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Milk is a natural suspension of essential nutrients and can be exploited not only as a beverage consumed directly or transformed into a range of traditional dairy foods, but also as a source of ingredients for food product innovation. In addition, by-products from the dairy industry, which used to constitute an economical and environmental problem, are still rich in proteins, lactose and minerals. Therefore, from a green point of view, they can be valorized and are being exploited for multiple food and non-food applications. This paper aims to give an overview of the different applications of milk ingredients and by-products from the dairy industry. Additionally, enzymatic modification and production of bioactive peptides and bioemulsifiers broaden their functionality and applicability. Finally, a critical review of the most promising aspects as well as some features that need further development is presented. The unmet needs, the cross fertilization in between protein domains, the carbon footprint requirements, the environmental necessities, the health and wellness new demands, etc. are dominant factors in the search for an innovation approach outlining the potential that these “apparent” constraints oblige science and technology to account for. The adjacent technology analysis opportunity that such a review generates is, in essence, an open innovation step. [ABSTRACT FROM AUTHOR]