Cream Market Size, Share & Industry Analysis, By Source (Dairy and Non-dairy), By Nature (Pasteurized and Ultra-pasteurized), By Type (Fresh, Table, Heavy, Whipping, and Others), By Application (Commercial and Household), and Regional Forecast, 2024-2032

The global cream market size was USD 18.52 billion in 2023 and is projected to grow from USD 19.14 billion in 2024 to USD 30.41 billion by 2032 at a CAGR of 5.96% during the 2024-2032 period. Europe dominated the cream market with a market share of 31.37% in 2023. Moreover, the cream market size in the U.S. is projected to grow significantly, reaching an estimated value of USD 4.97 billion by 2032, driven by the rising application of cream across multiple industries.

Improvement is co-related with the development process for dairy cream as companies seek to increase their market share and extend their ranges. Product innovation, in particular, has a critical role to play, as some consumers indicate they are satisfied with the taste of plant-based alternatives. Moreover, taste is king for plant-based product manufacturers when convincing consumers to switch to non-dairy cream.

COVID-19's impact led the growing market to decline by half of its growth pace. The pandemic has changed consumers' purchasing patterns. Several countries are in lockdown, and the global economy is in crisis due to the pandemic. Due to the lockdown, there have been certain alterations in consumers' buying patterns. Various government bodies impose various rules and regulations regarding the purchase of essential products. As the situation seems to worsen with all the developed countries, the government keeps changing its rules for the same. This has totally affected consumer buying behavior.

Cream Market Trends

Marketing a Green Brand Image to Experience High Growth Trajectory

The capability to market a sustainable, eco-friendly, green brand image can attract consumers, and it is an enticement for manufacturers and farmers alike to adopt more sustainable practices. Companies that operate in countries where the feeding system is predominantly pasture-based have a particular scope to capitalize on their green brand image when marketing their products. Moreover, several prominent companies operating in this field are focusing on launching organic products to attract more consumers.

Cream Market Growth Factors

Rising Applications of Product Across Multiple Industries to Drive Growth

Traditionally, the product is widely utilized in the bakery and coffee industry, but in recent years, the rising application of the product in numerous industries, such as alcohol and personal care, is anticipated to drive product sales. For instance, in March 2023, Starco Brands, an inventor of consumer products with behavior-changing technologies, launched vodka-infused whipped cream, Whipshots. The new product was launched in collaboration with global artist and icon Cardi B.

Rising Focus of Plant-based Creamers for Product Innovation to Catch up with Dairy

While dairy cream innovations proliferated, the future growth of dairy and non-dairy products will depend on addressing processing concerns and matching dairy’s versatility. The percentage of product launches carrying vegan claims has increased over the past few years; however, it still represents a very small share of the global market.

A substantial proportion of customers, report interest in minimizing their animal foods intake, including dairy. Henceforth, there is an opportunity for more innovation in the product space to appeal to customers who are looking for more variation in their meals without animal ingredients. Plant-based product manufacturers invest in high-tech machinery to continue the market growth trajectory and spend an ample amount of money on R&D for processing and mimicking dairy better. To cater to cafes, multiple oat milk brands have launched new products designed to mimic the properties of dairy.

Innovation in the plant-based industry has included not only liquid cream substitutes but also powders, whipped toppings, and even sour cream, which can be replaced with dairy-based ingredients in recipes. For instance, in November 2022, Califia Farms, a plant-based dairy pioneer, expanded its plant-based creamer line with dairy-free heavy whip. The new product is available in 16.9 oz refrigerated cartons, gluten-free, unflavored, unsweetened, and made from a coconut oil base.

RESTRAINING FACTORS

Rising Incidence of Lactose Intolerance to Negatively Impact Market Growth

Lactose intolerance is a common disease, and it is most often seen in adolescents and young adults. According to the National Library of Medicine, on average, approximately 65% of the human population experience reduced ability to digest lactose after infancy. The rising prevalence of this disease is anticipated to negatively impact market growth in the forthcoming years. Moreover, companies have to invest an ample amount of money to produce non-dairy products, which can restrain mid-level or niche companies.

Cream Market Segmentation Analysis

By Source Analysis

Non-dairy Segment to Grow Rapidly

In terms of source, the global market is categorized into dairy and non-dairy.

The non-dairy segment is anticipated to showcase lucrative growth in the coming years. It is becoming increasingly popular due to better cost-in-use calculations, reduced fat content, and better foam stability, making it easy to use and attractive to caterers and backers. Nevertheless, producing successful imitation product, especially whipping one, requires not only the right fats but the right combination of emulsifiers and stabilizers. Manufacturers are also launching innovative products in order to meet the rising demand for the product. For instance, in January 2023, Violife, one of the leading brands of dairy-free cheese, launched a dairy-free sour cream alternative. The new product offers the same creamy and tangy taste of sour cream but without the dairy.

By Nature Analysis

Ultra-Pasteurized Segment to Showcase Considerable Growth

In terms of nature, the market is categorized into pasteurized and ultra-pasteurized.

The product is generally produced by means of ultra-pasteurized as this process and aseptic packaging ensures a longer shelf life, preserves flavor and functionality and provides greater flexibility to use when needed. Moreover, with the right choice of stabilizers and emulsifiers, it can be stored at room temperature for a longer period. Though the prominent companies operating in the market are taking advantage of the UHT process, this method is not suitable for all non-dairy products as this process can change the taste and flavor of the particular product.

By Type Analysis

Fresh Cream Segment to Hold Major Share Backed by its Increasing Uses

By type, the market is classified into fresh, table, heavy, whipping, and others.

