In this case study, an international sugar company engaged CPL Business Consultants to analyse the market dynamics for dairy-derived ingredients and give strategic recommendations on entering this market. CPL’s comprehensive report enabled the client to make an informed decision on how to proceed, including recommendations for a go-to-market strategy. 

The objective of this study was to assist the client in assessing dairy-derived ingredients as an area of potential opportunity. 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 the most promise.

Background and Scope

Dairy-derived ingredients have been suggested as a potential diversification based on the increasing size of the industry. The market for dairy-derived ingredients had been growing several times faster than that for dairy products. A number of new, higher value-added products had been developed to the level of commercial sales. Companies in this sector seemed 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 larger conglomerates, 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 this represented a realistic opportunity. The more important question for the client is how to 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 included:

  • 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 otherwise look below for an outline.

Dairy-Derived Ingredients

Executive Summary

  • Objective
  • Background & Scope
  • Method
  • Principal Findings
  • Dairy-derived Ingredients
    • History
    • Markets & Trends
    • Barriers to Entry
    • Success Factors
    • Companies
    • Higher Value Ingredient Types
    • Patents & Research
    • Dairy Ingredient Producer/Distributor Views
    • End User Views
  • General Dairy Market & Trends
    • Markets
    • Companies
  • Functional Food Markets
  • Conclusions
  • Recommendations

Dairy-derived Ingredients

  • Overview of the Market Characteristics
  • Strategic Approaches
  • Options
  • Opportunities

Background & History

Types of Dairy Ingredients e.g.

  • Dried Milk Powders
  • Caseins and Caseinates
  • Dry Whey
  • Whey Protein Concentrates
  • Others

Value, Volume and Growth for Dairy-Derived Ingredients

  • Overview
    • Dried Milk Powders
    • Whey, WPC and WPI
    • Lactose

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 Ingredient Companies

Products and Players

  • Products
  • Players

Dairy Ingredient Producer/Distributor Overview

  • Key comments from contacts

End User Overview

Contact Reports

Appendix 1 – Patents

  • Patent Overview
  • Patents

Appendix 2 – News

21 Tables

In addition to this project on dairy-derived ingredients, CPL has also worked on other relevant projects including the whey protein hydrolysate market. You can find other examples by browsing this site or using the search bar on this page. Have a look at our PowerPoint Introduction and Brochure describing deliverables, differentiators and case studies. Eight case studies can also be reviewed.

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