North America Dairy Nutritional and Nutraceuticals Market Size, Share, and Growth Forecast for 2024 - 2031

North America Dairy Nutritional and Nutraceuticals Market Size and Share Analysis

The North America dairy nutritional and nutraceuticals market is anticipated to witness a CAGR of 4.9% from 2024 to 2031. This upward trend is set to push the market from US$ 8.6 Bn in 2024 to an astounding US$ 12.1 Bn by 2031.

The North America dairy nutritional and nutraceuticals market is experiencing robust growth, driven by increasing consumer awareness of the health benefits of dairy-derived ingredients. Products like whey protein, calcium, and probiotics are in high demand for their roles in muscle repair, bone health, immune support, and digestive wellness.

As per studies, osteoporosis, characterized by decreased bone density and increased fracture risk, affects around 10 million adults in the U.S. alone. The National Osteoporosis Foundation estimates that about 1 in 2 women and up to 1 in 4 men over the age of 50 will experience an osteoporosis-related fracture in their lifetime. Such instances are anticipated to create a high demand for dairy-based products.

Rising health consciousness and the need for convenient, nutrient-rich food solutions are shaping consumer preferences. Fortified dairy products such as yogurt and milk are gaining immense popularity. As suppliers specialize in tailored production methods to meet diverse functional and nutritional needs, the market is poised for continued expansion due to evolving dietary trends.

Key Highlights of the Market

• Protein-rich dairy ingredients are witnessing high demand due to their muscle-building and satiety-inducing properties.
• Growing awareness of early childhood nutrition is driving demand for dairy-based infant formula in North America.
• By application, dairy products are leading with a share of 38.6% in 2024 due to high demand among millennials and aging populations.
• The U.S. is likely to witness a CAGR of 5.3% through 2031 amid surging production of milk-based beverages in the country.
• Canada is projected to hold a share of around 25% in 2024 as the prevalence of bone issues rises among the geriatric population.
• By type, milk protein concentrates are set to hold a share of 16.5% in 2024 amid high demand from infant formular manufacturers.

Market Attributes	Key Insights
North America Dairy Nutritional and Nutraceuticals Market Size (2024E)	US$ 8.6 Bn
Projected Market Value (2031F)	US$ 12.1 Bn
North America Market Growth Rate (CAGR 2024 to 2031)	4.9%
Historical Market Growth Rate (CAGR 2019 to 2023)	3.8%

U.S. Leads Amid Surging Demand for Dairy-based Nutritional Products

The U.S. is anticipated to witness a CAGR of 5.3% in the forecast period from 2024 to 2031. Increasing production of milk and dairy products in the country is set to propel demand. For example,

• According to the U.S. Department of Agriculture (USDA), the country produced over 226 billion pounds of milk in 2022, making it one of the world's largest dairy producers.

The extensive production enables consistent availability of high-quality raw materials like whey protein, casein, and lactose. These are vital components in the nutraceutical and functional food industries. Demand for dairy-based nutritional products in the U.S. is set to be propelled by increasing health consciousness and a rising aging population.

• Reports from the U.S. Census Bureau indicate that by 2030, around 20% of the country’s population will be aged 65 and older. It is set to fuel demand for functional products that support bone health, muscle repair, and digestive wellness.

The market is further supported by rising awareness of the role of protein and probiotics in maintaining one’s health. It is leading to high consumption of fortified dairy products and dietary supplements.

The U.S. also benefits from strong government support and investments in dairy innovation. The USDA and National Dairy Council have promoted research into functional and nutraceutical dairy applications. Export-focused initiatives have further extended the market internationally.

Demand for Milk Protein Concentrates and Isolates Skyrockets in North America

Milk Protein Concentrates (MPCs) and isolates are gaining significant traction in the North America food and beverage industry. These are particularly becoming popular in custom blends due to their high nutritional value, versatility, and functionality.

Increasing focus on health-conscious consumption is driving demand for products rich in protein. MPCs are an excellent source due to their high protein content and ability to retain essential nutrients.

It makes them ideal for use in sports nutrition, functional foods, and specialized dietary products like infant formula and clinical nutrition. Their adaptability in formulations allows manufacturers to meet consumer preferences for clean-label, low-fat, and lactose-free products, further boosting their appeal in custom blends.

