Europe Milk Fat Fractions Market is set to grow at over 6% CAGR by 2024

Medium melting segment of Milk Fat Fractions Market is estimated to reach USD 6 billion by 2024 owing to strong outlook in bakery applications mainly including pastries and butter cookies.

Asia pacific market accounted over 25% of the overall industry demand in 2016. Regional industry growth is majorly driven by China and India owing to its large consumer base for dairy, bakery and confectionery items instigating product demand. The strong presence of dairy processing companies including small, medium and large trading at international markets, fueling industry growth during a forecast time frame.

Europe is expected to gain highest growth in bakery and confectionery segment. The region is a prominent importer and holds a strong presence in international confectionery brands for production of chocolate and its byproducts.

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Dry fractions technology will observe over 7% CAGR up to 2024. Cost effectiveness and efficiency through simple production process are key properties driving melt crystallization technology. This process involves dissolving of melted milk fat in a solvent before it becomes crystals and dried fat has remained for several industrial applications.

Confectionery segment is majorly driven by increasing demand for dark chocolates and milk chocolates owing to its pleasant mouth full taste offering. Butterfat influences the cocoa butter or chocolate mass crystallization process that enhances chocolate quality and soften the chocolate in high melting point until packaging of confectionery items.

Increasing demand for low and cholesterol free products due to rising occurrences of obesity and cardiovascular diseases may hamper industry growth. High manufacturing cost owing to technology usage associated while processing may impact the milk fat fractions market price trend.

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Bakery segment accounted for over 50% of the overall demand in 2016, the rising consumption of cakes, pastries, small baked goods, and butter cookies are among the key factor driving industry growth. Milk fat is widely used to enhance flavors of bakery items is the major factor boosting market demand. Confectionery applications generated more than USD 1.5 billion revenue in 2016. Increasing demand for white-dark chocolates, caramels, and toffee are stimulating market growth during a forecast time frame.

Rising dairy product consumption owing to its high usage in large commercial applications including bakery, cold spreadable butter and confectionery products is encouraging milk fat fractions demand.

Milk fat fractions comprise of milk fats and several milk derivative products that plays major role in the human diet owing to presence of nutritional benefits such as vitamins A, E and K2 fat soluble vitamins. Wide products range including fractioned butterfat, fractioned milk fat, high melting fractions and low melting fractions are supporting market growth in bakery and confectionery industry.

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Global industry share consists of Uelzena Ingredients, Friesland Campina, Glanbia Ingredients, and VIV Buisman, Oleo, Meadow foods, FLECHARD. S.A, Fista Group, Open Country Dairy, Fonterra Cooperative Group and Oceania dairy re the key players present in the market. High initial investment cost along with long product approvals by government due to strict guidelines for nutrition labelling can be a major drawback for new industry participants.

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Name: Arun Hegde
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Organization: Global Market Insights, Inc.

Release ID: 527338