Dairy Based Dressings Market Size, Share Global Analysis Report, 2023 – 2030

Industry Insights

[204+ Pages Report] According to Facts and Factors, the global dairy-based dressings market size was valued at USD 825.6 million in 2022 and is likely to surpass USD 1114.7 million by the end of 2030. The dairy-based dressings industry is expected to grow with a CAGR of 3.82% during the forecast period.

Market Overview

Dairy-based dressings refer to the segment of condiments and sauces prepared from dairy products like butter, cheese, yogurt, milk, etc. The major purpose of using these is to compliment the dishes with unique flavors and moisture.

Also, it enhances the flavors of vegetables, chicken tenders, and more. These dressings can be customized with various ingredients to align with the individual's preferences and tastes. However, these can also be used as dipping sauces or marinades for a wide range of dishes.

Key Insights

• As per the analysis shared by our research analyst, the global dairy-based dressings market size is estimated to grow annually at a CAGR of around 3.82% over the forecast period (2023-2030).
• In terms of revenue, the global dairy-based dressings market size was valued at around USD 825.6 million in 2022 and is projected to reach USD 1114.7 million by 2030.
• Globalization of cuisines is driving the growth of the global dairy-based dressings market.
• Based on the distribution channel, the online distribution channel segment is growing at a high rate and is projected to dominate the global market.
• Based on the storage type, the shelf-stable dressing segment is projected to swipe the largest market share.
• Based on the product type, the organic salad dressing and vinaigrettes segment is anticipated to register a significant growth rate in the global market.
•  Based on region, North America is expected to dominate the global market during the forecast period.

Growth Drivers

• Globalization of cuisines is likely to drive the growth of the global market.

The globalization of food has exposed people to a large variety of food options, which is driving the interest of people in trying innovative and different dairy-based dressings like Latin American, Asian-inspired, or Mediterranean flavors.

Now, people are looking forward to trying new flavors and healthy food options in search of change, and thereby, it is expected to boost the growth of the global dairy-based dressings market significantly. Also, the surging trend of health and wellness among consumers is driving them towards healthier dairy-based dressing with low sugar content, calories, and fat, along with clean label ingredients and few additives.

Restraints

• Rising dairy allergies are likely to restrain the growth of the global market.

The increasing number of cases of dairy allergies is limiting the dairy-based dressings industry potential. People are going away from dairy-based products and are looking forward to healthier plant-based diets to address the growing concerns of dairy allergies and lactose intolerance.

Opportunities

• Fast growing food service and restaurant industry is likely to open new opportunities in the global market.

The growth of the restaurants and food service industry is leading to the larger consumption of dairy-based dressings. These dressings are highly used in sandwiches, salads, and other dishes. Casual dining establishments and fast food chains are likely to capture a larger customer base in the coming years.

For instance, Maple Hill Creamery was given $20 million in funding in 2023 to grow sustainable markets from the US Department of Agriculture (USDA) for regenerative grass-fed organic dairy farming. 

Challenges

• Rising plant based diet trends are a big challenge in the global market.

The growing popularity of plant-based diets has significantly decreased the sales of dairy dressings. The trend is likely to slow down the growth of the traditional dairy-based ingredients. Moreover, the increasing health consciousness, like consuming low sugar content, calories, and fat, is further likely to lead consumers to look for healthy alternatives.

Segmentation Analysis

The global dairy-based dressings market can be segmented into distribution channels, storage type, product type, and region.

By distribution channels, the market can be segmented into offline and online channels. The online distribution channel accounts for the largest share of the global dairy-based dressings market. Moreover, the online channel segment can further be bifurcated into two categories, namely, e-commerce and direct-to-customers (DTC).

The online distribution channel segment has gained high popularity among consumers in recent years. Customers find it easy to buy dairy-based dressings through e-commerce platforms owing to its convenience.

Moreover, people are now able to browse a wide range of products, compare prices, and make purchases from their places. Also, online retailers hold hard-to-find categories and other specialty dressings that appeal to consumers looking for diverse options.

Additionally, reviews and ratings are the most important features of online channels that further attract people. People can read the reviews and check out ratings before buying the products, thereby allowing them to make more informed decisions.

