The Dairy Products market is expected to grow at a CAGR of 5.2% from 2019 to reach $645.8 billion by 2025. Milk production is one of the most important enterprises in agriculture sector and dairy products are an essential staple food for majority of the population, making a significant contribution to dietary intake and accounting for ~10-15% of household expenditure on food. In coming years, milk products industry is poised to have a positive impact on the global food industry. The factors such as rising populations along with urbanization, changing diets, growing technological advancements in dairy processing, and rising innovation are increasing the demand for dairy and dairy products across the globe.
Rising Population and Urbanization Increases the Demand for Dairy Products
The world population is growing rapidly. For instance, according to the Population Reference Bureau (PRB), the global human population is expected to grow by 75 million annually or with 1.1% per year. With this, the world population is expected to reach 9.9 billion in 2050, an increase of 33% from an estimated 7.4 billion in 2017. As the world’s population grows, demand for the food also increases subsequently. With the increased population density comes increased urbanization, which has typically led to greater personal income and demand for dairy products. The per capita consumption of milk and milk products has seen a remarkable increase, as diets have become richer and more diverse. Milk and milk products not only provide high-value protein, but also important source of a wide range of essential micronutrients. Considering the world’s growing population and increasing demand for high nutritional products, milk and milk products may be considered as a more common source of protein in the future, thereby accelerating the growth of the global dairy products market.
Increase in Consumer Awareness Level Regarding Nutritional Food Supports the Growth of Dairy Products Market
In recent years, rise of nutritional foods has played a key role in healthy habits, due to growing consumer concern about health and the perception that diet directly affects healthiness. With increasing world-population and welfare, the demand for the nutritional food is rising sharply. The high nutrition trend is gaining traction and will continue to evoke interest in the upcoming years. The consumers have become more aware about protein and other nutrient benefits in supporting active lifestyle. Also, there is a growing awareness of the negative health aspect of eating red meat with a growing number of people wish to either minimize or cut animal protein out of their diet altogether. In addition, most of these nutrients present in milk are in the forms that are easily absorbed by the human body. Owing to all these factors, consumers across the globe regularly include milk and milk products into their diet, leading to their high demand and thereby the growth of the global dairy products market.
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Key Findings in the Global Dairy Products Market Study:
Milk Segment Dominates the Global Dairy Products Market
Based on product type, milk segment is emerged as the largest product category of the global dairy products market, as it is the most consumed and marketed dairy product across the globe as well as due to increased production in last two decades and significant improvements in all the unit operations of milk processing. However, cheese segment is expected to witness a significant growth during the forecast period. The rapid growth of this segment is attributed to increasing per capita cheese consumption, declining milk consumption primarily in European countries, rising variety of more natural cheeses, growing westernization in developing countries, and increasing consumption of processed food.
Internet Retailing Distribution Channel to Post the Highest Growth
Based on distribution channel, dairy products market comprises of supermarkets, hypermarkets, discounters, specialty store, online retail, and others. Supermarket commanded commanded the largest share of the global market, as these stores offer one-stop shopping for consumers; a clean, comfortable, and extended opening hours; and much wider selection of household items along with dairy products. However, internet retailing segment is expected to witness a significant growth during the forecast period. The fast growth of this type is mainly attributed to growing of omnichannel retailers and increasing digitalization.
Dairy products are being sold primarily through grocery retailers, especially supermarkets, hypermarkets, and discounters, in most of the countries. Major trends that are currently influencing retailing of milk products include premiumization, health and wellness, and increasing penetration of organized retailing in developing countries, which have resulted in the setting up of a wide number of grocery retail stores.
Asia Pacific: The Fastest Growing Regional Market
The Asia- Pacific dairy products market is developing and expanding at a significant pace. Among other regional markets, Asia Pacific is demonstrating signs of strong growth in the near future. The rapid growth of this market is mainly attributed to huge milk production and promotion by the government and dairy industry for the milk processing; rising population; increasing consumer disposable income; growing foreign investment; increasing demand for western dairy products such as yogurt, sour milk, etc.; rising number of convenience stores, supermarkets, department stores, and hypermarkets; and technological advancements in dairy processing. China is expected to dominate the Asia Pacific market through 2025, mainly due to recent innovations in retail marketing channels, adoption of emerging technologies in dairy industry, collaboration between international and domestic dairy manufacturers, and presence of large number of key players.
Key Players
The report includes competitive landscape based on extensive assessment of the key strategic developments adopted by leading market participants in the industry over the past 5 years. Some of the key players profiled in the global dairy products market research report are Nestle S.A. (Switzerland), Dean Foods Company (U.S.), Fonterra Co-operative Group Limited (New Zealand), Danone S.A. (France), Kraft Heinz Company (U.S.), Saputo Inc. (Canada), Arla Foods amba (Denmark), Megmilk Snow Brand Co., Ltd. (Japan), Royal Friesland Campina N.V. (The Netherlands), Parmalat S.p.A. (Italy), Dairy Farmers of America Inc. (U.S.), SODIAAL (France), Unilever N.V. (Netherlands), Inner Mongolia Yili Industrial Group Co Ltd (China), and China Mengniu Dairy Co., Ltd. (China) among others.
Scope of the Report:
Dairy Products Market by Type
- Milk
- Semi Skimmed Milk
- Whole Milk
- Skim Milk
- Others
- Cheese
- Butter
- Cream
- Yogurt
- Milk Powder
- Desserts
- Others
Dairy Products Market by Distribution Channel
- Supermarket
- Hypermarket
- Discounters
- Specialty Store
- Online Retail
- Others
Dairy Products Market by Geography
- North America
- Europe
- Germany
- France
- U.K.
- Italy
- Spain
- Rest of Europe (RoE)
- Asia-Pacific (APAC)
- China
- Japan
- India
- Rest of APAC (RoAPAC)
- Rest of World
- Latin America
- Middle East and Africa
Key questions answered in the report-
Increasing population and urbanization drive the dairy products market globally
- How the demand for processed milk is differ from other dairy products?
- Which are the high growth market segments in terms of value, products, and regions/countries?
The Asia-Pacific dairy products market favours larger providers that compete in multiple segments
- Who are the top competitors in this market and what strategies do they employ to gain shares?
- Which segments of dairy products market are expected to offer lucrative revenue growth over the forecast period and why?
- What strategies should the new companies focus to enter this market and to compete effectively?
- Who are the major players in various countries and what share of the market do they hold?
- What are the geographic trends and high growth regions/ countries?
Recent partnerships and acquisitions, partnerships and agreements, and investment and expansions have taken place in the dairy products market
- What companies have recently merged/acquired and how will these unions affect the competitive landscape of the dairy products market?
- What companies have created partnerships and how will these partnerships promote a competitive advantage?
- Who are the major players in the global dairy products market and what share of the market do they hold?
- Who are the local emerging players in the global dairy products market and how do they compete with the global players?