Global Dairy Market is projected to grow at a CAGR of 5% to reach USD 703.5 Billion by 2024.
- Global milk output in 2018 is estimated at 843 million tonnes, an increase of 2.2% from 2017, driven by production expansions in India, Turkey, the European Union, Pakistan, the United States of America and Argentina, but partially offset by declines in China and Ukraine, among few others.
- Increasing demand is driven by a growing population, higher income, and more health consciousness. The global market is highly dominated by milk followed by butter, and cheese. Yoghurt and frozen desserts remain the fastest growing market globally.
- Global butter exports expanded by 7.5% in 2018, mainly contributed by countries like New Zealand, the United States of America and India, However, the European Union market for butter has declined.
Scope of the Report
Global Dairy Market is segmented by product types such a Milk, Cheese, Butter, Cream, Yoghurt, Dairy Desserts, Others. The other dairy-based products include sour cream, Quark and fromage frais and by Distribution channel as supermarket/hypermarket, convenience stores, specialist stores, and Geography.
Key Market Trends
Lactose-Free Dairy Driving sales
More than 5% of US population is Lactose Intolerant and more than 10% of Europe and 90% of China population are Lactose intolerant. Lactose intolerant dairy is driving sales in these markets. People perceive products with low levels of lactose and sugar to be better for them. The offer of lactose-free products is now more and more diversified. Products with less lactose content, lactose-free dairies, yoghurts, milk or cheeses, lactose-intolerant consumers have access to a dizzying array of choices on the store shelves. The United States accounts for 29% of all the Lactose-free food consumed around the world. Lactose-free dairy is growing at a CAGR of 7%.
Developing countries contributing to the growth
Dairy product sales in developing countries form a major part contributing more than 50% of global sales. As the western market shows sluggish growth driven by product innovation, developing countries are growing at a higher rate driven by health consciousness. South America is the fastest growing region followed by the Middle East and Africa. Demand for dairy products is growing rapidly worldwide. This has led to the modernization of dairy production in developing countries. Efficient and sustainable dairy production in these countries is playing a large part in feeding the world’s growing population. Many women and children are benefiting from the day-to-day income from milk sales. Modernization also led to much lower greenhouse gas emissions, better milk quality and commercial opportunities for local dairy processing.
Dairy is a ubiquitous part of food life, ever present in both food service and packaged goods, whether as an end product (such as milk or yoghurt) or as a critical input for iconic products such as cheese pizza. Given its intrinsic presence, dairy is a microcosm of the food industry, with the preferences of dairy consumers largely being influenced by the same trends affecting the broader food sector. The dairy market is a very huge market with a lot of companies in play. Due to the dynamic and staple nature of the market, the market is highly competitive and there is much scope for new companies as entry barriers are not so great. Changing consumer behaviour, competition, and trade action have resulted in slow growth for dairy companies. Research into a representative sample of global dairy companies revealed a 3.0% drop in cumulative return on invested capital (ROIC), from around 9.5% in 2008 to 6.5% in 2017.
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