Dairy Processing Equipment Market

Market Definition

The Dairy Processing Equipment Market size was valued at USD 10.97 billion in 2023 and is predicted to reach USD 20.78 billion by 2030 with a CAGR of 10.2% from 2024 to 2030.

Dairy processing equipment encompasses machinery and tools utilized across various stages of dairy production, from milk collection to packaging and storage. These machineries facilitate the collection of raw milk and its treatment, transforming it into various dairy products through pasteurization, homogenization, and separation processes. The usage of dairy processing equipment is indispensable, enabling dairy manufacturers to produce a diverse range of high-quality products efficiently while meeting regulatory standards and ensuring consumer safety.

Market Dynamics and Trends

The growing demand for milk products globally, which leads to rising milk production rate is significantly accelerating the dairy processing equipment market. According to report published by the Organization for Economic Cooperation and Development report, global milk production is expected to surge at a rate of 1.6% annually throughout the projection period, reaching an estimated 997 billion tons by 2029. As milk is the primary raw material for dairy products, dairy processors are investing in advanced equipment and technologies, prompting the need for expanded processing capacity.

Moreover, the dairy processing equipment market is growing rapidly due to the high consumption of cheese among consumers. According to the Food and Agriculture Organisation report of 2022, 3.5 billion tonnes of cheese were exported worldwide in the year 2022.

The increasing preference for cheese due to its versatility and broad popularity is driving the demand for specialized processing equipment. This equipment is essential for efficiently handling tasks such as curdling, shaping, pressing, aging, and packaging cheese, consequently fuelling the growth of the dairy processing equipment market.

Furthermore, the expanding infant population globally is significantly driving the growth of the dairy processing equipment market. This is fuelled by the increasing demand for infant formula and other dairy-based products essential for meeting the nutritional requirements of infants.

According to the United Nations International Children's Emergency Fund report of 2023, each year about 134 children are born globally. This high growth rate emphasizes the necessity for sustained innovation and expansion within the dairy industry. However, the high initial costs of acquiring, operating and installing modern dairy processing equipment , along with skilled labour requirements, is  restraining the growth of the market.

On the contrary, with the integration of various modern technologies such as automation, robotics, and IoT (Internet of Things), dairy processing equipment is undergoing a transformative evolution such as minimizing human intervention, ensuring precise task execution with and enabling real-time monitoring and predictive maintenance. This shift is expected to generate ample growth opportunities for the dairy equipment market in the coming years.

Market Segmentations and Scope of the Study

The dairy equipment market is segmented on the basis of type, mode of operation, application and region. On the basis of type, the market is divided into, pasteurizers, homogenizers, separators, mixers and blenders, evaporators, membrane filtration, analysers. Based mode of operation the market is segmented into automated and semi- automated. Based on application, the market is categorised into milk processing, cheese production, yogurt production, butter production, ice cream production and others. regional breakdown and analysis of each of the aforesaid segments includes regions comprising of North America, Europe, Asia-Pacific, and Rest of The World (Row).

Geographical Analysis

Asia-Pacific region holds the dominating share in the dairy processing equipment market at present and is expected to continue its dominance during the forecast period, due to the increase in milk production especially in countries such as India and China.

According to Press Information Bureau report of 2023, India is the leading producer of milk contributing a total output of 24.64%. Milk production is growing rapidly in India showing an increasing rate rising from 146.31 billion tonnes in 2014-15 to 230.58 billion tonnes in 2022-23. This surge in milk production has led to a growing demand for advanced processing equipment to process dairy products efficiently.

Moreover, several key market players in the region such as Tetra Laval International S.A, DeLaval Inc, and Alfa Laval AB are adopting various strategies such as collaboration and product launches to remain dominant in the market. For instance, in January 2024, DeLaval Inc launched VMS Batch Milking system, an innovative advancement in robotic milking technology. The product aims to reduce labour and increase efficiency in the dairy processing services.

On the other hand, North America is expected to witness a steady rise in the dairy processing equipment market, due to growing consumption of dairy products across the region. According to International Dairy Foods Association of 2022, American per capita consumption of dairy products has shown a consistent growth over the years.

In 2021 alone, it increased by 4% compared to the previous five years. Such growing demand for dairy products is driving expansion in the dairy processing equipment market to efficiently process the dairy services. Moreover, North America's role as a major exporter of dairy products globally boosts the growth of the dairy processing equipment industry. To meet export demands, it's crucial to maintain high milk production and efficient processing.

