Fat-filled milk powder Market Intelligence Report Offers Growth Prospects

Press Release

Fat-filled milk powder is a conjugal between vegetable fats and dairy proteins. Fat-filled milk powder contains almost 26% protein and the fat content varies between 20%-50%. Fat-milk milk powder is applicable as a total or partial milk powder substitute. Fat-filled milk powder has lower formulation and production costs than whole milk products and is produced by the method of agglomeration and spray drying. The EU is one of the major markets in the fat-filled milk powder market and manufacturers are expanding in regions like Malaysia and MENA (Middle East & Africa), which apparently hold high potential in the fat-filled milk powder market. The fat-filled milk powder market is expected to be one the fastest growing segments in the dairy ingredients industry.

Fat-filled milk powder market has mostly capitalized on high whole milk products prices like butterfat in the market. Also, the fat-filled milk powder market exhibits less volatility as compared to the skimmed milk powder, so the substitution has proven to be very cost-effective for some manufacturers. While performing the same functions as that of skim milk powder, fat-filled milk powder has been used in a variety of industrial applications such as for the production of processed cheese, evaporated and condensed milk products. Fat-filled milk powder makes up a large share of the EU dairy exports. Fat-filled milk powder manufacturers are meticulously expanding in the Middle East & African region. The demand for fat blends such as fat-filled milk powders is also attributed to the political unrest in this region, which has resulted in high prices of milk products.

The fat-filled market has ample opportunities to capitalize on the Middle East & African region because traditionally, milk and milk-based products consumption are significantly lower here which paves way for better consumer acceptability for fat-filled milk powder, given the good quality and cheapness of fat-filled milk powder. Within Europe, the major fat-filled milk powder markets are U.K., Netherlands, Ireland, and Denmark. The fat-filled milk powder also addresses some of consumers’ evolving needs such as sports nutrition and fitness goals amongst youngsters due to the high protein content of fat-filled milk powder. Manufacturers are also focusing on redesigning the packaging formats in which fat-filled milk powder is offered, in order to suit the consumer needs and convenience. Fat-filled milk powder offered in retail-sized packaging opens attracts a larger consumer base, as already consumers are uncertain to try fat-filled milk powder and for the trial of a new product, bulk packaging formats do not appear a very convenient option for these consumers. Manufacturers are also focusing on expanding their fat-filled milk powder production capacity to meet this huge demand in the market. The expansion is also strategic in terms of strengthening the footprint in the global fat-filled milk powder market.

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Global fat-filled milk powder market: Examples of some of the market participants in the global fat-filled milk powder market identified across the value chain include Société FIT, Fonterra Group, Vreugdenhil Dairy Foods, Dairygold Co-Operative Society Limited, Alpen Food Group B.V., Soufflet Group, Lactalis Ingredients, Hoogwegt Group, Armor Proteines, Aynes Food Industry and Trade Inc., CP Ingredients, Promac Enterprises Sdn Bhd., Revala Ltd, Polindus-Laktopol Capital Group and Glenstal Foods Ltd. amongst others.

In May 2016, the dairy company Arla Foods amba expanded its repackaging facility of dairy ingredients- fat-filled milk powder and whole milk powder, based in Senegal. This strategic expansion is a gateway to further strengthen its presence in Africa. Through the expansion, the company will offer fat-filled milk powder in foil sachets which are affordable and user-friendly as compared to its older packaging formats.

In 2016, the company Dairygold Co-Operative Society Limited, a manufacturer of dairy ingredients upgraded its whole milk powder and fat-filled milk powder processing facility based in Mallow, Ireland.

The fat-filled milk powder mainly capitalizes on consumers who have exhibited an economic purchasing strategy. Hence, products can be marketed with a cost-effectiveness tagline, especially targeting the consumer base with lower disposable income, especially in new markets. Fat-filled milk powder market can also exploit the health conscious trend amongst consumers and market the fat-filled milk powder as a protein-rich product.