The fresh segment held a dominant share of the market in 2020 as it is the most commonly found product in offline and online retail stores. It contains less fat content compared to whipped cream and can be easily used for thickening coffee and savory dishes such as gravies and soups. However, as it has 25% fat content, it cannot be whipped and shaped for decorative purposes. Therefore, the demand for whipped cream is increasing more from the bakery industry for desserts production and cake decorations.

By Application Analysis

Commercial Application Segment to Hold Major Cream Market Share 

Based on application, the market is classified into commercial and household.

The commercial application of the product is predicted to remain high during the foreseeable years. The rising incorporation of the product in several processed food products is anticipated to support the steady growth of the segment. For instance, in April 2021, Dairy Day, an Indian brand, has introduced a new range of ice cream cakes in the market with four new flavors.

Moreover, the easy availability of an extensive range of the product in numerous convenience stores is expected to boost the household use of the product. The household segment is growing at a CAGR of 3.82% over the industry forecast period. The increasing trend of home cooking instead of dining out and easy availability of several dairy products that save time from-scratch cooking are forcing consumers to opt for innovative and healthier versions of creams.

REGIONAL INSIGHTS

The market value in Europe stood at 5.81 billion in 2023, and the region is anticipated to continue dominating the global industry in the forthcoming years. Several dairy products constitute an essential part of the diet in many European countries, especially the U.K., Germany, France, and Italy. The increasing consumer interests in-home cooking and backing have led them to purchase several dairy products, including cream. Europe is observing a strong demand for bakery products and coffee for the past several years, ensuring strong sales during the industry forecast period. Europe is a significant marketplace worldwide, and the consumption pattern of vegan and dairy variants varies according to the domestic needs and cultures in different countries. For instance, Germany has more focus on organic, natural, and vegan product while the U.K. is the largest market for fresh and whipped variety.

North America is anticipated to be the second-most dominant region in terms of market share. Dairy and vegan variants remains dynamic in North America. Retail value sales of vegan product continue to boom as more American consumers are willing to pay extra for better quality food. Food origin, safety, nutritional content, and health consciousness are increasingly important issues for American consumers, increasing demand for good quality cream and its products. The preference for organic and plant-based foods has driven demand for vegan and organic product. In North America, Land O Lakes, Dean Foods, Dairy Farmers of America Inc., and Agropur are some of the crucial key players operating in the market and constantly focusing on expanding their product portfolio or product offerings.

Nonetheless, Asia Pacific and South America are anticipated to witness significant growth during the industry forecast period. Several factors, including the improvement of consumers’ living standards and rising disposable incomes have increased the population's purchasing power. With higher living standards, consumption of processed foods, such as cakes, pastries, and coffee, has grown strongly, as consumers are more willing to buy these products. This is especially true among young consumers. Furthermore, emerging and urbanizing economies of the Middle East and Africa are expected to become global hotspots in the market during the upcoming years.

List of Key Companies in Cream Market

Companies to Focus on Novel Product Launch to Hold Strong Foothold in Market

The global market remains moderately consolidated, owing to the prominence of a few leading players across the globe. The tier-one players consist of companies such as Arla Foods, Amul, Land O Lanks, Lactalis, and others, accounting for the leading position. However, technological advancement resulting in superior product characteristics is the key for the growth trajectory of vegan products. The strong focus of companies such as Arla Foods and Amul on strong product offerings and successful penetration across major revenue-generating regions will help these companies to secure their leading position in the market.

LIST OF KEY COMPANIES PROFILED

• Amul (Gujarat, India)


• Lactalis (Laval, France)


• Arla Foods (Viby, Denmark)


• Land O Lacks Inc., (Minnesota, U.S.)


• Fonterra Co-operative Group (Auckland, New Zealand)


• Dean Foods (Texas, U.S.)


• Royal FrieslandCampina N.V. (Amersfoort, Netherlands)


• Dairy Farmers of America Inc. (Kansas, U.S.)


• Organic Valley (Wisconsin, U.S.)


• Agropur (Longueil, Canada)

KEY INDUSTRY DEVELOPMENTS

• In March 2024, Cultivated Biosciences, a pioneering Swiss biotech food startup, announced the successful closing of their USD 5 million seed funding round. This significant funding would accelerate the development of their yeast cream in collaboration with the food industry and also prepare for the U.S. market launch in 2025.


• In May 2023, Whipt, a dairy-free, vegan whipped topping brand, launched a vegan whipped cream. The new product is made with organic, gluten-free oats and cane sugar.


• In July 2022, Country Crock, a food brand owned by Upfield, added a new cream to their plant-based line of dairy-free and vegan products. The new product is a cooking and baking alternative to dairy-heavy whipping cream.


• In July 2021, General Mills announced the launch of our layered dessert strawberry cheesecake with chocolate crust. The product is a spin on creme fraiche — a cultured French cream — combined with a chocolate crust and strawberry fruit for an indulgent dessert experience.


• In September 2020, Starbucks announced the launch of vegan whipped cream in the U.K. market. This new soy-based vegan whipped cream has been created by Alpro and has an indulgent, silky texture and light hints of vanilla.


• In January 2020, Danone-owned plant-based beverage brand Silk introduced a new dairy-free whipped cream alternative to its product portfolio. This new keto-free and gluten-free product will be available in the U.S.

REPORT COVERAGE

The global cream industry report includes quantitative and qualitative insights into the global market. It also offers a detailed analysis of the market size and growth rates for all possible market segments. Numerous key insights presented in the report are an overview of the parent market, competitive landscape, and recent industry developments such as base expansion, regulatory scenario in critical countries, and key market trends.

Report Scope & Segmentation