Dairy Processing Equipment Market Size & Growth Report to 2030

The global dairy processing equipment market was valued at over USD 10 billion in 2022 and expected to grow at a significant CAGR of around 6% during the forecast period from 2023 to 2030. The market is driven by factors such as the growing global demand for dairy products, technological advancements, rising demand for processed dairy items, government support, and focus on food safety. Increasing health awareness, growing dairy exports, sustainability concerns, and industry consolidation also contribute to market growth. Manufacturers invest in advanced equipment to meet consumer preferences, maintain high-quality standards, and achieve greater efficiency while adhering to environmental regulations. As the dairy industry continues to evolve, these driving factors play a crucial role in shaping the market’s expansion and innovation.

Market Snapshot:

Market Drivers:

• Growing Dairy Industry: The demand for dairy products such as milk, cheese, yogurt, and ice cream continues to rise globally due to population growth, urbanization, and changing dietary habits. This growth drives the need for efficient dairy processing equipment to meet the increasing demand.
• Technological Advancements: Ongoing innovations in dairy processing equipment, such as automation, digitalization, and smart technologies, improve production efficiency, reduce wastage, and enhance product quality. Manufacturers are investing in advanced equipment to gain a competitive edge.
• Rising Demand for Processed Dairy Products: Consumers’ preference for convenient and value-added dairy products, such as flavored and fortified milk, Greek yogurt, and specialty cheeses, has led to an increased demand for processing equipment capable of producing a wide range of dairy products.
• Government Support and Investment: Various governments and organizations are providing financial incentives, subsidies, and support to dairy farmers and processors to modernize their equipment and infrastructure, promoting the adoption of advanced dairy processing technologies.
• Health and Nutritional Benefits: Dairy products are an essential source of essential nutrients like calcium, protein, vitamins, and minerals. The increasing awareness of these nutritional benefits among consumers is driving the demand for dairy processing equipment.
• Focus on Food Safety and Quality: The dairy industry is under increasing pressure to maintain strict hygiene standards and comply with food safety regulations. Dairy processing equipment that ensures product safety and quality gains significant traction.
• Growing Demand for Dairy By-products: The dairy industry has also witnessed a rising demand for by-products such as whey protein, lactose, and casein. Processing equipment that can efficiently extract these by-products contributes to market growth.
• Sustainability and Environmental Concerns: Manufacturers and dairy processors are increasingly seeking eco-friendly and energy-efficient equipment to reduce their environmental impact, leading to a rise in sustainable dairy processing equipment.
• Growing Dairy Exports: International trade in dairy products has increased, with a rising number of countries participating in dairy exports. This trend drives the demand for efficient processing equipment to meet international quality and safety standards.
• Dairy Industry Consolidation: The consolidation of dairy farms and processing facilities is leading to larger-scale operations that require advanced and efficient dairy processing equipment to handle higher volumes.

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Market Insights:

Market Analysis by Equipment Type:

The global dairy processing equipment market is bifurcated into equipment type, automation level, application, and geography. on the basis of equipment type, the pasteurizers segment is expected to hold the largest revenue share of around 1/3 market share by the end of the analysis period. Pasteurization is a critical process in the dairy industry to eliminate harmful pathogens from milk and dairy products while retaining their nutritional value. Pasteurizers are widely used in various dairy processing plants to ensure product safety and compliance with food safety regulations. The demand for pasteurizers is driven by the high consumption of pasteurized milk, cream, and other heat-treated dairy products.

Pasteurizers: Pasteurization is a critical process in dairy manufacturing to eliminate harmful pathogens while preserving essential nutrients. Pasteurizers ensure the safety and extend the shelf life of dairy products like milk and cream.

Homogenizers: Homogenization breaks down fat globules in milk to create a uniform texture and prevent cream separation. It enhances the consistency and mouthfeel of dairy products like milk, yogurt, and ice cream.

Separators: Separators remove cream from milk, allowing the production of various dairy products with different fat content. They play a crucial role in producing products like skim milk, cream, and butter.

Evaporators and Dryers: Evaporators concentrate milk or other dairy liquids by removing water, leading to products like condensed milk. Dryers are used to produce powdered dairy products, ensuring longer shelf life and easier transportation.

Membrane Filtration Equipment: Membrane filtration is used in various processes, such as milk clarification, whey protein concentration, and lactose recovery. It helps improve product quality and efficiency.

Others: This category includes equipment like churns for butter making, cheese vats for cheese production, and other specialized dairy processing equipment catering to specific dairy product types.

Market Analysis by Application:

On the basis of application, the global dairy processing equipment market is bifurcated into cheese manufacturing, milk processing, yogurt production, ice cream production, butter processing, cream processing, whey processing, and others. This dominance is attributed to the ubiquity and high demand for milk as a widely consumed dairy product globally. Milk processing involves critical steps such as pasteurization, homogenization, and separation, requiring specialized dairy processing equipment like pasteurizers, homogenizers, and separators. Moreover, milk serves as a versatile raw material for various dairy products, including yogurt, cheese, butter, and cream, enabling equipment manufacturers to cater to multiple dairy product markets and benefit from economies of scale. The nutritional importance of milk, containing essential nutrients like calcium, protein, vitamins, and minerals, further contributes to its high consumption and makes milk processing a crucial segment in the dairy industry. Additionally, with milk being consumed across various regions and cultures worldwide, milk processing enjoys a global market presence. As the global population continues to grow, the demand for milk and its processed derivatives remains consistent, solidifying the significance of milk processing in the market.

Cheese Manufacturing: Cheese processing involves curdling and fermentation of milk, followed by whey separation and cheese maturation. Dairy processing equipment used in cheese manufacturing includes vats, curd mills, curd knives, presses, and cheese molds.

