South America Dairy Based Beverages Market - Growth, Trends, and Forecast (2018-2023)
The South American market of dairy based beverages is growing at a fast rate as people are paying more attention to their health. The demand of new flavored and nutrition rich dairy products is gaining popularity as the consumers are shifting to the vegan diet to fulfill their nutrition needs. The market of flavored milk is the major focus for increasing the growth in this sector.
Growing consumer interest in the health benefits of dairy consumption is driving market growth. These products include reduced cholesterol and saturated fat or added nutritive components, such as calcium magnesium, antioxidants, Omega 3, fiber, protein, phytosterol, etc. Health benefits of probiotic drinks especially improvement of digestion and immune system is attracting consumers of all age groups. Another factor driving the growth of the market is rising medical cost, which is forcing the population to go for preventive measures and maintain good health. The availability of dairy alternatives is restraining the dairy based beverage market growth. Key competitors to milk and dairy products now are milk alternatives, such as coconut milk, almond milk, flax milk, and other juices that provide the same health benefits.
South America dairy based beverage market is segmented by type, packaging, and by sales channels. By type the dairy beverage market is segmented into standard white milk, flavored milk, drinking yoghurt, functional milk, and others. Standard white milk holds the highest share in the global dairy beverage market. However, due to rising competition of standard white milk with plant-dairy alternatives, food manufacturers are focusing more on the functional and probiotic drinks, which would offer additional health benefits compared to standard milk. Omega-3, fibers, bioactive compounds, and phytosterol are some of the functional components added to dairy beverage. By packaging type, the dairy based beverage market has been categorized into can, while by sales channel, the dairy- market has been segmented into convenience stores, supermarkets/hypermarkets, mass merchandisers, drug stores, food services/sports nutrition chain vending and others.
Brazil is fastest growing market due to growing health concern issues, increase in disposable income level, rising population are the key issues, which lead to boost the market and holds maximum market share because of high population and growing income of consumers. The South American dairy based beverages market is expected to witness moderate to high growth rate during the forecast period.