Custom blends using MPCs and isolates also benefit from developments in processing technologies. These help ensure better solubility, flavor, and stability, which are critical for developing innovative, consumer-friendly products. The segment is hence projected to rise at a CAGR of 8.9% through 2031.

Growth is driven by their ability to cater to diverse nutritional needs across various demographic groups. This trend aligns with the increasing inclination toward personalized nutrition. It is further positioning MPCs and isolates as essential components in the evolving food and beverage industry.

Market Introduction and Trend Analysis

The North America dairy nutritional and nutraceuticals market is witnessing a shift toward clean-label products. It is mainly driven by consumers' demand for transparency and simplicity in ingredient sourcing and processing.

Clean-label dairy products, made with recognizable ingredients and minimal additives, are favored for their authentic taste and natural texture. Regulatory agencies have tightened guidelines on food labeling. These are compelling manufacturers to provide detailed ingredient information, thereby boosting consumer confidence in clean-label offerings.

Sustainability has also emerged as a key trend, with consumers prioritizing ethical and eco-friendly practices. This demand has pushed companies to source dairy ingredients from sustainable farms focusing on animal welfare and environmental conservation. Additionally, businesses are investing in resilient supply chains to mitigate risks associated with climate change and resource scarcity, ensuring long-term market stability.

Historical Growth and Course Ahead

North America dairy nutritional and nutraceuticals market recorded a decent CAGR of 3.8% in the historical period from 2019 to 2023. It was fueled by rising health awareness, high demand for functional foods, and popularity of clean-label products. The proliferation of e-commerce enabled easy access to specialized dairy-based products, while plant-based diets further diversified consumer preferences.

From 2024 to 2031, the market is poised for accelerated growth driven by innovations in ingredient formulations, sustainability practices, and personalized nutrition trends. The integration of technology and digital marketing will likely enhance consumer engagement. In addition, sustainable sourcing and fortified products are set to cater to evolving health and environmental priorities in North America.

Market Growth Drivers

Rising Shift of Modern Consumers toward Nutritional Products to Push Demand

Today’s consumers are more focused on the nutritional value of their purchases, favoring products rich in essential nutrients like vitamins, minerals, and proteins. Dairy-derived ingredients such as whey protein, calcium, and probiotics are in high demand for their proven health benefits. These include supporting muscle repair, bone strength, immune health, and digestive well-being. For instance,

• According to a 2021 report, about 72% of consumers in the U.S. were aware of probiotics, and around 27% had reported using them regularly.
• A 2020 survey found that about 33% of millennials reported using probiotics, compared to 20% of baby boomers.

The demands of busy lifestyles and rising stress levels have further created a need for convenient ways to meet nutritional requirements. Fortified dairy products, such as yogurt and milk, along with dietary supplements, provide an accessible means to incorporate vital nutrients into daily routines. It makes them an attractive choice for health-conscious individuals.

Innovations like Probiotic Yogurt and Dairy-free Substitutes to Fuel Sales

Significant product developments can be witnessed in the North America dairy sector, which serves consumers seeking functional foods due to rising health-consciousness. To accommodate a range of nutritional requirements, several dairy companies are now offering probiotics, omega-3 fatty acids, and plant-based substitutes. Companies like Danone and Activia have effectively tapped into the booming probiotic segment by providing yogurt products that promote intestinal health. For example,

• Since its debut in the early 2000s, Activia has led the way in probiotic yogurt innovation. The company is well known for its special strain of probiotic, Bifidobacterium lactis DN-173 010, which is intended to promote digestive health.

Consumers are looking for products that support gut health, and this exclusive probiotic strain is a key selling factor. Drinkable yogurts and dairy-free substitutes are two examples of the new flavors and product formats that Activia has added to its lineup in recent years. Because to its variety, Activia is able to accommodate a range of consumer dietary requirements and preferences.

Market Restraining Factors

Stringent Food Safety and Quality Norms to Hamper Adoption

Government agencies, such as the U.S. Food and Drug Administration (FDA) and the Canadian Food Inspection Agency (CFIA), enforce strict safety and quality regulations for dairy products and ingredients before they reach consumers. A key challenge these regulations present are the complexity and expense of compliance.

