E0610 Dairy-Derived Ingredients

Have a look at our PowerPoint Introduction and Brochure describing deliverables, differentiators and case studies. Eight case studies can also be reviewed.


The objective of this study was to assist the client in assessing an area of potential opportunity: dairy-derived ingredients. The client wanted to reduce its dependence on a core commodity and there were a number of possibilities that it could consider to achieve this. These include adding value to its existing products or by-products, developing new products based on its location, technical capability and physical assets, or making and developing acquisitions in related businesses.

The client needed to obtain an overview of various potential opportunities in order to make some decisions. The present study is intended to help it focus on the sectors that have most promise.

Background and Scope

Dairy-derived ingredients have been suggested as a potential diversification based on the increasing size of the dairy industry in its area. The market for dairy-derived ingredients has been growing several times faster than that for dairy products. A number of new, higher value-added products have been developed to the level of commercial sales. Companies in this sector seem to be doing well; some with good products and technology have already been acquired. In some countries, dominant sugar and dairy companies have been joined together in a larger conglomerate (e.g. Ebro Puleva in Spain), the complementary interests contributing to the stability of the company.

The study sought to provide a market and technical overview of the dairy-derived ingredients sector. Our hypothesis was that dairy-derived ingredients represented a realistic opportunity. The more important question for the client how it can access the opportunity from its position as a commodity company. Therefore the study provided recommendations as to how to proceed and with whom.

The overview includes:

  • Markets – sectors and values, trends if any
  • Prices and products – what is realistic
  • Producers and competition
  • Key success factors & Barriers to entry

Click to see the contents of the study or look below for an outline.

Table of Contents


Background & Scope


Principal Findings

    Dairy-derived Ingredients

      Markets & Trends
      Barriers to Entry
      Success Factors
      Higher Value Dairy-derived Ingredient Types
      Patents & Research
      Dairy Ingredient Producer/Distributor Views
      End User Views

    General Dairy Market & Trends


    Functional Food Markets



Dairy-derived Ingredients

    Overview of the Market Characteristics
    Strategic Approaches

Background & History
Types of Dairy Ingredients

    Dried Milk Powders
    Caseins and Caseinates
    Dry Whey
    Whey Protein Concentrates
    Whey Protein Isolates
    WPI Constituents

Market Value, Volume and Growth for Dairy-Derived Ingredients


      Dried Milk Powders
      Whey, WPC and WPI


Health Attributes of Dairy-derived Ingredients

    Whey, Whey Products, and Whey Components
    Whey Components
    Health-Enhancing Potential of Whey and Whey Components

Barriers to Entry & Success Factors

    Barriers to entry
    Key factors for success

Strategic Approaches

    Large Dairy Companies
    Higher Value Added Dairy Ingredient Companies

Products and Players


Dairy Ingredient Producer/Distributor Overview

    Key comments from contacts

End User Overview
Contact Reports

Appendix 1 – Patents

    Patent Overview

Appendix 2 – News

21 Tables

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