Milk Processing: Milk processing involves various steps such as pasteurization, homogenization, separation, and packaging. Equipment used in milk processing includes pasteurizers, homogenizers, separators, and packaging machines.

Yogurt Production: Yogurt processing involves fermenting milk with live bacterial cultures to create yogurt. Dairy processing equipment used in yogurt production includes fermenters, incubators, cooling tanks, and packaging machines.

Ice Cream Production: Ice cream processing involves blending and freezing a mixture of milk, cream, sweeteners, flavors, and stabilizers. Equipment used in ice cream production includes mixers, ice cream freezers, and packaging machines.

Butter and Ghee Processing: Butter and ghee processing involve churning cream to separate the butterfat from buttermilk, and in the case of ghee, further heating the butterfat to remove moisture. Equipment used includes butter churns and ghee processing equipment.

Cream Processing: Cream processing involves separating cream from milk and processing it into various products such as whipping cream, sour cream, and heavy cream. Equipment used includes separators and cream processing machines.

Whey Processing: Whey is a by-product of cheese and yogurt production. Whey processing involves concentrating and drying whey to produce whey protein concentrate, whey protein isolate, and other whey-based ingredients. Equipment used includes evaporators, membrane filtration equipment, and spray dryers.

Others: This category includes equipment used in the processing of other dairy products like condensed milk, flavored milk, buttermilk, and dairy-based beverages.

The dairy processing equipment market research report presents the analysis of each segment from 2020 to 2030 considering 2022 as the base year for the research. The compounded annual growth rate (CAGR) for each respective segment is calculated for the forecast period from 2023 to 2030.

Historical & Forecast Period

• 2020-21 – Historical Year
• 2022 – Base Year
• 2023-2030 – Forecast Period

Market Segmentation:

By Type:

• Pasteurizers
• Homogenizers
• Separators
• Evaporators and Dryers
• Membrane Filtration Equipment
• Others

By Automation Level:

• Semi-Automated
• Fully Automated

By Application:

• Cheese Manufacturing
• Milk Processing
• Yogurt Production
• Ice Cream Production
• Butter
• Cream Processing
• Whey Processing
• Others

By Region:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

Regional Analysis:

On the basis of region, the Asia-Pacific region has emerged as a dominant force in the global dairy processing equipment market due to several key factors. The region’s growing dairy industry is fueled by an increasing population, urbanization, and shifting dietary preferences, leading to a surge in demand for dairy products. As consumers in the Asia-Pacific region seek convenience and value-added dairy items, such as yogurt, cheese, and flavored milk, there is a growing need for advanced dairy processing equipment to meet these demands.

Moreover, rapid industrialization and modernization in countries like China and India have driven the adoption of more sophisticated dairy processing methods and equipment. Governments in the region actively support their dairy sectors through initiatives and investments, further driving the demand for efficient dairy processing equipment. Additionally, countries like New Zealand and Australia are major dairy exporters, relying on high-quality processing equipment to meet international standards. As dairy production capacities continue to expand in the region, the adoption of advanced dairy processing equipment becomes crucial to handle higher volumes efficiently.

Competitive Analysis:

Some of the major market players operating in the global dairy processing equipment market are Tetra Laval Group, GEA Group AG, Alfa Laval AB, SPX FLOW, Inc., and IMA Group. Companies are exploring markets by expansion, new investment, the introduction of new services, new product launches, and collaboration as their preferred strategies. For instance:

• In June 2019, Alfa Laval launched the Think Top V 50/V 70, an upgraded version of its valve sensor, designed for use as a hygiene valve in various industries, including dairy, food & beverage, brewery, and pharmaceutical sectors. This advanced sensor enhances process efficiency and hygiene standards in these industries.
• In February 2019, GEA Group, a German company, successfully secured a contract from Shijiazhuang Junlebao Dairy in China. The contract aimed to build a new facility dedicated to infant formula production. This strategic expansion allowed GEA Group to strengthen its presence in the infant formula market in China, catering to the increasing demand for high-quality infant nutrition products in the region.
• In April 2019, Caloris Engineering LLC made a strategic move by acquiring Seitz Stainless, an equipment fabricator. This acquisition allowed Caloris Engineering to expand its capabilities by bringing in-house manufacturing of its products, strengthening its position in the market.
• In October 2018, Krones AG completed the acquisition of Sprinkman, a US-based processing equipment manufacturer specializing in the dairy and brewing industry. This acquisition was a significant step for Krones AG, as it enriched the company’s product portfolio in North America, enabling them to offer a broader range of solutions to their customers in the region.

Key Companies:

• Tetra Laval Group
• GEA Group AG
• Alfa Laval AB
• SPX FLOW, Inc.
• IMA Group
• Krones AG
• Paul Mueller Company
• KHS GmbH
• Feldmeier Equipment, Inc.
• JBT Corporation

Key Questions Answered by Dairy Processing Equipment Market Report

• Global dairy processing equipment market forecasts from 2023-2030
• Regional market forecasts from 2023-2030 covering Asia-Pacific, North America, Europe, Middle East & Africa, and Latin America
• Country-level forecasts from 2023-2030 covering 15 major countries from the regions as mentioned above
• Dairy processing equipment submarket forecasts from 2023-2030 covering the market by equipment type, automation level, application, and geography
• Various industry models such as SWOT analysis, Value Chain Analysis about the market
• Analysis of the key factors driving and restraining the growth of the global, regional, and country-level dairy processing equipment markets from 2023-2030
• Competitive Landscape and market positioning of top 10 players operating in the market