By Zablon Oyugi, May 3, 2024, The dairy cream market is poised for substantial growth, with an anticipated value-based compound annual growth rate (CAGR) of 3.5 percent, a new study has shown.
By 2033, the revenues are projected to surge from US$ 14,727.9 million to approximately US$ 20,875.7 million.
This expansion is driven by a growing demand for cream products, buoyed by their appealing taste and perceived health benefits among consumers, foodservice providers, and food and beverage manufacturers.
In the forecast period, the global dairy cream market is estimated to reach a valuation of US$ 20,875.7 million, marking a promising trajectory for the industry’s stakeholders.
Traditionally, Europe has been a stronghold of cream products, boasting the largest consumer base. However, South Asia is expected to emerge as a lucrative market, propelled by a burgeoning foodservice sector and an increasing number of cream enthusiasts.
The foodservice industry is a major consumer of cream products and ingredients. Cream plays a pivotal role in enhancing the flavour and texture of various offerings such as coffees, mocktails, ice teas, ice creams, and desserts.
As studies by Persistence Market Research, and technological advancements and innovations continue to unfold, the foodservice sector could unlock significant opportunities for dairy cream manufacturers.
The top five trends
Health-conscious consumers: With an increasing focus on health and wellness, consumers are seeking dairy cream products that offer healthier alternatives such as low-fat and plant-based options.
Manufacturers are responding by innovating and introducing products that cater to these preferences.
Flavour innovation: Consumers are increasingly drawn to unique and exotic flavour profiles in dairy cream products. And manufacturers are experimenting with innovative flavour combinations and premium ingredients.
Sustainability and ethical sourcing: Environmental and ethical considerations are driving consumer preferences towards sustainably sourced and ethically produced dairy cream products. The manufacturers are adopting sustainable practices throughout the supply chain and emphasising transparency in sourcing to meet consumer expectations.
Convenience and on-the-go options: Busy lifestyles are fueling the demand for convenient and on-the-go dairy cream products. Single-serve packaging, portable formats, and ready-to-use cream products are gaining popularity among consumers seeking quick and easy solutions to their culinary needs.
Premiumisation and artisanal offerings: The trend towards premiumisation in the food and beverage industry is extending to dairy cream products, with consumers willing to pay a premium price for high-quality and artisanal offerings. Manufacturers are capitalising on this trend by emphasising craftsmanship, heritage, and premium ingredients in their cream products.
Market restraints
Despite the promising growth prospects, the dairy cream market faces several restraints that could hinder its expansion. One significant shortcoming is the increasing awareness and concern regarding lactose intolerance and dairy allergies among consumers. This has led to a growing demand for alternative dairy-free options, such as plant-based creams, which could divert the market share from traditional dairy cream products.
Additionally, fluctuating prices of dairy commodities, such as milk and cream, pose a challenge for manufacturers in terms of production costs and pricing strategies. Economic uncertainties and trade disruptions can further exacerbate these challenges, impacting the overall market stability.
Moreover, stringent regulations and quality standards imposed by regulatory bodies in various regions add complexity to the manufacturing and distribution processes, potentially hampering market growth.
Lastly, shifting consumer preferences towards healthier and lower-calorie alternatives pose a threat to the consumption of high-fat cream products, necessitating innovation and reformulation efforts by manufacturers to align with evolving dietary trends and preferences.
Addressing these restraints will be crucial for stakeholders in navigating the dynamic landscape of the dairy cream market.
Key recent development
A key recent development in the dairy cream market is the surge in demand for plant-based cream alternatives, driven by growing consumer preferences for dairy-free options. This trend reflects a broader shift towards plant-based diets and lifestyles. Manufacturers in the dairy cream sector are responding to this demand by expanding their product portfolios to include plant-based cream alternatives made from ingredients like almonds, oats, coconut, and soy.
In response to this trend, several major players in the dairy industry have introduced plant-based cream products or acquired established plant-based brands to diversify their offerings and capitalise on the growing market segment.
These developments highlight the evolving landscape of the dairy cream market and the increasing importance of innovation and adaptation to meet changing consumer preferences.
