Dairy Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Dairy Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The global dairy market is projected to grow with a CAGR of 5% over the forecast period (2021 - 2026).

Key Highlights

• In 2018, the global milk output was valued at 843 million tons, an increase of 2.2% from the value registered in 2017. This increase can be primarily attributed to production expansions in India, Turkey, the European Union, Pakistan, the United States, and Argentina. However, this factor was partially offset by a decline in milk output, especially in China and Ukraine.
• Increasing demand for dairy products is driven by the growing population, higher income levels, and rising health consciousness. The global market is primarily dominated by the milk segment, followed by butter and cheese segments. The yogurt and dairy desserts segments are expected to be the fastest-growing segments across the world.
• Globally, in 2018, the export of butter increased by 7.5%, mainly contributed by countries, like New Zealand, the United States, and India. However, in the European Union, there was a decline in the demand for butter.

Key Market TrendsLactose-free Dairy Products are Expected to Drive the Market Growth

In the United States, Europe, and China, more than 5%, 10%, and 90% of the population are intolerant to lactose, respectively. In these markets, lactose-free dairy products are witnessing immense popularity. According to the majority of the population, products with low levels of lactose and sugar are considered to be healthy. There is a significant increase in the number of lactose-free products. Products with less lactose content and lactose-free dairy products, such as yogurt, milk, and cheese, are gaining traction in the market studied. The United States accounts for 29% of all the lactose-free food consumed across the world. The lactose-free dairy category is projected to register a CAGR of 7%.

Developing Countries are Contributing to the Market's Growth

The sale of dairy products in the developing countries of the Asia Pacific Region and the European region accounts for more than 50% to global sales. This western market is witnessing a high growth rate, primarily driven by product innovation, and the rising health consciousness among consumers. In the Asia-Pacific region, India dominates the market, followed by China, and Australia, whereas in the demand in the European region is driven by countries such as Belarus, and Ukraine. Furthermore, factors, such as efficient and sustainable dairy production in these countries are impacting the global market’s growth. For instance, modernization resulted in low emission of greenhouse gases, better milk quality, and commercial opportunities for local dairy processing.

Competitive Landscape

Dairy is an important part of food. It is essential in, both, food service and packaged good categories, whether as an end product (such as milk or yoghurt) or as a critical input for products, such as cheese pizza. Given its intrinsic presence, dairy is a microcosm of the food industry, with the preferences of dairy consumers largely influenced by the same trends affecting the food sector. The dairy market is considerably large, with the presence of numerous companies. Due to the dynamic and staple nature of the market, it is highly competitive. Furthermore, there is high scope for the entry of new companies, as entry barriers are not well developed. Changing consumer behavior, competition, and trade action are impacting the growth of dairy companies. Research in a representative sample of the global dairy companies revealed 3% decline in cumulative return on invested capital (ROIC), from around 9.5% in 2008 to 6.5% in 2017.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

Nestle SA
Lactalis International
Danone S.A.
Fonterra Co
operative Group
FrieslandCampina
Arla Foods
Dean Foods
Yili Group
China Mengniu Dairy Co., Ltd.

Please note: This publisher does offer titles that are created upon receipt of order. If you are purchasing a PDF Email Delivery option above, the report will take approximately 2 business days to prepare and deliver.