About Organic Dairy Products
Organic dairy products are dairy products made from organic milk, which is obtained from cows, sheep, and other animals raised in organic farming methods. The animals are fed with organic feed and fodder in this method. No artificial hormones, antibiotics, and chemicals are involved at any stage of production. Hence, organic dairy milk is safe for health. Owing to the increased awareness of organic dairy products, consumers are increasingly purchasing them. This has resulted in the growth of the market.
Technavio’s analysts forecast the global organic dairy products market to grow at a CAGR of 7.51% during the period 2017-2021.
Covered in this report
The report covers the present scenario and the growth prospects of the global organic dairy products market for 2017-2021. To calculate the market size, the report considers the revenue generated through the sales of different types of organic dairy products.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global Organic Dairy Products Market 2017-2021
Technavio recognizes the following companies as the key players in the global organic dairy products market: Arla Foods, Organic Valley, THE WHITEWAVE FOODS, and Whole Foods Market.
Other Prominent Vendors in the market are: Acorn Dairy, Alnatura Production and Trading, Andechser Molkerei Schmitz, Aurora Organic Dairy, Barambah Organics, OMSCo, Riverford Dairy, Schulz Organic Dairy, Stonyfield Farm, and Three Twins Ice Cream.
Commenting on the report, an analyst from Technavio’s team said: “One trend in the market is continuous product innovation. Owing to the growing demand for organic dairy products, manufacturers are coming up with innovative product lines for organic dairy products. For example, in March 2015, CLOVER STORNETTA FARMS, a California-based organic dairy manufacturer launched a new line of premium ice creams in 12 new flavors made with fresh organic milk and cream.”
According to the report, one driver in the market is positioning as a premium product. Organic dairy products are generally priced high and positioned as a premium product. This is mainly due to the increased cost associated with the procurement of the organic raw materials for the production process. The price of organic milk has increased in the recent years due to a supply shortage and lack of interest in organic dairy farming among farmers. Due to this, certain manufacturers offer price advantages to organic farmers to engage them in organic dairy farming. During 2016-2017, Fonterra Co-operative Group, a company based in New Zealand has started to pay $9.20 per kilogram (1 kilogram=2.20 pounds) of milk solids to organic farmers, which is 52% higher than that of what was given to conventional farmers.
Further, the report states that one challenge in the market is fluctuations in the supply of organic raw materials. The global organic dairy products market is affected by the supply shortage of organic raw materials. The market is witnessing a huge demand for organic milk, but the dearth of cattle is affecting the organic milk production. Therefore, sourcing of organic milk is getting difficult for the organic dairy product manufacturers. For example, in 2016, the number of cows in New Zealand reduced to 40% from the 2010 value. Due to this, organic milk is not available throughout the year. Hence, consumers must look for options other than organic milk.
Arla Foods, Organic Valley, THE WHITEWAVE FOODS, Whole Foods Market, Acorn Dairy, Alnatura Production and Trading, Andechser Molkerei Schmitz, Aurora Organic Dairy, Barambah Organics, OMSCo, Riverford Dairy, Schulz Organic Dairy, Stonyfield Farm, and Three Twins Ice Cream.
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