk whitener category. Specifically, many research studies have found that whiteners have substitute ingredients that unnecessarily increase cholesterol, and these reports are gaining traction in the market, dampening the growth of the market. The dairy whiteners market has both domestic and foreign players. In order to remain competitive in the market, companies are investing great amounts of their revenue into R&D activities. This is due to the fluid as well as competitive nature of the market. One such innovation is the introduction of flavors in dairy whiteners. Flavors such as chocolate and strawberry have gained traction since their launch, which took place a few years ago.

This research report on the Latin America Dairy Whitener Market is segmented and sub-segmented into the following categories.

Latin America Dairy Whitener Market - By Application:

  • Infant formula
  • Confectionaries
  • Bakeries
  • Nutritional foods

Dairy whiteners made through partially skimmed milk are used widely in coffee and tea or for preparing desserts.

Latin America Dairy Whitener Market - By Distribution Channels:

  • Convenience stores
  • Supermarkets and hypermarkets
  • Food and drinks specialists

The growth of the organized sector, coupled with a change in consumer preference from traditional mom–and–pop stores to supermarkets and hypermarkets, has resulted in this segment's dominance in the Latin American dairy whiteners market.

Latin America Dairy Whitener Market - By Region:

  • Brazil
  • Mexico
  • Argentina
  • Chile
  • Rest of Latin America

In 2008, Brazil, the region's largest milk producer with a market share of 46.4%, registered an increase of 8% due to a rise in milk prices. The milk production declined by 3.2% in 2009 and remained stagnant in 2010 to 27,981 thousand tonnes. Various endeavours have been seen in Mexico, one of the World's largest importers of milk powders, to push milk production sector development and bound dependence on imports and milk production. Milk production rose by 2.4% to 11,398 thousand tonnes in 2010 and held a market share of 18.3% in the region's total milk production.

Argentina is expected to witness an incline in the market share in the production of total dairy products to 30.4% and dairy products production of 1,984 thousand tonnes by 2015. Brazil is expected to remain a strong market and will overtake Mexico for the 2nd position with an increased market share of 27.7% relative to the decreased market share of 26.1% of Mexico. The Dairy products production in Brazil is expected to reach 1,806 thousand tonnes by 2015. Peru is expected to remain the fourth largest dairy products producer, with a market share of 7.3% and an expected production of 477 thousand tonnes by 2015.


Major Key Players in the Latin America Dairy Whitener Market are Nestlé, Fonterra, Danone, Friesland Campina, Amul, Lactalis, Arla Foods, Dean Foods, Muller, Dairy Farmers of America, Schreiber Foods, Mother Dairy, Sodiaal, Land O’ Lakes, Mengniu, Morinaga Milk Industry, Saputo, and Yili Group, and Kraft Heinz


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Frequently Asked Questions

1. What are the key factors driving the growth of the dairy whitener market in Latin America?

Several factors contribute to the growth of the dairy whitener market in Latin America, including increasing urbanization, changing lifestyles, rising disposable incomes, and a growing preference for convenience products. Additionally, the popularity of coffee consumption in the region further boosts the demand for dairy whiteners.

2. What are the current trends and innovations shaping the Latin America dairy whitener market?

Some notable trends and innovations in the Latin American dairy whitener market include the introduction of organic and natural variants, innovative packaging designs for better convenience and sustainability, and developing functional whitener products with added health benefits.

3. What are the distribution channels commonly used for dairy whitener products in Latin America?

Dairy whitener products in Latin America are typically distributed through supermarkets, hypermarkets, convenience stores, online retail channels, and food service outlets like cafes and restaurants. Manufacturers often employ a multi-channel distribution strategy to reach a broad consumer base.

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