This drives the need for advanced equipment in the region. According to U.S Department Agriculture report of 2023, the export value of dairy products in the U.S. reached USD 8.01 billion, with a compound average growth rate of 1.2% from 2014 to 2023. This significant export activity further emphasizes the importance of modern and efficient dairy processing equipment to meet global standards and cater to expanding markets, fuelling growth in the dairy equipment market.

Competitive Landscape

Various market players operating in the dairy processing equipment market includes Tetra Pak International S.A., GEA Group AG, DU Point, Inc., Alfa Laval AB, Krones AG, Paul Mueller Company, JBT Corporation, Feldmeier Equipment, Inc., Scherjon Dairy Equipment Holland B.V., and SPX Flow Inc.  and others. These market players are adopting various strategies such as collaboration and product launches to remain dominant in the market.

For instance, in March 2024, GEA Group AG acquired CattleEye Ltd., an agricultural software company. The acquisition aims to enhance its existing dairy farm solutions by integrating an artificial intelligence system. This system utilizes a 2D camera paired with specialized software, that can analyze the cow movement patterns.

Moreover, in February 2024, DuPont launches new nanofiltration elements for dairy processors. The product aims to offer durable components specifically designed for efficient and long-lasting solutions in separating and demineralizing milk and whey streams.

Furthermore, in February 2021, Kornes AG launched a high-pressure homogenizer. The product incorporates new 55 to 90-kW systems which can process up to 13,000 litres milk per hour, and this product adds an important process step to Krones' technology lineup for making milk, milk-based drinks, and dairy items.

Key Benefits

• The report provides quantitative analysis and estimations of the dairy processing equipment market from 2024 to 2030, which assists in identifying the prevailing market opportunities.

• The study comprises a deep-dive analysis of dairy processing equipment market including the current and future trends to depict prevalent investment pockets in the market.

• Information related to key drivers, restraints, and opportunities and their impact on the dairy processing equipment market is provided in the report. 

• Competitive analysis of the players, along with their market share is provided in the report.

• SWOT analysis and Porters Five Forces model is elaborated in the study.

• Value chain analysis in the market study provides a clear picture of roles of stakeholders.

Key Market Segments

By Type 

• Pasteurizers

• Homogenizers 

• Separators 

• Mixers and Blenders

• Evaporators

• Membrane Filtration

• Analysers

By mode of operation

• Automatic

• Semi- Automatic

By Application   

• Milk Processing

• Cheese Production

• Yogurt Production

• Butter Production

• Ice Cream Production 

• Others

By Region

• North America

  • The U.S.

  • Canada

  • Mexico

• Europe

  • The UK

  • Germany

  • France        

  • Italy        

  • Spain        

  • Denmark        

  • Netherlands        

  • Finland        

  • Sweden        

  • Norway        

  • Russia        

  • Rest of Europe

• Asia-Pacific

  • China

  • Japan

  • India

  • South Korea

  • Australia

  • Indonesia

  • Singapore

  • Taiwan

  • Thailand

  • Rest of Asia-Pacific 

• Rest of the World (RoW)

  • Latin America

  • Middle East 

  • Africa

REPORT SCOPE AND SEGMENTATION:

Parameters	Details
Market Size in 2023	USD 10.97 billion
Revenue Forecast in 2030	USD 20.78 billion
Growth Rate	CAGR of 10.2% 2024 to 2030
Analysis Period	2023–2030
Base Year Considered	2023
Forecast Period	2024–2030
Market Size Estimation	Billion (USD)
Growth Factors	Rising milk production across the globe is driving the dairy processing equipment market. Growing consumption of cheese among consumers is significantly driving the growth of the market. Increase in infant population globally is rising demand for dairy based infant formulas, boosting the demand for processing equipment.
Countries Covered	28
Companies Profiled	10
Market Share	Available for 10 companies
Customization Scope	Free customization (equivalent to up to 80 working hours of analysts) after purchase. Addition or alteration to country, regional, and segment scope.
Pricing and Purchase Options	Avail customized purchase options to meet your exact research needs.

KEY PLAYERS

• Tetra Pak International S.A.

• GEA Group AG

• DuPont, Inc.

• Alfa Laval AB

• Krones AG

• Paul Mueller Company

• JBT Corporation

• Feldmeier Equipment, Inc.

• Scherjon Dairy Equipment Holland B.V.

• SPX Flow Inc.