Global Dairy Market - Segmented by Product Type, Distribution Channel and Geography - Growth, Trends, and Forecast (2018 - 2023)
The global Dairy Market was at USD 413.8 billion in 2017 and is expected to register a decent growth rate during the forecast period. The global dairy sale has surpassed 192884 million Kg in 2017, with milk accounting for the largest category. The global dairy market observed a volume growth of 1.8% during the past five year.
Asia-Pacific is the most significant market holding a market share of 42% in 2017 driven by growing appetite for dairy in India and China. EU, US, New Zealand, Australia, and Argentina are the primary dairy producing countries globally. China is the fastest growing dairy market witnessing a CAGR of 8.9%, during the forecast period. Affordability and expanding retail distribution, such as supermarkets/hypermarkets remains the key driver for emerging markets. Consumer interest in fermented dairy products owing to its digestive health benefits have become popular.
Drinkable yogurt is the Fastest Moving Category
Rising consumer interest in the probiotic beverage as a result of its positive health effect drives the drinkable yogurt sale. Asia-Pacific remains the fastest growing drinkable yogurt market registering a CAGR of 13.6%, during the forecast period. Drinkable yogurt currently holds only 5% of the volume share, which is expected to gain 6,849 million Kg during the forecast period. Innovation in probiotic drinks by incorporating various flavors in convenient pack size is another major factor accelerating the sales. Yakult, Groupe Danone which are the famous drinkable yogurt brand in Asia are expanding its presence in the developed region. Changing dairy product consumption pattern, such as inclination towards cheese from butter in Asia continues to drive the market growth. Mozerella, cream cheese, parmesan and cheddar have a high demand due to increase traction for western cuisine such as pizza. Packaged milk sale accounts for over 70% of the global milk consumption by volume, which is moving at stable growth rate. China constitutes about half of the global urban population that are driving western style food & beverages. Increased urbanization is the further accelerates the milk demand. China, India, UK, and Japan are the key consumers of fresh milk that collectively surpassed 48,900 million Kg in 2017.UHT milk remains a significant category holding a volume share of 23% in the overall milk category. UHT milk sale is growing at a faster rate in developing countries owing to urbanization and increasing ”apartment culture” despite its declining sales in the matured market.
Organic the new Trend
The retail sale of conventional packaged milk observed a considerable decline in past five years which is expected to continue. However, the organic milk is growing at a faster rate. In the US alone, the retail Organic milk sale increased by 22% during 2010-2015, offering new growth in the category. Increased health awareness among consumers is the key driver for organic dairy sale. Organic milk is expected to gain tough competition from dairy alternative, such as almond, coconut milk owing to the healthier composition. Many multinational companies invested in organic milk production are shifting their concentration to other organic dairy products, such as cheese, butter, and powdered milk. Organic Valley, which is the largest farmers Organic cooperative in the US invested USD 16 million in plant expansion to convert organic milk into butter and skim milk powder.