Market Outlook forFat-filled milk powder Market:
Fat-filled milk powder is a conjugal between vegetable fats anddairy proteins. Fat-filled milk powder contains almost 26% protein and the fatcontent varies between 20%-50%. Fat-milk milk powder is applicable as a totalor partial milk powder substitute. Fat-filled milk powder has lower formulationand production costs than whole milk products and is produced by the method ofagglomeration and spray drying. The EU is one of the major markets in thefat-filled milk powder market and manufacturers are expanding in regions likeMalaysia and MENA (Middle East & Africa), which apparently hold highpotential in the fat-filled milk powder market. The fat-filled milk powder market is expected to beone the fastest growing segments in the dairy ingredients industry.
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Fat-filled Milk Powderexpected to fill the dearth of expensive milk-based value products
Fat-filled milk powder market has mostly capitalized on highwhole milk products prices like butterfat in the market. Also, the fat-filledmilk powder market exhibits less volatility as compared to the skimmed milkpowder, so the substitution has proven to be very cost-effective for somemanufacturers. While performing the same functions as that of skim milk powder,fat-filled milk powder has been used in a variety of industrial applicationssuch as for the production of processed cheese, evaporated and condensed milkproducts. Fat-filled milk powder makes up a large share of the EU dairyexports. Fat-filled milk powder manufacturers are meticulously expanding in theMiddle East & African region. The demand for fat blends such as fat-filledmilk powders is also attributed to the political unrest in this region, whichhas resulted in high prices of milk products. The fat-filled market has ampleopportunities to capitalize on the Middle East & African region becausetraditionally, milk and milk-based products consumption are significantly lowerhere which paves way for better consumer acceptability for fat-filled milkpowder, given the good quality and cheapness of fat-filled milk powder. WithinEurope, the major fat-filled milk powder markets are U.K., Netherlands,Ireland, and Denmark. The fat-filled milk powder also addresses some ofconsumers’ evolving needs such as sports nutrition and fitness goals amongst youngstersdue to the high protein content of fat-filled milk powder. Manufacturers arealso focusing on redesigning the packaging formats in which fat-filled milkpowder is offered, in order to suit the consumer needs and convenience.Fat-filled milk powder offered in retail-sized packaging opens attracts alarger consumer base, as already consumers are uncertain to try fat-filled milkpowder and for the trial of a new product, bulk packaging formats do not appeara very convenient option for these consumers. Manufacturers are also focusingon expanding their fat-filled milk powder production capacity to meet this hugedemand in the market. The expansion is also strategic in terms of strengtheningthe footprint in the global fat-filled milk powder market.
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Global Fat-filled milk powder Market:Segmentation:
The fat-filled milk powder market is segmented on the basis offat content, fat source, end use, and distribution channel and packagingformat.
On the basis of fat content, the fat-filled milk powder marketis segmented into-
· 20-30%
· 31-50%
On the basis of fat source, the fat-filled milk powder market issegmented into-
· Coconut
· Palm
· Soya
On the basis of end use, the fat-filled milk powder market issegmented into-
· Dairy
· Confectionery
· Bakery
· Soups & Sauces
· Beverages
o Flavored Drinks
o Tea & Coffee
o Smoothies & Milkshakes
On the basis of distribution channel, the fat-filled milk powdermarket is segmented into-
· Direct
· Indirect
o Modern Trade
o Discount Stores
o Convenience Stores
o Specialty Stores
o Online Retail
On the basis of packaging format, the fat-filled milk powdermarket is segmented into-
· Carton packs
· Tins
· Pouches & sachets
· Bulk packaging
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Global fat-filled milk powder market: Examples of some of themarket participants in the global fat-filled milk powder market identifiedacross 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 andTrade Inc., CP Ingredients, Promac Enterprises Sdn Bhd., Revala Ltd,Polindus-Laktopol Capital Group and Glenstal Foods Ltd. amongst others.
Global Fat-filled milkpowder Market: Key Developments
In May 2016, the dairy company Arla Foods amba expanded its repackagingfacility of dairy ingredients- fat-filled milk powder and whole milk powder,based in Senegal. This strategic expansion is a gateway to further strengthenits presence in Africa. Through the expansion, the company will offerfat-filled milk powder in foil sachets which are affordable and user-friendlyas compared to its older packaging formats.
In 2016, the company Dairygold Co-Operative Society Limited, amanufacturer of dairy ingredients upgraded its whole milk powder and fat-filledmilk powder processing facility based in Mallow, Ireland.
Opportunities for Fat-filledmilk powder Market Participants:
The fat-filled milk powder mainly capitalizes on consumers whohave exhibited an economic purchasing strategy. Hence, products can be marketedwith a cost-effectiveness tagline, especially targeting the consumer base withlower disposable income, especially in new markets. Fat-filled milk powdermarket can also exploit the health conscious trend amongst consumers and marketthe fat-filled milk powder as a protein-rich product.
