Dairy Products Market: Introduction
Dairy products are the vital part of our lives which includes milk and milk products. Its numerous health considerations are largely attributed for its consumption. Dairy cattle are the true source of omega 3 acids, largely from cows which is considered better for heart and brain developments. The dairy products market is anticipated to witness prominent growth owing to the growing consumption patterns coupled with the rising population at global level. According to the International Dairy Federation, the per capita consumption inclined to 111.3 kgs in 2015 from 106.1 kgs in 2010, globally thereby accelerating the global dairy market.
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The rising demand butter and cheese across the globe is the key driver for the growth of dairy products market. According to USDA, the butter produced in 2014 accounted for more than 10,439 (in 1,000 MT), out of which butter consumed was 8,560 (in 1,000 MT). Butter products accounted for maximum consumption share in proportion to its production followed by butter oil and cheese. Therefore, it is anticipated that the consumption of butter and cheese is likely to increase in the coming years thereby, generating significant revenue in the dairy market. Furthermore, the clean label is a drive by the consumers that are demanding to have originality and transparency amongst the numerous products, particularly dairy products to reduce the synthetic chemicals and artificial ingredients. According to Packaged Facts National Consumer Survey, in 2017, the consumers aged between 18 to 34 years in the U.S. were highly concerned towards dairy milk products, cheese and plant milk including almond milk, coconut milk etc. rising campaigns and awareness towards the betterment of dairy products amongst consumers is one of the key driving factor for the growth of dairy products market
However, numerous un-updated government policies towards changing demands and preferences pertaining to dairy products by policy markers across the regions such as the U.S., India, Bangladesh and others can act as restraining factor for the market. For instance, Margin Protection Program for Dairy (MPPD) in the U.S. was made back during the great depression, however, has not been updated till now which acts as barrier towards new innovations in the dairy market.
By Product Type
On the basis of product type, the market is segmented into cheese, butter, ice-cream & desserts, lactose free milk, yogurt, and others. Lactose free milk is expected to grow at a noticeable CAGR over the coming decade. The rise is mainly attributed to the increasing consumer awareness pertaining to the people’s health, coupled with rise in lactose intolerance among the population of various countries across the globe including India, the U.S., and other European countries. The population in these countries are consuming the dairy products rich in lactase such as fluid milk, cheese etc. As per the study by National Centre for Biotechnology Information (NCBI), lactose intolerance is found among 25% of the European population, along with several people of different countries. The high rate of lactose intolerance amongst population, globally has shifted the consumers preferences towards tofu, soya milk, almond milk, thereby, enhancing the scope of growth for the dairy product market.
By Application Type
Global dairy product market is segmented into bakery and confectionary, frozen food, clinical nutrition, and others. Bakery and confectionary are anticipated to have a major share over the forecast period majorly due to the increasing consumption of dairy products for manufacturing several products such as bread, milk chocolates, and biscuits, which largely consists of cream, milk, butter, etc. In the U.S., there are more than 2800 commercial bakeries generating revenue approximately US$ 30.0 billion along with retail bakeries with the revenue contribution of US$ 3.0 billion in 2017, as per Small Business Development Centre Network in the U.S. As the product demand increases in proportion with the production of bakery products, the dairy products market for bakery products is expected to grow over the projected period.
Asia Pacific is anticipated to be the fastest growing market pertaining to the growing demand for dairy products. According to the OECD FAO estimates, the dairy products, the demand of the Asian milk is perceived to reach to 320 million tons by the end of 2022, which is further expected to rise the milk availability to 40 million tones. Particularly, India is anticipated to be the largest producer of the fluid milk, and the production is estimated to reach 167 million metric tons by the end of 2018, according to Global Agriculture Information Network (GAIN). As milk is the key component of dairy products, the demand for dairy products is also predicted to enhance in this region over the projected period.
The leading market players in the dairy products market include Nestle SA, Amul, Dairy Farmers of America Inc., Krafts Foods, Unilever, Fonterra Group, and Snow Brand Co. Ltd. among several others.
New innovations pertaining to dairy products in the dairy products market is one of the key strategies adopted by the key companies to attract the vast consumer population. To identify the taste buds, and also to meet the changing consumer preferences, Danone developed a program named Nutriplanet, which offers support to local producers to maintain the standards of various milk products. This program also helps the farmers with new farming techniques.
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