Dairy Processing Equipment Market Trends

Skyquest Technology's expert advisors have carried out comprehensive research on the dairy processing equipment market to identify the major global and regional market trends and growth opportunities for leading players and new entrants in this market. The analysis is based on in-depth primary and secondary research to understand the major market drivers and restraints shaping the future development and growth of the industry.

Dairy Processing Equipment Market Dynamics

Dairy Processing Equipment Market Driver

Demand for Processed Milk Products to Grow and Create Market Opportunities

  • With rising birth rates throughout the world, it is expected that demand for milk and milk-based products would increase. Processed milk, milk powder, and protein concentrates are used in cereals, baby meals, and infant formulae because of their high nutrient content. They supply a range of proteins, vitamins, and minerals that are good for the overall growth of babies. Growing worries about newborn health and wellness will lead to an increase in the use of infant formula, which will fuel market expansion.
  • Due to consumers' growing awareness of dairy products' health benefits, processed dairy products are becoming more and more popular on worldwide markets. Additionally, factors including population expansion, fast urbanisation, rising standard of living, and the introduction and modernization of cold chain facilities such refrigerated transport & storage are driving up demand and fostering market expansion.

Dairy Processing Equipment Market Restraint

Significant costs and processing time to impede the market growth

  • One of the main factors limiting the market for dairy processing equipment is the steadily growing cost of power and energy needed to operate processing machinery. Processes like pasteurisation and evaporation in the preparation of dairy products also demand thermal energy. Compared to other processing machinery, pasteurisation uses a lot of energy, including electricity and other fuels.
  • Large capital investments are necessary for dairy processing equipment manufacturers to install various types of processing equipment. This installation not only costs a lot of money, but also requires ongoing maintenance, which drives up installation costs and lowers dairy processors' operating margins.

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Dairy Processing Equipment Market size was valued at USD 11.99 Billion in 2023 and is poised to grow from USD 12.6 Billion in 2024 to USD 18.76 Billion by 2032, growing at a CAGR of 5.1% during the forecast period (2025-2032).

Due to the numerous regional and international businesses that are present and provide a variety of dairy processing equipment goods while vying to preserve their dominant market share, the global dairy processing equipment market is highly competitive and fragmented. Key players include Alfa Laval, JBT, IDMC Limited, SPX Flow Inc and Tetra Laval Group. To maintain a competitive edge, the major industry participants are continually implementing various growth strategies. Innovations, mergers and acquisitions, collaborations and partnerships are adopted by these players to thrive in the competitive market. 'GEA Group AG ', 'Tetra Laval International S.A. ', 'SPX Flow Inc. ', 'Alfa Laval AB ', 'Krones AG ', 'JBT Corporation ', 'Feldmeier Equipment Inc. ', 'IDMC Limited ', 'Scherjon Dairy Equipment Holland B.V. ', 'Paul Mueller Company ', 'Admix Inc. ', 'A&B Process Systems Corporation ', 'Van den Heuvel Dairy & Food Equipment B.V. ', 'Dairy Tech Inc. ', 'Agrometal Ltda. ', 'Arbel-Dea Mexico ', 'SSP Pvt Limited ', 'VRE Systems BV ', 'The Kieselmann Group'

With rising birth rates throughout the world, it is expected that demand for milk and milk-based products would increase. Processed milk, milk powder, and protein concentrates are used in cereals, baby meals, and infant formulae because of their high nutrient content. They supply a range of proteins, vitamins, and minerals that are good for the overall growth of babies. Growing worries about newborn health and wellness will lead to an increase in the use of infant formula, which will fuel market expansion.

Automation to Drive the Manufacturing Industry: Modern automation solutions are created to make sure that every step of the production of milk and dairy products complies with technology. The competitiveness of the dairy processing sector is greatly influenced by the level of automation, manufacturing efficiency, effective cleaning, sanitary design, and, ultimately, food safety. 

Asia Pacific dominated the global dairy processing equipment market in 2022 and is expected to grow at a high CAGR during the forecast period. Favorable government policies are in place in Japan and Korea to assist the expansion and advancement of the dairy sectors. In Asia Pacific, flavoured milk has also been receiving widespread attention. The world's largest producer of milk is India. As a result, demand for pasteurizers and homogenizers has been growing steadily in the Indian market for dairy processing equipment. Throughout the projected period, it is anticipated that dairy consumption in China would continue to expand rapidly. Chinese dairy consumption will increase by almost 25%, from 55 million tonnes of liquid milk in 2021 to 71 million tonnes by 2030.

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Global Dairy Processing Equipment Market
Dairy Processing Equipment Market

Report ID: SQSG20I2027

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