Companies must undertake extensive processes, including rigorous testing, thorough documentation, and continuous monitoring. These need to ensure their dairy nutritional and nutraceutical ingredients meet regulatory standards.

It further requires significant investment in areas such as research and development, quality assurance, and regulatory management. These make it essential for businesses to allocate substantial resources to successfully navigate the regulatory environment.

Key Market Opportunities

Companies Launch Protein Supplements Targeting the Sports Nutrition Segment

Protein plays a vital role in muscle repair, growth, and recovery, making it a key component in sports nutrition products. Dairy-based ingredients like whey protein and casein are highly prized in the industry for their excellent protein content and superior amino acid profile. These are essential for muscle development and recovery.

Whey protein, in particular, is favored for its quick digestion and absorption, making it an ideal choice for pre-and post-workout supplementation. Both whey protein isolates and concentrates, sourced from milk, are commonly used in protein bars, shakes, and powders.

The products are mainly designed for athletes and fitness enthusiasts to support their performance goals. Moreover, dairy proteins can be incorporated into various formats, including bars, beverages, gels, and powders. These are likely to offer versatility to meet diverse consumer preferences and lifestyles.

Competitive Landscape for North America Dairy Nutritional and Nutraceuticals Market

The North America dairy nutritional and nutraceuticals market is highly competitive, with key players holding 45% of the total share. These leading companies are focusing on reducing carbon emissions throughout their operations and supply chains, aligning with the region’s sustainability targets.

Glanbia, Plc, for instance, has committed to a 25% reduction in dairy GHG emissions intensity by 2030. Manufacturers are also prioritizing the development of tailored ingredients to enhance product taste and functionality. They are hence leveraging novel processing technology for customized solutions.

There is also a significant competitive advantage for small-scale local manufacturers, who capitalize on regional production and reduced pricing strategies. As the market continues to extend, new players are set to enter through strategic partnerships and collaborations.

Existing players will likely aim to increase production capacities and extend their reach across North America. This dynamic landscape fosters both innovation and competition in the industry.

Recent Developments in North America Dairy Nutritional and Nutraceuticals Market

• In September 2024, Promino Nutritional Sciences Inc., headquartered in Canada, signed an agreement with the licensor of the patented muscle health blend utilized in the firm’s Promino and Rejuvenate Muscle Activator products. Promino is set to invest around US$ 1 Mn to enhance marketing and manufacturing of the ready-to-drink products.
• In June 2024, Kemin Industries, based in Iowa, introduced a unique rumen-protected choline supplement called CholiGEM. It is specially designed for the U.S. dairy industry and aims to address ketosis as well as fatty liver in lactating dairy cows.

North America Dairy Nutritional and Nutraceuticals Market Report Scope

Attributes	Details
Forecast Period	2024 to 2031
Historical Data Available for	2019 to 2023
Market Analysis	US$ Billion for Value
Key Countries Covered	U.S. Canada
Key Market Segments Covered	Type Application Country
Key Companies Profiled in the Report	Glanbia plc  Milk Specialties Global Idaho Milk Products BioCorp Nutrition Labs Associated Milk Producers Inc. Kerry Group plc. Lactalis Ingredients Arla Foods Ingredients Group FrieslandCampina Ingredients Gay Lea Foods Co-operative Ltd.
Report Coverage	Market Forecast and Trends Company Share Analysis Competitive Intelligence DROT Analysis Market Dynamics and Challenges Strategic Growth Initiatives
Customization and Pricing	Available upon request

North America Dairy Nutritional and Nutraceuticals Market Report Scope

By Type

• Milk Protein Concentrate
• Milk Protein Isolate
• Blends/Custom Using Milk Protein Concentrates/Isolates
• Functional Ingredients with Milk Proteins
• Milk Nutraceutical Ingredients

By Application

• Infant Formula and Baby Food
• Dairy Products
• Clinical Nutrition
• Bakery and Confectionery
• Beverages

By Country

• U.S.
• Canada

To know more about delivery timeline for this report Contact Sales