Research Reports

Market Overview

• The Global Dairy Processing Equipment Market expected to grow at a CAGR of over 5% during the forecast period (2019-2026).
• Support by the government and non-government bodies in terms of funding for MSMEs and Startups coupled with the adoption of fully automated dairy equipment to reduce contamination has fueled growth in the market.
• The report covers all the major trends and drivers playing a key role in the growth of the Dairy Processing Equipment market.
• Dairy Processing Equipment is used to process milk to make different products such as cream, cheese, yoghurt, butter, and others. With a change in consumer preferences such as people now prefer packaged and nutritional dairy products. Moreover, consumers have become more aware of their health and demand healthy products with low fat, low cholesterol, low sugar, and in new flavors. Therefore, a rise in health consciousness among people resulted in increased consumption of processed dairy products, propelling global dairy processing equipment market.

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Market Dynamics

• The global Dairy Processing Equipment market is driven mainly due to rising health consciousness amongst people. According to NHANES data (CDC), only 32% of US population is meeting the daily recommended intake for vitamin D. Americans’ vitamin D deficiency is becoming pretty apparent. Processed foods contribute 48% of calcium and 34% of vitamin D to the diet. In addition to vitamin D and calcium, processed dairy products are also a source of protein in the diet. That protein boost contributes to vital health benefits such as weight loss and weight management, maintenance of lean muscle mass, and improved immune health. Change in the taste, needs, & preference of consumer for healthy and palatable products is a major driving factor for the market.  
• In addition, technology advancements, product portfolio extension, and the growing emphasis on automation of manufacturing processes will further result in the growth of global dairy processing equipment market. Moreover, countries like Australia, Germany, the Netherlands, and India are expected to witness a steep rise in the consumption of processed milk products.
• Furthermore, factors such as rapid urbanization, growing disposable income, expanding the middle-class population in emerging economies are anticipated to increase the consumption of processed dairy products.

Market Segment Analysis

• By equipment type, the global Dairy Processing Equipment Market is segmented into Pasteurizers, Evaporators & Dryers, Mixing & Blending Equipment, Separators, Membrane Filtration Equipment, Homogenizers, and others. In 2018, Pasteurizers dominated the global dairy processing equipment market and is expected to dominate the market during the forecast period. Pasteurizes are mainly used for making the milk product safe and extend its shelf life. The pasteurizer is designed for providing thermal treatment of milk and other dairy products. Favorable government regulations and industry standards will augment robust growth in the segment.
• By application, the global Dairy Processing Equipment Market is segmented into the cheese, processed milk, yogurt, protein ingredients, milk powder, and others.  Rising generation X population accompanied by an increase in consumption of fast food has led to rising demand for cheese mainly in the U.S.  In terms of production, the global cheese category is growing at a rate of ~2%. Cheesemaking vats, vertical cheese press, and steam stretching machines are also used in production. The U.S. is the largest producer of cheese in the world, producing over 11 billion pounds. Growth in novel milk-based product formulations fortified with additional nutrition will have a positive influence on dairy processing equipment demand.

Geographical Share

• By geography, the global Dairy Processing Equipment Market is segmented into North America, Asia-Pacific (APAC), Europe, South America, and the Middle East and Africa (MEA).
• Increasing income levels and changing lifestyle of people are expected to drive the market growth. Factors such as improving the lifestyle of consumers, especially in developing countries such as Brazil, China, and India, coupled with increasing disposable income, have fueled the growth in the global market for healthy and processed dairy products. Nowadays, the consumption of dairy products has increased, owing to their convenience and health benefits they provide. This trend is expected to continue during the forecast period, thereby positively fueling the Dairy Processing Equipment Market growth. Asia-Pacific region is expected to witness the highest CAGR and incremental growth in the global market due to the high demand for dairy processing equipment in China, Japan, South Korea, and India.
• It is expected that with continuous technological advancements and launch of innovative smart Dairy Processing Equipment will drive growth in developed markets such as the US, the UK, Germany, Canada, France, and Japan. For instance, In February 2019, Alfa Laval (Sweden) introduced the twin-screw pump to the company’s hygienic pump portfolio for use in dairy, food, and personal care industries. This launch aimed at simplifying the operations leading to a reduction in the cost.

Competitive Analysis

• Global Dairy Processing Equipment Market is fragmented with the presence of global and regional players in the market. Creating consumer awareness by aggressive marketing strategies and greater visibility of products across retail space are other steps taken by market participants to generate demand.
• Major players in the market include Tetra Laval International S.A., Inoxpa SA, GEA Group, ALFA LAVAL, and IDMC Limited. Other key players in the market are A&B Process Systems, Feldmeier Equipment, Inc., Sealtech Engineers, Agrometal Ltd., and Van den Heuvel Dairy & Food Equipment B.V.
• Intense rivalry among top players in the market has started fierce competition at various levels for setting competitive pricing, driving aggressive marketing strategies, and new and innovative product launches as per customers’ preference.
• In March 2017, Tetra Pak (Switzerland) acquired Johnson Industries International (US), which specializes in the design, development, and manufacture of equipment and lines to produce mozzarella cheese. The acquisition seeks to expand the company’s cheese technology portfolio.

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