Dairy Market is predicted to reach USD ~7,96,817.56 million at a CAGR of 3.48% during the forecast period

Market Research Future (MRFR) has published a cooked research report on the “global Dairy Market” that contains the information from 2022 to 2030.

Dairy Market Highlights

Lactose free dairy products are able to provide essential nutrients to those that are not able to digest lactose found in regular dairy products, such as proteins, vitamins, and minerals This category of products currently has a general and growing appeal for consumer health In recent times, the variety and quality of products in the lactose free dairy segment have increased significantly, providing consumers with more tempting products as per their requirements As a result, lactose free dairy products are now the fastest growing market in the dairy industry

Asia-Pacific is considered the key market globally as it offers excellent growth prospects for the dairy market Rapid economic growth, a rising mid income population, and high migration rates from rural to urban areas have led to an influx of international retailers in Asia Pacific This has encouraged the expansion of existing retail outlets in countries such as India and China, driving the growth of the regional dairy market Online retailing is trending for food products across the region With instant access to catalogs and price lists, customers have a clear idea of the products available, which simplifies purchasing decisions Online retailers are capturing a large portion of the market share from brick and mortar retailers as consumers are increasingly inclined toward online shopping to minimize shopping time.

Market Synopsis

According to the MRFR analysis, the global airy market size is projected to reach USD 7,96,817.56 million by 2030 at a CAGR of 3.48%.

The global dairy market is a perfect competition market. To sustain in the market and expand their presence, manufacturers invest in their R&D activities and technological upgrades. Along with new product developments, market players are also trying to innovate new variants of the existing products. Consumers are highly concerned about the quality of ingredients used in processed food products Increasing health awareness amongst the consumers is propelling manufacturers to launch new variants of dairy products such as lactose free milk, zero trans fat butter, low cholesterol butter, skimmed milk, and organic milk. Food processing companies prefer such variants and use similar claims to promote their products due to increased awareness and health concerns among consumers regarding high fat dairy butter.

Consumer demand for more versatile and convenient dairy products, coupled with the need for extended shelf life, faster production rates, and improved quality, has resulted in significant improvements in liquid milk and dairy processing Many technological developments have been directed towards the unification of operations such as separation, pasteurization, standardization, and packaging, leading to significant advances in automation, mechanization, energy efficiency, hygiene, and quality within the processing plant In particular, extending the shelf life of milk and dairy products without compromising their quality and safety has been a priority for dairy processors. Hence, market players are investing in their R&D activities to launch innovative products, including A 2 milk and flavored milk, to exploit growth opportunities

COVID-19 Impact on Dairy Market

The worldwide lockdown has certainly affected the production of milk and dairy products. The manufacturers are facing production issues to meet the increasing market demand as they have either shut down production to ease employee concerns or are running production understaffed. Procurement of raw materials has also become a cause of concern for manufacturers owing to COVID 19 impact on logistics The manufacturers who are highly dependent on imports of ingredients from other countries are facing a massive challenge in this pandemic situation with no cross border transactions taking place. Moreover, the pandemic driven restrictions have caused feed supply decrease and delays. This has resulted in the reduction of cow weight and, thereby, decreased milk amount. This scenario has also affected the manufacturers financially, and they are strategizing their operations to survive the pandemic with minimal losses.

Despite the challenges, the dairy sector handled the pandemic well with respect to the demand for the product, especially in terms of packed dairy products. The COVID 19 pandemic dramatically affected consumers' dietary habits, thereby boosting the demand of the dairy industry. Lockdowns made consumers spend extended hours in their homes, especially kitchens, thus, leading to a surge in household consumption of dairy products

Competitive Landscape

The key players operating in the global dairy market Nestle SA (Switzerland), Lactalis International (France), Danone S A (France), Fonterra Co Operative Group (New Zealand), Frieslandcampina (Netherlands), Arla Foods (Denmark), Dairy Farmers of America (US), Yili Group (China), Saputo Inc. (Canada), and Mengniu Dairy (China). The market comprises tier 1 tier 2 and local players. The tier 1 and tier 2 players have a global reach along with diverse product portfolios Companies such Nestle SA, Danone SA, Fonterra Co Operative Group, Frieslandcampina and Arla Foods dominate the global market due to brand reputation, product differentiation, financial stability, and diversified regional presence. The key players are taking steps toward business expansions and entering untapped markets, thereby increasing their consumer bases. The international players may strengthen their presence worldwide through acquisitions during the review period

Segmentation

By Product Type

• Milk: Milk is an essential nutrient required by the body for proper functioning and, it is categorized into powder milk and liquid milk. Rising incomes, large vegetarian populations, growing living standards, and consumer health awareness are likely to bolster the segment growth over the forecast period. Most of the market is currently represented by the unorganized sector. However, However, the growth rates of the organized sector are faster than those of the unorganized sector


• Cheese: Cheese refers to a dairy product derived from milk by coagulating the milk protein casein. There are several types of cheese available in the global market. The global cheese segment is growing primarily due to factors such as the increasing consumption of cheese across the globe, the rapid growth of the organized retail sector in emerging economies. However, the growing demand for vegan and plant based cheese is anticipated to create an opportunity for the growth of the global cheese market during the study period.