By storage type, the market can be segmented into shelf-stable dressings and refrigerated dressings. The shelf-stable dressing segment is expected to dominate the dairy-based dressings industry during the forecast period. The shelf-stable dressings are packed and formulated to be stored at room temperature for a longer period without spoiling their ingredients.

The huge advantages associated with shelf-stable dressings are likely to attract consumers as they can pack these dressings into their pantry or kitchen cabinet, thereby reducing the requirement for refrigerator space. These kinds of dressing hold longer shelf life as compared to their counterparts, which is the major reason for the growth of the segment.

By product type, the market can be segmented into organic salad dressings & vinaigrettes, vinaigrette salad dressing, Greek yogurt salad dressing, creamy salad dressings, and others. The organic salad dressing and vinaigrettes segment is anticipated to register a significant growth rate in the forthcoming years. These are prepared from organic ingredients which are sustainably sourced. These are widely preferred by people who prioritize eco-friendly and organic food choices.

Some of the common and widely opted choices include organic honey mustard dressing, organic Italian dressing, and organic balsamic vinaigrette. Consumers are increasingly looking for healthy and tasty food options. Organic salad dressing made out of natural ingredients with few additives and preservatives came up as an ideal option for health-conscious consumers.

However, the vinaigrette salad dressing segment is also likely to grow steadily during the anticipated period. These are prepared from vinegar, oil, and various seasonings. The dish typically has an acidic and tangy flavor. Most preferred options in the segment include champagne vinaigrette, raspberry vinaigrette, and balsamic vinaigrette.

Report Scope

Regional Analysis

• North America to lead the global market during the assessment period

North America accounts for the largest share of the global dairy-based dressings market. One of the major factors propelling the growth of the industry in the region is the increasing consumer demand for flavorful and convenient salad dressing.

Moreover, the fast expansion of the food serving sector is another big reason contributing heavily towards the growth of the regional market. Moreover, the shifting consumer preferences of people have a strong impact on restaurants, hotels, and households. The market for flavorful dipping sauces, salads, or condiments has significantly revolutionized.

Moreover, health-conscious consumers have significantly led to more innovations and developments in the industry. Manufacturers have now come up with low-calorie and low-fat versions of dairy-based dressing to capture a larger consumer base. Furthermore, clean-label ingredient products are gaining immense traction among consumers due to the perceived health benefits, which in turn is further expected to expand the market in the region.

Asia Pacific is expected to grow steadily in the dairy-based dressings industry during the forecast period. The regional market is highly driven by a large number of factors like urbanization, increasing disposable income of people, and changing consumer preferences. The region is the hub of diverse cultures.

Therefore, there are different varieties of dairy-based dressing, which is likely to open new opportunities in the regional market in the forthcoming years. Big food companies are entering the market to expand the market because of the growing potential of the food service sector in the region. Global brands are focusing on offering a wide range of options with unique characteristics to appeal to a broader audience.

Moreover, the rise of e-commerce platforms in the region has also expanded the reach of these products. Now, an increasing number of people are purchasing salad dressings, dipping sauces, and accompaniments for different dishes online. For instance, Kraft Heinz revealed its first global capacity in Gujarat. It is the fifth-largest food and beverage company in the world.

Competitive Analysis

The key leaders in the global dairy-based dressings market include:

• Kraft Heinz Company 
• Nestlé 
• Unilever 
• General Mills 
• Danone 
• Chobani 
• Bolthouse Farms 
• Litehouse 
• IncMarzetti Company 
• Hidden Valley 
• Tessemae's 
• BRIANNAS Fine Salad Dressings 
• Maple Hill Creamery 
• Stonyfield Organic 
• Wish-Bone

For instance, Stonyfield Organic is said to expand its facility in Londonderry in May 2023. This expansion aims to grow the demand for its yogurt pouches.

The global dairy-based dressings market is segmented as follows:

By Distribution Channels Segment Analysis

• Offline Channels
• Online Channels

By Storage Type Segment Analysis

• Shelf-Stable Dressings
• Refrigerated Dressings

By Product Type Segment Analysis

• Organic Salad Dressings & Vinaigrettes
• Vinaigrette Salad Dressing
• Greek Yogurt Salad Dressing
• Creamy Salad Dressings
• Others

By Regional Segment Analysis

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America