Latin America Dairy Whitener Market

Latin America Dairy Whitener Market Growth and Forecast (2023 - 2028):

The Latin America Dairy Whitener Market was around USD 1.5 billion in 2022. It is expected to grow at a CAGR of 5.9% to reach USD 2 billion by 2028. The world’s total milk production was estimated to be about 765 million tons in 2013.

Market Overview:

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. Effectiveness of this market includes that of flavour, with 61% of coffee drinkers finding flavour to be the most important factor in choosing their whitener. This is being seen as an alternative for specialty coffee. Various other properties include solubility, and foaming properties, thus improving the water binding properties in bakery foods, sports and nutrition foods.

Drivers:

Population growth, rising disposable incomes, urbanisation rates, ease of use and storage, hectic lifestyle, 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 America 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 increase in birth rates and 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 increasing number of working women for convenience foods, consumer awareness about functional foods, 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, effect of high imports on domestic production, growing population in developing countries will impact positively the demand for dairy whiteners.

Restraints:

Low preference of some patrons to 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 on 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 which unnecessarily increase cholesterol and these reports are gaining traction in the market dampening the growth of the market.

Latin America Dairy Whitener Market Segmentation Analysis:

The Latin America dairy whiteners market can be segmented into three categories: By application, by distribution channels and by geographies. Dairy whiteners, which are a category of dry milk powder, have many applications in infant formula, confectionaries, bakeries, nutritional foods, etc. Dairy whiteners made through partially skimmed milk are used widely in coffee and tea or for preparing desserts. Types of distribution channels include convenience stores, supermarkets and hypermarkets, and food and drinks specialists. Growth of the organized sector coupled with change in consumer preference from traditional mom–and-pop stores to supermarkets and hypermarkets has resulted in dominance of this segment on the Latin America dairy whiteners market.

Region Analysis:

Geographically the Latin America Dairy Whitener Market is segmented into Brazil, Mexico, Argentina, Chile and 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 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. The Milk production has risen 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 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 of Brazil is expected to reach to 1,806 thousand tonnes by 2015. Peru is expected to remain the fourth largest dairy products producer with the market share of 7.3% and expected production of 477 thousand tonnes by 2015.

Key Players in 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 of such innovations is the introduction of flavours in dairy whiteners. Flavours such as chocolate and strawberry have gained traction since their launch, which took place a few years ago.

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
• Yili Group
• Kraft Heinz