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Anhydrous Milk Fat Market Size Worth USD 6 Billion By 2031 | Growth Rate (CAGR) of 7.2%

Rise in disposable income of people, surge in expenditure on high-quality food products, expansion of food and beverage industry drive the global market.

WILMINGTON, DE, UNITED STATES, November 19, 2025 /EINPresswire.com/ -- The global anhydrous milk fat industry generated $3.0 billion in 2021 and is estimated to generate $6.0 billion by 2031, witnessing a CAGR of 7.2% from 2022 to 2031.

Rise in disposable income of people, surge in expenditure on high-quality food products, expansion of food and beverage industry, growth in consumer preference for western cuisine, rise in investments in the dairy sector drive the global anhydrous milk fat market. On the other hand, high percentage of saturated fatty acids & cholesterol, and high cost of anhydrous milk fat in comparison to vegetable fats hinder the market growth. However, technological advancements in production methods and container designs will present new growth opportunities for the global anhydrous milk fat market in the coming years.

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Technology advancements like spray-drying and microencapsulation have made it possible to produce anhydrous milk fat with functional attributes including increased stability and improved sensory qualities. This has increased the possible uses for anhydrous milk fat and will probably promote market expansion in the future.

Butter or 35%–45% cream, depending on the time of year, can be used to make anhydrous milk fat. Almost all the water and non-fat solids are eliminated throughout the production process using centrifuges. Since less water is present as a result, the product is simpler to preserve and store.

Globally, there is an increasing need for high-quality food products. As a result, the market for anhydrous milk fat is expanding as it contributes to improving the flavor and taste of food products. Anhydrous milk fat market expansion is being driven by the surge in expenditure on high-quality food products and rise in disposable income of people. Consumers are becoming more aware of the advantages of consuming anhydrous milk fat for their health. This is causing its demand to rise, which is fueling the expansion of this market. The global rise in anhydrous milk fat market demand is being aided by technological advancements in production methods and container designs, among other things. These anhydrous milk fat market trends are creating anhydrous milk fat opportunity globally.

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The anhydrous milk fat market is segmented on the basis of nature, application, distribution channel, and region. By nature, the market is bifurcated into organic and conventional. Among these, the conventional segment occupied the major anhydrous milk fat market share in 2021 and is projected to maintain its dominance during the anhydrous milk fat market forecast period. Economic viability and a quick & simple manufacturing procedure compared to those of organic products are the main drivers propelling the conventional anhydrous milk fat market growth.

Based on region, the market in Asia-Pacific was the largest in 2021, accounting for nearly two-fifths of the global anhydrous milk fat market size and is likely to maintain its dominance during the forecast timeframe. This is because manufacturers of anhydrous milk fat have a lot of potential opportunities in the region. Anhydrous milk fat products from New Zealand are increasingly being exported to China and Australia, which is changing the market. However, the market in Europe is projected to witness a fastest CAGR of 7.9% from 2022 to 2031. This is due to the rising demand for clean label and sustainable milk and dairy products.

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Leading Market Players

Interfood Holding BV
Lactalis Group
Asha Ram & Sons Pvt. Ltd.
Gloria Argentina SA
UGA Group
Royal VIVBuisman
Eurial Ingredients & Nutrition
Polmlek Group
Royal FrieslandCampina N.V.
Vitusa Corp

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David Correa
Allied Market Research
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