• Butter: Butter is a dairy product obtained from milk or cream It is a semi solid emulsion processed from the fat and protein content of milk. The growth of the global butter segment is driven by the increasing demand for butter in food processing However, increasing health awareness and surging demand for vegan and plant based butter may hamper the growth of the dairy based butter segment.


• Yoghurt: Yogurt is a food made with milk through bacterial fermentation. These bacteria are known as yogurt cultures and are produced using cultures of Lactobacillus bulgaricus and thermophilic Streptococcus bacteria, which play an important role in fat loss and improve the digestive system's functioning. The flexible nature of yogurts, such as versatility and availability in different forms and flavors, is fueling the segment growth Yogurt


• Dairy Cream: Dairy cream comprises a high fat layer skimmed from the top of the milk before homogenization. In the industrial production process of cream, the separation process of fat globules is accelerated by using centrifugal separators. Depending on the total fat content, the cream is classified into various types such as thick cream, low fat cream, and sour cream. The demand for dairy cream has been increasing at a moderate pace across the globe over the last few years.


• Ice Cream: Ice cream is made by churning and chilling a mixture of high fat milk or cream, fructose or glucose based sweeteners, mainly corn syrup, and flavorings such as vanilla, chocolate, butterscotch, tutti Frutti, mango, black currant, and others. The growing number of specialty stores is a major factor driving the market growth. Additionally, the growth of the organized retail sector is boosting the sales of ice cream in the retail industry.


• Others: Other dairy products include Probiotic drinks, kefir, buttermilk, frozen desserts, and sky. Whey powder shows significant growth owing to its anti bacterial and anti hypertensive properties. Probiotic drinks are functional beverages that help maintain a healthy balance of stomach bacteria, resulting in a variety of health benefits including healthy weight loss, digestion, and immune system function. Consumers are looking for beverages that offer additional benefits beyond thirst quenching.

By Category

• Conventional: Conventional dairies usually come from cows raised on huge factory farms, often called "Concentrated Animal Feeding Operations" or CAFOs Animals are often kept in dirty and cramped conditions, requiring pasteurization These animals are sick and need antibiotics They are injected with growth hormones to make production more efficient. With the advancement of technology, consumers are becoming aware of the harmful effects of conventional milk, which is hampering the segment growth over the forecasted timeframe.


• Organic: Organic dairy products are obtained from organically farmed animals. Compared to traditional dairy products, these products are preservative free and rich in vitamins, antioxidants, conjugated linoleic acid (CLA) and omega 3 fatty acids. Due to the increasing prevalence of chronic diseases and lifestyle diseases, consumers are becoming aware of the effects of consuming synthetic ingredients. As a result, the demand for organic dairy products has increased globally.

By Distribution Channel

• Store-Based: The store based segment has been sub segmented into supermarkets and hypermarkets, convenience stores, specialty stores, and others. The supermarkets and hypermarkets sub segment is expected to be the largest as these channels account for the maximum sales of dairy products. Convenience stores also play a significant role in the distribution of dairy products. Key dairy products manufacturers are expanding their product portfolio, which, in turn, is driving the market growth across the globe. Innovation in flavors of dairy products is one of the main factors expected to boost sales of the products through the store based segment.


• Non Store Based: The non store based segment covers e-commerce, wherein the manufacturers distribute dairy products through various online shopping sites and their websites. Companies face difficulties in reaching consumers in different regions through brick and mortar stores. Thus, e-commerce channels enable companies to cater to the consumers' needs and expand their brand presence.

By Region

• North America: The North America dairy market is driven by the growing consumption of various dairy products such as butter, cheese, and yogurt. The US holds the largest market share in the North America region. According to the report published by the USDA Foreign Agricultural Service in December 2021 the consumption of cheese and butter has witnessed growth over the years However, the consumption of fluid milk has witnessed a declining trend in the past few years.


• Europe: The dairy sector in Europe is the second biggest agricultural sector It represents more than 12 of the total agricultural output in Europe. According to a recent report published by Organization for Economic Cooperation and Development (OECD) in Europe, overall per capita demand for fresh dairy products is stable to declining. Additionally, the growing consumer preference for less processed or healthier foods and potentially increased interest in at home baking are driving the dairy market in the Europe region.


• Asia-Pacific: China is the most significant market for dairy in the Asia Pacific region. It is majorly driven by the increased consumption of dairy products in the country India and Indonesia also hold a significant market share in the region because of the increased population. Moreover, increasing demand for western dairy products such as natural snacks and fermented dairy products such as sour milk and yogurt, along with product packaging innovation, are some of the key factors driving the dairy market growth in the region.


• Rest of the World: The Rest of the World includes South America, the Middle East, and Africa. The majority of sales growth in the region is recorded in Egypt, Saudi Arabia, and Algeria The growth in Saudi Arabia is driven as it is a large contingent of foreign workers, while Algeria has strong macroeconomic performance. In Egypt, the growth is attributed to changing family dynamics where female workforce participation is growing, resulting in a growing demand for convenience foods.